Is investing in property a wise long term investment for child?

Bigwheels1111

I was lucky with my house.

I purchased it in December 2000, Lived in it for 9 years and rented for 10.5 years.

Between rent and property growth it returned over 4 times my investment.

Even after yearly expenses, saftey checks, Plus 5k to make the house like new, Paint, carpets,worktops,blinds,

Taps etc.

Their rent paid my mortgage in full.

Tenants were not too bad, but still a pain at times.

I would never rent again though. Just not enough profit in it.

mjgreen81

Thank you very much for all your opinions, it definitely sounds like buy to let may well not be a sensible option for us.  I am definitely going to look at the alternative suggestions received.

Thank you 

mjgreen81

I haven't started looking properly yet (I am not great at Finance stuff and often take a while to get my head round things), but would you guys be able to give a rough idea of what return I could hope for if I were to invest £20k in a JISA stocks & shares over 15 years?

For the moment forget about adding any future investments, but if I say did the £9k now and £9k in April.

I appreciate it is not possible to predict these sort of things, but you guys who have already invested on behalf of your kids, can you give me an idea of what growth you have seen and what growth you expect in about 15 years?

Thanks

El_Torro

mjgreen81 said:

I haven't started looking properly yet (I am not great at Finance stuff and often take a while to get my head round things), but would you guys be able to give a rough idea of what return I could hope for if I were to invest £20k in a JISA stocks & shares over 15 years?

For the moment forget about adding any future investments, but if I say did the £9k now and £9k in April.

I appreciate it is not possible to predict these sort of things, but you guys who have already invested on behalf of your kids, can you give me an idea of what growth you have seen and what growth you expect in about 15 years?

Thanks

Your investment should grow faster than inflation, especially if you invest wisely. If you put it all into a global tracker then you should expect at least 1% or 2% higher growth than inflation per year. This isn't guaranteed, and you should expect some very rocky years over that 15 year period. It's a long enough timeline to expect good growth though. Certainly much better growth than a Cash JISA, which probably wouldn't even keep up with inflation. 

Assuming average growth of 2% per year above inflation over a 15 year period then in 15 years £18k should become £24k in today's money. Assuming average inflation of 2.5% per year that investment will be worth almost £35k in nominal terms.

xylophone

Fidelity or Hargreaves Lansdown might suit.

https://monevator.com/best-global-tracker-funds/

https://monevator.com/low-cost-index-trackers/

masonic

mjgreen81 said:

I appreciate it is not possible to predict these sort of things, but you guys who have already invested on behalf of your kids, can you give me an idea of what growth you have seen and what growth you expect in about 15 years?

Vanguard is currently predicting 5.2-7.2% per year for a global fund over the next 10 years based on their capital markets model, slightly more for a longer time horizon. It's as good a guess as any. They would be assuming lower returns than average over those 10 years, so if you drip-fed over several years, the forecast would be slightly better (though they might not be correct about the sequence of returns, just as they might not be correct about the end result).