£500k Short Term Investment / Bank ?

[V8RX7]

Hi,

My friend gets £500k within a month, which he is going to use to buy and sell property.

However between property deals I presume there must be somewhere better than a High St bank to invest the money, which will obviously fluctuate.

What options are there ?

Obviously he'll see an advisor but it's handy to have an idea beforehand.

[MrBarry123]

Your friend can give it to me and I'll give him £0.00045 billion back when he needs it.

Sound fair?

[anonymous-user]

If he's going to be dipping in and out of it regularly then his options are going to be limited.

Any increased return he gets by investing it in something more fruitful could easily be wiped out if he needs to extract some when the markets are having a wobble.

[ellroy]

Depending on his risk appetites/timescale and the value of property dealings he could look at investment in longer term portfolio assets, but use a lending facility against the assets to fund the property deals. As long as he is aware of the risks, and comfortable with them, he could find very cheap borrowing could be outpaced by the portfolio returns net of costs and the interest potentially could be offset against tax after speaking to a decent accountant.

Most Private Banks should be able to help given the numbers you mention.

[Tresco]

I do what your friend is proposing to do but as said above his options are limited. I spread it around building societies, generally the maximum they'll allow in any account paying over 1% is £100k.

Might be worth him looking at a drawdown/chequebook mortgage secured against his own home if they're still available, he can draw down as and when he buys something and then repay it once he secures commercial finance against it.