What to do with £30k

[Rockmehardplace]

Am in the fortunate position of being about to get £30k and am wondering how best to use it? This is a lot of money to me and don’t want to fritter it away.

i have a mortgage of around £90,000, affordable repayments, no debts. Only about £14,000 in savings.

Where I live, I could potentially buy a 2 bed rental flat for around £60,000, which would rent for around £575 pcm. But am not sure if it could end up being expensive if it stood empty/needed work etc. Never had the opportunity to invest before and wouldn’t know where to start,

I just don’t want to waste this opportunity and would like advise from wiser folk than me!

Pay off your mortgage

Once you get a second property, you get a lot more costs. It’s not what I would do now with the government not wanting landlords to ever evict tenants. You look like you night get a good return but it’s not all profit if you need a mortgage and they cost more for rental properties.

I would look at pension if you don’t have one and ISAs. Tax free returns. Or saving in fixed term bonds for a fixed return.

It's often not worth paying off mortgages if you have a good rate on it.
I'm not sure I would want to go into property now, a lot of landlords are getting out of the market.
I would probably take some professional financial advice as there are a few options including pension, ISAs, etc

Buy something for yourself with £5k then put the rest in your pension

Do not buy a £60,000 rental flat.

While £575 per month is a good yield… there is the cost of the rent, empty period, maintenance, agent fees.

You are not in the position to be a landlord and it would probably be a nightmare (for you and any tenant).

If you are looking for a longer term investment, I’d advise putting it in a s&s ISA and leaving it alone for 10 years. Plenty of advice elsewhere on this site on what to invest in - v straightforward.

You can put £20k in now and the other £10k in April.

Pay down your mortgage and invest the reduction in monthly payments into an ISA

Put it into Premium bonds for a year while you look at all your options.

Being a landlord is hard work. You have to do it well or not at all and there are a lot of regulations to follow, rightly of course.

Take your time.

Pay down some of your mortgage or / and put the rest into a pension or an ISA (cash for part of it, investment on what you are willing to risk). Don't buy a flat, it's not enough for you to do that easily and I'm sure the complications are endless - not to mention the need to redecorate and upgrade every time a tenant leaves.

Definitely don’t become a landlord, it’s hard work and risky for little return. What’s your pension provision? The most sensible thing to do would be to put some of it in there, maybe some off your mortgage and little bit for fun! If it was me I’d do 10k off mortgage, 15k pension boost and up to 5k to make life a bit nicer/treats/travel etc.

This is what I would do:-

£20K in an ISA.

£10K in a decent instant access savings account or current account that pays decent interest.

April 2025 - Transfer £10K to ISA

Use funds when I finally get round to moving house.

I'd keep £5k for now for a holiday or whatever, and put the rest in a long-term ISA or investment bond. Or if you're confident you won't need it in a hurry, in a pension as the government will add on 25%.

Stocks and shares isa, sipp and if you have children open stuff up for them also.
Absolutely do not buy a flat.
Invest it op.
Pop a little only into pb

I would save it all for now.

£15k off the mortgage and invest the savings into a regular savings account.
£10k into higher rate savings
£5k for fun

Check how much mortgage you can replay without a penalty. Pay that off and put the rest into ISA.

Thank you! This is the kind of sensible advice I need! I have a good local government pension but had been thinking before this windfall of starting to pay more towards it. Unfortunately no chance of DS going to uni /buying a house in the future due to significant additional needs. Felt guilty about not using it ‘wisely’ but maybe £5k for a dream holiday would be good!!

I’m a professional landlord (around 50 properties) and I would buy the property.

that is an excellent return and as long as you use a good agent, it’s not hard work at all.

and that is an excellent return. Buy well (ie a decent area ) and try and avoid a property with quirks which will make it unpopula, that will reduce your voids.

a 30 mortgage with a £575 return? It’s a no brainer x

If you have DC
give it to them to invest in a Lifetime ISA or whatever MSE recommends.

Is there anything you could invest in that would make life easier/help support your DS with additional needs (adaptations, equipment, care, therapy)? That may be a good investment for you family.

Don't buy a property unless you are well clued up about being a landlord, it can be a lot of work and stress.

Personally I'd put £10k each into a S&S ISA and pension, £5k premium bonds and £5k holiday/fun.

I would put £25k of it into my pension and spend £5k on a holiday.

Someone with no experience managing one rental property is completely different to managing 50 and it’s presumably a job. If one is empty, 49 are not and rent still comes in. Ins property and its entry or tenant doesn’t pay, you are screwed. Buy to let mortgages add interest only and it would be a risk with only £14,000 savings.

If you are in local government can you buy extra years? Could be worth looking at. Or put it into savings like a trust for dc.

I'd put 20k into an ISA and 10 into premium bonds. Next April transfer the pb money into a new ISA. Tax free and secure

Have a think about longer term goals and finances. Will this be your only stand alone sum? Have you looked at your pension planning?

I would have some fun - a holiday or similar then look at splitting between LISA/ISA etc

Don't buy a second property.
20k in an ISA. The rest - Maybe have a nice holiday with some of it?
This gov isn't going to be kind to people with money so tread carefully. Don't put it into your pension.

This is what I would do