200k WWYD?

[Laurel567]

In rented property, one DC at primary school, we’re a couple mid 30’s, both work full time, no debt and fairly good joint income. What would you do with 200k? Invest, buy properties to rent out (mortgaged but using money for deposits), put a deposit down on our own house?

Im looking for the best way to make this money work for us in the long term, suggestions are very welcomed!

I think the security of owning your own home is important. What price are houses in your area?

What are you doing/spending Housing wise now?

Security of a house with no mortgage

What are house prices like where you are. Could you be mortgage free on 200k

House.

Security of a house with no mortgage

200k would buy a small semi detached at a push .. paying £900 a month in rent for small 2 bed right now.

I'd do that - no question. Mortgage free & £900 a month better off. Sounds ideal

Buy a house for your own security. Get a small mortgage and get a bigger house that you likely won't need to move out of in the future.

*sorry renting small 2 bed terrace now

i would pay off out mortgage as the biggest debt.
If you buy to let the property has to kept at a higher standard than if you lived in it - all repairs fairly quickly replace boiler etc
Where as if you owned a property build some equity and then mortgage a smaller property to rent out - if you wanted or invest in your pensions.

Personally I like a cottage with holiday lets, somewhere tranquil and green.

Buy somewhere a bit bigger and use the £200k as a deposit and pay a small mortgage?

Is this an inheritance are are you married?

If you use the money for a joint asset it’s share on splitting - if you invest it in something your own name - it’s stays yours. Think carefully about the future you might end up with.

Thank you all for replying, I was thinking house purchase really. I just wondered whether it would be worth trying to make an income but you are all right, sort our home out first.

Yes it’s an inheritance, we are married. Good point @Totaly

I wouldn’t get a BTL if you don’t have a place yourself. Way more hassle that it appears.
Invest in shares, pension.
100k deposit on a house, 75 invested, 20 easy access rainy day fund, 5 to go treat yourself

I’d buy a house, not much point in generating income if it’s just about covering your rent.

Until you decide stick it in premium bonds max out for you , DH and child. It will make you some nice winnings til you decide.

Buy somewhere for you to live.

No brainer.

You could add a mortgage, see what you can borrow for £500 pcm and if that takes you into a different house bracket. But remember all your bills will go up and you will be responsible for repairs and maintenance, so don’t borrow to the hilt.

Many BTL landlords are selling up as it's increasingly just not worth the hassle.

Buy a house, buy a house, buy a house!

This. And save the 900 every month.

Definitely housing. Security of tenure is important.

Buy a horse. I mean a house.

The obvious answer is to buy a house to live in, is there a reason why you're asking the question, rather than just doing this?

You talk about using the money to work for you in the long term. So the first step would be to stop paying £900 pm for somewhere to live.

Unless you're looking to buy somewhere relatively expensive, which your rent suggests not, you're probably in a good position to buy your 'forever home', ie use the £200k to put down a significant deposit and take out a mortgage that is well within affordability for your incomes, even if your circumstances change (job loss, illness, another DC). Eg, a mortgage of £100-200k, to buy a property of up to £3-400k, with a LTV of under 50%. Would this get you a 3 bed semi where you are?

Buy a house, invest the £900 you aren’t paying on rent each month. Or buy a three bed and get a small mortgage.