# Sold house in the uk, where to stuff the proceeds?



## bluebossa (Apr 26, 2015)

So, a follow on question from those who have already done this.

I've sold my main residence in the UK, downsizing, daughter off to Uni this year, move to Dubai, no mortgage etc.

Thinking of buying a smaller property in the UK as a bolt hole but not straightaway, I'm now renting in Dubai and the UK! 

Meanwhile with interest rates so crap in the UK 1.5% etc, any recommendations on where to stuff any proceeds in the meantime?


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## Stevesolar (Dec 21, 2012)

bluebossa said:


> So, a follow on question from those who have already done this.
> 
> I've sold my main residence in the UK, downsizing, daughter off to Uni this year, move to Dubai, no mortgage etc.
> 
> ...


Hi,
Buy somewhere in the town your daughter is studying at.
Let her stay there and get a few more students to pay for their rooms while your daughter is at Uni.
That way she gets free accomodation and you/she can generate rent for the other bedrooms.
Once she leaves Uni - either continue renting to students, or sell it.
Cheers
Steve


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## twowheelsgood (Feb 21, 2013)

All of you take out a Santander 123 account and get 3% interest on the first £25k, and meanwhile get on with buying another place. With the UK housing market the ay it is, you're getting lower on the ladder every day.

Don't wait - buy asap, or you'll regret it. We bought another place within 1 month of selling up.


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## LesFroggitts (Dec 30, 2013)

Offshore - don't bring it out here, anything goes wrong with your employment and your bank account is likely to be frozen.

Lots of offshore islands available to us.


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## Dave-o (Aug 23, 2015)

Talk to a UK based adviser who knows the implications of living abroad and your tax situation and has access to UK, worldwide and offshore investments.

In the same boat, sold our house, money earning nothing in the bank, first obvious thought was to turn to a rentable property. Our guy warned us against buying property if it's a short (<10 years) investment, all your eggs are in one basket, tax implications on earnings and profit (assuming the market doesn't drop), stamp duty, fees to buy the place. 

There are some very good returns on your investments but you need to talk to a UK based specialist ... or wait for one of the many wealth advisers to cold call you


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## Mr Rossi (May 16, 2009)

Stevesolar said:


> Buy somewhere in the town your daughter is studying at.
> Let her stay there and get a few more students to pay for their rooms while your daughter is at Uni.
> That way she gets free accomodation and you/she can generate rent for the other bedrooms.
> Once she leaves Uni - either continue renting to students, or sell it.


This is a fantastic idea. A friend's parents did this when he went to uni in the 90's. It was a massive help for him financially, made him more responsible and they cleared of the mortgage (and the original re-mortage that funded it) fairly quickly. He's still in it, though I imagine the tenants are gone and he's upgraded the Trainspotting posters and sofa found at the side of the road.


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## bluebossa (Apr 26, 2015)

That's a good idea, I'll mention it to the wife this evening, solves a few problems.
She's got an offer for Cardiff Uni - just has to get the grades to ensure she get's in - but could work well.


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## bluebossa (Apr 26, 2015)

twowheelsgood said:


> All of you take out a Santander 123 account and get 3% interest on the first £25k, and meanwhile get on with buying another place. With the UK housing market the ay it is, you're getting lower on the ladder every day.
> 
> Don't wait - buy asap, or you'll regret it. We bought another place within 1 month of selling up.


Good advice too, though I hate Santander, my mortgage is with them and they've not been helpful in moving us to a better rate once our fixed rate ended.
Only solves £25k of the proceeds though...


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## bluebossa (Apr 26, 2015)

Dave-o said:


> Talk to a UK based adviser who knows the implications of living abroad and your tax situation and has access to UK, worldwide and offshore investments.
> 
> In the same boat, sold our house, money earning nothing in the bank, first obvious thought was to turn to a rentable property. Our guy warned us against buying property if it's a short (<10 years) investment, all your eggs are in one basket, tax implications on earnings and profit (assuming the market doesn't drop), stamp duty, fees to buy the place.
> 
> There are some very good returns on your investments but you need to talk to a UK based specialist ... or wait for one of the many wealth advisers to cold call you


Thanks, yes I hate the cold calling in Dubai, the banks must sell the mobile numbers of Expats. It would be our main residence I guess, and yes it would be less than 10 years and yes fees and stamp duty expensive and effectively lost cash for a while.


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## bluebossa (Apr 26, 2015)

LesFroggitts said:


> Offshore - don't bring it out here, anything goes wrong with your employment and your bank account is likely to be frozen.
> 
> Lots of offshore islands available to us.


Indeed, no plans in putting savings in the UAE - offshore or some other investment format preferred, just don't know where is best with quick access to funds.


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## LesFroggitts (Dec 30, 2013)

Offshore as a starting point - plenty of IoM/CI and other locations - mine is accessible 24/7 (phone and online) depending upon the type of account held.


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## twowheelsgood (Feb 21, 2013)

25k per account do that's two of you for starters. 

Then a joint account.


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## LesFroggitts (Dec 30, 2013)

twowheelsgood said:


> 25k per account do that's two of you for starters.
> 
> Then a joint account.


ooh which one wears the skirt


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## Dave-o (Aug 23, 2015)

bluebossa said:


> ...Only solves £25k of the proceeds though...


You're better off getting professional advice rather than applying one person's situation to another. Your proceeds might be £100k, it might be £1m, you might be very close to retirement age, or in your 20s. Your investment strategy should reflect your personal situation rather than mine or anyone else's here.




Mr Rossi said:


> ...A friend's parents did this when he went to uni in the 90's. ...


Aye, in the 90s a house would have been a great investment, but the housing market is stagnant in Wales, over the last 12 years, neither of our houses in Wales have made (or lost) a penny, the first one we sold in 2008 went back up for sale 6 months ago at a lot less than we sold it for. Plus if it's a student house you might have a lot of work to get it up to scratch to be able to rent out, additional insurance to take out.


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## twowheelsgood (Feb 21, 2013)

Friend of mine did the 'house for kids at Uni' thing but when they graduated, they moved into the house after refurbishing it, and sold heir house down south - but they were lucky that their son went to Uni in a city they wanted to move back to upon retirement.


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## Mr Rossi (May 16, 2009)

Dave-o said:


> Aye, in the 90s a house would have been a great investment, but the housing market is stagnant in Wales, over the last 12 years, neither of our houses in Wales have made (or lost) a penny.


True, but there there is a bonus of your daughter on "free" rent for her time at university. Something to consider when reports say today's students graduate with 30k (or whatever it is) in debt.

And you're right about the work required, I imagine there's more regulations and better standards that some of the sh**holes I saw in my day but with your daughter living there I think it's different regs to houses of multiply occupancy.

Things like smoke alarms, fire blankets and keeping the gas appliances maintained should be a no brainer anyway.


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