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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:
GallusAlice79 · 03/08/2020 09:16

@BridgettJ The thing about Glasgow, like most cities, is that the good areas can be very close to rougher areas. But that's the case everywhere in Glasgow, including the very expensive West End. So you've just got to make sure that you know to the exact street where is "ok".

However, all the areas I have mentioned are having/had a bit of a hipster revival and even the slightly rougher parts are now very desirable. In fact, a lot of people prefer the slightly rougher parts as they have more "character"!

The best thing to do in my opinion is watch the rental market via Rightmove, Zoopla etc. You will soon see what flats are snapped up quickly and which ones aren't. As a guide, I would say a flat that is on the market for more than 3 weeks has something wrong with it. My own rental was on the market for 1 week before I chose my tenants from a list of candidates.

I don't know anything about the Dundee market. I don't look for students to be honest, I prefer young professionals.

Original poster
BridgettJ · 03/08/2020 09:22

Great insight. Thank you!

OP posts:
GallusAlice79 · 03/08/2020 09:28

@BridgettJ That area there is one street away from a very deprived area in Glasgow called Govanhill. A quick Google search will enlighten you about what I mean.

However, you would still get a lot of interest renting out a flat there as it also has many amenities that people want, and is very multi-cultural.

My point is, everywhere in Glasgow is next to nice and not so nice areas. What's important as a landlord, is understanding where people want to live, and how much they will pay for it.

madmumofteens · 03/08/2020 12:43

I would buy a flat just about to get a rental for my son rentals around £700 to £800 I bedroom flat in Edinburgh 😱

ToLongNow · 03/08/2020 15:00

I would get my partner some drums.

He has been very ill and nearly lost both feet, so had to give up drumming for 7 years and his drum set has now gone mouldy in the garage.

His feet are now alot better and his mental health will be much proved if he could get playing again...

Will keep doing the lottery

ForensicAccountant · 03/08/2020 23:39

@BridgettJ - you’ve now mentioned twice the ‘safe’ investment and someone else paying off your mortgage.

As I’ve said before, with the numbers you are bandying about you will be making a loss (and no bank would give you a 85% BTL mortgage because they know that too). Even if house prices keep going up slightly.
Just a small increase in interest rates would make BTL mortgages with a higher LTV unsustainable and kill BTL mortgages dead.

Original poster
BridgettJ · 04/08/2020 08:13

Always one... @ForensicAccountant 🙄

OP posts:
Sunseed · 04/08/2020 08:42

OP what precisely are your objectives for this money? Are you looking for capital growth or income or a mixture of these? Do you have any particular target figures in mind? You have mentioned a 20 year timescale. Your financial plan should consider these matters first before deciding on the most suitable type of asset to invest in to meet those needs.

There's no such thing as a "safe" investment, they just carry differing levels of different types of risk. What risk types and levels would be acceptable to you?

Ellisandra · 04/08/2020 09:02

@BridgettJ why the 🙄 for @ForensicAccountant ?

Original poster
BridgettJ · 04/08/2020 11:19

@Sunseed keep it safe, watch it grow.

Don't want it the bank account as we've already got a large amount saved and it seems a waste to just have it in an account.

I'd like property as it's always good to have a bolt hole somewhere. Especially for when our children are university age.

I'd like to give them each a property to get them on the ladder!

OP posts:
Original poster
BridgettJ · 04/08/2020 11:21

@Ellisandra because @ForensicAccountant is incorrect.

We've already had a DIP, so I don't know what they are talking about.

It will be paid off each month and when we sell in 20 years, even if it doesn't go up in value it will have £200k in it, rather than the original £50k. How is that a loss?

Rent pays the mortgage and a bit left over each month to put aside for repairs. Etc.

OP posts:
RJnomore1 · 04/08/2020 11:26

With £50k you’ll get a max £200k property presuming you get it at valuation.

The stamp duty beak is not on second properties so you’d be £7/8k on that.

I’d personally split £30k on 3 rental properties at £39,950 in crap housing estates you’ll get a £400 income from each month and have £20k in the bank to cover any periods without tenants. An interest only mortgage on each one would be about £50 a month and there’s no stamp duty on second homes under £40k.

Original poster
BridgettJ · 04/08/2020 17:48

Why would you get an interest only mortgage? They are a total scam. Plus I don't want the income! Too much tax!

Where on earth could you buy a property for £40,000?! 🙄🙄🙄

OP posts:
Pinkiii · 04/08/2020 17:52

I would donate it all to charity, no one needs that kind of money

Would be... is usually the reply from mumsnet

I would Buy a new car and invest as much as I could to get more back so I could have another baby without worrying about the financial
Implications.

Congratulations on your win.

Darker · 04/08/2020 18:02

If you can afford it, 10% to a charity you care about.

WitsEnding · 04/08/2020 18:12

Happened to me a few years back. I gave the children 5k each and put the rest in managed funds, as it's 'gambling money'. I normally stick to no-risk savings.

SusanKennedyshouldLTB · 04/08/2020 18:23

@BridgettJ

Why would you get an interest only mortgage? They are a total scam. Plus I don't want the income! Too much tax!

Where on earth could you buy a property for £40,000?! 🙄🙄🙄

Accrington Blackburn Burnley Preston Darwen Maybe Bury.

Basically lancashire.

Original poster
BridgettJ · 04/08/2020 19:38

We have a charity that we give a large amount of money.
Charity already ticked off.

OP posts:
Original poster
BridgettJ · 04/08/2020 19:39

@SusanKennedyshouldLTB em no

OP posts:
Hellokitty82 · 04/08/2020 19:39

Premium bonds

VanGoghsDog · 04/08/2020 19:46

If you have a full bank account, already have a BTL and give large amounts of money to charity - why are you asking random strangers what to do with £50k?

Original poster
BridgettJ · 04/08/2020 20:19

@VanGoghsDog 🙄

Because it's fun to ask! I like the insight and some suggestions are things I'd never have thought of.

Especially the intel on locations in Glasgow which we are now considering.

OP posts:
ForensicAccountant · 04/08/2020 23:46

BridgettJ

Why would you get an interest only mortgage? They are a total scam. Plus I don't want the income! Too much tax!

I am beginning to wonder if you know what you are actually doing!

BTL mortgages are interest only for a reason. For starters to work out the tax that you have to pay on it!
Even if you do not take your profit as income and use it to pay down the mortgage or buy yourself a car, you will still have to declare it and pay tax on it. That’s why interest has to be separate from any repayments.
Feel free to ask me more about the bleeding obvious.

TildaTurnip · 04/08/2020 23:54

I’d put it in the bank but I love the idea of sponsoring a uni place or similar.

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