Investing whilst living in a housing association flat?

Swasterix

MalMonroe said:

You said this "At the end of the day though, a large sum of money sitting in a bank account with crap interest rate is a waste." But it isn't a waste at all because you'll be £80k richer than you were before, even if the money doesn't accrue any interest. 

It seems that you are really happy and very satisfied with your home and your job and so trying to move just because you have an inheritance would cause unnecessary upheaval. 

I agree with what JonVarnas says above. You could arrange a one-off meeting with a financial adviser to discuss all your options. And I think being a landlord is just too much hassle. Especially if you work full time. It's fine if you manage to get good tenants but not everyone does.  

It is a waste in the sense that money loses value over time due to inflation. £80k in 20 years will be worth significantly less than £80k now. 

As mentioned above, speak to a financial advisor. 

seatbeltnoob

shared ownersip, staircase to full ownership perhaps?

jelajelavic

For that sum of money, investing in a buy to let property or similar would probably be too many eggs in one basket (ie UK property asset) and also all the hassle that goes with being a landlord eg bad tenants, upkeep of the property and rental income tax implications. You'd need to have a buy to let mortgage and then ensure that you can pay that during times that the property is unlet.

It might be worth looking at the saving and investments section of this site's forum for suggestions. As you and others have mentioned an alternative is investing in stocks and shares (either through increased pension contributions or separately within a stocks and shares ISA). This is a way of diversifying and over the long term should beat inflation. However, you should be prepared to leave for a longer period of time so don't invest any cash you might need in the next couple of years as there is a risk that it could decrease in value. The longer the time period, the higher chance of a better outcome with stocks and shares.

Another low risk option is to lock the cash away with a fixed term deposit to get a higher interest rate, although that is likely to be below inflation so the value will erode over time but as long as FSCS protected then its value is secure. You can also do a mix of these options ie. some in higher interest savings, some pension top up and some in a stocks and shares ISA (note annual limit contribution for ISAs is £20k per year)

If you're not comfortable with investing and doing it yourself you can speak to an INDEPENDENT financial advisor to discuss the options but plenty of material online, including this website.

Jamderson

Thanks for advice all!

[Deleted User]

Let's just step back a minute. You are in subsidised housing, and there is a housing crisis on. And your idea is to own someone else's home and profit from the fact that they, like you, can't afford to buy the place they live in.

marcia_

 If you were currently trying to get a HA property you would be refused if you owned property. 

 I would check your tenancy agreement thoroughly and ask the HA as its not likely to be allowed. 

22225

Maybe buy additional NHS pension if ur scheme allows. Also if it only allows you to have it (without being reduced) at say 68, you could also set up a low cost SIPP eg Vanguard Lifestrategy that you can access from 58 or whatever until you can access your nhs and state pension. Plus put aside 6 months pay in savings account or premium bonds for emergencies etc. If you need to claim benefits in the future the pension money will hopefully be protected from means testing. Just my opinion.

Morglin

You could see a reputable investment advisor.  Your bank will be able to help.  It's probably safer than being an amateur landlord.

luvchocolate

marcia_ said:

 If you were currently trying to get a HA property you would be refused if you owned property. 

 I would check your tenancy agreement thoroughly and ask the HA as its not likely to be allowed. 

Not true of the housing association I rent from 

gwynlas

There are obviously a number of people like yourself who face similar issues when they inherit much less than a life changing sum. You could take advice from a financial planner of how to invest the money for future growth  or you could look upon this as a cash bonus to spend now. This might mean you could improve your life in the present such as a decent holiday, travel  or a more reliable car whilst not being frivolous and saving some for a rainy day fund. It might seem sufficient to buy a house or provide a deposit in some parts of the country but this is irrelevant if you are settled near family and friends. The NHS needs staff who qualify for social housing as salaries are insufficent to buy property in London and this is not going to change.