Hi
We have moved house and will have a reasonable mortgage on the new property. When we sell our old home next month, we will also release about 130k in equity. With our level of earnings and current savings, I do not necessarily want or need to use this equity against the new home.
The question is what should I do with it. I already own some shares and these in the large have given a great return. Equally, we have 2 kids, 7&4, whereby a 2 bed apartment in the city might be very helpful in 10 years time whilst also serving as an investment right now. It would also shore up my private sector pension for when I retire in 22 years.
I estimate that 100k would be needed for a deposit on a buy to let mortgage for a prime rental apartment and should give a return of 6-7% PA before costs and taxes but also delivering an asset in 20 yrs debt free. On the other hand a good investment fund spread might deliver 10-12%. What would be prudent?
We have moved house and will have a reasonable mortgage on the new property. When we sell our old home next month, we will also release about 130k in equity. With our level of earnings and current savings, I do not necessarily want or need to use this equity against the new home.
The question is what should I do with it. I already own some shares and these in the large have given a great return. Equally, we have 2 kids, 7&4, whereby a 2 bed apartment in the city might be very helpful in 10 years time whilst also serving as an investment right now. It would also shore up my private sector pension for when I retire in 22 years.
I estimate that 100k would be needed for a deposit on a buy to let mortgage for a prime rental apartment and should give a return of 6-7% PA before costs and taxes but also delivering an asset in 20 yrs debt free. On the other hand a good investment fund spread might deliver 10-12%. What would be prudent?