buy to let investment

lassfarfromhome

Something else to consider is the amount of time buying a BTL would take, as compared to just putting the money into some sort of index fund (UK property, global index, whatever). I know you say you would get it managed but you would still need to find the property, buy it, set up the management, etc so there would be ongoing admin. Whereas if you put it in a fund, that's pretty much it, job done. Then you would need to get it referred every so often etc.

Then there's the tax situation as mentioned above, increasingly a hostile environment towards BTL landlords.

Also, since you would already live in London and own your home there, plus presumably work there, if you bought another London property that would leave you very exposed to London at a time when its fortunes are very uncertain. Diversification is your friend.

lassfarfromhome

*refurbed, not referred!

StarSky

sixpence. wrote: »

Hello

I live in London and am a homeowner. I am in the forunate postion where I am set to be gifted approx 600k and want to buy an an appartment to rent out. I'm a little nervous about this, although it doesn't seem too complicated. Do any private landlords have advice on the best way to do this?

I am thinking it would be best to buy within my borough or atleast near by as it'll be easier to manage. Does that make sense?

I am going to use a property managing service, I think, because I don't especailly want to do a lot of the hands on work (I have enough on plate right now and don't think I know enough to do it anyway, better to trust a professional).

I am willing to read up on this if people can share any links/resources. Or anyone can recommend any books?

Thanks a lot :j

- Run the numbers
- I would never tie up all my 'liquidity' into one investment
- with that level of cash, i'd opt for stocks/bonds instead personally (not financial advice!)
- take a look at 'ETFs'

Fatbritabroad

There are useful podcasts out there to get a balanced view on property. See 'property hub' and property insider both excellent well balanced podcasts about the good and the bad in property

sixpence.

Yeah these have been such great thinking points tbh. Especially the time and STRESS it bloody takes to buy a flat. Mine took months to sort and then the seller delayed on completion.

It just feels CRAZY to invest 700-900k in funds. I don't know why because people obviously do it... None of the property income funds look very good but I guess you need to put some of that in property cos it's a lot to invest and you want to diversify...

AnotherJoe

sixpence. wrote: »

Yeah these have been such great thinking points tbh. Especially the time and STRESS it bloody takes to buy a flat. Mine took months to sort and then the seller delayed on completion.

It just feels CRAZY to invest 700-900k in funds. I don't know why because people obviously do it... None of the property income funds look very good but I guess you need to put some of that in property cos it's a lot to invest and you want to diversify...

Very few invest that in one go so thats probably part of it. Many will, over a lifetime, accumulate that much, or at least lets say, equivalent value to that of their home. But because its in a pension, they get a statement just once a year and chuck it in a drawer probably not even looking at it.

Whereas, and i cant recall who said it, no one stands outside your house all day shouting what that price is every few minutes (I hope). If they did a lot of people in London would bea bit worried at the moment, But that's sort of what happens with funds.

If people bought funds and didnt look at the price for 3,4,5 years they would probably be more sanguine about price fluctautions the same way as most dont look up the price of their house every day.

sixpence.

AnotherJoe wrote: »

Very few invest that in one go so thats probably part of it. Many will, over a lifetime, accumulate that much, or at least lets say, equivalent value to that of their home. But because its in a pension, they get a statement just once a year and chuck it in a drawer probably not even looking at it.

Whereas, and i cant recall who said it, no one stands outside your house all day shouting what that price is every few minutes (I hope). If they did a lot of people in London would bea bit worried at the moment, But that's sort of what happens with funds.

If people bought funds and didnt look at the price for 3,4,5 years they would probably be more sanguine about price fluctautions the same way as most dont look up the price of their house every day.

I agree with rich dad poor dads sentiment that your house is not an investment... to a degree, because you just live in the damn thing.

Yes it is probably best to speak to a (or maybe a few) IFAs in order to get some insight into this. Mrs Z was quite right. there is no point in rushing!

Reed_Richards

sixpence. wrote: »

It just feels CRAZY to invest 700-900k in funds. ...you want to diversify...

Funds will suffer badly in the event of a stock market crash. Property will suffer badly in the event of a fatal epidemic. Wikipedia reckons that the 1918/19 Spanish Flu pandemic killed 3% to 6% of the entire global population.

sixpence.

Reed_Richards wrote: »

Funds will suffer badly in the event of a stock market crash. Property will suffer badly in the event of a fatal epidemic. Wikipedia reckons that the 1918/19 Spanish Flu pandemic killed 3% to 6% of the entire global population.

What a non-sequitur

Reed_Richards

sixpence. wrote: »

What a non-sequitur

Stock market crashes have been occurring a lot more frequently than pandemics but if you invest in property you should not, in my opinion, discount the possibility that one will happen..