General / Off-Topic Any property investors here?

[[VR] Mad Mike]

I am considering investing the money left from my uncle in his will who passed away 8 months ago and left me around 50k as interest rates are shockingly bad right now and student property seems to me a fairly safe bet.

I am a low tax payer, lower still if i lose my job in march which is possible, so what do you think of these kind of property investments? they are hands off so nice and easy, and claim to have a 10% per year return if i am reading it right which seems pretty damn good in my book, and I should be able to get a property for 50K.

or are they high risk / generally for suckers

thanks

www.emergingproperty.co.uk

 

[Albasil]

I am considering investing the money left from my uncle in his will who passed away 8 months ago and left me around 50k as interest rates are shockingly bad right now and student property seems to me a fairly safe bet.

I am a low tax payer, lower still if i lose my job in march which is possible, so what do you think of these kind of property investments? they are hands off so nice and easy, and claim to have a 10% per year return if i am reading it right which seems pretty damn good in my book, and I should be able to get a property for 50K.

or are they high risk / generally for suckers

thanks

www.emergingproperty.co.uk

You would be investing in a part share, company not covered by FSA. High risk like buying timeshare. They inflate price to cover yield. Get proper financial advice from a reputable broker. Property investing is good but lots of pitfalls and hard to liquidate quickly if you are likely to lose job you may need the money. Balanced portfolio is safer some property some equities. But get proper advice

AB

 

[Yaffle]

Albasil has it right there.

With £50k you could even use it as a deposit on a sole-owned buy to let, the mortgage interest offsets the tax you pay on rental income.

If you still have a mortgage on your own house - pay it off is the other way to go. Roughly over a mortgage you'll pay the value of the initial mortgage in interest. Sure rates are low right now, but wipe out your mortgage and your disposable income goes up. It's tax-efficient as you don't pay tax on interest you don't pay. Then save the interest payments into some form of well-regulated structured investment.

I have some buy-to-lets with my wife, and they are really a pension supplement. We use their rent to pay the mortgage on them (and we save the remainder for upkeep) which will end a couple of years before I retire. After that they will contribute to my pension. Sadly my pension fund is unable to keep pace with the income from the buy to let. Downsides - letting agents are sharks. Bad tenants are really bad. You have the insurance, maintenance and worries of multiple properties. And the odd 3am drunk phone-call to help out a tenant who has locked himself out.

 

[Don Alvarez]

I look at it this way. Anyone who's advertising public participation in an investment opportunity, is because its not sound enough for them to tackle on their own. A good example is there a group around my area that advertises on the radio seminars to teach people how to flip homes. You'll make thousands. My guess is if that were true, they'd be doing it themselves instead of just selling tickets to seminars.

 

[[VR] Mad Mike]

Thanks for your thoughts guys