Is Buy to Let a good use of a spare £100k?

[ChocolateWombat]

So, mortgage paid off (house value approx £500k) and no debts. We have £100k in savings.

Considering a buy to let property. Round here, can't get anything for less than £200k so would need to borrow £100k. Is this a good idea, what with stamp duty on buy to let and other taxes. Would be an investment for at least 10 years.

Would it be better to do it somewhere where a property could be bought more cheaply, but probably less capital growth potential and less rental income? Or is there a better thing to do with £100k? Interested in the future rather than generating immediate income.

Stocks go up as well as down. How come people are so adamant that's it's a good invesment.
I have isas in Invesco Perpetual funds (very long term reliable firm) some are worth 40K+ (china etc) and some are worth 7K same investment over same time. Not everything goes up all the time or we'd all be millionaires.
We lost money in shares/funds in 2008 and when the tech bubble burst, 2000 or thereabouts

Renting -I get 900 pounds a month in rent, true sometimes there are extra outgoings. Plus I have the value of the properties when I sell them..

why 50K per provider max?
I assume this is to do with the deposit protection scheme but, if so, I think the limit has been raised now to £85K

I have a BTL cost £270k £115k deposit. Rents for £1000 & I get £450 after costs.
Helps boost my income

Dad was sceptical he isn't keen on BTL and recons he gets as much return having the money invested

Its worth talking to a good financial advisor

Holiday let could be a good option especially if you would use it?!

My friend got a flat for £125k by remortgaging her house for the deposit & she's done well. Even gets to let friends stay for free for treats when it's empty. It's about a 45min drive away but they use a agent & the. Agent does change over too

@sumo read my post. They are easy to get rid of if you are worried that their value will go down/you need quick cash (contrast this with the housing market where a sale can take years). They are easy to value using the warren buffet method of calculating actual value of assets vs liabilities so you can escape the trap of market values which don't mean very much in that they are liable to crashing. Most importantly, unlike investment properties or business, you don't have to spend any money or time improving or maintaining your investment. There is still a risk element (there is in all investment) but it is easier to manage through due diligence and quick selling. You essentially make money by risking your money as you do with all investments but unlikely investing in your own business or as a landlord you don't actually have to do any work due diligence aside and you aren't trapped in the investment .

@EggsonHeads The problem is nobody likes to think they're part of the problem.

I think you'd be better aviodung property - you already have 500k invested in property, why would you put your last 100k in property too???

This.

Diversify.

Keep some in a cash ISA. More in a stocks and Shares ISA to max your allowance.

Also have a look into index linked funds - these have low management fees and there has been evidence that they perform just as well (if not better) than managed funds over time.

If / when you sell the house, you'd have to pay capital gains tax on the profit. All your savings would be tied up in one investment. I think you'd be better to consult an independent financial adviser for advice, with a view to investing in the stock market / your pension. This would enable you to (1) take advantage of incentives to invest e.g. ISA and making pension contributions (2) spread the risk (3) raise cash from time to time, if required, by selling one or two investments

A good investment but not a moral one in my opinion - why should someone pay off another mortgage if yours which they could afford themselves if they only had the privilege in life to save a deposit.

No, stocks and shares ISA's arent in the standard fscs scheme, there is obviously no protection against market drop. The 50k limit is against fraud.

Remember what assume does...

Op, try landlordzone. They don't stand for bad landlords but you don't get the playground jealousy you get here.

ChocolateWombat

Just wondered, has anyone done this a significant distance from their own home? Did you do it in an area you already knew or not? How did it/is it working out being further away?

Ours is a couple of hundred miles away from us. We have a comprehensive insurance policy and we don't actually use an agent.