Potential venture into the property market

steampowered

BTL and premium bonds are a strange investment combination.

BTL is high risk because it is not diversified. The fact that you want to borrow most of the money (the mortgage has to be paid even if the tenant doesn't) and the fact that you want to buy at auction makes it "ultra" high risk. It could be very profitable, or it could be a complete disaster.

Premium bonds are ultra low risk, and come with corresponding low returns on capital.

Its a bit odd to have "ultra high risk" and "ultra low risk" together.

Rather than going with extremes, perhaps you are better off with an investment portfolio which tolerates a reasonable level of risk in exchange for good returns.

Assuming you are investing for the long term, I don't think you would do badly to put your money into a stocks & shares ISA (tax efficient) with a low cost fund such as a Vanguard fund.

You should also put some numbers into a pensions calculator to estimate how much you might get on retirement based on your current pension contributions. You might want to increase this substantially to get the tax relief.

Reed_Richards

MoneySaverMick wrote: »

....I'll likely buy at an auction before doing a lot of the work myself...

Many investments take a bit of time and effort to research and monitor. What you are proposing is more like a second job, at least initially, in doing up the house you buy. A fair few people make money by buying houses in poor condition, doing them up and selling them on at a profit. Maybe that's a better idea than letting-out the house after you have finished?

kangoora

Reed_Richards wrote: »

Many investments take a bit of time and effort to research and monitor. What you are proposing is more like a second job, at least initially, in doing up the house you buy. A fair few people make money by buying houses in poor condition, doing them up and selling them on at a profit. Maybe that's a better idea than letting-out the house after you have finished?

A friend of mine made quite a lot of money over the years by buying rundown properties and renovating them while living in them - obviously not buying houses without a roof etc. He used to move house every 2-3 years.

The only problem with that, as above, is it is literally a second job. Most evenings and weekends spent doing major DIY. He enjoyed it as a hobby that happened to make money. For me it would have been like working an 80 hour week, every week..........

Albermarle

The only problem with that, as above, is it is literally a second job. Most evenings and weekends spent doing major DIY. He enjoyed it as a hobby that happened to make money. For me it would have been like working an 80 hour week, every week..........

It's like on 'Homes under the Hammer' - they say somebody has made a £40K profit, but ignore the fact that have spent probably thousands of unpaid hours working on it .