Ideas on how best to make money out of £200k

Hi folks,

long story short my relationship of 18 years with my partner has ended, a third party was involved (not on my part) I’m now left living on my own (which I’m really struggling with at present as at the age of 37 I’ve never had to live on my own). My partner earned a lot more than me (approximately x4). I actually own the property I live in with no mortgage through an inheritance. My ex has no interest in the house and will lay claim to no part of it.

Here’s the problem.

I earn a relatively low income and will be unable to afford the bills on my own much past Christmas. I know I have options but Im not sure where to start really. I don’t really want to stay in the house on my own as it holds too many memories so my plan was to sell up and move in with family down south, obviously this depends on getting a job in the new location.

I reckon I’ll be left with £200k when all is settled and I’d like to supplement my income somehow with funds generated from the sale of the house.

Doees anyone have any idea on how best I could make this money work for me as some kind of investment?

We have no kids and only a vehicle is our only shared finance which we’ve arranged to sell.

Thanks.

G4P?

Onlyfans?

All you need is a webcam.

Don’t get off the ladder if you don’t think you will be able to get on it. Will stitch yourself up in the long run! Don’t dwell on it to much. You had a lucky escape and I bet many divorced on here would do anything to have the simple financial break up as you describe. Count yourself very lucky and enjoy your life :eagerness:. In vestment wise.... how much can you afford to loose as most investments have risk and reward.... or just buy a load of Rolex sport watches :angel:

Have you thought about spending a few £££s redecorating the house to refresh it and sweep out the memories, even if you still decide to move it will help sell? Also consider a lodger to cover costs while you think things through. Selling now is going to be a tough market!

Anyhow, if you do move, work out your monthly spend and keep three times that amount in a bank account as emergency funds.

For the remainder, you won't get any income from savings accounts so will need to look at a stock market fund. You could put into an index tracking fund with lowest management costs, but even so your dividend return isn't going to be good as all the big companies are slashing divis to cover Covid costs.

The next level of risk is actively manged funds where you hope the fund manager can pick stocks with a dividend return and rising stock price. You could expect an annual return in the 7% to 10% range with moderate risk.

Beyond that is making plays on investing in specific companies yourself where you can lose your shirt or get a 10-fold return.

>obviously this depends on getting a job in the new location.<

IMHO, once furlough ends then companies will be laying off staff, not recruiting.

I earn a relatively low income and will be unable to afford the bills on my own much past Christmas....


I would suggest that this is rubbish I'm afraid, usually the biggest expenditure is rent/mortgage - without that, I'm pretty sure you'll manage the monthlies unless it's an 8 bed mansion. Break ups are crappy, but owning a property outright is a massive luxury. You'll cope, you might just find yourself with less disposable income but I guarantee there are millions of people wishing they were in your position.
With respect, I feel like you been a bit blinded by the idea of liquidating the house into cold, hard cash. Once you get off the ladder, especially on low income, you'll never get back on it. Think very very long and very very hard before doing anything rash.

I have a mate who was mortgage free at early 20’s. Inherited enough to buy a flat outright near the Beach in Southbourne Bournemouth. Long story... but got someone pregnant 5 years later and sold up to move back to home town and rented while looking for another property... that never happened! Spunked 160 odd grand Over a couple years as the money was just being used to subsidise a better living standard for him and his Mrs. The flat has sky rocketed since he sold and he will probably rent for the rest of his life now. You could hear the waves at night from his flat ffs.
Just live off beans and look at improving your situation. Get it together man!

Keep Your house.Work on it and make Your own mark on it.If money becomes short take in a lodger..It will also be company and a distraction if Your struggling also.Good Luck and make the most of Your new life.

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Originally Posted by Faiz

Lodgers will also help a lot with the loneliness mate [emoji1362]

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Hmmmmm, yeah...

https://cdn77.scoreuniverse.com/scor...n_27697/03.jpg

37 and mortgage free Not a bad outcome. I’d take time and chill if poss for a bit. Don’t rush into selling right now.

