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369548684892826

You're trying to solve two problems:

- Want to invest in an asset to keep some wealth outside your bank account.

- Want to have a place you can escape to, but without too much maintenance.

I would think about solving two problems with two solutions.

- Invest some money in funds (e.g. property investment funds if you really want property).

- Use some of the interest to rent fun places to go on holiday to.

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Was just going to write more or less the same thing. A second home (especially far away) is a huge expense, not a financial investment. Whether or not that expense is worth it (e.g. as a place to create good memories) is a very different prospect than real estate as an investment.

We rented the same vacation house for many years - it was way less expensive than owning the place. Recently it was re-zoned to be in a flood plain - that would have completely killed the place as an investment.

We could have bought the house BTW, but instead invested the money in stock and bond index funds. That turned out to be a really smart move. We still have the great memories, and don't have the ongoing headache of a far-away property to maintain.

Thank you, I agree that having a second house means having double work to do and this is my main drawback. The holiday part is already something we are enjoying much, which is something I had a lot less as a kid so I'm happy to give that to my kids.

Thank you, that seems to make sense, and you are not the first one to tell me this too.

Outside property, what would you suggest to invest my money to? (I'm not a big fan of cryptocurrency)

I'm not a Financial Advisor so I'm not qualified to make suggestions. But a lot of people find this [0] flow chart useful. It's UK focussed and you can probably skip to Step 8 (so maybe not that helpful?) but what it says for most people is that they should look at making long term investments in low cost index funds in a tax efficient savings wrapper (e.g. an ISA account in the UK)

Buying individual properties as an investment can be a huge headache, even trying to sell the investment can take a long time. And as the other reply said, it is quite risky to have so much tied up in a single property where anything could happen to it.

0: https://ukpersonal.finance/flowchart/

edit: A better link, Investing 101: https://ukpersonal.finance/investing-101/

Thank you. I appreciate your warning on the fact that you are not a financial advisor :)

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