I want to cash in and invest it for the children?

I want to cash in and invest it for the children?

8:25 AM, 29th December 2017, About 4 years ago 22

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Excuse my lack of knowledge, but my late father bought gold shares which are valued at £20k, I want to cash it in and invest it for the children by buying in a property up north (I’m Eastbourne).

My partner and I own our property, and would like advice on what I need to do to make it successful with the aim of slowly building a property portfolio.

I will need a mortgage advisor to get a buy to let mortgage, but not sure if I would benefit from a financial advisor or accountant to reduce tax amount.

Would creating a company help with these issues and help build a portfolio?

Apologies again for my novice knowledge!

Any advice would be appreciated.



by christine walker

8:36 AM, 30th December 2017, About 4 years ago

Reply to the comment left by Cheryl Marchelak at 29/12/2017 - 14:30
Morning Cheryl, I can see the draw of that sort of price,but bear in mnid a lot of properties at that price will have to be upgraded in 2018 to a much better standard than they are in when you purchase at that price,with a view to letting in the private rental sector. they will need rewiring,new kitchen,new bathroom, lining of walls and floors probably,and this becomes a very expensive project. Also many corporate investors are now providing purpose built accommodation for students and the standards are very good compared to my time at university when we all lived in hell holes.the house at DN17 1HG is all ready to go and rents very easily as it is close to the teaching hospital,British steel ETC. I know because I own some in that area and the agent i use is crying out for property to let in that area. Hope you have a look and think about it, also you have to watch out for the new licencing laws in bigger cities as they are about to change,and also the right to let laws.Hope this is helpful

by Luke P

8:53 AM, 30th December 2017, About 4 years ago

Reply to the comment left by christine walker at 29/12/2017 - 10:49
That property may fall under the proposed Selective Licensing area, Christine.

by christine walker

9:00 AM, 30th December 2017, About 4 years ago

Reply to the comment left by Luke P at 30/12/2017 - 08:53
Morning Luke, I have already looked into that luke and i don't think Scunthorpe or Bottesford will be affected, unless you know something i don't/

by Alison King

11:16 AM, 30th December 2017, About 4 years ago

I suggest you go along to a local landlord group. You can find these via the Internet. In my experience they are friendly and informative and you will meet people who have done what you are planning to do and can swap experiences.

by Graham Bowcock

11:46 AM, 30th December 2017, About 4 years ago

Dear Cheryl

I am all for encouraging people to get involved in the BTL market and think there are some real opportunities and I have some comments on your proposal.

Very low value properties (c£40-50k) that are viable letting prospects are, in reality, few and far between. It is true that the yields can be very good (10-12%+) but the yield reflects the work involved. I come across people operating in this sector and they do very well, but they work very hard to maintain their yields. At this level it is not really "let and leave"; there will be more tenant issues, more arrears to chase, more damage and less demand when the property is vacant. In essence the yield reflects the work involved. If you are remote from your property you will lose out by having to pay out more for contractors/management. If you buy local to where you live then you will save some costs by overseeing certain aspects yourself.

Despite being a time served property adviser and investor I would not want to get involved in this level of property as it does not suit what me and my family want to do. Credit to those who do it very well.

For something with perhaps less work (and a lower yield) you will need more money. £20k does not go very far at any level - do you, for example, have a contingency for a new boiler, roof repairs, voids, etc.?

I think you need to be careful about the area you choose to buy in; if operating at a distance you will need to put a lot of time into research - meeting several local agents (you definitely need one), monitoring what is on the market to sell, rent, how long they are on for, etc. You cannot afford to take anything at face value.

Don't forget that even when you use an agent the legal responsibility for the property (and compliance) will rest with you. This is an important consideration.

When I talk to potential investors I usually steer them towards their local market unless they have a very specific business plan. Most people are familiar with the nuances of their local areas and can invest/manage accordingly.

