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[Amigo]

Firstly evening all you OOFERS Hope you are well & your Migs are too. I don't get on here much lately but i still love the forum despite no longer having an Omega. Dad died in september, he's with Mum now who we lost in July 2011. After Mum's funeral Dad told me i would be left a 6 figure inhertance & "don't buy a Ferrari", pay your mortgage off & invest in property. Obviously i won't but some super car, i'll pay this place off so it's mine & invest in a couple of run down repo terrace houses to rent or spin round if the market allows. If i rent them it's only a small income after ins, bonds, tax on eanings, maintance etc. I'll still go to work but said propertys could be sold on my retirement as i have no pensions in place.
      I'd value your opinions & advice. Guy.

[Rods2]

Sorry to hear about your sad losses. 

A good steady retirement income source, that should hold their real value and income better than most assets, during times of high inflation is the way I look at it. Savings during high inflation can all too quickly become virtually worthless and with interest rates set by the BOE, the income from them, in times like now, can be virtually nothing.

This is why I'm looking to rent out my house, once I'm full time in the Ukraine.

[pscocoa]

Amigo - it could be a disaster in the making. Depends where you rent and who you rent to. Sounds as though you are looking at bottom of market. Refurb costs can get out of hand unless you have experience.

If we are talking not a lot of money I would be thinking of upgrading the house you are in to a sought after location that will sell well and be reasonably price resilient. You then do not have taxation issues and when ready you can downsize to realise your pension without paying tax.

[Shackeng]

Firstly evening all you OOFERS Hope you are well & your Migs are too. I don't get on here much lately but i still love the forum despite no longer having an Omega. Dad died in september, he's with Mum now who we lost in July 2011. After Mum's funeral Dad told me i would be left a 6 figure inhertance & "don't buy a Ferrari", pay your mortgage off & invest in property. Obviously i won't but some super car, i'll pay this place off so it's mine & invest in a couple of run down repo terrace houses to rent or spin round if the market allows. If i rent them it's only a small income after ins, bonds, tax on eanings, maintance etc. I'll still go to work but said propertys could be sold on my retirement as i have no pensions in place.
      I'd value your opinions & advice. Guy.

Some time ago I had 3 buy to lets. It worked well for me. If you ask around local estate agents you may find repossessed houses owned by insurance companies happy to sell them cheap for a quick cash sale. I did any refurbishing work or maintenance myself. I always 'vetted' my tenants carefully, always charged slightly under the going rate for rent, and so very rarely had voids, and usually had tenants for at least a year or more. PM me if you would like more info.

[cem_devecioglu]

Amigo, whatever you decide dont hurry.. markets are very windy, so anything which may seem profitable may reverse the next day.. best of luck
 
ps: dont put all the eggs in the same box
 
pps:  dont buy ferrari

[MR MISTER]

Morning Guy, sorry to hear about your dad   

As usual when you ask on here, people can only generalise, no one knows your exact circumstances and nor should they. Speak to an independent advisor, you may have to pay but the best ones are usually the paid ones. As Cem said, do not rush into anything, you are probably still a bit up and down after your recent loss and you might rush into something which appears to be a good idea right now, but may not be right for you in the long run. Do you really want the responsibility of looking after tenants just now?

Good luck in whatever you decide to do.

[Kevin Wood]

Sorry to hear about your father, Guy.

As STEMO said, what will work for some people might not work for you. Take some time to think about the options before doing anything irreversible.

The money won't do much for you in a savings account at the moment so for the medium to long term you are right to be thinking about putting it to property or some asset that will hopefully give you a better return. For a month or two, though, it won't hurt to sit on it and consider your options carefully.

Unless you have a very good mortgage rate, it is probably costing you more to borrow on your mortgage than you'll make on the money as savings, so paying off your mortgage is probably one of your first priorities unless you have an investment plan that will bring in significant returns. If your future plans involve borrowing anything, though, bear in mind that not having a mortgage might lower your credit rating. If you can do so, making a lump sum overpayment to your mortgage, but keeping a token amount outstanding, might be a better option for now. Check if there are any penalties for doing this. Even if there are, it'll probably be worth your while just paying them, though, as they'll probably be less expensive than the interest you'd otherwise pay on the loan.

