where to put 80k?
Discussion
JoeMarano said:
LivingTheDream said:
Invest it in my home extension, plannings all done, just need the funds to start work.
It'll be an interactive investment, I'll send you pics of the work being done and write a blog on 'What has your money achieved today?'
You'll be making a little girl who wants to move out of the tiny box room very happy and it'll definitely be risk free, I'll pay it back with some interest.
Win win
If I was a millionaire I would. But sadly it's too much of a risk lolIt'll be an interactive investment, I'll send you pics of the work being done and write a blog on 'What has your money achieved today?'
You'll be making a little girl who wants to move out of the tiny box room very happy and it'll definitely be risk free, I'll pay it back with some interest.
Win win
Any millionaires reading this
deckster said:
£80k spare, you don't currently have a house, and no immediate need to buy one to live in?
Use it as a substantial deposit on a BTL, surely. You won't be stung by the second-property stamp duty hike and the chances of your overall gain being less than a savings account are pretty much zero - and the chances of it being much, much higher are pretty good. It's more hassle for sure, but I don't see any other option as giving you anything like as much return for as little risk.
When we looked into letting our house out (and not selling it) we would roughly break even maybe pay a bit towards it.Use it as a substantial deposit on a BTL, surely. You won't be stung by the second-property stamp duty hike and the chances of your overall gain being less than a savings account are pretty much zero - and the chances of it being much, much higher are pretty good. It's more hassle for sure, but I don't see any other option as giving you anything like as much return for as little risk.
It's a bummer for sure as I guess it all depends on what we want to do. Me personally I like the idea of staying in this very cheap rented accommodation and save with an aim to buy a house outright (houses are cheaper in Suffolk and Norfolk than where I have come from, essex)
Or we could buy a place and let it out like you say. Would be hassle again though and if anything bad happened to us financially like job loss etc we could be very screwed.
deckster said:
£80k spare, you don't currently have a house, and no immediate need to buy one to live in?
Use it as a substantial deposit on a BTL, surely. You won't be stung by the second-property stamp duty hike and the chances of your overall gain being less than a savings account are pretty much zero - and the chances of it being much, much higher are pretty good. It's more hassle for sure, but I don't see any other option as giving you anything like as much return for as little risk.
The problem is, if i understand it correctly, you may well be stung for much more stamp duty when you buy a new family home (which will presumably be worth more than the BTL) as it would then be a second property for you (even though it would be a family home not a BTL) and potentially then attract the extra 3% stamp duty. Use it as a substantial deposit on a BTL, surely. You won't be stung by the second-property stamp duty hike and the chances of your overall gain being less than a savings account are pretty much zero - and the chances of it being much, much higher are pretty good. It's more hassle for sure, but I don't see any other option as giving you anything like as much return for as little risk.
I could however be completely wrong on this...
Of course, if you sell before you buy your new place then this wouldn't apply. However you'd then face agents fees, solicitors fees and capital gains tax if you get lucky and the price rises a lot.
Edited by MGTS on Wednesday 1st June 17:50
Luke. said:
soad said:
Buy gold. I sold mine a decade ago, prices have trebled now. 
Now this tickles my fancy. Know nothing about gold. Good time to buy? OP if you want risk free leave it in the bank.
If you want a return above what the banks are offering but with the trade off of taking on additional risk feel free to drop me a PM.
Bottom line is you can't have your cake and eat it.
You really should go and see a financial adviser so all of your financial, err, factors maybe, can be taken into consideration.
I lent a good mate a decent (to me) chunk of cash to buy an artic tractor unit. He sent me the quote fro the finance company and we did it at the same rate with no set up fees either way and he has a standing order where he makes the payments to me each month straight to my bank account. In this instance it works for both of us.
I lent a good mate a decent (to me) chunk of cash to buy an artic tractor unit. He sent me the quote fro the finance company and we did it at the same rate with no set up fees either way and he has a standing order where he makes the payments to me each month straight to my bank account. In this instance it works for both of us.
In the OP's position I'd be buying a property to let. Probably somewhere he could live in if needs be in the future.
