[Closed] Best property for £200k?

Best to live or best for longterm rental or selling profit ?

I wouldn't assume putting it in property means you'll have more money in future... don't forget the last Budget whichput BTL firmly in the sights of the taxman...

[url= http://www.ft.com/cms/s/0/8e85675c-2648-11e5-bd83-71cb60e8f08c.html#axzz3gcI5reKc ]Speculative investors head for the exit in Nine Elms[/url]

Also, read this and the comments beneath...

[url= http://www.ft.com/cms/s/0/739a3700-2eeb-11e5-8873-775ba7c2ea3d.html#axzz3gcJAboth ]QE creating housing bubble[/url]

Far better to stick it in a low-cost index-tracking ISA and leave it for 10+ years...

Define 'best'

Best for long term rental. It will be my pension so will probably be sold in 25 years.

I know of 2 one bedroom properties for sale in Aberdeen city centre at just over £100k each. You could do a deal for 2. Would get you around £1300 in rent pcm gross.

You do know you'll be hit with a capital gains tax bill when you sell.

based on my experience of renting out the house I had before moving in with the mrs, I would look local to where you are if its long term rental. It'll save you the management fee and also mean easy to get to if the tenant has a problem. You'll know whats good value locally.

Middle of France then, Burgundy region....

Don't worry about selling when you retire... just live there instead 🙂

We love the area just around Couches

As above, if you are investing in a Buy to Let property, get something to where you are.

Being a remote landlord is a nightmare, I ended up in that situation a couple of years back, never again.

Personally, I would avoid Aberdeen, the property prices up there were inlfated by the high oil prices and it would appear they will only be going down in the long term.

A lot of people buy flats never to hospitals for the rental market, always plenty of potential tenants.

I live in Snowdonia and Vienna so my retirement will be nice anyway.
I travel around a lot so it will have to be a management company that looks after it.

[i]Being a remote landlord is a nightmare, I ended up in that situation a couple of years back, never again.[/i]

I've been doing it 20 years, never had an issue.

[i]Personally, I would avoid Aberdeen, the property prices up there were inlfated by the high oil prices and it would appear they will only be going down in the long term.[/i]

Market is pretty buoyant at the moment but prices are pretty steady. But these particular properties are a great deal as they're fully furnished ex serviced apartments.

But if your intention is to sell in 25 years and use the proceeds as your pension then that's not what I would do with £200k. I'd be sticking some in stocks and shares isa's over the next few years.

Buy a place in Morzine and rent it to STWers 😀

Diversification.

Assuming you already have a significant amount in property (from your primary residence?) do you want to put even more money into UK property? IANAFA - but most would advise no more than 20% of your wealth in a single asset class - property, bonds, cash, equities etc.

Most british people have an affinity to bricks and mortar though - maybee 50/50 split? Property and equities / Bonds?

Money sheltered in an ISA (property cant be) will also have substantial tax savings over the long term

BTL has just been targteted by a Tory government - and with todays headlines - increasing no. of renters under 40 years old - I'd expect Landlords to become an increasing target from government in an effort to win over 'generation rent' over the next few years.

I am a remote landlord too - it's quite feasible. I live in Spain & look after properties in London. 200k would get you half a flat there. You could borrow the shortfall, it should work.

If you are in it for the long term the rate you buy into property is academic, a decent property should double over 10 years.

CGT is an issue but apparently most investment properties are bequeathed, I can't really see mine ever being sold but you never know.

I know of a lovely 3 bedroom detached house in Newcastle that's on the market for 239,950.... I'll even throw in a very secure bike shed and a couple of cats!

I know its not the UK but Morzine / les Gets would be brilliant. Rental in winter to skiers and summer to MTBers. You'd be everyones best friend!

I'd get somewhere abroad too

Something that would be rentable year round

And you'd get cheap holidays too

^£200k isn't going to buy you much in Morzine.

[i]You'd be everyones best friend! [/i]

Yes and most of them wouldn't expect to be charged the market rate.

It would buy you a 3 bed apartment!

http://www.rightmove.co.uk/overseas-property/property-53001359.html

Near Hospitals (as mentioned above) or army/raf base - steady tenants looking for long term lets. Friend has a house near brize norton and rents are high due to the demand. (although doubt you will get a shed for 200k)

My wife is in the NHS and they are getting large numbers of nurses from Portuagal and else where. If you have a house with say 3 equal size double rooms in walking distance of the hospital you will not be short of tenants.

You mention this investment is for your retirement so (presuming you have a Mrs) I would go for:

Max ISA for both of you for this year. £15k each = £30k
Max SIPP for both of you. £32k each (with 20% tax relief) = £64k

Put the rest in premium bonds split between you until next April and do the same again.

No need to bother buying a BTL house and managing it ( and the stress/worry) Just watch the numbers on the screen and get tax relief. A BTL will put you in line for the tax man on future budgets and also for capital gains in the future.

I know which one I would do. There are easier ways to make money than BTL, you can put the money into funds within your SIPP/ISA of purchase shares direct.

I'm no expert but if I was you I would also be looking at a BTL property. In an area with high rents and where the price of property is likely to go up a lot in the long term - i.e. London.
I'd buy a flat somewhere along the proposed route for the Bakerloo line tube extension in SE london - if/when that opens (10-15 years time) you will be laughing even with capital gains tax.

I'd split it and get two £100k houses in an up and coming area.

No idea where up and coming is though.

It would buy you a 3 bed apartment!

