What to do with 150k

[Foxglovesandlilacs86]

I bought my house 5 years ago, spent around 100k and have sold it for 995. The house we are buying is 700k so after stamp duty, fees etc, and also buying furniture and doing some work in the new house expect to have about 150k left to do something with.

I own my house outright so this will be cash, and I really want to do something with it so that it’s not just sat there where I can spend it (I’ve been in this position before and squandered a lot of money).

DP says I should buy a flat and rent it out, I’m up for this but does anyone know how easy it is? I do t work at the moment, I had my own business but we closed at Christmas. DP is self employed. The house will be in my name only and so will the flat.

im basically in a position where I have a lot of capital but not a massive income (I get maintenance from older childrens dad, tax credits, child benefit and money from dp).

I will probably see a financial advisor at some point as I know my situations an unusual one but thought I’d ask on here in case anyone has any advice. Thanks 😊

The child benefit doesn't take into account anything other than earnings. If OP earns under 50k then she'll get child benefit regardless.

I thought everyone is to be moved to universal credit by next year which quite rightly will stop all your benefits except child benefit. Plan for that by getting a job if you don't want to use your savings.

don't invest in a rental property unless you want to do all the work of running around looking after it / finding tenants / fixing stuff etc.

I'd get an IFA and put as much as possible into an ISA and then the rest into a basic tracker fund. don't be deceived by any fancy high risk investments like bitcoin or wine or NFTs. you want a standard tracker fund like Vanguard that will keep your funds growing above inflation. Some funds maximise income and some maximise growth - you can ask your IFA for advice.

when you pick an IFA and when you pick funds, look carefully at the annual charges. A fund with an annual charge of 2% is taking a hell of a lot of your 5% per year growth, and a fund with an annual charge of 0.5% will do a LOT better in the long term.

Echoing others, get an IFA and solicitor pronto. You have a lot to sort out here. And look for a job.

Are you married?

I'm astounded that you have never worked (except for 2 years when you had a shop), have property worth a quarter of a million, get maintenance from your ex, yet still get all those benefits.

Surely you have to make a joint claim if you live together - that's fraud if you're saying you are a single parent. It also sounds like your partners cash isn't all declared?

It's a bit depressing that you're getting so much financial support. Maybe it's a wind up?

Surely if the house is sold, the funds go into your bank account which would then trigger a (rightful) end to your benefits? Then to use them up buying another home/additional homes would be deprivation of assets?

This. As soon as that £150k credits, your tax credits end and wont be reinstated.

Three quarters of a million, plus 150k floating.

I think she'd said earlier they claim together, but if he has cash savings which aren't declared that's already very iffy ground.

Tax credits don't include maintenance payments as your income, so they're not relevant to the claim either.

Three quarters of a million, plus 150k floating

I think she'd said earlier they claim together, but if he has cash savings which aren't declared that's already very iffy ground

Surely it's a joke? I'm pretty sure if you live with someone you're supposed to claim as a family unit. If they're not it's all well dodgy.

Yes I did realise maintenance isn't taken into account with benefits payments. But it should be.

I don't see OP how you can hide this £150k. Surely it will come into your bank and then you'll have to declare it & your tax credits & child maintenance will stop? It's bonkers if the tax payer are going to continue to support you with that much money.

To answer a few questions in one go:

I don’t have a million in cash! I own a house that is worth just under a million.

the money from my house sale will go out on the same day it goes in to pay for the new house so won’t be in there long at all.

have looked further into it and tax credits do end for everyone in 2024 and after doing some calculations online I would be much worse off owning a second property, they don’t calculate it the same as tax credits do. So will have to look into it further.

@daisyjgrey I know…. I need to write a list of all this stuff I need to do and just get on with it.

we do claim as a family as I said a couple of posts ago.

I think It might just be a better idea to buy a more expensive house and have the money tied up in the property?

I will book an appointment with a financial advisor tomorrow.