To cash in my dcs bond & invest them in property?

[notnagging]

I have 5 dcs. 4 of which have minimum investment bonds.They are the last providers to offer minimum investment guarantee. They will mature when they are 21 & will be with about £7000 each. I could not get one for the youngest dc because they stopped it & changed to ISA. I'm worried that this industry is going downhill. We have a buy to let property & I am thinking I might be better
off investing it in doing up the property to increase the value
not to sell but increase the rental value.I am very conscious that I need to be careful with this money. It will be about £8000 now.

[MrsMushroom]

I think you should think about taking the money and splitting it into 5 equal portions and then investing that sum.

If they want to later, they can choose to use it for improving the property or not.

[HerRoyalNotness]

My DH is with your thoughts, that it's better to take our DC savings and invest in a house with it, to be split between them. The gains have to be better than any interest that can be achieved, plus the mortgage being paid off by tenants will all go into their pot.

[MrsMushroom]

But how much can you improve the rental price with 8 grand? Not that much surely as so much goes on what area a rental is in...rather than whether the kitchen's great etc.

[notnagging]

It is in a strong area that is being redeveloped by the council, near to good schools etc. 8k would be enough to improve the kitchen & bathroom. The mortgage co are happy to leave it as a separate buy to let investment as long as the rent is 125% of the mortgage. Currently mortgage is 520 & rent after fees is 726. Would probably add another £70 onto monthly rental.

[MrsMushroom]

Do you have current tenants? Would they afford it? Will you need to look for new tenants.

I rent and if my rent went up that much, I'd have to leave....couldn't pay it.

[notnagging]

Good point mushroom. The current tenant is hb