@bikebuoy
Not sure if you're joking, but diversifying into a few cryptos could be worth it if you can tolerate the volatility.
I was going to suggest cryptocurrencies.
Depends how risk averse you are. I'd back ethereum at the moment.
No I was serious on that point, volatile yes, exciting yes, hair pulling out at times yes but ultimately if you have the stoic balls to do it it’s about the best return out there.
IMO.
Personally I wouldn’t, but I’m not the OP. HMMV..
@njee20 depends on what you want. ETH has been around for a while and the days where you could get 10x or "even" 2x returns look to be over. Along with BTC it's got the 2nd largest market cap out there, so opportunities for growth are limited. The market is also very immature so you can still make money trading the news, but it's very time intensive and you need to be very disciplined. Also, as it's unregulated there are shitloads of dodgy things going on (wash trading).
Check this blog out:
http://blog.mclain.ca/buy-and-hold-31-cryptocurrencies-for-365-days-week-6/
The guy is down approx 20% from what I can see from the beginning.
Along with that you have problems with the security of the exchanges. Your average private investor probably hasn't got the savvy to maintain wallet cold storage for multiple currencies if they're looking to diversify and will most likely wind up leaving everything on the exchange where it's anyone's guess what could happen to it. If you lose your money it's pretty much gone. You'd need to have a huge amount of comfort with saying goodbye to your money.
You also have the problem with everything having a huge correlation with the price of BTC. BTC goes up? All cryptos go up. BTC goes down? All cryptos go down. Right now they're mostly being used as vehicles for speculation instead of actual currency which is frustrating because the possibilities for transacting are really cool. The irony of writing that here is not lost on me by the way.
@bikebuoy sounds like you've dabbled? Do tell! Would be fun to have a cryptocurrency thread 🙂 Personally, I think there are more reliable returns out there. If you can tolerate "only" ~20% pa 😀
No I’ve not dabbled, I’m too risk adverse. I have two mates that do, in the early days one mate put 10k in and returned near 20k in less than a month, then he went through all sorts of losses and pulled out. The other mate dabbles in chunks of 5k at a times and just bought a new car on his returns (2017 reg)
It’s incredibly risky, but also incredibly rewarding if you have the balls to do it.
Also, regulation is almost none existent. And Russia is banning Crypto’s trading in thier country.. I would expect other countries will follow once Russia has done the hard work on forming out the regulations..
I put it out there as an opportunity, and as mentioned only an opportunity if you have the balls to do it.
I wouldn’t personally..
If you aren't looking to put down a deposit on a house in the near future, the obvious thing to do is to trickle it into the stock market in the form of a stocks and shares ISA. I'd suggest maybe 1-2k per month until you run out, rather than all in one go.
That way you'll get a return of about 3% pa tax-free from dividends, plus the sum itself will grow faster than inflation in the long term (though maybe not over a short interval).
Oh yeah I wouldn’t put £35k into crypto either, but you [i]could[/i] make massive gains!
I keep flirting with the idea of chucking a few hundred into it, guy I work with is very into it, mines Ether plus another I forget, all over all the values etc, annoyingly he told me to buy Ether when it was $60, and I didn’t. Could’ve got a 5x return in 4 months!
@njee20 crypto is full of stories like that to be honest. For every person who did that I guarantee there's someone who got stiffed holding the bag on some shitcoin a mate told them to buy.
Happy to help you get started if you still want to do it. I think LTC and XMR are worth getting into right now. ZEC is due a pump today if you're feeling brave, but I don't think you'll have enough time to get verified and trade on an exchange today to take advantage of it.
Oh yeah I wouldn’t put £35k into crypto either, but you [i]could[/i] make massive gains!
I keep flirting with the idea of chucking a few hundred into it, guy I work with is very into it, mines Ether plus another I forget, all over all the values etc, annoyingly he told me to buy Ether when it was $60, and I didn’t. Could’ve got a 5x return in 4 months!
@bear-uk how do you manage 10-18% on p2p lending? For the OP I would say put a deposit on a shit house, live in it for a few years to save rent then sell & move up the ladder.
Yes, please share, unless you are going around door to door.@bear-uk how do you manage 10-18% on p2p lending?
Invest it in R.I.T Capital Partners,tick the dividend reinvestment box and waaaaaaaiiiiiiiit!
I'm too risk adverse and chuck all my left over cash at the mortgage, however if I didn't have that I'd trickle it into commodities like oil atm.
I've got a lot of money on the ftse (pensions etc) but I reckon that's going to go tits up pretty soon.
Friends of mine dabble in crypto currency with mixed results it's just gambling however I feel the ship has sailed on those. I guess in theory as they get more widely adopted the price will rise due to supply/demand.