Next, I'd consider your home. You might want to consider investing in a more expensive home, with a view to downsizing it to release some capital when or after you retire. It won't give you a regular income, and will probably cost you in higher bills, but the value should still appreciate.

Then there's the possibility of rental properties. Your job takes you out and about a lot. Do you have the time to spend looking after rented properties or would you need to employ an agency to do that? Find out what all the costs would be and how much would end up in your pocket at the end of the month and see if the return would be worthwhile.

Then take all these ideas to a financial adviser and see if he has some more ideas to add to the pot. You will have to pay to get impartial advice but given the sum involved that will be money well spent. Notice how many times I've used the word "might", "possibly", "probably", etc. it'll be his job to remove them.

[chrisgixer]

As you have no pension*, its even more vital to invest this opportunity correctly. So as said a financial advisor is your next port of call. Thrash out the details, work out some options, of which there are many and go from there.

Buy to let will likely be one of those options though, but its best not to go into your meeting with an FA with too many preconceptions. We don't have all the facts on here so be careful what you take from this thread.

Personally, I'd say that figure is a good opportunity to sort out the long term future by relieving some pressure and stress financially. IF it's used wisely.



Buy to let has its rewards, but it can be a pita when things go wrong. There are many pit falls. Agents are leaches, avoid them and do it all yourself. Advertising, vetting, repairs, insurance, deposits schemes all take time out of your day.
Its like a second part time job. Which MUST be kept on top off if its to work out successfully.



*alot of people don't! and younger people will have a crap pension anyway, so investments such as yours have a well trodden path.

[Entwood]

My sister and her husband, both high earning consultants in their fields, so "self employed" set up 6 "Buy to lets" as their own Pension Fund ... plan being to sell a house if more income needed as age progressed ... although still way off "retirement age" they have got out completely after 6 years, changed plans totally.....

Reasons ?? The work involved in contracts/maintenance/chasing rents/taxes/council rules mean't Steve had stopped being a consultant in his own trade and was spending all the time looking after the houses ... so their income had actually reduced. The properties were still making them money - on paper - but when they actually did all the sums with ACTUAL figures rather than PROJECTED figures it was just not worth the hassle.... so they have sold up and done something else with the money.

Now, the circumstances/part of the world/sums involved will be very different for everyone, but all I say is be very careful .. the folks trying to get you in to "buy to let" - management companies/mortgage lenders etc etc .. are there to make money out of you .. and just may not tell you the whole truth........

It might be for you, but research it to the nth degree before committing IMHO

[Shackeng]

My sister and her husband, both high earning consultants in their fields, so "self employed" set up 6 "Buy to lets" as their own Pension Fund ... plan being to sell a house if more income needed as age progressed ... although still way off "retirement age" they have got out completely after 6 years, changed plans totally.....

Reasons ?? The work involved in contracts/maintenance/chasing rents/taxes/council rules mean't Steve had stopped being a consultant in his own trade and was spending all the time looking after the houses ... so their income had actually reduced. The properties were still making them money - on paper - but when they actually did all the sums with ACTUAL figures rather than PROJECTED figures it was just not worth the hassle.... so they have sold up and done something else with the money.

Now, the circumstances/part of the world/sums involved will be very different for everyone, but all I say is be very careful .. the folks trying to get you in to "buy to let" - management companies/mortgage lenders etc etc .. are there to make money out of you .. and just may not tell you the whole truth........

It might be for you, but research it to the nth degree before committing IMHO

I hope they didn't sell last year when the market bottomed out!
I must say, compared to my own experience, this does surprise me. I found the letting very easy, and only sold up to maximise profits when the market was high. Indeed, had I been younger, I would have bought back in last year.

[Entwood]

My sister and her husband, both high earning consultants in their fields, so "self employed" set up 6 "Buy to lets" as their own Pension Fund ... plan being to sell a house if more income needed as age progressed ... although still way off "retirement age" they have got out completely after 6 years, changed plans totally.....

