advice re what to do with 50k

[IdblowJonSnow]

We have just come into some money, very lucky indeed. We had thought to chuck it all at our mortgage, I rang our company today, options are either halving monthly payments and having the same term (another 19 years) or halving the term and keep the same monthly repayments. I think we'll do the latter as it's manageable short term and love the thought of being done with mortgage by the time our kids are of Uni age. BUT, then i had a sneaky peak at seaside properties and it suddenly seemed faintly possible to have a very small cottage by the sea. It could be rented out for parts of the year so could possibly generate some income and would hopefully be a long term investment too. My husband isn't keen, it has really brought home to me that we don't like/want the same things in life so instead of being really excited about the money, I feel a bit flat. Anyway, does anyone have a seaside house and do you love it or is it a regret? Is renting out, air bnb thing perhaps, a good idea or is it a pain in the arse?

Cottage - Income - make sure it's a decent area where you can make money .... winner investment imo

One problem with holiday lets is that presumably you'd want to use them at the same time as the people who want to rent. What are your husband's objections? What does he want to do with the money?

Friends are selling theirs. They do holiday lets and use it themselves. Not entirely sure of the reasons but I think it just adds a layer of hassle to their lives that isn't worth it. They complain about people needing a lot of attention while they are there.

Which areas would you like to buy in? I love looking on RightMove! What would be your ideal budget for it?

I would shorten the term of the. Mortgage then use the extra dosh to travel and stay by the sea as much as i wanted when the kids are at uni, with out being tied to one seaside house that you feel obligated to go to because you own in. Plus all the upkeep and costs and stress of two properties to maintain.

Where did the windfall originate from, and, think there is a blindingly bigger issue here RE your husband and your comparability. If there's the faintest of chance you'll leave him to do the things you really want in life, then that would massively effect my advice on this one.

50k isn’t that much (sadly). I’d put it into the mortgage and reduce the term. It might feel boring but your options will open up once the mortgage is paid off.

When you say you don't want/like the same things in life as your husband, are you just talking about this situation, or are there other things too? I can understand him perhaps not being keen on taking out a second mortgage on something that hasn't really been discussed at all before this. Was your long-term plan to retire there and that's not what he wants?

We have a residential static van by the sea. We are there every weekend from April till October and we love it. DH wasn’t keen at first but he can’t get enough of it. We bought him a kayak and my nieces love going on it think it is the best place ever. We don’t rent it out as that is against the site rules but to be honest I don’t want anyone in it but family. We have loads of friends who also bought so we have a great social life as well. We did have an apartment in Majorca many years ago but renting out was a nightmare. People don’t look after it like you do.

Unless you are struggling with your mortgage, I personally would invest it, whether that’s in property or in shares (with a good financial advisor if that isn’t your thing). We had a small bit of inheritance from a grandparent (nothing close to 50K) and some savings that we invested maybe about 2 years ago. We’ve done a lot of research and we manage it ourselves (probably not recommended unless you’re quite keen), but we’ve made probably close to about 80K in that time. We’re saving to buy a house with that but any extra we would definitely consider buying an income property (not necessarily a holiday home, probably a long term rental), but I think if it’s a long term investment you can’t go wrong with property as long as it’s in the right area.

Thats an awesome amount and great that it gives you choices. I think it would be a good idea to chuck some at the mortgage but save some back for a few years seaside hols...something to look forward to. Mainly, enjoy it.

Shortern the mortgage term.
And enjoy lots of fun adventures to lots of different places.

thanks for your input so far everyone. Money is coming from my side of the family but I still see it as ours, as when we have had other bits of money over the years, my husband hasn't ever wanted to do anything that hasn't been 'joint'. I have had another thought. Maybe put 30 k towards our mortgage and then 20k down on a buy to let? Assuming that is even possible with an airbnb set up? the properties i have seen have been 150 - 200k, looking on the north yorks coast. Yes, good point about school hols and wanting to use it at the same time as others. Although we do quite a lot of going away and anywhere we've wanted to stay has pretty much been booked out all year round. I guess we could book out one - or two weeks of summer hols and then rent it for the rest, that sort of thing? Yes, we are very lucky, it is a very generous amount.

and no thoughts of leaving. He's a grumpy buggar, and so am I, but we're rather attached to each other. ; )
To the poster who mentioned investments, could you possibly PM me with any info please? Or post on the thread if you prefer/don't mind?

And the pp who said people have found it to be a pain and people not looking after it, I can see that too and I am quite anal about things so that is a concern! I think if we could only rent it out a bit and mainly to friends/friends of friends it could work?

Pay your mortgage off. A second home would incur additional costs (3% tax, solicitor / agent fees, insurance, bills, decorating, annual HMRC tax returns if you rent it out, continued upkeep etc.). You can spend £50K really quickly on a second home. Also what happens if the property doesn’t rent for a period of time? Can you afford for it to stand empty?

I think holiday lets are a lot of work - so you either live close enough to commit to doing it yourself or pay for management, so you then have to crunch the numbers very carefully.

If I were you, having been a LL once, with the attendant hassle, I’d just pay it off the mortgage. Once you’re mortgage-free you can look again at second properties. I’d keep some back specifically for holidays though, perhaps.

Have you worked out how much you would save, if you reduced the mortgage and kept the payments as they are? It will be a lot. I would encourage you to do that, then start planning what to do with the money you will save.

A holiday let is a huge amount of work, which is incredibly difficult if you don't live next door / down the road.
Who would you get to 'manage' it for you ? Or are you planning to travel down each week on changeover day ? Who will clean it ? How will you get to know local 'trades' when work needs doing (and quickly, if someone has booked a holiday there) ? Do you have time to manage the bookings and adverts? If you do a buy to let, do the figures work out if you have 'voids'?
I'd throw most of it at the mortgage and then you'll have years worth of mortgage free salaries when you can choose where to holiday - or choose to work PT - or choose to retire early - or choose any one of loads of other things, knowing your home is all yours.

premium bonds- you might win a million while you decide!

Have you thought about buying a static caravan in a haven site? They manage it all for you so it wouldn't be a hassle. And put the remainder into your mortgage.

I’d put it as a deposit on a buy to let investment rather than a holiday let cottage.