Investing money

[cmr]

I have some money that I inherited., about £90,000. but it is dwindling rapidly on every day expenses. I rent my house from a housing association, ideally I would like to buy it to give me some security =. That's unlikely as even with the discount, due to the ridiculous price of houses round here. I am nearly 61 and on quite a low income., I would be unlikely to be able to buy it.
What would be the best way to invest it? My hope is that with wise investment, I can at least have some security in my pension years or even better-make enough to be able to buy this house.

 

[Stims]

Hi cmr,

Forgive me but i am not going to answer your questions directly. While i may have my opinions, i am in no way qualified to offer the advice you need and i'm not sure anyone on this forum is.

I would strongly suggest you seek help from a qualified financial adviser, who would be able to help you with your specific questions and help you find a plan which works for you. Here's a couple of links you may find helpful:

https://www.unbiased.co.uk/
http://www.thepfs.org/yourmoney/find-an-adviser/

 

[katykicker]

Can you swap from HA to a council house, to get the £80k discount and then buy it? x

 

[XXX007]

Have you asked the housing association how much they would want for it?

 

[homie]

The good news for you is interest rates look set to rise over the coming months. The bad news is, probably not by much.

In the climate of rising interest rates and brexit uncertainty now may not be the best time to buy a house, you may do better continuing renting and investing the money. I'd say seek an INDEPENDENT financial advisor to advise you, especially as you are getting closer to retirement. Wherever you invest, make sure the money is covered by the FSCS compensation.

 

[cmr]

Hi cmr,

Forgive me but i am not going to answer your questions directly. While i may have my opinions, i am in no way qualified to offer the advice you need and i'm not sure anyone on this forum is.

I would strongly suggest you seek help from a qualified financial adviser, who would be able to help you with your specific questions and help you find a plan which works for you. Here's a couple of links you may find helpful:

https://www.unbiased.co.uk/
http://www.thepfs.org/yourmoney/find-an-adviser/

Thank you, I will have a look

 

[cmr]

The good news for you is interest rates look set to rise over the coming months. The bad news is, probably not by much.

In the climate of rising interest rates and brexit uncertainty now may not be the best time to buy a house, you may do better continuing renting and investing the money. I'd say seek an INDEPENDENT financial advisor to advise you, especially as you are getting closer to retirement. Wherever you invest, make sure the money is covered by the FSCS compensation.

Thank you for your reply

 

[cmr]

Have you asked the housing association how much they would want for it?

I am waiting for a valuation but ex council houses in this area sell for about £250,00 so even with the discount I am unlikely to be able to buy.

 

[cmr]

Can you swap from HA to a council house, to get the £80k discount and then buy it? x

I can buy it from the HA, but the cost is likely to be too much due to the cost of houses round here.

 

[XXX007]

I am waiting for a valuation but ex council houses in this area sell for about £250,00 so even with the discount I am unlikely to be able to buy.

You may be able to purchase a percentage of the property which will give you some protection against rising rents in retirement ask the housing association if they offer any schemes to help.

 

[usa1]

You can use your RTB (right to buy) on Housing Ass houses now. I think you have to be there for 2 years and be up-to-date with your payments...

 

[katykicker]

I can buy it from the HA, but the cost is likely to be too much due to the cost of houses round here.

Whats the discount from the HA though? I'd get 8k, or 80k if it's a council place.

 

[RickyRaj]

Hi @cmr

Like you I rent my current property with my partner and as a divorced father of two still pay child maintenance so I cannot afford to buy a property where I live. Even after child payments stop we will not be in a position to buy a property in the south east.

I do have a 2 bed flat in Scotland that I have managed to rent out for 14 years (fully managed for me) with almost no void periods. I bought it for £79k then and having looked at the area recently prices are similar. My flat rents for £400 PCM and is mid range I.e. not high end.

I've recently started to attend property networking events as my plan is to buy more properties every 18 months to 2 years so want to get a feel for what options are out there. My decision is based on the fact that my pension will not be enough to support me and my partner when we retire in 20 years (I am 45), saving interest rates are crap, I like property as a passive income vehicle, I have no aspirations to climb the corporate ladder and am working on leaving the rat race, property is something I can pass on to my children.

If it was me I would buy 4 more properties which would net me £735 a month (including the one I already have) based on my current rent and interest only mortgage. Even after expenses I reckon I would be £500 better off every month. My one property regret is that I had the opportunity 10 years ago (from a £30k inheritance) to buy more property but instead it ended up being spent on the house I had with my ex.

There is a lot of information out there but I would start with this as it's free: http://www.thepropertyhub.net/, they have an accompanying podcast and a free forum which may help you decide how to invest it. There are schemes out there that even offer guaranteed rent to landlords.

I hope that has helped.