That Rightmove Overseas website is bad for you... Just seen a lovely place in Tuscany that needs work for cheap money.

A hillside with woods and stream - and add mini-hydro.

I live in Snowdonia and Vienna so my retirement will be nice anyway.

Sounds like you don't really need it, it'd clear my mortgage and ensure I'm comfortable for a few years too - PayPal gift?

😉

I'm no expert but if I was you I would also be looking at a BTL property. In an area with high rents and where the price of property is likely to go up a lot in the long term - i.e. London.
I'd buy a flat somewhere along the proposed route for the Bakerloo line tube extension in SE london - if/when that opens (10-15 years time) you will be laughing even with capital gains tax.

As if! That's where I live and £200k won't get you anything round here any more. Literally.

A couple of years ago, a 2-bed flat for £250k maybe, but now, nothing.

Put BR3 into Rightmove and a max price of £200k and you'll get 5 results, one of which is a restaurant...
For Catford Bridge you get 4 results, one of which is a retirement flat and 2 are shared ownership...

Don't have to buy it outright - use the 200k as the deposit and get a BTL mortgage.

[i]use the 200k as the deposit and get a BTL mortgage.[/i]

And you get hit with a high interest rate on the loan. You'll be paying circa £480 per month interest only per £100k, so its not worth it.

Without wanting to sound sarcastic – if you have to ask where then maybe property is not the right option for you. Local knowledge is a big part of the game. All sorts of little quirks affect the value / rents in different areas. Being able to get there to sort stuff out is also a massive +, agents will rob you blind for sorting out simple problems.

If you want to track the uk housing market for value you could do worse than buying shares in house builders such as Redrow etc and / or REITS which track the commercial property market. No entry fees or management fees and if you follow these things there is plenty of scope for the values of these equities to continue to rise.

Just to prove my suggestion is not totally bonkers...

http://www.rightmove.co.uk/property-for-sale/property-33546855.html

If you can find an extra £50k or haggle hard you could own this, right in the centre of London

http://www.rightmove.co.uk/property-for-sale/property-35048076.html

About 15 feet of concrete:
[img] [/img]

...and its only leasehold!

I wouldn't buy in central London at the moment. As prices increase, it's forcing young professionals out into the suburbs and driving up purchase and rental prices.
I'm in Croydon and the prices here are getting ridiculous. You could get a 1-2 bed here for around your budget within a mile of the town centre. Transport links to London are good (15 mins to Victoria) and with the town centre development and Westfield coming, you could get a good return.

Nickjb's post is a good illustration of why expecting to make money from property is a stupid idea right now.
£250k would have got you a reasonable 2-bed flat in a SE postcode in London 2 years ago, now it's the asking price for a parking space in the centre.
If that's not a sign of delusional/irrational market I don't know what is.

Problem we have with property is that following the financial crisis, the waves of speculative international money, supported by loose loans to BTL speculators, artificially low interest rates to reduce the cost of debt and taxpayer subsidy to allow the rest of us to keep up has led to an irrational belief that the market is guaranteed to go up forever and ever... ie: if it didn't pop then, it never will...

However, you take away all those props and things will begin to look different. The last Budget should give you a few clues if you look closely enough

The reason I want property is I will get a monthly income coming in. There's no risk over the period I intend to keep it.
I am not married and Mrs iolo is Austrian so the tax perks of ISA's are not so endearing.
I can buy a property, give it to a management company and virtually forget about it. The income I'll get monthly will come I handy. Looking at Snowdonia, where I'm from, you don't get an amazing house for that kind of cash as the rent will be no more than £700 a month. I'm sure in places near hospitals, or industry as stated here, I could get more rent for the same cash.

Student lets?

There is a nice house in Menai Bridge going to Auction soon with a guide of £120k.

Menai Bridge has good rental potential due to the uni there etc.

Buy a garden shed in North London (you'll have to pay more than 200 grand obviously) and fill them full of immigrants

[i]I can buy a property, give it to a management company and virtually forget about it.[/i]

Depends on the agent but it's not quite as simple as that.

Remember you'll be taxed on the monthly income too, plus you'll pay capital gains tax on the profit when you sell. I wouldn't sink £200k purely into property unless you have other investments and a decent sized pension pot already.

here you go, cop this for 280K

http://www.rightmove.co.uk/property-for-sale/property-53222864.html

then let it to 7 students for about 2800 a month, like this

http://www.rightmove.co.uk/property-to-rent/property-50431510.html

Speak to a financial adviser and explain you want an income-generating investment and you have £200k and see if they offer you property as the best option. I'll be surprised if they do. In any case the managing agents have seen you coming, their fees will eat massively into your income...

UK has this obsession with property being the best investment ever for some reason. You have much more choice than that... sticking 100% into an asset class which is in a bubble is not a wise choice, especially now the Chancellor has it targeted for raising tax...

Investing in established plcs which pay good dividends is usually a good recipe for a regular income. If you want growth then small companies in sectors with a strong growth forecast are a better alternative.

even so if you put down a reasonable deposit on a btl and then the tenants rent goes to clearing the rest of the mortgage then once it is paid off and you have received rental income to cover the deposit you put down, then effectively the tenants have bought a big asset for you.

As long as house price don't fall far enough that the house is worth less than your deposit, you won't have lost money.

You say there is no risk over the period that you intend to keep it. As above there are many risks. Void periods, house price crash, the roof blowing off etc. Speak to an ifa. That amount of money in one asset class is very risky.