Default Expat - what to do with proceeds from Sale of London property

Cintrapark

I'm a UK expat with no plans to return to the UK anytime soon.

I've made the decision to sell my London property as the rental yield is fairly low and I don't see myself able to repay the capital anytime soon. The mortgage is 225,000 and the flat is worth around 375,00. I have also purchased a property where I'm currently living and have a mortgage.

Once I sell the property I need to consider what to do with the proceeds. My current line of thought is to invest it with a wealth management company such as SJP. I want to be in a position whereby I receive income from the proceeds - albeit small at first. I've heard that ETFs are a good way to go although I don't have much knowledge about the stock market and would prefer to leave it to a professional.

I am 38, have dual nationality and am currently living in Tel Aviv. I don't plan to return to the UK. I work for a local company, have a full pension and have an emergency fund of around £10,000. I have zero debt and would say I'm in a fairly healthy financial situation.

Any ideas?

Thanks.

colsten

You aren't saying where you live now, whether you have dual nationality, whether you have access to a permanent UK address, how much your mortgage is, how old you are, what your emergency fund is, what your overall financial obligations are, what "not any time soon" means", whether you have a pension etc etc etc so it is hard to comment.

Suffice to say, if you live in the EU, you might want to investigate your options in the event of a Brexit. There could be serious implications down the line if that happened.

SJP are generally one of the most expensive companies to use for investments. Whether they deal with expats is not a question I can answer but most expats are probably best advised to use an offshore company.

It sounds as if you will be left with around £150K after the sale. This sounds a fair sum on the face of it and it might be a lot or not much, depending on your circumstances. One possible immediate place for the money could be your mortgage, but see above, in the absence of details about your circumstances and requirements it's pretty much impossible to suggest what your real considerations and options could or should be.

Cintrapark

I am 38, have dual nationality and am currently living in Tel Aviv. I don't plan to return to the UK. I work for a local company, have a full pension and have an emergency fund of around £10,000. I have zero debt and would say I'm in a fairly healthy financial situation.

atush

If you dont EVER plan to return to the uK just take the money with you to your country of residence and invest it there.

if you think you might return at some point, buy a flat outside of london and rent it- university town area, near a hospital etc. This will insure you have capital keeping place with UK house prices.

Cintrapark

Thanks atush.

Thrugelmir

Cintrapark wrote: »

I have also purchased a property where I'm currently living and have a mortgage.

Then you have some debt that could be repaid.

Cintrapark

You're right, Thrugelmir, and I have considered that. However, I wondered if there was any point paying off the mortgage in full when I'm still able to pay the monthly contributions with my current salary.

Porcupine

Cintrapark wrote: »

You're right, Thrugelmir, and I have considered that. However, I wondered if there was any point paying off the mortgage in full when I'm still able to pay the monthly contributions with my current salary.

That really depends on the interest rate on the mortgage and what kind of return you reckon you could get by investing the money elsewhere. Plus probably exchange rates and local inflation thrown into the mix.

Eco_Miser

Cintrapark wrote: »

However, I wondered if there was any point paying off the mortgage in full when I'm still able to pay the monthly contributions with my current salary.

Yes, there is a point: you save all future interest payments.

Now ask: Is borrowing money at my mortgage rate to invest elsewhere worthwhile? because that's what you're doing if you don't pay off the mortgage.

Cintrapark

Eco_Miser wrote: »

Yes, there is a point: you save all future interest payments.

Now ask: Is borrowing money at my mortgage rate to invest elsewhere worthwhile? because that's what you're doing if you don't pay off the mortgage.

Very good point although i thought it would be a nice way of diversifying and keeping money, albeit invested, in the UK.