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Buy outright or mortgage? (Opportunity cost of money)
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About 7 months ago I came into £350,000 by way of inheritance. I’m 32, married with 1 child and have my own home with only a small mortgage. As I’ve been dealing with grief I haven’t really given much thought to how to use the money, but before Christmas I’ve now (as you do) made a New Year’s resolution to do something with it.
Another 6 months won't hurt
As said research the ins and outs of a letting business.
It is not(far from) buy a house and sit back and watch the money roll in.
Research gearing through lending if you do go down the property route.
Research pension( A tax wrapper with tax relief on the way in and some on the way out)
Research ISA(A tax wrapper relief on the way out) for liquid stock based investment.
( I find lemonfool boards a good resource, they used to be the motley fool UK boards)
Start to research IHT, if you get this pot growing and own a house and keep working you could get to £1m quicker than you think
Research early retirement.
I would also review your own housing and job situations for any changes you might want to make with those.0 -
House flip, Not as easy as it used to be to make a profit but its still possible. Its the perfect situation for you to buy cheap homes at auction to do up and sell, Just make sure its a sound home and not one with a coal mine under it, and that the buyers will have no problems getting a mortgage on it.0
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Seriously, out of all of the above BTL at this moment in time is not for beginners. Far too many changes due with regards to the BTL market - proceed with caution.
The suggestion about flipping properties is probably more suitable - and in my view carries less risk.0 -
What on earth makes you think that starting a property refurbishment business is suitable for the OP?House flip, Not as easy as it used to be to make a profit but its still possible. Its the perfect situation for you to buy cheap homes at auction to do up and sell, Just make sure its a sound home and not one with a coal mine under it, and that the buyers will have no problems getting a mortgage on it.0 -
OP, I strongly advise that before making any decisions on what to do with the money you arrange an appointment with a proper IFA rather than an agent from your bank....0
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