45,000 to Invest

newlandlord555

With 45000 pounds cash I am thinking of buying a  1 bed flat to rent out. Is this viable or is there a better way to invest it? I am looking for secure investment with high returns ...but safe too. Thanks for any input.

Flugelhorn

Have you been a landlord before? Will you be borrowing more money to buy the flat?

- actually I give up on this one, must have lost half the money as it was 90K last year! Must have made some bad investments 

TimSynths

newlandlord555 said:

With 45000 pounds cash I am thinking of buying a  1 bed flat to rent out. Is this viable or is there a better way to invest it? I am looking for secure investment with high returns ...but safe too. Thanks for any input.

This may help guide your decision making process-

Money Box - Money Box Live: Your Rental Rights - BBC Sounds

newlandlord555

Ah you want to know my personal story??? Actually I was just looking for some current ideas on investing 45000 in a flat to let.

newlandlord555

No. I would not be borrowing. I have 45000 cash here.

Bigwheels1111

I rented out my house for 9.5 years. I would never do it again.

I had good tanants. Costs kept rising and rents did not. Plus all the extra's going up, Gas cert, Elec cert, Boiler cover and insurance etc. Plus repairs at the end of the tenancy.

I would never buy a flat, due to fees beyond your control.

My friend purchased his council flat, he got 100k discount.

He was quoted 7k for repairs over the next 5 years. This could go up each years by CPi I think it is not 100% sure

thats what its called.

All was good, in year 6 they needed to do some repairs and the fee was 20k.

For each flat, he tried for a year to find out what repairs were being done and see the quotes etc.

None given, so has no idea what he is paying for.

Two year on he is now awaiting the court date, as he will not pay for work done.

Because he has not seen any major work done.

20 flats at 20K = 400k for 2 weeks work from 5 builders.

Sg28

newlandlord555 said:

Ah you want to know my personal story??? Actually I was just looking for some current ideas on investing 45000 in a flat to let.

What yields can you get on rental flats in your area? 

Remember its not a passive investment, its more like starting a side business.

eskbanker

newlandlord555 said:

With 45000 pounds cash I am thinking of buying a  1 bed flat to rent out. Is this viable or is there a better way to invest it? I am looking for secure investment with high returns ...but safe too. Thanks for any input.

How are you defining 'secure' and 'safe'?

And how would you see this as different from the BTL you bought previously?

https://forums.moneysavingexpert.com/discussion/6171581/buying-a-flat-to-rent-out/p8#Comment_79398557

boingy

Secure and safe with high returns does not exist. Higher risk = higher rewards.
To work out whether investing in a flat is worthwhile you need to do a simple business plan. Initial investment, annual maintenance, fixed costs, expected rents etc. Add in a few "what if" scenarios like tenants defaulting on their rent, boiler failure etc.

But I think it will probably turn out to be a high risk investment even if you get some trouble-free tenants, which is not a given.

sheslookinhot

newlandlord555 said:

With 45000 pounds cash I am thinking of buying a  1 bed flat to rent out. Is this viable or is there a better way to invest it? I am looking for secure investment with high returns ...but safe too. Thanks for any input.

Looking for “expert” input ?

thegentleway

Agree that B2L is a side business so would suggest looking at investing in S&S unless you have spare time and really need to exploit leverage. I'm not against B2L, we did very well out of ours: it was a student HMO so great yield and we renovated it extensively so that added a lot of equity as well. But we sold it with tenants as it's a fair amount of work/hassle especially with young family, already have another side business that takes up fair amount of time, and wanted more diversification (already have a lot of our net worth 'invested' in bricks and motor with family home). The original plan was to build large property portfolio but that changed after buying the first one!