Using inheritance money to start your property investment journey

When inheriting property or cash there are many things to consider for your current and future financial plans. Investing in buy to let or starting your own property portfolio might just be the best option for you. Buy to Let Mortgage Consultant, Agata Rogozinska explains…

Why invest in property
If you have come into an inheritance, it can be difficult to know what to do with the money. With interest rates so low, it can seem a waste to keep money in a bank account gaining little interest. One option would be to consider investing in property - people do this for many reasons, so it’s worth looking at some fundamental questions to work out if property is the right investment for you?

Are you looking to invest for the long term or looking to make a quick buck?
It’s generally recognised that property should be regarded as a mid to long term investment. This is partly due to the initial costs associated with buying a property, eroding any short-term increase in the property value. Property values also tend to move (generally although not always) upwards at a fairly slow and steady pace. So, to get any real gain, your investment should be viewed as a 3-5 year plan as a minimum.

The exception to this would be a refurbishment project, where you acquire a property that requires work, you refurbish it and then sell it on – hopefully at a profit!

What is your appetite for risk?
Property has historically been regarded as a safe option for investing money. The average house price has increased from £215,00 in April 2017 to £226,000 in 2019. If you were to look back over a much longer period, property prices have always grown in the long term, BUT there have been periods of values reducing too. As with any investment, house prices can go down as well as up, and returns are not guaranteed.

If you are thinking about becoming a landlord, it’s also worth thinking about how you will be able to cover the costs that come with running a buy to let – repairs and maintenance, periods with no tenant, etc. While the expectation is that the rent will ultimately pay for the property, it’s worth making sure that you have a pot of money set aside to cover you for any unexpected bills.

What to look out for
Choosing the right property is paramount, so it’s imperative that you do your research. You need to be sure that the property is going to be appealing to prospective tenants (so the location and property style will count heavily) and that there is nothing which could adversely affect your property in the vicinity – for example, a planned build for a pub next door.

You also need to do some maths… how much rent is the property likely to achieve? Is this getting you the return you need? How much tax will you pay on? Will your expenses be covered?

There is a whole raft of information available which will help you make an informed choice on what you buy – landlord forums (which there are plenty) are awash with fellow investors who are always happy to offer good advice.

Will you need a mortgage?
You may have enough money to buy a property outright, which is a fantastic situation to be in. However, if the sums add up, you may want to consider splitting your money across one or two properties to increase your returns. Read about how I recently helped my clients do just that:

First time landlords purchase 3 investment properties using inheritance money >>

If you do need to take a mortgage to help fund your purchase, do get in contact with a specialist mortgage broker – like me!

We can advise you on the finance options available for investing in property. Mortgages for Business is an independent brokerage with excellent knowledge of which lenders will support your application. Our regular communication between our customers and lenders enables us to get to know each case in full detail which helps to speed along the application process.

We are always happy to run through numbers and bounce ideas around, so you can see how much your mortgage costs will be and see how they fit into your investment plan.

Get in touch
If you are looking to invest your inheritance into property, or if you are generally looking for a mortgage, do get in touch with me to discuss your finance options. My direct line is 01732 471602 or 07976448467

You can also send me an email at 


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