We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
The MSE Forum Team would like to wish you all a Merry Christmas. However, we know this time of year can be difficult for some. If you're struggling during the festive period, here's a list of organisations that might be able to help
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Has MSE helped you to save or reclaim money this year? Share your 2025 MoneySaving success stories!
Purchasing an Investment Property
Comments
-
Letting property is not a passive income stream. If your goal is to have a passive income stream look at other investment vehicles.tyroneshoelaces said:
Sorry when I said I wanted to earn passive income, I meant from the investment into a property. Obviously, the ideal scenario would be to earn passive income and the property to go up in value in the long term.Albermarle said:
Pension is really for retirement, and is not available for withdrawal until 55 ( going up to 57) and even then many people wait yo take them until later. I do not think you have mentioned your age?tyroneshoelaces said:
While I wouldn't be against investing in a pension - Which I already do, I would want to try and earn some passive income from it and then hopefully use that in a couple of years I can purchase again - that is what I am leaning towards. As for stocks and shares ISA, there is a risk with those as well if I am correct?Albermarle said:OP- If you asked this question on the Savings & Investments forum.
Savings & investments — MoneySavingExpert Forum
Then probably 9 out of 10 answers, would be do not invest in rental property and instead invest in a pension, or Stocks and shares ISA and keep some in cash savings.
The main reason is that it is a lot less hassle and less time consuming than being a landlord. In the past a more benevolent tax regime made this hassle worthwhile financially, but not any more.
You might want to watch a few episodes of this programme ( also some episodes on Youtube)
My5 - Nightmare Tenants, Slum Landlords - Season 1 - Episode 2 / Episode 2 (channel5.com)
S&S ISA is more for the medium to long term ( say 7 to 12 years)
Assuming investments are in the mainstream, the longer you hold them, the lower the chance of loss and the greater the chance of growth. After 7 years the odds are very much in your favour.
Of course the actual choice of investments will affect the result, just the same as any choice of property you buy, but in both cases you only know for sure with hindsight.3
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.9K Banking & Borrowing
- 253.9K Reduce Debt & Boost Income
- 454.7K Spending & Discounts
- 246K Work, Benefits & Business
- 602.1K Mortgages, Homes & Bills
- 177.8K Life & Family
- 259.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards