Property rental or investment

flopsy1973

Ok thanks I have about 80k in various bank savings accounts cash isas as well as the amounts quoted above.
The stockmarket bit is invested in funds , isas and some individual shares
So though we have inherited house I would still have to officially buy my brothers share bringing sdlt into it ?
Yes only I can answer the dilemma but could I get a decent return on my share of house money invested compared to keeping it in house. My brother has no interest in keeping it he wants his money out

Eco_Miser

flopsy1973 wrote: »

The stockmarket bit is invested in funds , isas and some individual shares

You don't invest in an ISA, you invest in funds, trusts and individual shares through an ISA. It's just a wrapper.

flopsy1973 wrote: »

So though we have inherited house I would still have to officially buy my brothers share bringing sdlt into it ?
...
My brother has no interest in keeping it he wants his money out

If you want the rewards of owning the whole house, you have to buy out the other owner, otherwise it's a very bad deal for your brother.
If you decide to sell, you can sell it jointly, then split the proceeds.

flopsy1973

There was no will and I am the administrator could I not just give him half the selling price we agreed on and the property then could be transferred into my name.

So could I get the same income out of stockmarket that I would out the house rental. ?

flopsy1973

flopsy1973 wrote: »

There was no will and I am the administrator could I not just give him half the selling price we agreed on and the property then could be transferred into my name.

So could I get the same income out of stockmarket that I would out the house rental. ?

Any further advice. ?

AnotherJoe

flopsy1973 wrote: »

Ok thanks I have about 80k in various bank savings accounts cash isas as well as the amounts quoted above.
The stockmarket bit is invested in funds , isas and some individual shares
So though we have inherited house I would still have to officially buy my brothers share bringing sdlt into it ?
Yes only I can answer the dilemma but could I get a decent return on my share of house money invested compared to keeping it in house. My brother has no interest in keeping it he wants his money out

If the house hasn't yet been transferred to your names it may be possible to adjust the amounts you each get so you get the house he gets cash plus balancing cash to one or other make it equal.

traineepensioner

flopsy1973 wrote: »

There was no will and I am the administrator could I not just give him half the selling price we agreed on and the property then could be transferred into my name.

So could I get the same income out of stockmarket that I would out the house rental. ?

That's what we did after probate. My brother wanted the house so we adjusted the inheritance to give him the house, me half the cash value and split the remaining assets.

flopsy1973

Ok but is there advantage there even if I decide that I don't want house to rent out.
The most important will I get a similar return on my money as I would If I kept house to rent?

Thrugelmir

flopsy1973 wrote: »

So could I get the same income out of stockmarket that I would out the house rental. ?

Would you become a higher rate taxpayer?

AnotherJoe

flopsy1973 wrote: »

Ok but is there advantage there even if I decide that I don't want house to rent out.
The most important will I get a similar return on my money as I would If I kept house to [STRIKE]rent[/STRIKE] let ?

"prediction is difficult, especially of the future"

I would expect you'd get better performance* without the hassle, increasingly onerous laws and the financial risks of letting, but the only way to know is to revisit this thread in 30 years time.


* especially since there are many ways of sheltering your investment income and gains from tax, which simply are not available with BTL

18cc

Just be aware that it is highly likely in the near future section 21 will be abolished meaning you cannot ask your tenant to leave. You may be ok with this but they could stay 50 years! A house with a sitting tenant would be worth less.