Lump sum... buy property or invest

lotto

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?

AnotherJoe

Depends on about 100 things including your definition of "better"

lotto

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

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.

bigadaj

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

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

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