What should I do with 200k?

(39 Posts)
roleypoley Sun 29-May-16 08:29:04

It's sitting in the bank earning v little interest so there's probably a better place for it. I don't want anything high risk. We don't own a property so that's what it will be for in the long run but we're unlikely to move anytime soon as we rent a lovely house in a good area but to buy here is really expensive.

NoCapes Sun 29-May-16 08:30:28

Give it to meeeeee grin

StrawberrytallCake Sun 29-May-16 08:32:12

Bags and shoes

pilates Sun 29-May-16 08:47:08

I would be looking to buy a property asap, even if it was a small house/flat just to get a foot on the ladder. With the money plus a mortgage would that not be achievable?

roleypoley Sun 29-May-16 08:55:32

Ha ha no capes and strawberry. I'm scruffy and uninterested in bags and shoes. Yes I thought of maybe a small property in this area but not to move into. Does it make sense to buy and carry on renting?! We could get a very small 2-3 bed with 200k round here. I'm a SAHM so don't earn. If we got a mortgage it would be my partner and he's not keen. He earns quite a lot and pays rent & bills etc but isn't keen to buy so I'm not pushing it as I do really like our current house.

katemiddletonsnudeheels Sun 29-May-16 08:57:27

You could afford to buy outright and continue to rent but have the money from the property you own as well, assuming you decided to rent it out.

Or you could invest in a small business - this is what I'm doing.

peggyundercrackers Sun 29-May-16 08:59:49

I would agree with buying property, it's only going to go up in future. Seems silly to rent and have all that cash in the bank.

FanDabbyFloozy Sun 29-May-16 09:05:44

I think your DH is being unreasonable. If you bought a family home with a mortgage - like 99% of first time buyers - you will cut the cost of your outgoings more than likely. Rent is throwaway money and at least if you buy, you are working towards a real asset in the future.

If you do buy a BTL, you have to pay tax on the rental income (although if you are a SAHM and it's in your name only, you have your tax free allowance which would help).

pilates Sun 29-May-16 09:07:26

I notice you are not married. If you do decide to buy and the money is "your money" make sure the property is in your sole name or, if you put it in joint names, have a Trust Deed drawn up so the money is protected. Just in case your relationship breaks down further down the line (not saying it will).

roleypoley Sun 29-May-16 09:11:58

I know it makes sense to buy our family home but it just doesn't seem like the right time. Our rented house is perfect for us at the moment. My partner is just funny about borrowing money and I think that's the real reason he is reluctant. I don't feel it's worth pushing as we'd probably end up moving out of this area, which I love so I expect we'll just stay in this house for now. Is letting a house a lot of stress/hassle? Can an agency do it all for me and if I go that route is it still profitable? I know nothing about it.

WhatsGoingOnEh Sun 29-May-16 09:16:10

If you bought a (say) 2-bed flat outright, and then rented it out, then every penny of rent they paid you would be profit.

But you'd need to discover how much flats can be rented for in your area.

Plus, there'd be stamp duty to pay, and solicitors fees, surveys, etc. So could you buy a decent flat, near town/station/transport, which didn't need too much updating/renovating, for around £185k?

pilates Sun 29-May-16 09:19:12

Why not give a couple of Rental Agencies a call (or go online) and make some tentative enquiries. I think as it is your first time it would be easier to use an agency.

roleypoley Sun 29-May-16 09:20:19

But who would manage it? So if the boiler broke or whatever who would sort it out?

roleypoley Sun 29-May-16 09:21:12

Oh sorry Pilates I've just seen your reply, thank you. Yeah I think it would be best I'm no handyman.

Timeforabiscuit Sun 29-May-16 09:23:18

Honestly, speak to an independent financial advisor.

Have you got a pension, what are your long term plans, do you want to privately educate your children, would you want to retrain once children are older? Sitting in the bank could be the best plan for the short term.

BTL can be an absolute nightmare if you have no inclination or experience.

blueskye10 Sun 29-May-16 09:26:11

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

blueskye10 Sun 29-May-16 09:31:10

Sorry forgot to say there is also an alternative to b-t-l which are high returning 'handsfree' property deals which means that you own a (multiple occupancy) house. You get same returns or higher than b-t-l and all you have to do is sit back and get all the work done for you. A very popular choice for investors who don't want the problems associated with managing a b-t-l. Downside is that this option is restricted by the FCA (Financial Conduct Authority) to 'sophisticated' investors, but if you wanted to know more about this option I could explain.

roleypoley Sun 29-May-16 09:34:16

Really wish I was more business minded, I've had it plus more for 7 years and feel a could have done so much but just scared to touch it. Maybe I should just man up and do a buy to let as a challenge?

roleypoley Sun 29-May-16 09:35:05

Blueskye they both sound like decent options

roleypoley Sun 29-May-16 09:36:22

Timeforabiscuit no pension, no plans to privately educate, only plan is to buy a house eventually

Squashybanana Sun 29-May-16 09:39:45

We have 200k in an investment portfolio. My husband's choice, I'd have gone for property. Surprised no-one is suggesting investments here?

WhatsGoingOnEh Sun 29-May-16 09:45:13

I understand being scared to touch it! I'd probably be the same. smile But speaking of safety, you don't have the whole £200k in the same account, I hope? Remember, the FSCS will protect/repay up to £75k of savings if the bank goes bust, but nothing over that £75k. So really, you need to split it between 3 diff accounts with 3 diff banks, all holding under £75k. Please do this ASAP!

See here: protected.fscs.org.uk

WhatsGoingOnEh Sun 29-May-16 09:45:50

Well, 4 diff accounts.

blueskye10 Sun 29-May-16 10:00:51

Message deleted by MNHQ. Here's a link to our Talk Guidelines.

roleypoley Sun 29-May-16 10:01:49

You know what I knew that and I've still got 185k in one account blush rest is split between an isa and another savings account. This is why I'm a financial lost cause!

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