Move up/ holiday cottage/ buy to let- opinions?

[julia56]

When DH retires in a couple of years he'll receive a lump sum as part of his pension. Looking at current savings rates we think it's going to be best to buy property with it- either some of it or 75%.

I can see 3 options: trade up from our average 4-bed modern house (in a very nice location) to a character property in the same location if one came up. This would take up most of the money as there is a big jump from what we have now to something older and/or bigger. We've always wanted an older house and bigger garden but the downside is more maintenance in old age. The upside is a bigger family home for DCs to visit and a good investment ( we live SE in commuter belt.) But nothing may come on the market.

2nd option is to buy a small holiday cottage in an area we visit and use it for ourselves but maybe rent out in the longer term when we are too old to use it. (Or sell it.) Downside is as an investment it would not increase so much being further north.

3rd option is to buy a flat or small house locally and buy to let. Prices will rise as we are commuter belt- unless there is a crash. Downside is- capital gains tax? Hastle of managing it as landlords.

All the above would be left to our 2 DCs or sold and they'd inherit.

Which would be your choice?

Buy the character house. Yes it would take maintenance, but so would all the other options, and it's easier to keep an eye on the house you live in.
Unless you want more income, it seems to me you'd get more enjoyment from finally having the kind of house you've always wanted to live in.

Do you need the income is the first question you need to ask. If you really don't then buy and live in the type of house you have always wanted. Likely to increase in value and if your needs change you can always sell and do something else

Is property the best investment? I would check other options.

Also a bigger house as you get old is bloody hard work. Most people have to downsize. I don't know how old you are but this is something to consider too.

we won't need the income from a buy to let- because the pension pot is split between a lump sum and an annual pension, and we can choose how much of each. Even if we took the max lump sum the annual pension would be enough, though it will still be half of our current income, so any extra earnings would be welcome though not essential.

Buying a bigger home for us is the least likely simply because of supply- we'd like to stay in this village and the 'right' house coming on the market at the right time is unlikely.

We'll be early 60s and I'd hope we'd be fit for some time and get 25 years left somewhere!

My own parents are currently managing a 1 acre garden at almost 90 yrs old so I have some idea of upkeep etc. But another house would not necessarily be that much bigger- just bigger rooms. Although on paper we have a 4-bed, 2 bathroom, 3 reception house, the square footage is small.

It's always been our dream to have a 2nd home but we need to think if we'd really use it that much.

The idea of buying a flat to let is option 3, but it would produce income.

I don't know if property is the best way to invest- we are looking at around £300K so what can you do with that in today's market?