£100,000+ inheritance

teddysmum

What about upgrading to a nicer property then down grading , later, when you need less space/don't want so much to upkeep ?

bigfreddiel

Stuart788 wrote: »

I am going to say something most people won't like but the more expensive the property the better the tenant and the less likely there is for something to go wrong. Get a good, two bedroom property and aim for rent of £750+ and you won't go far wrong.

Complete cobblers, I rented a fantastic property for £950/month ten years ago. Tenant checks where done by the managing agent, inspections apparently carried out, property trashed two years later.

Cheers fj

Gadfium

Dab wrote: »

I have inherited just over £100K and need advice as to how I might invest this.
I will use some towards house improvements and maybe even a loft extension but there will be a large some to invest.
I would rather not invest in stocks and shares, or anything too risky.
I am 50 years old and have a work pension.
I should be grateful for any help ;:)

No-one on this board can offer advice- that's the preserve of registered IFAs.
To get an opinion you'd really have to give more information to be honest. Is your pension going to suit your needs? When will you want access to the money? Expectations of growth?
In short, it could be worth seeking professional advice for an amount of this size. Yes, it will cost a few quid, but it could be well worth it.

Eco_Miser

Dab wrote: »

I would rather not invest in stocks and shares, or anything too risky.

Stocks and shares (two names for the same thing, really) are about the least risky thing you can invest in, at least when in the form of a collective investment (fund) which spreads your risk over hundreds or thousands of different businesses. Have a read of the articles on Monevator.

Credit-Crunched

Stuart788 wrote: »

I am going to say something most people won't like but the more expensive the property the better the tenant and the less likely there is for something to go wrong. Get a good, two bedroom property and aim for rent of £750+ and you won't go far wrong.

Other than.

- Having to complete self assessments on a yearly basis
- Having to find tennants
- Land Lord Insurance
- Possibility of vacant periods
- Possibility of non paying tenants and ensuing legal proceedings
- Possiblity of falling house values
- Possibility of damage to property
- Need to bring property up to minimum legal requirements to let

With the greatest respect, if you are asking a website forum how to invest £100k, I am not sure you would be able to manage the above.

kidmugsy

Property for letting may be too risky for you: you would probably buy only one, so then your money would be in something illiquid, undiversified, and indivisible.

You'd be in a market where you'd have no competitive advantage unless you have some trade skills, or legal skills, or some unusual but good source of tenants.

Anyway, the tax upheavals may imply declining property prices for a few years; you can always rethink the issue in 2020.

teddysmum may be onto something; the real tax advantage in property accrues to owner-occupied property.

jimjames

Eco_Miser wrote: »

Stocks and shares (two names for the same thing, really) are about the least risky thing you can invest in, at least when in the form of a collective investment (fund) which spreads your risk over hundreds or thousands of different businesses. Have a read of the articles on Monevator.

Totally agree. It's when someone says they won't invest because it's too risky that it tends to show they've not looked into it properly and understood risk.