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Original poster

Won £50,000... WWYD?

97 replies

BridgettJ · 29/07/2020 15:03

Just that.

I won £50,000... what would you do with the money?

Thinking a little investment property in Glasgow.

OP posts:
Embracelife · 30/07/2020 23:30

How is 300k for a 2 bed flat very very affordable? What do people earn in Glasgow?

VanGoghsDog · 30/07/2020 23:45

I'm about to get the same amount.

I'm putting half in the NS&I bond that pays 1.15% and the other half in premium bonds. I have no mortgage and no debt, and I can't put it in the pension as you have to have earnings to match it (and can only put £40k unless you use previous years allowances, and have earnings to match all of that too) and I have had no earnings this tax year.

It's enough to fund the extension I want but I was saving up for that so will continue to save.

MojoJojo71 · 30/07/2020 23:59

Lol @ £300k for a 2 bed flat being ‘very very affordable’

Original poster
BridgettJ · 31/07/2020 04:16

@Embracelife compared to London and Edinburgh. Both places we've lived.

OP posts:
DownUdderer · 31/07/2020 05:04

I'd buy gold.

Seeleyboo · 31/07/2020 05:18

Stealth boost. Won 50k..already have a BTL. 300k is very affordable. Christ OP. Hear yourself. Just out the 59k in your purse and spend it in Ocado

WhentheDealGoesDown · 31/07/2020 05:30

@Seeleyboo

Stealth boost. Won 50k..already have a BTL. 300k is very affordable. Christ OP. Hear yourself. Just out the 59k in your purse and spend it in Ocado
Yep
CayrolBaaaskin · 31/07/2020 06:39

Tbh op you will likely make a loss on a 2 bed 300k flat with a 250k mortgage unless you go interest only. In glasgow you could maybe rent such a flat for £1200 or so a month (and there will be a limited market at that price). That won’t cover the mortgage (especially if you need to pay someone local to manage it).

you will also have to pay 4% additional property lbtt (There’s no “holiday” for the second homes tax) on purchase. So for a £300k flat, you will have to pay at least £12k of your money in tax upfront.

I would suggest a cheaper flat will be more affordable and give a better yield.

Anyway congratulations and I hope you find a good investment.

CayrolBaaaskin · 31/07/2020 06:41

Also you will need a 25% deposit these days for a buy to let mortgage. Unless you have other money, your £50,000 won’t give you that. You’ll need about £90,000 with lbtt and fees for a £300,000 flat.

Basillify · 31/07/2020 07:02

@CayrolBaaaskin

Also you will need a 25% deposit these days for a buy to let mortgage. Unless you have other money, your £50,000 won’t give you that. You’ll need about £90,000 with lbtt and fees for a £300,000 flat.
To add to this, having just sold a two bed flat in Glasgow City centre in an area full of young professionals and students, there's incredible demand. They're selling in days for ridiculous money over the asking price. You wouldn't have much change left over from your £50k just for the "offers over" part so you'd probably still need to account for much of the deposit separately.
SorrelBlackbeak · 31/07/2020 09:05

Before buying more BTL you'd probably better review whether the Government's proposal to remove s21 of the Housing Act and to tighten up section 8 will apply in Scotland and have an impact on your ability to evict tenants.

Personally, the way the political climate seems to be moving ( and from a conservative government) is changes to renting in the tenant's favour, and potentially substantial increases in CGT and / or wealth tax.

I'd take out a stocks and shares isa and DH would do the same and put the last bit either into premium bonds or keep for a really good holiday/ works to house etc.

hepburnmed · 31/07/2020 09:14

£50k...
Increase pension payments for self and DH for this year £12K
Give some to charity £2k
S&S ISA £25k
Garden upgrade £5k
Treat the family to a great holiday £6k

hepburnmed · 31/07/2020 09:15

Let us know what you decide OP! I wouldn’t be putting more money into property ... I would be spreading it around somewhat.

SEE AN IFA!

VanGoghsDog · 31/07/2020 09:24

@DownUdderer

I'd buy gold.
At an all-time high?
8elate8 · 01/08/2020 05:06

If you already have another flat that you rent out I'd use the money for other investments so to not have all money tied up in one type of investment.
Do you have DC? Putting some away fof their education is an option if that's something you'd like to give them the option of.
Also having some set aside for a rainy day is always good (assuming you dont already have a good amount).

Sonmi451 · 01/08/2020 09:00

What a nice win! I'd have a new kitchen, and make my shitty porch into a nice conservatory. The rest I'd split between Premium Bonds and a high interest savings account.

Kids' university fund is a good idea.

Bertyb7 · 01/08/2020 10:03

@BridgettJ , congratulations! Coincidently me and DH are looking at BTL in glasgow too as lots of investment there at the moment and the properties are beautiful and very affordable. I went to uni there too so know we love the city. We bought in Edinburgh 5 years ago but agree the prices are now ridiculous- our place would now be out of our budget. Hadn't heard of it being the next London though.. maybe it still has legs (we were thinking prices might now be too inflated). If you do decide Edinburgh, it will comfort you to hear that our flat has been let out since we started renting it over 4 years ago, there is such a demand for rentals we found tenants so quickly. And it is paying off our mortgage. We live in London but definitely can't afford a BTL there, hence why we are looking at Glasgow.

gabsdot45 · 01/08/2020 16:36

I love spending imaginary money
I'd spend some on my house and garden, new bathroom, new windows and some garden landscaping.
I'd upgrade my car
I'd spend some on holidays and trips
And I'd try to save about 10K
Congratulations OP. Enjoy spending your prize money

Ellisandra · 02/08/2020 01:15

Without actually knowing your finances it’s impossible to say 🤷🏻‍♀️

I would personally put the whole lot in my private pension (over 2 tax years) because the tax relief is awesome (on my salary) and I’m in my 50s so it wouldn’t be locking it away that long.

ToLongNow · 02/08/2020 01:18

Yep. Go private on two referrals im waiting for....

GallusAlice79 · 02/08/2020 10:47

@BridgettJ

There is no need to buy a £300k flat in Glasgow, unless you want to live in it. Look beyond the city/west end to either Eastend or Southside. My preference would be the latter. You can easily buy a 2 bed with large dining kitchen for £180-£200k around the Battlefield/Mount Florida area. Shawlands will set you back another £20k. Rents in the area are £800-£950 pcm.

Or if you want a tip for the future, look at Govan/Ibrox. Particularly near Cessnock underground. Can get a 2 bed/dining kitchen for about £125k, and rent out for circa £650pcm. I firmly believe its going to be the new hipster area where values will sky rocket.

Original poster
BridgettJ · 03/08/2020 08:41

Wow, bitter much? @Seeleyboo

What's the need for that post at all?

OP posts:
Original poster
BridgettJ · 03/08/2020 08:42

Thanks @Carole Baskin! Maybe around £150-200k?

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Original poster
BridgettJ · 03/08/2020 08:45

Great insight. Thanks @Bertyb7

We had a flat in Edinburgh a few years ago but decided to sell it and I really wish we hadn't!

I like the idea of it being safe, someone else paying it off over 20 years and then selling for retirement age. Nice lump sum or a flat when our children think about uni etc.

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Original poster
BridgettJ · 03/08/2020 08:47

@GallusAlice79 good to know, I didn't think they were great areas currently?

Any thoughts on Dundee?

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