This will obviously only apply post covid19
But if you do sell and move to live with relatives, have you thought about buying an apartment or similar nearby to run as an air bnb or just plain rent out. That way, you are still firmly on the property ladder but hopefully with a little extra income thrown in?

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As others have said. Keep the house. I didn't, bad move. Even if you rent it out and rent a smaller place from that income. You could consider claiming maintenance from the ex-other half.

Don't sell!

Rent it out - Not only providing you with a nice monthly income but the property price will almost certainly rise at the same time

No short answer to the investment question but I'll join the others with a wider opinion.

Don't move back home, sell up and buy somewhere else for £200k... 37 with no mortgage/partner/kids is a fabulous place to kick off the next chapter of your life.

Use it to buy your own place - decent way to start afresh and you will make money in terms of the equity on the property.

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Originally Posted by GraniteQuarry

No short answer to the investment question but I'll join the others with a wider opinion.

Don't move back home, sell up and buy somewhere else for £200k... 37 with no mortgage/partner/kids is a fabulous place to kick off the next chapter of your life.

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Sounds like you need to move on ... how about you rent it out and move in with the family. That should give you a supplementary income and buy you some time to think about the next phase of life.

Don’t rush to cash in as there are loads of costs involved with property transactions.

Spend a few ££s on counselling to get the issues resolved.

Get a Buy to Let mortgage on the current place to release some cash for a deposit or even for an outright purchase of a small flat somewhere you want to be down south.

Let out the current place, obviously, the rent will cover the small B2L mortgage and maybe give you a small income too.

Or use the £200k to buy 2 properties, 1 to live in, the other to let out.

I’m only asking because you’re asking for advice, but how can you not afford to stay there? Being mortgage free at 37 is a position that very few people are in. Even if you earned the minimum wage I would have thought with no rent or mortgage things would be manageable? Unless it’s a very expensive property to run? Or you only work part time? Have a bad watch buying habit?

Joking aside do not come out of the property market - you have security for the rest of your life and once out, you may never get back in. So easy to spend money in the bank. If you sell, buy something else.

How big is the house? Get a couple lodgers in and they'll cover all bills plus profit easily.
Then you're all set up for the easy life on your current job.

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Originally Posted by Faiz

How big is the house? Get a couple lodgers in and they'll cover all bills plus profit easily.
Then you're all set up for the easy life on your current job.

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Lodgers will also help a lot with the loneliness mate [emoji1362]

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Originally Posted by Devonian

I’m only asking because you’re asking for advice, but how can you not afford to stay there? Being mortgage free at 37 is a position that very few people are in. Even if you earned the minimum wage I would have thought with no rent or mortgage things would be manageable?

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Quite. No kids, no wife, single person council tax. How expensive is the house to run? Something doesn't add-up. I'd suggest making cut back elsewhere rather than offload an asset such as a house. If you really don't want to live there, rent it out and rent somewhere else to live, or sell and buy something smaller, cheaper to run. I can't imaging moving back in with family would work out long term, unless you're caring for an elderly parent.

£200k net including sold property? What kind of property is that for it be relatively cheap but you still could not afford to maintain? Even with a low income at 37, you could probably be able to pay for property taxes. It does not quite add up...

If my wallet's not really bleeding, I'd rather keep the property and have it rented out. Easier said than done, yes. But not a lot of people have the luxury of owning a property. You already have a good start.

You won't be able to afford much property wise down south with 200k at the moment. But with the likelihood of a property price crash down here with the aftermath of covid and higher unemployment it might actually be a Good time to sell and wait...

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Originally Posted by Montello

Sounds like you need to move on ... how about you rent it out and move in with the family. That should give you a supplementary income and buy you some time to think about the next phase of life.

Don’t rush to cash in as there are loads of costs involved with property transactions.

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This was my thought. If you decide to stay, get a lodger and if you move south, rent it out. Not very sophisticated investment advice but keeping it simple is probably a good idea for the next few years.