I am sorry if this is putting you off. This is not my intention; we all started somewhere, although it is getting tougher than when some of us first bought (25 years ago in my case). You just need to be very careful when risking all that you have and make sure you are well informed.

I wish you every success.


by Luke P

15:57 PM, 30th December 2017, About 4 years ago

Reply to the comment left by christine walker at 30/12/2017 - 09:00
Consultation for SL pilot scheme (sure to expand) for Town and Crosby & Park wards is underway (actually extended because of mine and a small group of others’ complaints that it hadn’t been carried out for the correct length of time). See: http://www.northlincs.gov.uk/_resources/assets/attachment/full/0/39294.pdf

It’s also headed to NELC too this coming year.

by christine walker

12:36 PM, 31st December 2017, About 4 years ago

Reply to the comment left by Luke P at 30/12/2017 - 15:57
That is very interesting reading ,and thank you for giving me the link ,but I suppose all areas eventually will have selective licencing as it's another cash cow for local councils to milk.

by Steve Hards

13:28 PM, 31st December 2017, About 4 years ago

Hi Cheryl,

I guess that you are thinking about cashing in the gold shares now because the stock market is high at the moment BUT you should not assume that property is going to continue to be the good investment it has been seen to be in the UK the past 20-30 years. Why do you think so many experienced landlords are selling up right now? What do you think Brexit and/or the next global crash, when it comes, are going to do to job prospects, house prices and rents, particularly in the low-cost areas of the country you are thinking of buying in?

You don't need to rush into this. I'd suggest that you spend the next year on your education about financial matters and investing. After a while you won't need to ask these "novice" questions and you will make a better decision.

A good place to start your education is to read 'Rich Dad, Poor Dad' by Robert Kiyosaki and 'How to Own The World' by Andrew Craig. Read them in that order. You will find them both on Amazon.

'Rich Dad, Poor Dad' can fundamentally change your understanding of money. For that, it's worth reading several times to help it sink in. However, it was written some time ago and so you may want to ignore the author's praise of Donald Trump towards the end 🙂 What's more, the strategies the author used to make his money were good for him in his time and in the USA, but are not good for us in the UK given our current tax regime and regulations. However, we do have other opportunities to arranging things so that our money works for us, not us for it. That's what 'How to Own The World' is about, which is recent and UK-based. In particular, see what he has to say about the real returns on property versus a diversified investment portfolio. The author has a website, Plain English Finance. https://plainenglishfinance.co.uk/

You may also find it interesting to explore the YouTube videos of Graham Rowan of the Elite Investor Club. Some people don't like his style but he does challenge you to think about what's going on. Here's a link to his A-Z of investing, which is a good place to start. https://www.youtube.com/playlist?list=PLmMyLbGWiHq0EJkquUuLcb1kdlIbyyTEI

You are so lucky to be at the place you are now, with your father's shares and the most valuable thing of all, TIME to build your assets and let them grow. Just hold back from jumping into property until you have a better understanding of the wider investment picture.

Best of luck to you, Steve

by Luke P

13:30 PM, 31st December 2017, About 4 years ago

Reply to the comment left by christine walker at 31/12/2017 - 12:36
The money is one thing, Christine and painful though it is, you can always make more.

The real problem comes with the conditions…essentially they want to mak LLs responsible for all the Council/Social Services/Police’s failings. ASB by tenant (or their guests) within ‘the vicinity’ of the BTL: LLs fault = licence revoked; ‘enviro-crime’ by tenant: LLs fault = licence revoked; live too far away from BTL & not using an agent = no licence; ‘no-fault’ disaster at licensed property = LL responsible for rehoming tenant at their cost; no 24hr contact = no licence…

by Luke P

13:32 PM, 31st December 2017, About 4 years ago

Reply to the comment left by Luke P at 31/12/2017 - 13:30
My favourite…provision of documents in tenants native language, particularly bins/recycling info, a licence requirement.

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