Windfall Advice

Hi guys!

I would like some advice on a recent windfall.

My family has sold property in continental Europe which will give us close to a million euros.

Having connections both in the UK and Europe, we want to invest half of that money in property in the UK and keep the other half in Europe (due to the problems with the euro, not keeping all eggs in the same basket).

We plan to invest in the UK for a few properties which we can rent out. Is there any advice I can be given on this front? We will definitely be looking at property near where we live and will also be hiring a letting agency as we will not be in the UK all the time.

The big problem I have however is the other half of the windfall, as I am clueless to what can be done with the money since we don't want to buy any property there. What are the options here?

We don't have any mortgages or debts to pay.

IMO, the most important element you must do is to ensure the value of your Investment and the retention of your capital. Property markets across Europe are generally not doing that well at present. You will need to research the sector - residential or commercial property. The modus operanda of these markets varies from country to country.

Have you considered investing in the Equity markets ?

I understand that property in the UK is set to increase in the long term due to a growing population, I do understand that house prices are flat and will be for at least a year however. I wouldn't want to invest anywhere on the continent as property in the south is still falling and I have no interest in Germany.

Forgive my ignorance, but what are Equity markets?

bananaphone said:

Forgive my ignorance, but what are Equity markets?

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Shares of Public Companies.

Just as a pointer, there are no guarantees in any future markets -- of anything. The UK especially, outside London has a market that is not that indifferent to the Irish market. It really is in tatters, with high price drops across the board. You like myself may not have a fondness in Germany but it is one of the few places that has a buzzing property market. But be careful, as buying and holding property is very different than most European markets.

mercman said:

Shares of Public Companies.

Just as a pointer, there are no guarantees in any future markets -- of anything. The UK especially, outside London has a market that is not that indifferent to the Irish market. It really is in tatters, with high price drops across the board. You like myself may not have a fondness in Germany but it is one of the few places that has a buzzing property market. But be careful, as buying and holding property is very different than most European markets.

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I understand that but we are looking at it as a long term investment. House prices have dipped here, and some might say it's the perfect time to buy. Either way, we want an income from the property and in Germany landlords are greatly disadvantaged. We know this from experience

The Housing in the UK may not be great, but at least it isn't Spain.