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  • Buy-to-Let

    £100K to invest ... but where?

    Simplicity is key...where would you put (invest) your money?

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    Hi Anthony,

    If only it were so simple!

    First of all, which strategy do you wish to adopt?  Single occupancy BTL, HMO, holiday lets, Refurb etc, as that will be a huge consideration in terms of location?

    Secondly, if you intend to invest close to home, where is that?

    Thirdly, do you have access to BTL finance?  With £100K, you could purchase one £100K property outright for cash, or you could purchase 4 x £100K properties with 25% deposits.   Or you could buy one property of £400K putting in a 25% deposit.  Your personal circumstances and risk profile will dictate which option is right for you.

    Are you looking for yield or capital growth?

    Truth be told, without knowing a lot more about your situation, it would be inappropriate to give anything other than very general responses.

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    None of us can advise you where to invest

    you have to join the dots and come up with your own plan

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    As the others said, you need to work out what you want to achieve and how much effort you want to put in. I have a very clear idea what I would do with 100k, as I'm sure many others have.

    I'm sure a property investnent company would happily help you invest in a hands off way, it that is what you want.

    Otherwise decide on a strategy by researching and reading, then research an area etc. Based on the strategy then take action.

    I would say dont rush but set a realistic target to take action so you dont get analysis paralysis

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    Slowly working towards financial freedom

    Totally depends on your circumstances.

    For example is this 100k your entire net worth and you need to play safe or are you a billionaire already looking to punt 100k on something juicy?

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    For simplicity .......

    Buy 3 x 100K units @ 70% LTV to acquire a 300K portfolio 

    70K @3% pay rate = 175

    Rent = 575 pcm

    Cash flow gross = 400 x 3 x 12 = 14.4K pa

    Capital growth say 3% pa = 9K pa

    Gross profit  = 14.4 + 9  =  23.4K pa gross ROI on  your 100K investment

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    Jonathan Clarke. http://www.buytoletmk.com


    JC your basic illusion is spot on

    but there are such a lot of factors

    you don’t mention

    should this be done a a company or not

    no mention of stamp duty that’s 9 k alone gone

    that’s 9k off the first years cashflow

    what about voids

    what about insurance and repairs

    what about council tax on an empty properties

    it all hits the bottom line

    and capital growth is far from garanteed today

    i suggest you add some more figs for the above

    100k into property today need carefull planning just think of all cost in purchase alone val fee £400 each

    to achieve this project you would need more than 100k

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    He asked for simplicity so that`s what I gave

    But yes I agree you could write paragraphs and paragraphs on the intricacies of investing

    But I`m not going to unless specifics are asked for

    I put gross on my figures and bought him 3 units not 4 precisely to allow for 9K SDLT

     CG growth is far from guaranteed in any one year yes that`s why I put 3% just to average it out

    I had 10% growth in 2016  though . In other years zero growth . Some years 5% growth

    The point is in 25 years  capital values in the SE will be higher than they are  today -

    99.9% Guaranteed

     I will personally guarantee it . I bet you 25K .Wanna take my 25K bet ?

    The simple BTL model is more or less the same today as its always been

    The majority of stuff you mention has always been there - yesterday and today

    No need to always over complicate it  me thinks

    That`s the beauty of property

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    Jonathan Clarke. http://www.buytoletmk.com


    But that’s what has changed it not simple in 2019!

    my guess is to make this fly you would need around 9k stamp duty and £1500 a property for legal fees

    it would also need funds for pre tenancy decorator and carpets ect

    so if the guy did this he would need around 125 k to make it work or if 100k was the limit mostly two properties which effects the bottom line figs

    useing simple figs

    cash flow £400 x 2 £800 £9600

    capital growth 3% pa 6k

    gross profit 15.6k

    which id still ok but you have to take tax off and the cashflow

    nett 20% £7680

    nett 40% £5760


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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Lots of unknowns in there

    It may not need new carpets or decorating .

    One unit may need a 10K refurb and add 20K value

    Its just an illustration

    If you prefer

    3 x 100K @ 75% LTV rather than the 70% I put originally 

    That would give you 25K leeway for fees sdlt etc

    Add value maybe . Remortgage in 5 years buy 3 more maybe

    In 10 years you could have 12

    In 15 years 24

    In 20 years 48

    100K worked hard and with a following wind can make you financially free in 20 years

    Start at 30 and you are done by 50


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    Jonathan Clarke. http://www.buytoletmk.com


    I don't see the point in questions like this unless there is some info from the OP, but in this case there is none.

    So I have no suggestions for what to do with the money.

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