So after a relatively benign divorce I’m going to end up with 35k and no house. I now rent and could not afford to buy a house big enough/in right place, so that’s not changing. Would a BTL still be a sound investment, or has that ship sailed? Any other sensible things to do with this large to me but relatively piddling amount? Or is it just coke and hookers FTW?
Hoping for a long term investment that I can keep topping up, in a mortgage stylee, hence my thoughts about a BTL property.
Ship has sailed on B2L imo. House price growth is unlike to outstrip inflation over the next few years and the tax regime has become increasingly punitive (loss of interest relief), especially if you're a higher rate tax payer.
It's also extremely illiquid.
It's a tough situation, with markets on a 8 year + bull run I wouldn't be confident of dropping a large sum into equities right now. Depends on the time frame you want to be invested.
People trafficking is quite lucrative if a little hands on.
Stick it in a bank account for the near future.
In time you may have a clearer idea on life direction, or a better/safer investment decision.
I am walking the same road...
Depends how you measure return. If it is memories then coke and hookers!
If money, what about vintage jewellery? My mate also buys two sets of every new Lego and leaves one unopened. He expects to double his money in a few years (albeit from £2000 odd to £4000 odd)
Premium Bonds? You aren't going to get much interest at the bank, you might get lucky and be quids in?
Or is it just coke and hookers FTW?
Pablo seemed to do alright out of it. Until he got killed of course.
Nigerian private equity
Have you got any pension plan? Tax man effectively tops up pension contributions, if you are going to be renting forever you're going to need a lot of income after retirement.
Depends what you want out of BTL..and which part of the country you want to invest in ..
Growth in property prices aren't brilliant ..pre 2008 when the shit hit the fan house prices doubled every 10 years..
Now the best you can hope for is decent yield ..there are some great mortgage deals out there ..with the right tenant you would still get a good return on your investment ..and that's the key getting the right tenant .
Where else are you going to turn £2-300 profit* pcm..after the mortgage has been paid from the rent ..certainly not through any savings account that I know of !
* I would put this money to one side in the early years against any future maintenance
35k gets you a good start..10 years ago that would get you into 3 modest properties!
Fingers crossed that house prices get back to the same sort of increases prior to the credit crunch ..but I don't see that happening any time soon..
Is getting a mortgage on a shared ownership property for yourself not an option, using this £35k for a deposit, solicitor fees etc.?
Property is still good IMO although probably not so good if you are a top rate tax payer. Not sure I'd be going down the BTL mortgage route, the returns are there but it's much more of a commitment. My last buy was a small commercial property under your budget bringing in 8% or so. Not super liquid but I'm sure I could shift it within a couple of months if needed. I'd buy another tomorrow if I could find similar locally. Good long term investment and good right now.
BTL ?
When Jeremy gets in your rents are curtailed, I’d be seeking that Nigerian or Sudanese Prince out for better returns.
Gold, buy Gold.. specifically buy that Gold Gordon sold off.
Commercial property is interesting; hadn’t thought of that. Any tips on what sort of commercial property to look at?
Doesn’t need to be very liquid. Am probably slipping into higher rate tax, just, although sal sac car may take me down below.
NHS pension scheme, so not bad, but can’t top up. Thanks all, esp THM for useful offering; not like you have any real world money smarts on which to offer advice! 😉 (or is it just too piddling for you to bother with...)
Stick £20k in a stocks and shares isa and 15 in premium bonds until next April, then top up the isa.
😆
Jeremy ?
Phhtt ..are you a comedian ..
I'm not particularly political ..dont really like any of the current crop of party leaders ..but Corbynn's a joke .
Congratulations on the relatively pain free divorce, thats a result in itself.
Property has been the best long term investment for most people for the past 60 years, I think it will remain so. We are living longer, more people living alone (post divorce), growing population. BTL still has a substabtial above inflation return on a cash basis (ie without a loan)
So IMO your best plan is to buy a property for you to live in even if its in the “wrong area” and “too small”. Better than spending mkney on rent, can you make a bigger property work with a lodger ? I doubt you could make a BTL work with £35k as the biggest loan you’ll get will be maybe £65k - can you buy a suitable rental for £90-100k ? IMO it does not matter if it doesn’t make money on a short term basis its the longer view you should take.
