Post # 1
So, DH and I are wanting to move to a new country in about a year or so, and we’d need to sell our flat to do it because our leasehold does not allow for us to rent it out (long story, but that’s the upshot–we knew that when we bought it, so no biggie).
I’m wondering what the best way would be to re-invest our deposit money. It would total around £40k, so not a massive chunk, but still sizeable. We’re not into big stock market investment–lost a lot of money that way a few years ago in fairly ‘stable’ stocks and shares–but we do want to make the money work for us if possible.
Any financially savvy bees have some advice? Is it best to just buy another place and keep it afloat without a profit (just get renters to pay mortgage and property management fees) while we’re gone and hope that it appreciates?
Post # 3
Will you need that money before retirement? Will it be needed to purchase a house later on?
We just got a large chunk of money and opened an annuity with it. We are going to put the money into mutual funds, which are a little less risky than individual stocks IMO. But this only works if you don’t need the money before retirement.
I have a rental (not by choice…but because I couldn’t sell my house when I relocated for a job). While I like having it and things were great for 18 months, my renter just moved out and now I have to do a lot of cleaning and painting. Rentals can be very risky, especially if you don’t get a good renter, and a lot of work. I don’t think I would take a big chunk of money and buy a house for the sole purpose of renting it out.
If you do need that money to re-purchase a house later on, I’d probably just find a high yield bank account and let it sit there. I have a great checking account that I make 2.5-3% return on.
Post # 4
@UK Bride: See a professsional financial advisor.
Post # 5
I’d probably stick it in slow-growth funds. But if you can find an amazing savings like PP, I’d do that!
Post # 6
If you are looking for stability (even with low return) look into government investments or high interest savings accounts. I would recommend going in and speaking to a banker as they will have a better idea of which investments are best for you. The stock market is usually best for those who are looking for very long term and diversification across different industries reduces your risks.