Best case it pays for itself in the longer term and makes an extra 3% stamp duty on a future forever home worth it.
Middle ground is he sells it before buying for himself, or lives in it and sells to move to that forever home. Yes there might be some CGT to pay.
Worst case is the odd bad tenant and the hassle but in the longer term (assuming you are talking many years in forces accommodation in an ideal world) the upside is likely to cancel these out.
Best case it pays for itself in the longer term and makes an extra 3% stamp duty on a future forever home worth it.
Middle ground is he sells it before buying for himself, or lives in it and sells to move to that forever home. Yes there might be some CGT to pay.
Worst case is the odd bad tenant and the hassle but in the longer term (assuming you are talking many years in forces accommodation in an ideal world) the upside is likely to cancel these out.
See I would probably agree on some of the suggestions of buying certain cars and selling them in a few years but couldn't see the missus going for that. There's also the high risk I would end up driving them lol
It's a shame we don't have more money to be honest as I've always wanted to be one of those people that just make money from having money
It's a shame we don't have more money to be honest as I've always wanted to be one of those people that just make money from having money
JoeMarano said:
See I would probably agree on some of the suggestions of buying certain cars and selling them in a few years but couldn't see the missus going for that. There's also the high risk I would end up driving them lol
It's a shame we don't have more money to be honest as I've always wanted to be one of those people that just make money from having money
Those people embrace risk.It's a shame we don't have more money to be honest as I've always wanted to be one of those people that just make money from having money
If you are risk averse then best to manage your expectations accordingly.
I saw that you said you sold a house to get this money, do you have another house, and if so does it have a mortgage? If so no risk answer is to pay off the mortgage, will free up more cash per month and you wont be paying the interest.
Other than that depends on the amount of risk you want to take on, i have a few businesses where a mate or relative was good at something so put the funds in for them to work for themselves. They do the work i put up the money we share the profit. Were not talking huge amounts of profit for the most parts its just average living wage type earnings but i have four of these average living wage style incomes coming in and i work myself.
Other than that depends on the amount of risk you want to take on, i have a few businesses where a mate or relative was good at something so put the funds in for them to work for themselves. They do the work i put up the money we share the profit. Were not talking huge amounts of profit for the most parts its just average living wage type earnings but i have four of these average living wage style incomes coming in and i work myself.
UpTheIron said:
In the OP's position I'd be buying a property to let. Probably somewhere he could live in if needs be in the future.
Best case it pays for itself in the longer term and makes an extra 3% stamp duty on a future forever home worth it.
Middle ground is he sells it before buying for himself, or lives in it and sells to move to that forever home. Yes there might be some CGT to pay.
Worst case is the odd bad tenant and the hassle but in the longer term (assuming you are talking many years in forces accommodation in an ideal world) the upside is likely to cancel these out.
The OP doesn't want risk. What happens when the tenants don't pay? Or there are no tenants? Or the tenants do 20 grands worth of damage to the house? Or he wants/needs his money quick? Best case it pays for itself in the longer term and makes an extra 3% stamp duty on a future forever home worth it.
Middle ground is he sells it before buying for himself, or lives in it and sells to move to that forever home. Yes there might be some CGT to pay.
Worst case is the odd bad tenant and the hassle but in the longer term (assuming you are talking many years in forces accommodation in an ideal world) the upside is likely to cancel these out.
I think short term I'm going to bang it in savings and see were we are. Long term perhaps find forever home (which the last was supposed to be) and rent it out.
Did well on the last house bought for £157k and sold for £242k 3 yrs later. Property is where it's at!
I'm just (rare for me);thinking of the future as an employee I'm probably not very desirable as I don't really have any skills apart from doing well at school (years ago) so would ideally want to be in a position to do something I like and get paid for it (don't we all)
Did well on the last house bought for £157k and sold for £242k 3 yrs later. Property is where it's at!
I'm just (rare for me);thinking of the future as an employee I'm probably not very desirable as I don't really have any skills apart from doing well at school (years ago) so would ideally want to be in a position to do something I like and get paid for it (don't we all)
Gassing Station | Finance | Top of Page | What's New | My Stuff