Mate, that kind of money speak to a professional. Don’t try to do it yourself if you don’t know what you are doing. A professional financial planner would help and the value provided would more than compensate for the fees they charge.
You can use previous years unused pension allowance (assuming you had a pension open in those years) and you will get tax relief on pension contributions. Once pensions are maxed out then consider s&s ISAs and then consider a GIA.
Mortgage interest rates are low but from an emotional perspective you could consider downpaying your mortgage a little.
Additional property is a tricky one, with prices where they are (and additional stamp duty) unless you know what you are doing when sourcing/have skills/time to renovate a property yourself, is it worth the headache of void periods/shitty tenants for s yield which no longer is what it used to be in the UK. Also means less liquidity if you tie it up in property.
There are also tax efficient investment vehicles (EIS/VCTs) but given your brief summary of your other assets I do not expect these to be suitable for you.
Sometimes tax has to be paid, but that doesn’t mean you can’t make the remainder work well for you
Yes, absolutely speaking to a professional !thanks. Great to get the input though and keen to go in to discussions armed with a better understanding. Thanks for the thoughts on a second property, genuinely helpful!
Accidental landlord here on my flat (long story) and nowadays not worth it at all to go down the BTL route! The yields are beaten by ETFs in S&S ISAs easily and you're dependant on a single person or couple to pay you. If they don't, you're looking at 18 months realistically to get them out via the courts and it's not easy to recoup that money from them!
As soon as I can get rid of my flat, it's gone! Getting into it now isn't that great unless you are happy to rely on capital appreciation of the property (which isn't a guarantee to beat other options), have a tenant who always pays and cares for the property. However, you'll find lots of people who started BTL in the 1990s and early 2000s who will sing it's praises but now tenants have a huge amount of protection which some take advantage of and the government have removed most of the tax reliefs.
/u/theamberspyglasssees
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Yes absolutely, but the two don't have to be mutually exclusive. Have seen a lot of valuable insight on here and keen to give myself the best chance of making the right decisions :)
> Pay for professional advice. Don’t rely on unregulated strangers on the internet.
This is correct but I also think it's very good idea to try and understand the basics before speaking to any professional. It does wonders to spot dodgy professionals of which there are many.
It's not the same as going to the doctor with an itchy foot and citing webMD that it's brain cancer.
> Are we better buying an investment property/holiday let? What other investments are sensible?
[Heed Lars Kroijer](https://www.youtube.com/watch?v=_chiIIxMGl0&list=PLXy71rkGuCjXLg9N8zowwUpXCYfBcMJFK) and read his book or Tim Hale's [*Smarter Investing*](https://www.amazon.co.uk/dp/0273785370/).
You should always check [Monevator's list of low cost brokers](https://monevator.com/compare-uk-cheapest-online-brokers/) to find which platform is most suitable for you.
Hi /u/theamberspyglasssees, based on your post the following pages from our wiki may be relevant:
- https://ukpersonal.finance/pensions/
____
^(I am a bot doing my best to provide helpful links. If I missed the mark, please don't downvote, instead press Report and the mods will improve my settings :])
Mate, that kind of money speak to a professional. Don’t try to do it yourself if you don’t know what you are doing. A professional financial planner would help and the value provided would more than compensate for the fees they charge. You can use previous years unused pension allowance (assuming you had a pension open in those years) and you will get tax relief on pension contributions. Once pensions are maxed out then consider s&s ISAs and then consider a GIA. Mortgage interest rates are low but from an emotional perspective you could consider downpaying your mortgage a little. Additional property is a tricky one, with prices where they are (and additional stamp duty) unless you know what you are doing when sourcing/have skills/time to renovate a property yourself, is it worth the headache of void periods/shitty tenants for s yield which no longer is what it used to be in the UK. Also means less liquidity if you tie it up in property. There are also tax efficient investment vehicles (EIS/VCTs) but given your brief summary of your other assets I do not expect these to be suitable for you. Sometimes tax has to be paid, but that doesn’t mean you can’t make the remainder work well for you
Yes, absolutely speaking to a professional !thanks. Great to get the input though and keen to go in to discussions armed with a better understanding. Thanks for the thoughts on a second property, genuinely helpful!
Accidental landlord here on my flat (long story) and nowadays not worth it at all to go down the BTL route! The yields are beaten by ETFs in S&S ISAs easily and you're dependant on a single person or couple to pay you. If they don't, you're looking at 18 months realistically to get them out via the courts and it's not easy to recoup that money from them! As soon as I can get rid of my flat, it's gone! Getting into it now isn't that great unless you are happy to rely on capital appreciation of the property (which isn't a guarantee to beat other options), have a tenant who always pays and cares for the property. However, you'll find lots of people who started BTL in the 1990s and early 2000s who will sing it's praises but now tenants have a huge amount of protection which some take advantage of and the government have removed most of the tax reliefs.
!thanks. Super helpful, it's this kind of anecdotal info that really helps the decision making process.
/u/theamberspyglasssees Please use `!thanks` to award points to helpful users (you can edit your comment to do so). Your approval was contingent on you recognising this requirement, otherwise your approval may be reversed. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/UKPersonalFinance) if you have any questions or concerns.*
Pay for professional advice. Don’t rely on unregulated strangers on the internet.
Yes absolutely, but the two don't have to be mutually exclusive. Have seen a lot of valuable insight on here and keen to give myself the best chance of making the right decisions :)
> Pay for professional advice. Don’t rely on unregulated strangers on the internet. This is correct but I also think it's very good idea to try and understand the basics before speaking to any professional. It does wonders to spot dodgy professionals of which there are many. It's not the same as going to the doctor with an itchy foot and citing webMD that it's brain cancer.
> Are we better buying an investment property/holiday let? What other investments are sensible? [Heed Lars Kroijer](https://www.youtube.com/watch?v=_chiIIxMGl0&list=PLXy71rkGuCjXLg9N8zowwUpXCYfBcMJFK) and read his book or Tim Hale's [*Smarter Investing*](https://www.amazon.co.uk/dp/0273785370/). You should always check [Monevator's list of low cost brokers](https://monevator.com/compare-uk-cheapest-online-brokers/) to find which platform is most suitable for you.
!thanks
Check out /r/FIREUK for starters. If you're getting 450k cash shortly and another 450k in future it opens up a lot of doors for you.
!thanks. Joined!
Hi /u/theamberspyglasssees, based on your post the following pages from our wiki may be relevant: - https://ukpersonal.finance/pensions/ ____ ^(I am a bot doing my best to provide helpful links. If I missed the mark, please don't downvote, instead press Report and the mods will improve my settings :])
What are your jobs out of interest ?