Should I invest my pension lump sum in another buy to let?Make Text Bigger
My wife and I previously owned 4 buy to let properties. Unfortunately, we were two of the many victims of the financial crises. We have since sold three of the properties and are currently carrying over a loss year on year.
We have one investment property left that is rented out and paid for, providing a small yield of about 4%. This flat is only worth half ( yes half! ) what we paid for it.
I am retiring soon, and will receive a lump sum from my pension which I will need to invest to cover the shortfall on our income. I am thinking of buying another small buy to let property outright.
I am very nervous about this, particularly having lost money in the past, and the SDLT etc. Due to loss currently being carried over, we should be able to have the yield tax free for a couple of years.
I am interested on members thoughts of my situation.
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