Unless that house has 50 metre high ceilings and is in the Arctic, or comes with an unreasonably high service charge, I can't see how you would, even on minimum wage, not be able to make the bills. As others have said rent a room out if possible and lower the burden even more.

Make sure you claim single person discount for council tax now you’re rattling around in that place by yourself. That’ll leave some more coin in your pocket.

Whatever you do, don’t sell the house unless you’re buying somewhere else. You WILL spend the money and then you will definitely regret it later. Perhaps a new start in a different town even might be what’s needed. Plenty of places, even near the coast, for that money.

I don't agree with some of the comments. I have a largish 1920s house and the bills are never ending, there's always something that needs doing. Painting, decorating, chimneys, roof, flat roof, shed, side gate, fences, gardening, front door needs changing, new boiler, guttering, soffits etc. The list is endless, since lockdown I've done quite bit of work myself and even building materials without labour cost the amount adds up quickly. If I was single I'd certainly think about down sizing.

Thank you all for imput of varying helpfulness 😉. I think maybe I wasn’t clear enough about my outgoings as with all things in life you have to live to your means, I have not. Fancy holidays, spending £50k on a camper van, takeaways, eating out, smoking etc. plus a reasonable watch collection that it’s taken me years to build. Our joint income was healthy But I now earn about £950pm🤨. I work as a Teaching Assistant after earning a relatively good income as a DC in the police (a job I resigned from 2 years ago for various reasons). My current outgoings are about £700 car/utilities/loan repayments/various insurance policies etc. leaving me about £60 a week to live on for shopping/socialising etc.

I appreciate there are many far worse off than me and I realise I’m in a privileged position compared to some. My self imposed time frame is based on me staying put trying to rebuild my relationship (some would see this as futile but it’s what I feel I have to do) and somewhat more selfishly it’s how long I’d feel comfortable living on a small income after years of over indulgence financially when I have other options available to me.

It’s a 2 bed semi in a good area, nothing fancy but I’d be looking at £200k clear after fees.

I like the idea of buying 2 smaller properties in Devon (Torquay) perhaps a house for £160k and using the rest for a deposit/renovation fees on a flat perhaps both of which I could rent out using the rent to pay the mortgage and perhaps leaving me with a bit extra.

A lodger doesn’t really appeal even one with appendages as those displayed above 😉

Thanks for the input chaps, it is helping me consider all my options.

Such a lodger will probably have boyfriend which could be complicated.

Agree with another poster, maintenance costs can mount up. W/o reserve for major items you could come unstuck.

Edit - On the other hand, if you’re lucky she might have a girlfriend.

Have a read of my divorce in the Bear Pit! When you’ve put your teeth back in your head after reading it, take a deep breath. You have dodged a bullet. Stay put, do some sport learn to sing/play an instrument the world is yours....don‘t sell[emoji106]


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Originally Posted by cessna152

Thank you all for imput of varying helpfulness 😉. I think maybe I wasn’t clear enough about my outgoings as with all things in life you have to live to your means, I have not. Fancy holidays, spending £50k on a camper van, takeaways, eating out, smoking etc. plus a reasonable watch collection that it’s taken me years to build. Our joint income was healthy But I now earn about £950pm🤨. I work as a Teaching Assistant after earning a relatively good income as a DC in the police (a job I resigned from 2 years ago for various reasons). My current outgoings are about £700 car/utilities/loan repayments/various insurance policies etc. leaving me about £60 a week to live on for shopping/socialising etc.

I appreciate there are many far worse off than me and I realise I’m in a privileged position compared to some. My self imposed time frame is based on me staying put trying to rebuild my relationship (some would see this as futile but it’s what I feel I have to do) and somewhat more selfishly it’s how long I’d feel comfortable living on a small income after years of over indulgence financially when I have other options available to me.

It’s a 2 bed semi in a good area, nothing fancy but I’d be looking at £200k clear after fees.

I like the idea of buying 2 smaller properties in Devon (Torquay) perhaps a house for £160k and using the rest for a deposit/renovation fees on a flat perhaps both of which I could rent out using the rent to pay the mortgage and perhaps leaving me with a bit extra.

