Advice please

Chris&BarryH

My husband and I have a buy to let property which is just coming to end of mortgage term.
We are both 60 and I want to sell but not sure what to do with the profit. We can pay off mortgage on our home but would still have about £60k left. Hubby wants to buy property again but I do not.
Is premium bonds a viable option??

pollypenny

Are you downsizing? You'll still need somewhere to live.

missile

Buy to let is not as lucrative as it once was.

If hubby wishes to continue BTL, why incur the cost of selling one to buy another property?

Pollycat

Chris&BarryH wrote: »

My husband and I have a buy to let property which is just coming to end of mortgage term.
We are both 60 and I want to sell but not sure what to do with the profit. We can pay off mortgage on our home but would still have about £60k left. Hubby wants to buy property again but I do not.
Is premium bonds a viable option??

Have you factored in any capital gains tax?

What is the financial benefit (if any) of selling one BTL property and buying another.

margaretclare

Premium bonds: waste of time.

£60K: invest it!

You could have £30K each in a Stocks and Shares ISA.

Farway

margaretclare wrote: »

Premium bonds: waste of time.

£60K: invest it!

You could have £30K each in a Stocks and Shares ISA.

Only touble is the price of shares can, and does, go down, sometimes forever, like Marconi or Lloyds bank shares for instance

At least PBs the capital is safe, and you never know, maybe a steady stream of small wins

jamesperrett

Farway wrote: »

Only touble is the price of shares can, and does, go down, sometimes forever, like Marconi or Lloyds bank shares for instance

That's why most sensible people invest in some kind of fund that spreads the risk over many different shares. While funds may still reduce in value over the short term, they normally have far better returns in the long term. There is a huge choice of funds so it may be better to talk to an independent advisor if you don't have much experience of this sort of investing (or at least read the Investments section of this forum for a while).

margaretclare

jamesperrett wrote: »

That's why most sensible people invest in some kind of fund that spreads the risk over many different shares. While funds may still reduce in value over the short term, they normally have far better returns in the long term. There is a huge choice of funds so it may be better to talk to an independent advisor if you don't have much experience of this sort of investing (or at least read the Investments section of this forum for a while).

Couldn't agree more. I was not advocating investing in individual shares. Unit trusts have been the way to go for many years now, and if I'd invested as little as £20 a month into the first unit trust I ever heard of, back in the 60s, I'd have been an extremely wealthy woman by now. BTL is, of course, a form of investing and you've been doing that. It has never been my bag - too much hassle, being a landlord, too much like hard work. PBs are also not really serious investing. Funds are the way to go, with a wide spread of investments, some UK, some global, it all balances out. I've been doing this for a few years now and I haven't lost, I've gained over time.

Farway

margaretclare wrote: »

Couldn't agree more. I was not advocating investing in individual shares. Unit trusts have been the way to go for many years now, ..... Funds are the way to go, with a wide spread of investments, some UK, some global, it all balances out. I've been doing this for a few years now and I haven't lost, I've gained over time.

Agreed funds of some sort, but look at Investment Trusts instead of Unit Trusts. The costs are lower and are readily traded

I did invest btw, 2001 in Polar Tech and over 10% return over that time and still counting

scotsbob

Farway wrote: »

Only touble is the price of shares can, and does, go down

Yes and the poster is 60 years old.

Keep_pedalling

Why would you sell one buy to let just to buy another one? Chances are you will have a capital gains tax bill to pay on the sale, and you are going to be hit by stamp duty on the new purchase.

Being 60 is no reason to avoid placing at least some of your profit some well diversified funds. Topping up your pensions should be another consideration.