Aside from property you could take your chances with an index tracking equity fund maybe in an ETF form. With £35k IMO don’t bother with ISA format it’s not worth locking your money up.
Personally I’d be looking low-risk at the moment.
House Prices are at an all time higher, higher than pre crash.
Personal Household Debt is at an all time high.
Interest rates are at an all time low. No further stimulus there and will possibly rise next quarter.
FTSE is at all time high.
Even without the impending “B Word” we’re a decent sized economic shock away from a crash and recession.
@hodgynd as an aside Peckham is up 100% in last 6 years, I was advised to buy there but didn’t 😐 I am not saying that’s typical but IMO it’s wrong to suggest 100% every 10 years isn’t possible
Jambalaya ..sorry ..you are right..
In my defence I did say depending on which part of the country you invested in ..and London is a different matter altogether.
I was basing my " advice " on property in the North East .
Sorry you missed out ..
Scratchcards?
Red.
No, black.
Actually, put it all on red.
Put it all on Jeremy getting in 😆
70000 chewy strawberries
Land.
With trees on. Conifers.
Timber prices have increased 200% in the last 10 years, we aren't planting enough softwood to keep up with future demand, imports are getting more expensive, grants favour homegrown timber.
And you can build your own trails in them.
ETH
Fixed Odds Betting Terminals; £100 per minute - double your money in a tad under 6 hours!
Only a suggestion - not a recommendation....................
When Jeremy gets in your rents are curtailed,
Why, is he going to tell you what you can ask?
I wouldn't do BTL anyway, bloody minefield & if you get the wrong tenant/property, you can lose a LOT of money.
Yes, it was in his speach ... the one yesterday.
Give it to me and I’ll spend it riding around the Workd. I’ll send you all the pictures.
Rachel
Honda NSX
Have you got any pension plan? Tax man effectively tops up pension contributions, if you are going to be renting forever you're going to need a lot of income after retirement.
Depending on your income tax situation this could get you +20% instantly. + the growth as you approach retirement. Guessing all your house sale tax liabilities were dealt with during your divorce. If you’re a higher rate tax payer the chancellor will give you 20% back after your next filing. Only problem might be that you can’t usually touch the pension pot until 55. Though that might turn out to be good.
I can’t agree with buying property in the ‘wrong’ area: location, location, location.
Take some long holidays?
Honda NSX
Ha! Came here thinking the same!
Or the best air cooled 911 you can find. Or one/multiple early Beetles.
Or an R32GTR. Or an R34GTR.
Surprised about the suggestions of BTL. In about 3 years time you will no longer be able to offset mortgage interest against your profit/income. See a massive exit of the small BTL landlords in the next few years.
Mind you, i know somebody who goes after (small) places that you cannot get a mortgage on (for various reasons) and buys them cash.
Speak to a financial advisor.
I had a lump sum I needed to invest and he spread it over maybe a dozen different funds. I also have some invested in peer to peer lending. Don't put it all in one basket is the basic advice.
P.S. I've not made any money on my investments yet. It has only been a few months though.
I'd buy a canal boat and live on that. Bollox to paying rent if I didn't have to.
I’ve been thinking long and hard over this dilemma, it’s a nice situation to be in.
The only reasonable thought that has some sort of return element is to donate it to us lot here on STW, but only the posters you like.
The only proviso is that we/they enjoy a short lived blast of a time, send you a pic once a week of sheer enjoyment or crushing failure.
And post the pics on here.
HTHs.
You could take a look at this.
[url= http://www.damiancannon.com/blog/how-to-construct-a-high-yield-portfolio/ ]HYP[/url]
I am gradually creating a High Yield Portfolio and it seems to be performing reasonably well, with yields of approx 3.5-4% per annum.
The beauty of it is its flexibility - you can top up when you like by adding a new share to the list or withdraw some if you are in need of urgent finances.
Or..
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a High Yield Portfolio
yields of approx 3.5-4% per annum.
That's high yield?
^^ Brexit has lowered expectations. 😉
Seriously... Put 20-30k into Fundsmith Equity. Have seen over 70% growth on my money over the last four years or so.
I'm getting between 10 and 18% with Peer to peer lending. Atom bank is offering some good rates on fixed term saving.
Old Motorbikes ...
Old Motorbikes ..
+1
