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Lump sum... buy property or invest

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I can take a tax free lump sum of approximately £80000 and want to know if it would be better to invest in a holiday apartment that the whole extended family could use or re invest it?

Comments

  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    Depends on about 100 things including your definition of "better"
  • lotto
    lotto Posts: 102 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Better is probably the wrong word! I suppose, I'm thinking along two paths...1. use the tax free money as an investment, enjoying family holidays, or 2. make sure I have money to live on in later life, including the cost of care.
  • dunstonh
    dunstonh Posts: 119,604 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You are asking us about which solution to use but we do not know what the need area is that you are looking to meet.
    . use the tax free money as an investment, enjoying family holidays,

    But taxable, illiquid and no guarantee of growth or income.
    2. make sure I have money to live on in later life, including the cost of care.

    Which is a different objective to number 1.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper
    lotto wrote: »
    Better is probably the wrong word! I suppose, I'm thinking along two paths...1. use the tax free money as an investment, enjoying family holidays, or 2. make sure I have money to live on in later life, including the cost of care.

    Why not invest it and use some of the income for family holidays?
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Broadly it tends to be the case that property purchased for this reason tends to be under-used and that there are lots of really bad deals for things like fractional ownership around that you could get suckered into. Owning also ties you to one place unless you use those scam-ridden plans.

    Alternatively you could invest the money and use the investment income to fund renting places wherever you wish.
  • bigfreddiel
    bigfreddiel Posts: 4,263 Forumite
    If in the uk don't forget extra 3% stamp duty, not to mention, rates, insurance, electricty, water, gas maybe, and all utilities now have a daily charge even if no water, gas or electricity is used.

    I would guess at at least £300/month to keep a holiday or second home, or say £3,600/year.

    Cheers fj
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