£100,000 Investment

[Ric.ror]

After the sale of my house I am left with a spare £100,000 - I have invested other amounts in premium bonds as they are almost instant access should I need it
Now because (salary wise) I don’t live within my means I am chipping away at my excess £100,000. I think buy to let will be my best bet as this will provide me with an income and secure my initial investment
Thoughts please

[AuntLydia]

Think very carefully before buy to let. Some Landlords are in negative equity because of the property slump in some areas. Tenants can be a nightmare and the Law seems to be always on their side. We have one we bought 10 years ago as part of our Pension Fund and I wish we hadn't. Its dropped in value by at least 15% but we are still thinking of selling because the last Tenant did over £1,000 in damage and its been totally refurbed twice due to dirty disgusting Tenants. I would take the advice of a financial advisor.

[dannyk13]

Wouldn't want the responsibility of the maintenance and tenants can sometimes cause problems.

[ToraToraTora]

can you help me out, my nigerian uncle used to be finance minister and.........

[Bazile]

lol - a spare 100k ( sorry )

[Peter Pedant]

I would take the advice of a financial advisor.

blimey I wouldnt
I suppose in buy to letting - some make a profit and some dont - as is life
You dont sound as tho you are gonna do a mortgage and so the 100k should generate around £5-6000 gross and less after tax.

Depends on the area where you are.
Definite possibility- - - good luck

[ToraToraTora]

unusually PP is correct don't talk to a financial advisor, all they'll do is advise you to invest in something that gives them a huge commission.

[dannyk13]

You could have a word with your bank manager.

[Peter Pedant]

blimey - unusual compliment
I will wear my laurels with pride

[Canary42]

///unusually PP is correct///

How unnecessarily snide.

[KARL]

To quite a large degree I agree with comments regarding tenants although on the whole we have been lucky but a couple of times we have not, and too often it has been disappointing even though not disastrous. I would add that new regulations are continually coming in as the authorities try to tick boxes and all sorts of "registration" type of stuff needs constant renewal with the inconvenience and cost along with it. Let dwellings now need to be noticeably more heavily "covered" by certificates, registration, installations, etc. than your home or mine. Unless the accounts are going to be skewed all of this needs to be recovered through the rent which can be difficult to set because of the unpredictability - unless one thinks of a number and doubles it. The tenant always ends up paying..........that is if they actually always pay up. It is not easy to set and charge a fair rent without falling short. Resorting to the use of a letting agent is costly (add to rent) but, if I am correct, achieves the true aim of all the regulation, etc.: Generating (basically artificial) employment at the expense of the public, in this case tenants.

From what I have heard, if using a financial advisor it is vital to ensure he/she is truly independent and not on commission of some sort. I would not use a UK financial advisor because (again from what I have heard) they are lacking in imagination and rely purely on UK products and the Pound.

[Peter Pedant]

no I wouldnt - I bank with RBS ( least worst )
and their treatment of small businesses is hair raising

I took out an offset mortgage and when I offset it wiv lots (50k) nothing happened with the repayments and I was told 'yeah it doesnt work like that...' I paid it off.

and the bank mgrs / clerks are after commission to - for their employers' products

[Ric.ror]

Thank you all so much
I’m really confused what to do and I’m quite clueless about finance. I’ve just spoken to my works pension provider about investing and I’ve got a headache. Trouble is, as I said, I do live beyond my wage and I keep dipping into my spare money
If I was to buy to let I would let a letting agent or estate agent run it - I know it’s 10% but it’s worth it for no worry

Has anyone any experience of companies that source and run properties for you?

[Cloverjo]

Lucky you to have £100,000 going spare, but you won't buy a decent property for that amount.
Look for the best interest rate you can find and put it away.

[Sqad]

I agree with Cloverjo....£100,000 isn't a lot of money these days and as you like to live beyond your means (as most of us do) then look for something safe with an interest rate of about 1% net.

[237SJ]

You could look into doing an AVC lump sum if your works pension has that facility but you need to find out how well their fund is doing. It will mean that you can`t access the money until you retire though. Or you could just put it in an annual NS&I bond which means that, as it`s government owned, the whole amount is guaranteed safe as opposed to banks and building societies which only guarantee up to £85,000. You won't get a very good return though.

[Peter Pedant]

depending on where you are - you should be able to get workers accommodation in this price rang

bank interest rates - terrible ....

[Bazile]

You say you live beyond your wage
Perhaps you should consider ( if possible ) cutting down on things , and take cloverjo's advice .

100k does not sound like a lot to put into a property , that will yield a decent weekly /monthly return

[Ric.ror]

An additional question- I have been asked to send a copy of my passport to The House Crowd before I can register to invest with them. They are an established company so will it be ok to email through an image of it?

[Bazile]

From the house crowd site

''How safe is my money?
Every loan is secured on the borrowers’ property with a legal charge. If the borrower fails to repay and we cannot sell the property for a sufficient amount to cover the loan you may lose some of your capital.''

[Ric.ror]

Is it ok to send through a copy of my passport though?