How would you invest £100k cash?

[adam.gre]

Hi there,

I have £100k after selling my residential property (I'm moving abroad) and I want to invest it in "something" and one consideration is BTL!

I was thinking to buy studio/1bed in 40mil radius from London and probably I would be able to get something what would pay £450pm rent.

It means £5400 per year minus voids, maintenance, agency full management fees (I don't want to be involved and I see it more as a passive investment),which probably will halve that amount to net profit of around £2700.

Which makes me think that I probably could get 2% of fixed savings, which is £2000per year on £100k.

Which in turn makes me think - is it really worth the hassle for £700 difference a year + risk involved?

The only winning here is appreciation of property value, which is not given. A roulette.

Would you agree?

If you had £100k cash to invest now, would you do BTL or something else?

Cheers,
Adam

 

[nmb]

I can see where you're coming from with your figures but maybe in this current low interest rate environment you could gear up your £100,000 and maybe acquired two properties assuming that the mortgage repayments and rental income figures work in your favour. You could also reconsider your intention to take a hands-off approach to your buy to let investment as this would save you some money although there would be more work for you to do.

Capital appreciation is the long-term goal and if you choose carefully there is no reason why you should not see a gradual increase in the value of your buy to let property.