Inheritance - What to do ?

thefd

Hi

I am in the process of inheriting £50,000 cash and a house following the death of my father ...

I am looking for suggestions on investment I have no debts and the house needs about £5-£10k to modernise it for rental but would sell for £55k as we speak, rental would be about £350 per month

House is in a run down area and I would prefer to sell but am struggling to see what other return options are in the market place.

Thanks

AnotherJoe

thefd wrote: »

Hi

I am in the process of inheriting £50,000 cash and a house following the death of my father ...

I am looking for suggestions on investment I have no debts and the house needs about £5-£10k to modernise it for rental but would sell for £55k as we speak, rental would be about £350 per month

House is in a run down area and I would prefer to sell but am struggling to see what other return options are in the market place.

Thanks

Investments in stock market funds inside an ISA
Money into your pension getting the tax benefits
Money in a range of higher interest bank accounts

If you did want to become a landlord with all the issues that involved, would this particular house be the one you'd choose? If not (and it seems unlikely a house effectively picked at random would be) sell it and choose a place in an area and a style (perhaps a flat for example) that is better suited to letting.

kidmugsy

Consider selling the house and trading up your own owner-occupied house: better location, more space, whatever. The tax treatment for owner occupiers is a wonderful deal and seems likely to remain so.

mike88

kidmugsy wrote: »

The tax treatment for owner occupiers is a wonderful deal and seems likely to remain so.

Please elaborate.

kidmugsy

mike88 wrote: »

Please elaborate.

No CGT, no income tax on imputed rent, favourable treatment for inheritance tax. Moreover, council tax is much less than property taxes in some other jurisdictions.