For a first-time investor with £50k to deploy, should I put this into an index fund for 5 years to build capital, or use it as a deposit for a low-value UK property with a view to BRRR, considering both risk profiles?
Quick Answer
Deciding between an index fund and a property deposit for £50k hinges on risk tolerance, desired involvement, and return expectations. Property offers direct control and leveraging potential for growth, while index funds provide diversification and passive income but lack the immediate control and debt leveraging of property.
About This Topic
First-time investor with £50k? Compare index funds vs. BRRR property deposits, considering transaction costs like the 5% SDLT surcharge from April 2025 for UK property investments.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
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