WWYD? NFI about investing

[Nelllo]

We've just sold our flat in London. We have moved and are now renting in the countryside, 5min up the road from DH's workplace.

We will clear around £320,000 from the sale after we pay off all debts etc. and are wanting to invest it somehow. For right now, we're hoping for some regular income from the investment to help with the day-to-day as we have a pretty crap combined income (we both work in the arts . I know, I know).

We'd be happy tying up some of the £320,000 but we are nervous/risk adverse - because this is all we have! We were lucky to buy a cheap, crappo flat in an up-and-coming area and now have a little pot of gold. We don't want to fuck up because money really isn't our thing.

One idea is to buy a 1 bed buy-to-let for @£180/200,000, keeping the rest aside for a deposit on a home when we are ready to buy again. Wondering if any lovely MNers out there may have a better plan for us?!

How much income do you need from the investment to supplement your current total income?

And do you have any previous experience as landlords/how involved do you want to be?

In your position, I'd probably just buy a property to live in outright. That way you won't have rent or mortgage to worry about and have more disposable income. It could work well financially - if you got a buy to let, you'd have to pay income tax on it + you'd have a mortgage to pay on your residential property. You probably wouldn't have any more disposable income but more stress and responsibility.

With no mortgage or rent to pay, you'd be able to save money into a pension and ISAs.

One beds are only slightly more desirable than studios and can be very hard to sell on. Think hard.

With inflation higher than interest rates, this money does need investing, but you can't sleep under shares. Your first job is to get secure with a house, even if it is one elsewhere that you rent out. With all the hassle, risk and cost.

BTW I am amused that with all the landlord hate in the mn playground, the advice is always to buy to let, which is of course the only thing you can do.

Thank you for your replies.

I should have said that we don't want to live where we are renting right now on a long-term basis. I'm Australian and we most likely will go back to live there in a few years time, so we didn't want to commit all of our money to something to live in here in the UK that we would want to sell on again in a short time frame. Rather, we want to invest some of the money and keep a deposit aside for a home once we decide exactly where we want to be long term.

I'm not convinced about buy to let, so I appreciate the cautionary advice. It just seems about the only way to get a decent return - if you buy smart, that is.

I'd start with Equity Isa's

Depending on your age you need to stomach risk.

If you're looking to live in Australia long term and don't need the money for day to day living, it would make more sense to invest in an Australian fund rather than any fixed UK property. You would be buying an immovable asset, subject to currency risk and the vagaries of the UK economy.

This should give you a bit of background www.moneysmart.gov.au/investing/managed-funds/choosing-a-managed-fund.

Btl is indeed the only chance of a decent return on UK money - dippydrawers at the treasury seem puzzled at why so many do it despite their measures.

In these circs, suggest buying in oz.

Thanks for your replies! Much appreciated. We will look at buying in Australia, although prices are high there right now. Hmmm. Much to consider.