Critical Friends Required

I_have_spoken

Am I failing to take account of something so obvious or might it be worthy of consideration?

Loads of things!

Preferential tax treatment of capital gains on property vs. shares
Ability to add value to a house with 'sweat equity'
Can't make a rental to your liking, as it's not yours
A S.21 could drop onto the doormat and you'll be hunting for another place after 6/12 months
A house is an asset a widow can live in, if you keel over

Dan-Dan

I_have_spoken wrote: »

Loads of things!

Preferential tax treatment of capital gains on property vs. shares
Ability to add value to a house with 'sweat equity'
Can't make a rental to your liking, as it's not yours
A S.21 could drop onto the doormat and you'll be hunting for another place after 6/12 months
A house is an asset a widow can live in, if you keel over

All the answers required , in one post
Give up a fully owned house , to rent someone elses , whilst counting on your money (all your money!) performing well enough in todays volatile financial sector

It sounds like your partner is obviously the brains of the outfit

QTPie

I know someone (incredibly knowledgeable financially and rather well off because of it) who believes that there are much better ways of investing money than property. He doesn't own, he rents instead (his monthly rent is a 5 figure London rent). HOWEVER he is very experienced in finance and knows how to invest (maximising income whilst minimisng risks).

I think that this is too risky for someone who doesn't really know what they are doing and isn't something that I would do personally.

So in theory you are correct, but it is a very risky business.

Tancred

barcaospre wrote: »

Hi Guys, We have owned our house for a number of years and are now in the process of selling. My partner thinks its straight forward. We sell. We buy. As normal.
What I am proposing is we sell and invest the equity responsibly. I calculate that our investment returns should cover the rent we need to pay for a modest rental property.
My wife objects on the ground that we are 'throwing our money down the rental drain". I take the view it is money we would never have had if we simply purchased another house.
Of course there is a risk to investments but I feel we should be able to manage that. Am I failing to take account of something so obvious or might it be worthy of consideration?
Your views will be gratefully received.

Why go for the risky and complicated instead of the simple and obvious? The house itself is an investment, so I don't really understand your rationale.

Lord_Baltimore

You seem to be treating your wife like a doormat whilst you entertain fanciful ideas of billionnairedom. She clearly wants a home of her own and that is entirely natural and sensible.

If you must gamble, don't gamble all your assets. Better still, don't gamble hers.

barcaospre

The reason I submitted my thread was because I knew there were people out there who would offer good and impartial advice. That's exactly what I received. Thank you all for those who have taken the trouble to reply. Not for the first time in our relationship my wife appears to be right......again!!

Cheers guys

geoffky

All booms bust...Never forget it.