What should I do with 200k?

[roleypoley]

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]

Give it to meeeeee

[StrawberrytallCake]

Bags and shoes

[pilates]

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]

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]

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]

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]

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]

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]

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]

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]

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]

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

[roleypoley]

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

[Timeforabiscuit]

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]

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]

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]

Blueskye they both sound like decent options

[roleypoley]

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

[Squashybanana]

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]

I understand being scared to touch it! I'd probably be the same. :) 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]

Well, 4 diff accounts.

[roleypoley]

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

[alreadytaken]

please don't send pms to random people on the internet for financial advice, that's a good way to lose your money.

Speak to an independent financial advisor, who be legally liable if they give you bad advice