What to do with £50k

cashbackproblems

da_rule wrote: »

RICS have predicted a 3% rise in property prices this year and they were pretty much bang on with the 6% they predicted for 2016, even with Brexit and everything else that happened last year.

As the OP would be buying without a mortgage, the changes to mortgage relief won't effect them. SDLT would be payable at 3%, so that's £1,500 assuming the OP spends the whole £50k.

Investing in property isn't a short term investment (unless you're buying a shell, renovating it and selling it on). Yes there are risks with tenants, but you can mitigate these by using a decent agent (yes there are some out there) and ensuring that you have the relevant insurances.

buying a house for under 50k anywhere in the UK will be somewhere with not much of a local economy and thus no demand for rental properties, my friend bought a few in liverpool in the 50-80k range and has had a host of problems due to having to accept DSS/council tenants and also bought in cash but the 5% return he gets would have been less stress free in a S+S ISA. And in those areas you don't get much capital appreciation. I have almost 50k in my S+S ISA and am up 20% investing in EM and trackers, not necessary will repeated

Numerous forecasts from those without vested interests (like RICS) have indicated either a 1% increase e.g. Savills or falls, due to falling transactions as expected the market will remain flat ultimately pushing final prices down.

http://uk.businessinsider.com/times-survey-londons-property-bubble-will-finally-burst-in-2017-2016-12

stormbreaker

We have recently had a global financial company invest some of our money in stocks and shares isas. Because it's global, when some country's are having financial slumps, other country's are gaining.

Eco_Miser

da_rule wrote: »

Yes there are risks with tenants, but you can mitigate these by using a decent agent (yes there are some out there) and ensuring that you have the relevant insurances.

The house next door to yours gets a bad tenant, and nobody will even consider taking yours. You can't insure against that. I've seen one bad tenant clear a whole street. That street no longer has any buildings on it.

cashbackproblems

haha what a statement to make…a "good agent" has no control over the tenant, plus the issue is in very cheap areas you tenants will be DSS!!