A lodger doesn’t really appeal even one with appendages as those displayed above 😉

Thanks for the input chaps, it is helping me consider all my options.

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If you buy 2 smaller properties in Devon and rent them out where will you live? Rent somewhere? You’ll still have bills. If you can’t afford to live now how will you then?
You have a property with no rent or mortgage. If you sell it and buy another with no rent or mortgage you are still in a good place.
Why go through all the hassle of buying places to let and being a landlord with all that entails? For what? To live rent and mortgage free like you can already by owning your own place.

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Originally Posted by oldoakknives

If you buy 2 smaller properties in Devon and rent them out where will you live? Rent somewhere? You’ll still have bills. If you can’t afford to live now how will you then?
You have a property with no rent or mortgage. If you sell it and buy another with no rent or mortgage you are still in a good place.
Why go through all the hassle of buying places to let and being a landlord with all that entails? For what? To live rent and mortgage free like you can already by owning your own place.

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My family own a lovely large house in Devon, plenty of room for me to move in with v.little overheads. Managing a property over 100 miles away may prove problematic hence buying something local to them if I could manage them myself I’m guessing I’d save a packet on agents fees.

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Originally Posted by cessna152

My family own a lovely large house in Devon, plenty of room for me to move in with v.little overheads. Managing a property over 100 miles away may prove problematic hence buying something local to them if I could manage them myself I’m guessing I’d save a packet on agents fees.

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When things get tricky agents fees are worth every penny

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Originally Posted by cessna152

My family own a lovely large house in Devon, plenty of room for me to move in with v.little overheads. Managing a property over 100 miles away may prove problematic hence buying something local to them if I could manage them myself I’m guessing I’d save a packet on agents fees.

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If you really want to move in with your family, presume you mean parents, then I suppose that is the answer.

OP car and loan repayments will diminish over time and you may even remortgage slightly to clear them at a much lower APR so it's manageable. Don't make any rash decisions.

Additionally when budgeting if you go down the rental route don't assume 100% occupancy and how you will cope with no rental for say a couple of months

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Originally Posted by Taxboy

Additionally when budgeting if you go down the rental route don't assume 100% occupancy and how you will cope with no rental for say a couple of months

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If he's in Devon he could go the holiday rental route so 100% occupancy isn't then a factor. More work sure, Saturday changeover, potential damage etc, but could be looking at say 1k a week during school holidays etc, £300-500 a week out of season, instead of a maximum of 12x £600-800 residential per annum.
Obviously this wouldn't work at the moment with lockdown, but then anything much regarding selling, buying, and moving cant be completed anyway.

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I'm sorry to hear you've been hurt, but at least you know who she really was & hopefully you can move on. You're in a panic because of the change. It's something you're not used to. The single life is a wonderful thing, don't look back. Don't mug yourself off by trying to rebuild a relationship with someone who has little respect for you. Even the act of trying to rebuild after being cheated on will make you even less attractive to her. You'll be walked all over going forward.

How does a mortgage free, kid free, teaching assistant have £700 a month of monthly commitments? I would start by looking at each and every item and say do you need it or can you get it cheaper. moneysavingexpert is a great resource for things like that.

Do you have any savings you can spend on say a cheap car bought outright to get rid of the monthly cost? I'm presuming car is a big chunk of the cost?

I can relate to your situation OP, twice I have been through divorce, twice I paid for the ex to vacate the marital home in which I continued to live. Yes there will be memories and associations around the property, but take a little time to put your own stamp upon it. Change a few colours, re-arrange furniture etc, it will soon feel different.
The first time it happened to me I took in 2 lodgers to help pay the mortgage (sadly wasn't mortgage free, far from it), and it worked well for a couple of years. Second time I had to sell my beloved SLK to assist with costs, as well as borrow from the bank of M& D.
In each case I was amazed at how much money was left at the end if each month, in my experience two people spend much more as a couple than two individually. You may need less to live as a singleton than you imagine.
I think the crux of my advice is that you should not rush into anything. The move to Devon sounds tempting, hell it sounds great to me, but you will be away from friends and current colleagues, and may end up a little lonely.
I do hope things work out well for you. Best of luck. Rob

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Firstly reduce monthly costs where possible, secondly sell unnecessary "stuff", thirdly increase income if possible, lastly sell house (especially now!).

