I think I need financial advice?

Ducktard

I sold my house recently as I wanted to find something with more period charm.
I found out last week that I am now moving to the Bristol area with work. I am currently in a rented property whilst things are organised. I have the profits from the house sale in my current accounts. I am 48.

The move is likely to be for a couple of years and work will heavily subsidise my rent. I am thinking about what to do with this large amount of cash as I am concerned that by the time I need to buy again a mortgage will be unmanageable due to my age and the shorter term possible. What would you do? BTL?

AdrianC

Not really a question for the housing board. More one for the investments board... 
https://forums.moneysavingexpert.com/categories/savings-investments

Starting a residential letting business is one option - but would you be able to buy mortgage-free? BtL lenders don't tend to like lending to people who don't own their home.
Consider the very poor liquidity if you do want to purchase your own home later, and the effects of the +3% SDLT if you want to retain the let when you do purchase.
Consider, too, the relatively low post-tax return, especially if heavily leveraged, considering the amount of work and risk.

Ducktard

Yes any purchase would be mortgage free. I don’t really want to become a landlord but how to ensure this capital keeps pace?

AdrianC

Ducktard said:

Yes any purchase would be mortgage free. I don’t really want to become a landlord but how to ensure this capital keeps pace?

"Keeps pace" with what? House prices?
What are they going to do in the next few years?

Over the last few years, not very much... But over the last year or so, they've been silly.

Does that mean you'd be buying in at the top of the market, just before prices soften...?

Would you be buying the same kind of property to let as to live in? If not, would the two market segments do the same thing anyway?

Ducktard

I guess I am concerned that the buying power of my capital will become eroded by continued house price growth and all whilst I get older making a future mortgage untenable i.e. too expensive given shorter term.

getmore4less

temp job location <5years.  any chance this could be longer or happen again somewhere else from you "normal" base


Where will you be wanting to live later in life.

You could still buy somewhere an live in it but commute into subsidized accommodation for the duration of the term job during the week.

Find a weekday lodger and you probably cover your unsubsidized portion of accommodation costs

what sort of distances/time  between normal location and the temp one?

GDB2222

I have no idea about this, as I just found it on the web, but it may be worth a look. 

https://www.castletrust.co.uk/_assets/downloads/common/housa_brochure.pdf?webSyncID=1d735b34-9b7a-e77d-872e-cc697cdab756&sessionGUID=5aab4970-be7d-1583-159e-0b8aade8a778


Just to be clear, I am not recommending it as an investment, just as something to read.

letsbetfair

House prices shooting up is a risk, though of course they could also stay static or fall. None of us can reliably predict what will happen in a given area in 2 years. You can invest your money, depending on timescale, but can't guarantee that will track the property market.
If you're in a position to buy a BTL outright, though, how close to your max will you be when buying for yourself - would you be able to share about how much capital you have, what price places you were looking at, approx income and how much you'll be able to save while in Bristol? If, say, you're looking to buy with a 50% mortgage and borrow 2* income, it would be remarkable if you couldn't buy in two years. If you're needing a 90% mortgage that would be different. You can mitigate the risk to some extent by saving the subsidy from your employer while you are in Bristol.

sammyjammy

you may be quids in and have sold at the top of the market.  Nobody knows what the future holds.  There are investments that you can make that are likely to keep up with or exceed house price rises but these would come with risk at losing some or all of your money.