Buy a rental or save?

[Snoods]

In a position for the first time where we have ‘spare’ money each month. Could change easily I know, but if still in this position in 6 months time we will look into what to do with this extra money rather than just blow it. Unsure if to look at remortgaging and borrowing enough to put a deposit down on a buy to let and investing that way, or just to save some money each month. The extra money means we could afford to run a buy to let if someone wasn’t in it or paying the rent, plus our current mortgage would increase but we’d afford it . But I know it’s a risk still. So should we just save long term to help fund our retirement? WWYD and why? Thanks

@Snoods

In a position for the first time where we have ‘spare’ money each month. Could change easily I know, but if still in this position in 6 months time we will look into what to do with this extra money rather than just blow it. Unsure if to look at remortgaging and borrowing enough to put a deposit down on a buy to let and investing that way, or just to save some money each month. The extra money means we could afford to run a buy to let if someone wasn’t in it or paying the rent, plus our current mortgage would increase but we’d afford it . But I know it’s a risk still. So should we just save long term to help fund our retirement? WWYD and why? Thanks

What’s your overall financial position? Do you invest in ISAs, have a cash cushion for emergencies, pay in to pensions, have kids that will need help with university?

After you consider all those things, and still have spare money, then what’s your appetite to risk? Are you looking to invest for at least 10 years? If it was me, I would invest it, in low cost trackers, and forget about it. A BTL sounds like a good idea, but do you really want the hassle? You could make a similar return by investing instead, with far less hassle

Hi. Thanks for replying. I don’t know what low cost trackers are? We pay into pensions through work. DHs is okay but mine isn’t great. Very basic and will only have about 25 years worth of one. We currently only save for holidays etc, have a small amount for emergencies, nothing long term, hence wanting to save long term or invest long term.

In which case, build up an emergency cash fund, look at paying in to a pension for you, as your provision is low, then invest in low cost tracker funds. These are funds that invest in a wide range of assets, and are low cost, I.e. their fees are low compared to other funds. Have a look at this link:

monevator.com/category/investing/passive-investing-investing/

This gives a good explanation.

Thank you!