With a spare £150K I'd definitely get a buy-to-let property in an area where it could be expected to rent consistently and where you'd be able to sell quickly if required.
I've had a rental property for a few years and, despite the property market issues recently, it's been rented almost 100% of the time as well as increasing in value by about 40%.
maybe your college might like to take a look at buying some shares in the Berkshire Hathaway group.or one of the company s this man owns Warren Buffett.i invested quite a large amount of money around 13yrs ago.after a friend had visited one of his seminars when he was in the states.to say its has been a good thing would be quite an understatement,im 38 this year,and all going well in five yrs. my second house will be mortgage free,this house will then be given to my son,to stop any goverment meddling in my old age.
imo the investment in property ownership has been dramatically reduced due to government/legislation.
shares in. coca cola always do well
Vedanta Resources PLC owners and investors from and for india, which is a massive market for investment,
also Kingfisher PLC the new owners of b&q/screw fix who are just about to launch in the chinese markets.(this has the potential to go bonkers as far as sales go)
as someone mentioned above large scale mining is proving to be a good investment as is some Russian energy company s as well.
if your friend has no morals then you could always invest in defence stocks,like GenCorp, the makers of bombs planes and missiles. or Sourcefire the it people who help said bombs planes and missiles work.
to be honest with £150,000 the worlds your oyster.
M B
Aus, I'd suggest a gay marriage then you initiate a messy divorce.
Pay off any debt, including mortgage (at whatever rate he's paying).Put the rest into a rental house, but must be mortgage free.
Monies previously spent on a mortgage, plus profits from rental - split 50/50 between shares and cash.
The 'problem' (although for some people its a positive) with a pension, is that the money is tied up until retirement - and you've no control over what the government will do in the future...
Nope, you want some form of mortgage on it, this will be used against any CGT it he has to sell. In an ideal world he will clear his present mortgage and then use £50k to buy a property and have a £100k mortgage that is getting paid by a tenant, so when it comes to time to sell he has remortgaged to the max and sells for £250k but has a £240k mortgage so pays tax on the £10k.
I would create a diverse investment strategy made up of:
fixed interest/term deposits
commercial property investments
shares (higher risk = higher return and need active management)
cash slush fund and/or FX
Thats what i have done, looked at property as well (commercial and resid) and decided that for ballche versus return not worth it just now in such a volatile market. I am seeing about 20% returns PA at the moment 😀
I'l invest in a small freehold business workshop
around a thousand square feet and rent it out.
wouldnt invest in houses at the moment very slow return
of cash and near zero profit.
I know one guy, who bought some small flats above a parade of shops in N London.
He then let them to mostly immigrants via the local council who needed to house the finflux of people needing a roof over their heads.
Not sure of the details as such but within 5 years he had something like 150 or so properties, all let through the council.
He bought a purlpe Diablo (Lambo) just before his wedding day – because he could.
I would go for a balanced approach with short medium and long term investments.
It's all good and well paying of the mortgage but for all we know it could be base + 0.5% which means he'd loose money by paying it off when a a two year Post Office Growth bond will pay 4.05% so I will assume we are not worrying about the mortgage.
I certainly wouldn't pile the lot into property commercial or other wise as it's one sector, with that sort of cash you need to diversify across multple sectors and multiple regions and why risk it all when you get + inflation growth elsewhere.
I would use the ISA allowance cash and stocks/shares as depending on age could cover off 20k but I would use Fidelity for the s/s element and drip the money over 6 months you can do this now and maintain this years ISA allowance and do the same after April 5th.
3600 Cash ISA 2009/2010
5100 Cash ISA 2010/2011
3600 Share ISA 2009/2010
5100 Share ISA 2010/2011
30k premium bonds - ( I would do a year see if works for you) if not sell and do something else don't get attached to them)
35k Post Office Bond - short term 2 years as it's fixed
40k To to invest in managed funds, stuff like JPM Natural Resource, something in the tiger economies, pick high risk but potential growth. Long Term this needs active management to work and make sure you have stop loss in place to protect capital, the up side is potentially rewarding.
25k Pension Over a period of time - Long Term
The investments can change you shouldn't just get straight into it and some need to get used to having the cash and not being scared of it, with the above approach the element at risk is low to begin with but protects to a degree the captial and over time you can change the view to risk once you have some clear goals. What is the right strategy now isn't necessarily the case in future years and it will need an element of management.
I would do the above more from a still working perspective and not near retirement if he were nearing retirement I'd keep out of share/stock and stick to interest bearing and guaranteed investments where the captial is not at ANY risk.
Do you own research the value of shares, property, banks and everything else can go up as well as down. The above doesn't consititute advice and is solely my opinion and what I would do in such a position.
ransom strips.
