Buy another property to let or upgrade?

[DSMEZ]

My dh got an inheritance of 200K and we are wondering what to do with the money. We have a perfectly good house now, not in the greatest of areas, but enough space for our 2 dcs. We don't know whether to upgrade into a better area--and hopefully better schools, or just invest the money into a buy to let. Any suggestions?

[expatinscotland]

Upgrade

[DSMEZ]

That's my thought--what's your reasoning. Need some persuasive argument.

[expatinscotland]

Sorry, I'm not good at arguing.

[MrsMuddle]

Could you do both? Upgrade, then buy a small flat to let out as an investment? We're mortgaged to the hilt, but live in a lovely house. (Well, I like it!) However, I am very conscious that when we retire, we'll have to downsize, as we have sacrificed having a decent pension to have this house. If I had any spare money, I'd buy another property to rent out, then sell for a lump sum when I retire.

[DSMEZ]

Hmmm...that's a good idea.

[Earlybird]

Could you upgrade, and have a minimal mortgage? Or even live mortgage free? Are you good at saving, or would spare cash disappear?