Sandy,what evidence do you have in relation to the ftse going tits up soon?Why would you buy into commodities if you believed that?
Sandy,what evidence do you have in relation to the ftse going tits up soon?
Probably none.
A lot of amateur investors are thinking post Brexit the FTSE will take a massive dump.
It may, and if it does you'd still have to time the market to take advantage of it. Good luck with that. Seriously.
Yeh I agree crypto's are here to stay and have a benefit but at the moment it appears no different than playing at Forex
Am interested in the P2P returns people are getting as never dabbled in that
PJ-The ftse us barely above levels it reached 18 years ago.Also,what evidence do you have that Brexit and other political decisions will produce a bear market?The opposite has happened so far.
I'm getting a pretty steady 7% which is what they predicted when I first invested. I only put a little in to try it out. That's with funding circle who are one of the bigger, better established players. I've not put any effort in, just picked a mid risk pot and let it sort it out. Seems ok, just deciding whether to put a bit more in.Am interested in the P2P returns people are getting as never dabbled in that
I think that £35k has to go towards owning so that you stop renting.
No future CGT if main residence, saving the rent yield rather than having to pay tax on the rental income.
Few v8 90s might be a sound investment the way landrover prices are going!
Love love loving the implicit disappointment in this thread that BTL doesn't pay off anymore. A crying shame 8)
I've got no evidence whatsoever, obviously. I just feel that the country has a number of headwinds it has to overcome, not just brexit. By "tits up" I'm thinking maybe 30% off the peak again purely speculation on my part. I'm not moving money around either based on these fears.
I feel that oil is reasonable value at the moment (Was sooo tempted to buy at sub $40 a barrel - in hindsight I should have!)
If the next bear market is only a 30% job,I for one will be dancing in the streets.On the positive side perhaps world stock markets could be due a 30% rise!This bull market has hardly been euphoric from my observations.Anybody feel or see irrational exuberance?No,thought not.
OP here. Thanks for input everyone. I would love to stop renting and buy, but I can’t afford to buy a house that suits our needs; myself and my partner have 3 children to Home between us, and we have some fairly restrictive geographical restraints, due to schooling requirements. Basically hardly a day goes by when we don’t both drive nearly a hundred miles, either school runs or commuting, and that represents the best possible geographical position. This is going to be the case for approx ten years it seems. I’m aware that renting is massively suboptimal, but we can’t buy anything that would house us all in anything like the house we currently live in. Hence my thoughts about buying a place to rent out. I could afford to pay the mortgage at a push (I’ve been paying a mortgage on the house that is liberating the aforementioned 35k alongside the rent) but if I could rent it out as well it would become cost neutral and gain equity at a greater rate than any other investment I can think of, I think. Obviously maintenance needs to be considered, as does periods of no occupation. This isn’t really ‘buy to let’ it’s more ‘buy to own, let to subsidise’.I think that £35k has to go towards owning so that you stop renting.
No future CGT if main residence, saving the rent yield rather than having to pay tax on the rental income.
Is this a completely daft idea?
I'm not 100% sure what the implications of that would be for other things as it wouldn't be your main residence - would it be classed as a second home?
Also, you run the risk of bad tenants that don't pay/wreck the place which could cost you dearly. If you are managing it yourself there is less likelihood (IMO) of that happening as you'll probably pay more attention to who's going in there compared to a property manager...
You say you have to house 3 kids between you? I assume she'll be keeping the kids but they'll be visiting you (hence the need for a larger rental property to live in)? If so could you really not make do with a smaller place + sofa beds + camp beds etc when they do stay over? This seems like a fairly massive financial decision for you that could affect the rest of your life, not to put it bluntly ...
Hmm. You assume (understandably) incorrectly. We both co parent our children, who spend 50% time with either parent. It’s a challenging situation; not very flexible but a price we pay in order to be together. All four parents work shifts and are able to work full time whilst not being at work at all while their kids are with them. It’s an unusual situation, but it works (as it stands) for all seven individuals it involves.
Bitcoin going on a rampage today. Hold your horses folks!
buy one of these:
http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-41461592
Leaving a decent £5k for coke and hookers.
Btl is difficult now but theres a 2 bed flat in morecambe in the barnard marcus auction, guided at 15k. Plus a house in a not too bad area at 70k. Morecambe wont get any worse, say you got the flat for 20k, rent at whatever the govt benefits pay, say 250 pcm, thats 3k pa, thats a 15% yield.
Downside is a morecambe benefits tenant so you may need a few big mates to accompany you on the inspections,
Or buy it, paint it and sell it on.
