What to buy with £100k?

[Tristani]

Our family consists of DH, dcs and I.

DH & I have put 50/50 for deposit. We earn roughly the same salary which goes into joint account and pay the mortgage from there. House worth ~£600k with £250k outstanding. We overpay. No other loan.

My dad is wealthy, most tied up in assets. He is very generous with me and the children. Dcs have investments and savings which they can access at 18. Until then, they have access to the best education and hobbies.

My dad wants to gift me £100k. He has expressed that he does not want me to put it in the mortgage. He wants it to specifically benefit the dcs.

I am not sure how to honour his wish. What could I do with £100k?

Does he not realise though- that given your current lifestyle- holidays regularly, access to hobbies, that by putting at least some i to the mortgage it benefits the kids greatly by freeing up potentially time and money?

Private schooling.

Can you give or save some of it for dcs to use as they wish. Then use one of PPs sensible plans for the rest?

Lovely suggestion, but my DCs will not really benefit from this.

Which has the fewer “strings”, being given, say, a pair of tickets to a concert or the equivalent sum of money and instructions “to use it to enjoy yourself”?

I’d be investing it for their future. Not for them to access at 18 but much further into the future, to pay house deposits, weddings etc later. Or even pensions.

My dad believes that the mortgage is being paid anyway so he does not want to contribute to this. It’s his choice and I respect this. We should be mortgage-free in the next 5 years anyway.

Pension makes the most financial sense but it’s such a long time away. A property investment looks like our best option.

How many children? £50K each (or £33K, or £25K) invested in a S&S ISA until they’re ready to buy a house to live in themselves will be the best thing you could do. Keep it separate from university funds.

Nice problem to have!

child isa is only £9k/year and already used. This is where their university/first house fund is.

I’d bought into ISAs and have an amazing holiday but perhaps you already spend 20k on holidays

Put it in ISAs!

Honestly, property isn’t a great investment now. It comes with significant running costs and regulations if you rent it, there’s capital gains tax when you sell it, and it’s not easily divisible if your children are at different life stages when they want to buy their own homes.

How old are the children?

But also, the very last thing I'd do is put it in an investment/BTL property at the moment. It will be so much hassle and is likely to become even more hassle.

Pensions? I wouldn’t gift my children something they may never live to see.

Then save it in your names in the stock market but earmark it for each child. Transfer it to a LISA when they’re 18.

Thank you, this could work!

Can parents open a pension fund or do the children have to do it?

I would buy a holiday home abroad. Probably in France, Spain or Italy, all of where you could definitely get something for 100k. Gives them the joy of holidays there now / in their youth and an asset for later. My parents did this (although it was an inheritance rather than a gift) and we’ve had happy holidays there since.

50k in Premium Bonds - probably for a regular monthly win.
50k on holidays

@Monty27

Who was this declared to? I honestly can’t think how this would arise. No tax implications on a gift as far as I am aware unless you’re posting from the grave.

I could use a few quid, help my son.

Or many charities need help.

I wouldn’t do property right now.
Travel. Not a 1/2 week holiday for a half term break. Take unpaid leave from work with DH and travel through the 7 week holidays.

House deposit as a child’s isa won’t cover both university and house deposit.

If DC don’t need it now, just fill up the ISA allowances and invest it in a couple of low/ medium risks until they do need the money. And a bit in a pension, which they’ll thank you for in a few decades. I know they’ve got investments already, but it’s not like they’ll get to 30 and think ‘damn, I’ve just got too much money invested.’

I really wouldn’t buy a house in France. As a half French, British resident owner of a house in France, I can assure you, they are a bit of a ball ache even when you know the system and speak the language. Do you really want to spend precious time off in M Bricolage looking at mousetraps?

If you want to invest in property, there’s no need to buy an actual property, just put it into a property fund.

I’d invest it in some way. I do like the charity idea though, especially as you seem to be a very fortunate family financially. Could you put a portion aside of any interest/ income received on the investments and each DC could choose a charity to donate that to?