How to make the most

DrSyn

In the top right hand search box, type in what you are interested in. Something you could use might turn up.

https://www.citizensadvice.org.uk/consumer/

kidmugsy

I'm afraid the BTL idea sounds like a stinker to me. The wonderful tax deal on housing is for owner-occupied, not for BTL. Anyway a future government, especially if it's Trotskyist, is going to be attacking BTL both in terms of confiscating some of the property rights of landlords and, in all probability, in terms of some sort of wealth tax. The latter would probably depress house prices which might affect even people with far too little wealth to be exposed to the tax themselves. And there's always a possibility that a wealth tax would consist partly of a replacement for Council Tax, in which case presumably most property-owners will be hit (especially BTL owners, I dare say).

Moreover plunging all his capital into a single, undiversified investment is a reckless idea, whatever that investment is. If he must, the best idea here has been Alexland's suggestion of a leasehold property, though that system is foreign to me and I suspect that I would myself be uncomfortable with it. (They order these matters better in Scotland; but then you would, on Alexland's hypothesis, actually want to use the English leasehold lunacy, as I think of it.)

Added to which, going into a risky business with a friend can be a Royal Road to losing both capital and friend. I'd steer clear.

One question - he is still earning is he?

Albermarle

One key point when investing money is to diverisify/ never put your eggs in one basket.
So even if this BTL'opportunity ' is still attractive after the comments above then it would still be mad to invest the whole windfall in it . Max 50% or preferably less.

Wildsound

I agree with others, stay clear of BTL.

Watching Homes Under the Hammer and Grand Designs might look like a fun and entertaining way to make money, but I can assure you, it most certainly isn't.

If you're looking for a long term investment, then just regular investments in a pension/ISA/platform with an alignment of you/your friends risk profile is always the best place to start. It's a lot easier, should return over the long term and with a lot less hassle.

TerryC3

kidmugsy wrote: »

I'm afraid the BTL idea sounds like a stinker to me. The wonderful tax deal on housing is for owner-occupied, not for BTL. Anyway a future government, especially if it's Trotskyist, is going to be attacking BTL both in terms of confiscating some of the property rights of landlords and, in all probability, in terms of some sort of wealth tax. The latter would probably depress house prices which might affect even people with far too little wealth to be exposed to the tax themselves. And there's always a possibility that a wealth tax would consist partly of a replacement for Council Tax, in which case presumably most property-owners will be hit (especially BTL owners, I dare say).

Moreover plunging all his capital into a single, undiversified investment is a reckless idea, whatever that investment is. If he must, the best idea here has been Alexland's suggestion of a leasehold property, though that system is foreign to me and I suspect that I would myself be uncomfortable with it. (They order these matters better in Scotland; but then you would, on Alexland's hypothesis, actually want to use the English leasehold lunacy, as I think of it.)

Added to which, going into a risky business with a friend can be a Royal Road to losing both capital and friend. I'd steer clear.

One question - he is still earning is he?

Thanks for the feedback! He is still earning but only works part time, so he will be eating into this fund every month to cover his costs. This is the reason I've come on here as I don't want this pot of money so to speak to just gradually go down every month until it's completely gone - I want him to do something worthwhile with it.

TerryC3

Wildsound wrote: »

I agree with others, stay clear of BTL.

Watching Homes Under the Hammer and Grand Designs might look like a fun and entertaining way to make money, but I can assure you, it most certainly isn't.

If you're looking for a long term investment, then just regular investments in a pension/ISA/platform with an alignment of you/your friends risk profile is always the best place to start. It's a lot easier, should return over the long term and with a lot less hassle.

Thanks for this! Would you have any links/useful info on this sort of thing I could look at?

Re BTL - initial investment would probably be around 15-20% of his total fund, so definitely nowhere near the whole fund - that would just be reckless I agree.

TerryC3

Katiehound wrote: »

I think it would help folk to give you some advice if they knew the ball park figure- 'coming into a bit of money' could be anything from £5k to- the sky's the limit!

There are plenty of bank accounts where money could be earning 'a little something extra' but the interest is on small amounts and generally requires juggling with DDs and the like.

If he is only going to get a state pension that would be somewhere I would think to start- IMHO

Thanks Katie! Ball park figure would be around £80-100k I believe.

Wildsound

TerryC3 wrote: »

Thanks for this! Would you have any links/useful info on this sort of thing I could look at?

https://www.moneysavingexpert.com/investments/

I would start here and then read into some other threads in this sub-forum. The usual advice is to find a well diversified, low cost, multi-asset fund on a cheap platform, which matches your attitude to risk and with a view to remain invested for 5+ ideally 10+ years.

TerryC3

Thanks a lot Wildsound for all your advice!
What are peoples thoughts on companies such as 'wealthify' and 'nutmeg'?
This seems like an option as it will be fully managed (less work for my friend) and if he leaves the money in there for 10+ years then he should make some more back with minimal risk.

AnotherJoe

ANother one saying this is an absolutely terrible idea. Highly risky, potentially high stress whatever the word are about this other person taking the load and more to the point, very illiquid. Suppose he wants his money out for some reason, that involvess getting his partner to sell up, which even if they want to, Will be a process that takes months.
Plus returns of BTL are generally low.
Steer well clear