How would you invest £500k?

How would you invest £500k?

12:04 PM, 1st February 2014, About 8 years ago 14

Text Size

Dear community

Having recently joined this group and fairly new to looking at property as a way to replace the day job (and salary), I’m interested to hear from experienced investors on how you would invest £500k in this current climate, for the maximum return and with the least amount of risk and hassle! 

I have 2 BTL flats, purchased under market value, one with a housing association which seems to be a good way to avoid ‘voids’ and too much involvement with a 7% return. The other flat has a private tenant returning 7%. Both have been purchased in the past nine months. I have a property in Turkey I’m considering renting out but as yet, I have not looked into the potential tax implications.

I’ve been on a number of courses including HMOs, BTLs and Buying distressed properties so I’ve got an idea of how much time commitment each is likely to require and ideally, I’m looking at creating a strategy that doesn’t require my full time involvement and one that will produce cash flow at least in part. I’m based near London.

Any ideas welcome!

Chris



Comments

by Mark Alexander

16:00 PM, 1st February 2014, About 8 years ago

Reply to the comment left by "Jeremy Smith" at "01/02/2014 - 15:54":

Hi Jeremy

We are straying way off topic now but we designed Property118 to operate best in the Google Chrome browser as we are part of the Google Publisher network.

The browser is free to download, please see >>> https://www.google.com/intl/en/chrome/browser/
.

by Jeremy Smith

16:22 PM, 1st February 2014, About 8 years ago

Reply to the comment left by "Mark Alexander" at "01/02/2014 - 16:00":

You are right Mark (as usual!)....way off topic. Thank you, I'll try it.

My thoughts for Chris, the OP, is that he shouldn't rush into usiing all the cash for deposits too soon....

If/when interest rates rise, since banks have started fleecing us again by only giving 4-5%+ over base rate mortgages, alot of people will be in great hardship, private buyers and BTL investors as well I would imagine.

If inflation then gets going too, the rates will rise accordingly, and we may well see another rash of repossessions coming through, with those caught out unable to keep up their repayments, owing alot more than in previous years, due to the higher prices they paid.

As has been said: Cash is King, especially in a downturn.

( I am not qualified in financial matters, so this is my simplistic view, please feel free to educate me ! )

by Neil Robb

14:11 PM, 2nd February 2014, About 8 years ago

Hi Chris

The options open to you are vast and you are very lucky.

Where do you want to buy.

You need to decide what tenants you want Private / DSS

The price of house. I buy cheap the do up to a very good standard the rent to both working and DSS up till now I have had only two bad tenants over the years.

I know people who won't buy below a certain price range. I have had a very luck run in the last year and picked up some cracking house's.

I would not worry about interest rates if you are buying house's under £70,000 as interest rates. The rent should be able to cope with rises. Most but to let's interest is 5 to 6 % anyway. the bank of England has a real juggling act to do with rates rise's.

I can source at present 2 bed house,s about 30,000 or a bit more returning rent of £400 plus depending on house. so for under £200,000 you could own possibly 6 plus properties. that leave's you with a huge amount left over in the bank.

If you take £400.00 a month per house yearly £4800 less cost great return.. Times this by 6 £28,800.

I buy in Scotland and Northern Ireland.

I could go on and on you don't have to pay someone a fortune to source these or manage these you just need to trust the right person.

Or you could by in London and spent all your money and still not do much better.

I hope this help's If Mark allows you to get in contact with me I could help you get started. But I value this site so would not do anything to stop me using it.

Good luck with the future

by Mark Alexander

18:37 PM, 2nd February 2014, About 8 years ago

Reply to the comment left by "Neil Robb" at "02/02/2014 - 14:11":

Hi Rob

Check out the business membership upgrade >>> http://www.property118.com/business-sponsorship/

You can't post self promotional links, email address, tel number etc. of the forums but you can on a business member profile. All you then need to do is invite members to find your contact details there.
.


Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

BECOME A MEMBER