investing faff-please help

Wentthedaywell?

To get back to the question: OP have you looked to see if your local council or housing association will lease your house? They are then responsible for day to day repairs, getting tenants in, covering the cost of when it's empty etc.You get a guaranteed income from them without the hassle.of being a direct landlord.

The_Real_Cheddar_Bob

you could always put the lot into your joint house, lower the mortgage even further.

dunstonh

buglawton wrote: »

There's a Brexit whingers thread elsewhere.

Good job there are no brexit whingers posting on this thread then. Lets hope there are no blind remainers who believe in the land of milk and honey either.

buglawton

dunstonh wrote: »

Good job there are no brexit whingers posting on this thread then. Lets hope there are no blind remainers who believe in the land of milk and honey either.

If John deletes post #30 there won't be.

havingaball74

Hi all,
Well, the house is near to exchange and I am having to decide whether to pull out or not. I am a worrier and the theory is that I would be a worrier as a landlord OR investor! Looking at the figures of BTL I would make £525 PM on a house worth £108,000. (If I got a mortgage out I would need to borrow £45,000 to match my partner's deposit in the new house. That is 42% LTV). That means a potential £300 profit after fees etc (I am a lower rate tax payer). Plus the (possible) capital gains looks really tempting. The other idea is to keep it mortgage free and have a higher mortgage on the second property (just my partner's deposit). It would work that I pay extra to make up for the fact that I haven't contributed to the deposit (this may be too complicated).
The other idea is to continue with the sale (it is days away from completion to a BTL investor) and once I have matched my partner's deposit (we are on a tracker mortgage so we can overpay without penalty) invest the remaining money (65K) in S and S ISAs and my own teacher pension (this is something I am less informed on and seems worse financially as I am a low/medium risk person). Many people look at me like I am mad when I say that I am selling my house especially when the potential BTL mortgage would be so low. I need to make a decision before exchange makes the decision for me! Sorry for rambling.

AnotherJoe

Looks to me as if a BTL would be a poor idea for you as a landlord, you dont seem cut out for it.

If you put it in share type investments you can just leave them, they wont phone you up at 3am complaining the heatings gone off, or refuse to pay the rent, you can shelter them from tax in pensions and ISAs, and using some of the money from the sale, you will end up on a 50/50 basis with your partner in your house, something you've mentioned several times so I presume that this is actually important to you, and in the future wont involve complex calculations to balance out the amounts you pay.

You'll also get an immediate boost of 3% SDLT you dont have to pay extra for having two properties. Thats several thousand pounds immediate gain.

So I advise you carry on with the sale and invest as per your last paragraph.

buglawton

On the other hand, the share market is often more volatile than the property market. Dividends can tend towards zero - it's amazing how many big name shares declare almost no dividend. I can't divine from this thread if OP is 'cut out' for being a landlord, you will never know till you try it.

enthusiasticsaver

BTL can be a nightmare, dodgy tenants, the tax situation etc etc so I would do the same as you and sell up, reduce your mortgage and invest the rest. You could just invest and leave it. A multi asset well diversified portfolio.

Many of us on here are newbie investors. If you are into lazy investing then read up on the Vanguard Lifestrategy funds or Legal and General multi asset funds. Low charges, balanced and you choose a risk profile to suit you. Loads of threads on the forum about them.

enthusiasticsaver

I cannot see how anyone thinks investments are any more risky than property. They both carry risks as does leaving cash in a low rate account languishing whilst inflation erodes the value.

bigfreddiel

Carney was right, things may look good but the economy and the pound will be tanking next year, the only thing on the up is inflation

If only we had listened to all those warnings

fj