what can i buy for 50k?

robwend

divorce.........horrible thing, but alas im 50k up. now need to invest it, asap, i obviously would like to buy a property that i could straight away rent out. even better find a company that would find the property for me and rent it out for me<if theres such a thing> if not there should be as i dont fancy traveling half way across uk viewin. can u buy anythign for 50k? thats rentable? and are there companys that find propertys for you ect ect

Zammo

How about BTL?

robwend

well thats what iw ant to do but obviously do not want a mortgage

BiggaThanBen

errr...put it in several high interest saving accounts, you are much likely to be better off and also hassle free

*Louise*

If you use the money to buy somehere to rent out...where are you going to live?

Can't see you getting much for 50k tbh

Doozergirl

You're looking right over the other side of the UK from where you are, hun. For low price and sensible yield, sensibly above the interest rate you'd get in the bank. By the time you've paid someone to manage the place (badly)

I've managed a nearly 9% yield for around £70k but had to look hard; price was well below several comparables in the street. - it looked a state (perhaps not if you like grime and enjoy screwing laminate flooring randomly onto walls, doors, staircases etc) but it was entirely superficial. I will do the travelling and managing, I have family to visit nearby anyway.

You need something to pay from the off otherwise it's not worth bothering at all right now. It's all about whether it's giving you a better yield than a bank account would and not about capital gains.

It's as rare as a true Londoner

teabelly

It depends on what you want to do. You can use your £50k for 2 deposits and spare cash flow. There is a company called Passive Investments that will buy below market value property for you and sort it all out. It does cost as they want a fee up front and further moneys for deposits which are returned to you when re-mortgaging the property up to full value after a refurbishment. You usually get a deposit back after 6 - 9 months and often cashback of a few grand. They buy over several years, usually one for you each year, rather than buying a big pile at once so at the end of it you'll have a decent portfolio but it won't be built too quickly.

Beware of some of the buy property for you and rent it out companies as you can get sold right pups. It is much better to choose an area local to you with a strong rental market so you can go and view it for yourself and check out the area. Talk to your local agents as they know what is going on in the rental market. Usually towns with universities, good transport links, large hospitals or other public employers are a safer bet. Investments that you don't take an interest in personally are often the quickest way to lose money!

If you want a long term investment then property isn't a bad way to go. Right now it is more a leap of faith due to credit crunch issues and lack of capital appreciation forecast for the short term. You need to build your strategy around zero capital growth but positive rental cash flow if you want to survive in these trickier times.

There are still properties around for £50k but that puts your eggs in one basket. Consider cheaper property with £15-18k deposit making sure the rent covers the mortgage and leave the rest in a high interest account to cover unexpected costs and balance the risk. Key to choosing investment property is to think whether you'd be happy living there yourself. If not, tenants may have the same reservations. If rental property is highly available then nice places in nice areas will go first. BTL is a long term investment. Don't pay too much either. Auction sales where the property has failed to sell is a good way of finding cheap ones. There are quite a few people selling up because they are scared of price falls so you can play on their fear and bag yourself a bargain.

If you don't want a mortgage at all then you are pretty much knackered. Stick it in a high interest savings account.

Gorgeous_George

You might find a property with a decent yield but I earn 6.5% tax free on my ISA. You could start by using your 2008/2009 ISA allowance. So £46,400 to go.

Now may not be the best time to buy a house so invest in safe high interest accounts and watch your pot grow for a year or three. Add extra savings and when the housing market settles down you will be in a great position to make your move.

The pain of divorce wears off and the best 'revenge' is your own happiness.

GG

robwend

thanks hun. well looks like il just blow it ona new car and boob job then lol

robwend

*Louise* wrote: »

If you use the money to buy somehere to rent out...where are you going to live?

Can't see you getting much for 50k tbh

im going into rented myself

Doozergirl

robwend wrote: »

thanks hun. well looks like il just blow it ona new car and boob job then lol

ROTFLMAO!

Way to go! Change your avatar when you do - I want to see all three of the babies! :rotfl: