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£450k investment
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ALr66
Posts: 6 Forumite
Hi all,
I have £450k to invest for an income and am not sure whether to purchase a buy to let property or put the money in something like an NS&I Bond.
I'm 52 years old with no pension and I'd like this to provide an income with as little risk as possible.
I have no experience as a landlord and would probably look for a management agency.
What are people thoughts?
Thanks
I have £450k to invest for an income and am not sure whether to purchase a buy to let property or put the money in something like an NS&I Bond.
I'm 52 years old with no pension and I'd like this to provide an income with as little risk as possible.
I have no experience as a landlord and would probably look for a management agency.
What are people thoughts?
Thanks
0
Comments
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If you have no experience as a landlord and want as little risk as possible, why would you be considering starting up a letting business? I would go for more reliable investments.4
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What attracts you to BTL?1
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1
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That will mean little if the tenant fails to pay the rent when it becomes due.ALr66 said:2 -
What income do you currently receive? Are you employed? If so why no pension?3
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Make an appointment with an IFA and discuss your options.
Her courage will change the world.
Treasure the moments that you have. Savour them for as long as you can for they will never come back again.2 -
don't be put off BTL if you want an income; just make sure you do plenty of research on being a landlord before you dive in!2
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450k will give you an income if you split it over a couple of savings accounts, or drip it into a money market fund held in an ISA or pension, or invest in stocks via tracker funds (this year should be a good opportunity for that ) once you buy a property and the tenant maybe stops paying the power of the 450k to earn income is gone.1
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An important factor but one of many.ALr66 said:
As a baseline compare to expected return from cash ISA and savings. 4 to 5%?
There are a multitude of variables with BTL. 8 years ago I selected the right area and created an HMO. Huge rents and capital increase. It was a good plan but still lucky. I also had to pay 26k in capital gains tax. Back then I didn't have to pay second home stamp duty. On 450k that will soon be around 24k?
I suggest that many will lose money with BTL or achieve modest yields of 1 to 3 percent.
Okay so say you want 7 to 8%. You are very wise to involve a management agent if you are not an expert in all the legal requirements for landlords. But they are going to take 15%.
Unfortunately, I cannot say I would go down the BTL route in todays climate.1 -
Just for info the OP started the same thread on the Savings and Investments forum, and was advised it might be better on this one.
In the end both threads are running, but mainly with the same comments.
£450k investment — MoneySavingExpert Forum5
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