Money and property wwyd?

[Thisisthelaststraw]

Can’t find WWYD so posting here.

If you had a sum of money let’s say €200,000 would you (with retirement in mind) bank it and live off a ‘wage’ from it or buy a property to rent out?

If you say your wage (retirement top up) would be €600 a month it would last approximately 27years. If you bought a property you could make €1200 a month but pay half in tax so really €600 a month and that would last as long as you’d live plus you’d also have the property to sell should you wish/need.

No property = no management, property upkeep or general hassle but the latter seems more financially sound.

Wwyd?

Ps I don’t have €200,000 and if I did I’d probably travel and blow it all and worry about retirement in 20 years but my sensible side thinks I should be planning before it creeps up on me (much like the last 20 years have!)

I would definately buy property and rent it out. It is an asett that is likely to grow in value and i cam resell for a profit if required.

That’s what I’m thinking but dh says it’s not worth the hassle and that the €600 after tax would be eaten into with insurance, property tax and management fees plus any repairs/upgrades over the years.

We only have one dc who will be helped out to kickstart her adult life and she will inherit the family home so we wouldn’t need to build up more for her. I just think eating into it instead of making it make us money is silly.

Anyway, it’s just thoughts at this stage so I’m getting my knickers in a knot over what-ifs and maybes.

I don't want to spend my retirement being a landlord and all the stress that could entail. If I was debt free I'd keep a good chunk in cash and then look at how to invest the rest so it could be easily accessed by my husband if I died.

No to property because one bad tenant and all the stress of it is not worth it. Plus property values can hit highs and lows. Plus you may want your child to inherit the family home but there are no guarantees in life.

Why wouldn’t she inherit? We have no other children? Assuming it didn’t burn down etc?

By the way this may be coming across like we have loads of money or opportunities etc. We really don’t. We work hard, shite hours and are paying two mortgages now with one in negative equity because we both bought before we got together.

We should have a small opportunity in a couple of years to pay off debts and build to sell to make some money for the future. It’s all pie in the sky but I’d like to think it’ll work out and we can make the most of it with us and dd in mind.

I’m currently facing the possibility of looking after elderly relatives as they don’t want to go into a nursing home but I wouldn’t be want dd having to look after us so the saved money would have to go towards that should the need arise. I think a property/asset would be better in those circumstances than a dwindling savings account.

Could get a smack of a bus next week so, true no guarantees in life but good to plan I think.