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Originally Posted by Chinnock

Firstly reduce monthly costs where possible, secondly sell unnecessary "stuff", thirdly increase income if possible, lastly sell house (especially now!).

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This is some good and succinct advice.

And I’ve read your not keen on a lodger but is this worth re-considering even if just for a short term to allow you to address Chinnock’s points

Have you considered if perhaps a week day rental to another professional who lives out of town or perhaps a room via air’b’n’b once travel is allowed.

Reading between the lines, I think this thread has more to do with C152's mental place rather than what to do with £200k.
Having been dealt some psychological blows myself over the last 18 months, I found some really useful stuff on You Tube and books to read.

I can highly recommend looking at the following channel on You Tube:

School Of Life - https://www.youtube.com/user/schooloflifechannel/videos

And books I enjoyed were Feel The Fear (And Do It Anyway) by Susan Jeffers, The Manipulated Man by Esther Vilar and No More Mr Nice Guy by Robert Glover.

Good luck! And don't sell the house, it represents more security than you might imagine. If budget is tough, cut back on some of those "insurances" you have (not the car insurance but all those extended warranties, phone cover etc).

After my divorce in 96, I stayed in the house as well. I had to pay the complete mortgage myself and I had a difficult time making ends meet! I stayed in the house for two years until I met my current wife. She didn't want to live in that house, so I sold it, making a whopping profit!

Staying in the house was also an 'up yours': I wanted to proof (to myself? to the world?) that I was able to run things on my own. I ditched all sorts of costs, sold a lot of stuff etc, replacing it with one new 'indulgence': I hired a lady for cleaning the house every week and iron my clothing! In hindsight: glad I did that. It kept me on my toes to remain presentable. Keeping the house was the best thing I've done.

You can try to get another job, I presume. A lot of jobs pay better than what you earn today, I suppose.

Finally, I don't know anything about UK's estate planning laws. But under Dutch laws, it's possible to (re)mortgage a house with money from family (parents) at a reasonable rate - always more than they get at the bank's. And it's possible to even that out with the inheritance. In short: you're lending money from the beneficiaries (you), from your own part of the inheritance.

EDIT: a straight answer? Keep the house. As we all know, property prices are up and up. Provided you don't live in a location with a bad reputation etc. Mortgage-free property is the best investment; a 4-6% annual value increase without the hassle or risks of the stock market is hard work when you try to invest that in shares or bonds.

On the other side, what we wrote: cut the spending side of things. Or even, sell a few watches. Perhaps you can even negotiate a buy-back deal with some of the members here on TZ-UK.

Menno

‘37, live with my mum, got a nice camper van and some watches’

or

‘37, own my own home, mortgage free’.

Your choice as to which Tinder profile you want.

After the split with my first wife I was a wreck, back living with parents, (over)paying child support and commuting 3 hours a day. Eventually I got back into rented accommodation but getting back onto the property ladder took an enormous struggle, 4 years living with in laws with a young child , 5 years in shared ownership and then my mother passing, leaving me with a small legacy. Not a strategy that I'd recommend to anyone.
So, if at all possible keep the house, fight tooth and nail to stay in it, don;t make any rash decisions while emotional that you will regret.

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Originally Posted by reggie747

Hmmmmm, yeah...

https://cdn77.scoreuniverse.com/scor...n_27697/03.jpg

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Absolutely yeah...

And whilst I'm not after a lodger, I'd happily p/x the wife for her.

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Originally Posted by chrisparker

‘37, live with my mum, got a nice camper van and some watches’

or

‘37, own my own home, mortgage free’.

Your choice as to which Tinder profile you want.

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Haha brilliant! - case closed


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For once TZ-UK seems to be in consensus!