Purchasing an Investment Property

_Penny_Dreadful

tyroneshoelaces said:

Albermarle said:

tyroneshoelaces said:

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)

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?

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?
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.

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. 

Letting property is not a passive income stream. If your goal is to have a passive income stream look at other investment vehicles.