Buy to let. Good idea at the moment?

PWFZ12

Hi... I'm just your average guy on the street that's recently come into a lump sum of money and I'm trying to think of the best way to manage it. I'm not particularly interested in taking risks with stocks and shares.

I'm thinking of buying a second house outright and letting it through an estate agent. I appreciate there'll be fees involved with an agent but I'm happy with that.

I'm thinking I'll benefit from the regular rental income (assuming someone rents the property) on top of owning property that will likely increase in value over time.

But before I take the plunge I'm wondering if anyone has any advice to suggest otherwise or to tell me this could be a bad idea.

As I mentioned, I'm absolutely willing to accept that the property may well remain empty at times and I'll have to foot utility bills etc during that period.

THANKS

le_loup

PWFZ12 wrote: »

I'm not particularly interested in taking risks with stocks and shares.
I'm thinking of buying a second house outright and letting it

Risk. An easy word but a very difficult concept and the two statements above are entirely incompatible until you understand what risk is.
I suggest you do some reading.

fun4everyone

The tax benefits have been clamped down on and the stamp duty increased so it's nowhere near as lucrative as it once was. You will forever be worried about what tenants are doing to your purchase or even if worse things could happen like a gas explosion. You can invest in property and take income through other methods than owning directly.

If it remains empty for a lengthy period you also start to have insurance problems among the other issues.

That said, it IS still doable for a profit and it could be right for you but it's not like it was decades ago. Look into alternatives for your money then come to a considered decision.

eskbanker

PWFZ12 wrote: »

Hi... I'm just your average guy on the street that's recently come into a lump sum of money and I'm trying to think of the best way to manage it. I'm not particularly interested in taking risks with stocks and shares.

On what basis have you concluded that a buy-to-let represents better capital growth prospects and lower risk than more mainstream investment activities and products?

Brynsam

Useful reading: https://www.zoopla.co.uk/discover/buying/buy-to-let-guide/#g5VrB1hxyGMpoTYX.97

PWFZ12

Please.. I am more than happy to accept that buy to let may not be the best idea.

The main thing here is I've got £300,000 and I don't know what to do with it.

I don't particulalry want to get involved in arguments on why I think it might be best to buy to let or not becuase the simple answer is I DON'T KNOW!

This has all happened rather unexpectedly but I'm very aware that I don't want to just blow it all. Hence my contact with this forum.

Thanks again.

ffacoffipawb

PWFZ12 wrote: »

Please.. I am more than happy to accept that buy to let may not be the best idea.

The main thing here is I've got £300,000 and I don't know what to do with it.

I don't particulalry want to get involved in arguments on why I think it might be best to buy to let or not becuase the simple answer is I DON'T KNOW!

This has all happened rather unexpectedly but I'm very aware that I don't want to just blow it all. Hence my contact with this forum.

Thanks again.

Pick 15 income investment trusts or funds and stick £20,000 in each one. Sit back and enjoy £1,000 a month income. Move them into ISAs over the next 15 years.

Do you have a pension?

PWFZ12

ffacoffipawb yes I've had a pension fund since my early 20s (I'm now 48).

Could you suggest a starting point for your tempting suggestion?

Thanks

Dox

PWFZ12 wrote: »

Please.. I am more than happy to accept that buy to let may not be the best idea.

The main thing here is I've got £300,000 and I don't know what to do with it.

I don't particulalry want to get involved in arguments on why I think it might be best to buy to let or not becuase the simple answer is I DON'T KNOW!

This has all happened rather unexpectedly but I'm very aware that I don't want to just blow it all. Hence my contact with this forum.

Thanks again.

Why not invest some of it in properly qualified and regulated advice, based on a full understanding of all your circumstances and aspirations?

kidmugsy

If you do decide to go ahead consider setting up a company to do it. Then it could buy, say, two properties with 50% mortgages. That's one way to spread risk a bit.

DennisTenus

ffacoffipawb wrote: »

Pick 15 income investment trusts or funds and stick £20,000 in each one. Sit back and enjoy £1,000 a month income. Move them into ISAs over the next 15 years.

Is it really that simple and likely to get that much income per 20K???! :eek: