Raid my savings?

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    Raid my savings?

    One tenant moved out on Friday, another moves out on 31st, and a third moves out 30th June. A fourth tenant tells me they cannot pay rent in full. Also, this year I have to upgrade the electrics on a further 11 properties, maybe £1k per flat. I have another 11 properties let, to pay for these voids, and have already paid my July tax. I have about £25k in the bank. I can see myself having to pay about that much in tax next January, so have only rent from a dwindling stock of let properties to live on for the rest of the year.

    Recently an index linked National Savings investment matured, and I can take £20k, or reinvest it for another 5 years. Until recently, I was planning to reinvest, but in view of lack of cash, wonder if I should take the money out?

    Any thoughts?

    #2
    How much do you earn per annum on the savings?
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Originally posted by jpkeates View Post
      How much do you earn per annum on the savings?
      Very little. It's now CPI+0.01%.

      Comment


        #4
        Assume you've already maxed out your pension contributions then ?

        Comment


          #5
          Originally posted by Section20z View Post
          Assume you've already maxed out your pension contributions then ?
          Yeah. I can only contribute £240 pcm, as am not employed.

          Comment


            #6
            Originally posted by JK0 View Post

            Yeah. I can only contribute £240 pcm, as am not employed.
            In that case you are clearly not boracic and it is doing sod all good in NS&I so I say take it out and have a cruise or give it to the kids or cancer research ¡¡

            Comment


              #7
              I second that.
              When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
              Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

              Comment


                #8
                Originally posted by jpkeates View Post
                I second that.
                Thanks. I wasn't asking for advice how to spend my money. I've got plenty of ideas for that.

                Comment


                  #9
                  If its cash available before paying next January's tax bill, buy £20K of premium bonds. There is a monthly draw and chance to win £25 or £1 Mil.

                  Comment


                    #10
                    I'd take the money out. £25k in the bank may cover your taxes but if you haven't got another lump sum easily accessible for emergency repairs or other unexpected but essential costs etc, you may find yourself juggling finances.

                    If you haven't already got Premium Bonds, the maximum you can invest is £50K.

                    Comment


                      #11
                      Thanks Claymore. I think I concur.

                      Comment

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