Is this a good financial idea?

[Herbie]

Let me say we are totally confident and believe this idea is right. But it does harm to get opinions.
We are thinking of selling our house. With the money we thought split it 3 ways.
1/3 of it we purchase a property outright up north e.g scotland. We then rent it out.

2/3 invest the money in something or some investment vehcile which earns ggod money..perhaps property . this money is for future when decide to leave the country.

the last 3/3 we use over the next few years, savings, with living etc.

Any finance experts out there what you think? Is this good idea.

 

[FE]

All depends how much capitol we are talking in my opinion.

What i will comment on is the house renting. I own 3 properties in the UK (one i live in and the other two are rented). Please remember you pay tax on any profit made from rental (so if you are a 40% tax payer you will pay 40% tax on the rental profit). Obviously if you make a loss renting then you get a credit When you come to sell the property you also have to pay tax on the profit (unless within 3 years of it being your residential address but another story).

In my opinion yes own property but you really do not want to make too much from it and better to use a buy to let mortgage and just break even using teh money obtained from the mortgate to better use.

Now i also own land and some property in South Africa. Again a gamble but there are a few factors that assist (i.e. 2010 World cup). They have different laws etc and from experience a better long term investment (look more towards yoru pension scheme)

As with any investment it all depends on how much and the tax implications

FE

 

[Steve Roberts]

Let me say we are totally confident and believe this idea is right. But it does harm to get opinions.
We are thinking of selling our house. With the money we thought split it 3 ways.
1/3 of it we purchase a property outright up north e.g scotland. We then rent it out.

2/3 invest the money in something or some investment vehcile which earns ggod money..perhaps property . this money is for future when decide to leave the country.

the last 3/3 we use over the next few years, savings, with living etc.

Any finance experts out there what you think? Is this good idea.

"1/3 of it we purchase a property outright up north e.g scotland. We then rent it out." Can you buy a property in Scotland for 1/3rd your current property value? If yes, then what is the rentable value and how long will it take to find a tennant?

"2/3 invest the money in something or some investment vehcile which earns ggod money..perhaps property . this money is for future when decide to leave the country." What magical (zero risk) investment vehicle do you know about? Let me know, so that I can also invest.

"the last 3/3 we use over the next few years, savings, with living etc." How much do you intend to save?

"Any finance experts out there what you think? Is this good idea." Do research, then do the sums and work it out for yourself.

 

[Herbie]

Thanks Steve

Yes I can buy a property for 1/3 my current value @ £40k in Scotland and yes I can get tenants within 2 weeks of getting keys

All investments have some risk to them. I know that. But am looking to invest @ £20k hence the reason i am asking for financial advisers as to what are some of the better investments out there long term.

The last 3/3 of my equity @ £20k I would use perhaps £15k for the next 2 years to cover rent/living and the other £5k put into savings account or something similar.

Thats a total of £80 which i make on equity.