Reasons ?? The work involved in contracts/maintenance/chasing rents/taxes/council rules mean't Steve had stopped being a consultant in his own trade and was spending all the time looking after the houses ... so their income had actually reduced. The properties were still making them money - on paper - but when they actually did all the sums with ACTUAL figures rather than PROJECTED figures it was just not worth the hassle.... so they have sold up and done something else with the money.

Now, the circumstances/part of the world/sums involved will be very different for everyone, but all I say is be very careful .. the folks trying to get you in to "buy to let" - management companies/mortgage lenders etc etc .. are there to make money out of you .. and just may not tell you the whole truth........

It might be for you, but research it to the nth degree before committing IMHO

I hope they didn't sell last year when the market bottomed out!

 They got out about two years ago ....

[Shackeng]

My sister and her husband, both high earning consultants in their fields, so "self employed" set up 6 "Buy to lets" as their own Pension Fund ... plan being to sell a house if more income needed as age progressed ... although still way off "retirement age" they have got out completely after 6 years, changed plans totally.....

Reasons ?? The work involved in contracts/maintenance/chasing rents/taxes/council rules mean't Steve had stopped being a consultant in his own trade and was spending all the time looking after the houses ... so their income had actually reduced. The properties were still making them money - on paper - but when they actually did all the sums with ACTUAL figures rather than PROJECTED figures it was just not worth the hassle.... so they have sold up and done something else with the money.

Now, the circumstances/part of the world/sums involved will be very different for everyone, but all I say is be very careful .. the folks trying to get you in to "buy to let" - management companies/mortgage lenders etc etc .. are there to make money out of you .. and just may not tell you the whole truth........

It might be for you, but research it to the nth degree before committing IMHO

I hope they didn't sell last year when the market bottomed out!

 They got out about two years ago ....

How long were they in for Nige?

[Amigo]

Thanks for your opinions all of which i've taken into account. To elaborate a little more the idea is to buy one initially & maybe another if things work out so if i take a hit it won't break me. If i go ahead it won't be until later next year when Dads will has gone through probate so plenty of time. I still have a few grand from a late Aunts inheritance & an ISA as a back up. I think turning 50 in april & losing family members has changed how i view my finances....ie:- i hav'nt bought a Monaro....yet!!! Point is i did'nt rush out & do it which i would've done a few years ago. Without going into precise figures i will be able to pay my house off & buy 2 terrace properties outright, have enough to make them over & still have a contingency fund. My elder brother Phil is a lawyer & uni lecturer. He is ready to advise me on the right letting agency (i will need one & realize the costs), a good accountant which i know are worth their weight in gold. I also have friends in the trade who are ready to prepare said run down properties to a letting standard. I am aware of a Landlords responsiblities & realize the costs, upkeep & risk of difficult tenants can easily eat into any profit but i'm not into it to make a fortune as i'll still work. The idea is to have a low burner small income & investment so i've something to sell when i retire, not as a retirement income or expecting to get rich quick.
   Despite being a southerner where property is ridiculously over priced i now live in one of the cheapest areas of the country. I could sell my place & buy something bigger & nicer but i like where i am with all my friends around me. It's only a modest 3 bed semi..(some of you have been here many years ago) but i've redone the double glazing, kitchen, boiler, carpeted throughout etc & it has a cracking workshop & parking for a few cars, (I've got 3!) so i don't want to move. This place is HOME & i'm going to extend the kitchen/dining room so that when i pop off my son has his inheritance
    All in all i'm not sure yet, still have to investigate further. Guy.

[Shackeng]

In my experience letting agents are a waste of space, they will put anyone in your property just to get their 10% or whatever, and will always push you to set the highest rent, therefore more comish for them. I and my colleagues who rent never use(d) an agent after bad experiences, properties trashed etc., with no comeback on the agent whose T&C's have all the usual cop-out clauses. 

[chrisgixer]

You absolutely do NOT need an agent. Scum of the earth. Avoid.


Advertise privately, through gum tree if you must, or better, a local well to do firms notice board in the area. Microsoft are good here locally, for example.