Early-retirement wannabe

jamesd

Did you know that by putting around 10k of that 65k into P2P you might roughly double the total amount of interest you make on the whole 65k? 10% or so after likely bad debt is readily available from P2P at places like Ablrate and MoneyThing with raw rates in the 10-16% range.

stephennt

I'm not a property expert by any means, but to me that looks like quite a low rental yield from your property?

atush

I agree, you could get a better yield in tax protected accounts like pensions and S&S isas.

AS that low yield is also taxed for both income and the property for gains.

Techno

stephennt wrote: »

I'm not a property expert by any means, but to me that looks like quite a low rental yield from your property?

Won't it be half of the total as the OP shares with sibling

atush

yes, but the yield is low (esp after tax) for 110K which is their equity in the property.

bones1958

Thanks for comments so far.

Should maybe clarify re the rental property. It's rented out for £750 pm and after some landlord expenses and factor expenses, nets myself and sister £325 pm each. Think that's what you've assumed from your comments. Is that a yield of approx 3%?

Would I be better off selling the property and finding an alternative means of investing my £110k share?

bones1958

jamesd wrote: »

Did you know that by putting around 10k of that 65k into P2P you might roughly double the total amount of interest you make on the whole 65k? 10% or so after likely bad debt is readily available from P2P at places like Ablrate and MoneyThing with raw rates in the 10-16% range.

I take it there is an element of higher risk with this type of investment?

Investing money for higher rate of return has not been an option open to me over the years. Maybe the 'working for a bank' effect has made me more risk averse and taking a risk fills me with apprehension, rightly or wrongly. I prefer to take a safer more or less guaranteed approach. Should I stick with thinking this way or take a punt?

Stirfry

At just under 3.5% it seems a bit low, but remember they have not had to pay fees to buy the Property, and they get to hold on to the Family home for a bit longer.

We moved from our Family home in September, the proceeds from the sale and an earlier Inheritance sit languishing in long term fixed savings accounts paying between 1 and 3% interest. We are considering Buy to Let as an income/investment. jamesd makes a convincing argument about P2P but we are totally risk adverse, I suppose it is being comfortable with what you know and understand.

Stirfry

I should add I also worked for a Bank. How do we get over being risk adverse?

bones1958

Stirfry wrote: »

I should add I also worked for a Bank. How do we get over being risk adverse?

LOL!!
That's a whole new thread required.:rotfl: