income and growth from property

jayrodge

I've got about £500,000 which I want to invest in property for both growth and an income top up, but I dont want to be cash broke either what is the best way to go about it and make the most out of the £500,000 ?

Any advice will be appreciated

Running_Horse

Give it to me. It'll be safer than property.

googler

Do you think if you buy (say) 5 rentable flats at £100,000 each, that they'll grow in value anytime soon? Where in the country are you thinking of buying?

Have you done your research on what your obligations and responsibilities as a landlord will be?

You'l have to treat it as a businesss, not a hobby, so - do you have a business plan? Do you know anyone who has done this already who could mentor you or act as an advisor?

I know you came here to ask, but I'm curious as to why you think now is a good time to invest in property.

bdl1brick

You could just buy one property in a highly rent-able part of London somewhere fairly central probably a newish build flat which is well built and maintained. Try places like London Bridge/Borough and Vauxhall which still have some potential to improve. That way it will be easy to rent out for a good price with no void periods. This will be the easy option and you should get a rent of upto £2000pm, this will be subject to fees and tax obviously.

The less easy option would be to use the money as deposits for a couple of places so getting mortgages on each property for say 60% of the value. Perhaps different types of places in different areas around London and the South East, check with local agents what are the best places to rent.

missile

It is still possible to make good returns on property, but it is not easy and there are many pitfalls for the newbie BTL investor.

It is not easy to accumulate £500K but it would be very easy to loose it. I would suggest do not be greedy, look to maintain the value of your nest egg.