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Buy to let vs Funds 3.3%
Comments
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The yield calculated includes insurance cost and some budget set aside for repairs every year so it's close to a net yield (post tax/insurance/repair).
The management of the property is done by an agency who belongs to someone in my family so no costs to find tenants/keep an eye on the property.
--->>>Are they doing it for free???
Yes, when I say £0 initial investment I meant no need for an initial deposit, sorry for the confusion.
The fact that I don't need to bring any cash upfront and having it managed by a family member seems quite interesting but I'm still skeptical if this is a good investment vs long-term investing in the market.
It really doesn't help when you drip feed key information as if its gold and should be hoarded.
You are probably looking at that as a positive. I'll put a different spin on it.
You've got the possibility of a family member doing it badly but you cant criticise without a family rift, you perhaps cant even ask innocent questions "how come the plumber cost that much?" without causing offense, it would be really difficult to switch agents if you were unhappy with them, all in all much harder to have a professional relationship, even if its all going well you might want or need to to get out but that could be awkward for the family member.
Just guessing but by chance has a family member come to you proactively and suggested this is a great deal? Maybe you even feel partially obliged to invest in it because of that family connection, it would be awkward to say no?
On the whole, family and investments dont mix well. I've got lots of funds and shares. If i decide to sell say my Apple shares I dont affend anyone, but if I owned Chateaux Le-Terraced-House and wanted to sell, maybe Uncle Hugo would throw a wobbler and have a word with my mother about my terrible decision and how he's left with a property he cant let out?
I wouldn't touch this with someone else's bargepole. Just tell them that you dont think you should mix family and money and leave it at that.0
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