How would you invest £1,000,000 for income?

chucknorris

Mr_Dudley wrote: »

Hi - back to Furnished Holiday Lets. You have to be really careful about what you buy and where. Ideally you want year round interest. Buying one on a surfing beach will a) be seasonal and b) will encourage lots of 20 somethings who may trash the place.

I have focused on the hiking market. It tends to be older more sensible people and it's just about all year round. Also it's becoming v popular for the newly retired and with the retirement of the baby boom generation this market should grow. As a result we have bought in one of the national parks adjacent to great walking country.

All the best - Mr D

Thanks, we are definitely on the same wave length we too are thinking about hiking and cycling/mountain biking friendly cottages. Although I confess the 20 something numbers trashing the place had not ocurred to us.

mike88

Chuck Norris.................If 8 properties have been sold already then the CGT bill will be horrendous.

Mr Dudley............If a house in Devon is retained and a property in Surrey is to be sold then there is a danger HMRC might attempt to claim that the Devon property is your PPR and might try and levy CGT on the Surrey property. As somebody who has experience in this area I remain unconvinced that we have the full story here. You might need some tax advice.

Another point....if an income of £16k (£10k after tax )is already being received from the Devon rental then only £50k is required from the pension and £1m in cash.

Somebody above mentioned the Motley Fool. They are obsessed over there with high yielding shares. Be careful - a lot of people have lost a lot of money following their strategy including a poster on here. ITs as suggested might be a better approach but be careful remembering that in the present financial climate any equity investments are risky. A drip feed approach might be required.