125k cash - how to invest ?

[jenzo]

Hi all

IF you were in the position to invest / use as a longer term investment, a sum of 125k in cash - what would it be into? Property? Would it be just the 1 or 2, or perhaps even 3?

[blindswelledrat]

Why on earth do you have it in cash?
First things first - put it in the bank where it won't get stolen whilst you decide.

[bogie]

depends where you live...might need that just to get into a property in London ...up North you could buy 3 flats outright for cash

personally I would put a good deposit down on a property near where I live so its easy to manage and then invest the rest in blue chip dividend paying shares in my ISA over the next couple of years

...all assuming I didnt have any debt...

[CaptainSensib1e]

I wouldn't go fully into property at the moment. The prospects of interest rate rises next year and tightening mortgage lending criteria make it hard to see prices rising much more IMO. In fact I wouldn't be surprised if we saw prices come off a bit. Perhaps one buy to let and some other investments.

Seriously though, 125k is a lot of money nad you don't want to take advivce from an internet forum. Going and talk to a decent financial adviser.

[jenzo]

Hi all

Thank you for the input. By cash, I meant if it were in the bank - not physical notes as such - sorry for confusion !

Lets assume also, in this situation you have no debts / outgoings and your in your late 20's.

As suggested, proper financial advice is the way to also go. A property, as a longer term investment - perhaps even 2, using solid deposit(s) seems smart.

Any other input / advice is most welcome.

Edited by jenzo on Thursday 8th May 14:01

Edited by jenzo on Thursday 8th May 14:02

[tuscan66]

blindswelledrat said:

Why on earth do you have it in cash?
First things first - put it in the bank where it won't get stolen whilst you decide.

wont get solen ? from a bank if you say so !

[MYOB]

I would probably advise to spread the money in couple of different banks until you decide what to do with the money.

More info:

http://www.moneysavingexpert.com/savings/safe-savi...

[z4chris99]

property market is about to go bang, interest rates are rising.

id chuck it in a ftse tracker and be done with it.

[DSLiverpool]

I can only see the FTSE dropping, no reason for it to climb unless someone in the USA tells us to!
My split - small terrace to rent out for £60k tops (up north obviously), ISA max (tracker or whatever, maybe a dogs portfolio), and stick the rest in premium bonds until you know how UK PLC is panning out.

[jogon]

Tech and Housing bubble will burst soon and will no doubt have an effect on the gold price which is currently quite low.

So buy some gold!

[gibbon]

z4chris99 said:

property market is about to go bang, interest rates are rising.

id chuck it in a ftse tracker and be done with it.

Why are interest rates rising?

[Mr Trophy]

jenzo,

If I were you and you have no burning issue to use the money currently, I would maximize your ISA allowance for the current tax year £11,880 (goes up to £15K come 1st of July) then invest the rest into a unit trust.

[jenzo]

Hi Mr Thropy

Ok, this is something I would be considering.
With the left over - put a deposit on a house ?

[Mr Trophy]

jenzo said:

Hi Mr Thropy

Ok, this is something I would be considering.
With the left over - put a deposit on a house ?

Easily done.

What is the rough value of the property you're looking to buy?

Do you currently have a mortgage at the moment?

[z4chris99]

gibbon said:

z4chris99 said:

property market is about to go bang, interest rates are rising.

id chuck it in a ftse tracker and be done with it.

Why are interest rates rising?

because they are at a historical low and are only there so everyone thinks the world is cosy and votes tory at the election.

they WILL go up in the next 12-18 months, and we WILL see 3-4% very soon.

[gibbon]

z4chris99 said:

because they are at a historical low and are only there so everyone thinks the world is cosy and votes tory at the election.

they WILL go up in the next 12-18 months, and we WILL see 3-4% very soon.

Quantify very soon, and how much would you like to bet?

[z4chris99]

I'd say within the next 3-5 years.

I'd say the asset bubble will burst within 4 years

[jeff m2]

With Sterling at a high...
Global balanced fund, projected gain should be around 11%pa
You could probably squeeze another couple of percent from pure equity.

Global Real Estate, already doing well ytd

Emerging Markets, making a comeback, so they say average P/E is around 10 - some better values to be found. A lesser proportion obviously.

A bit of FTSE just because it's your home team.

[birdcage]

Porsche 997.2 GT3 RS

[jonny70]

gibbon said:

Quantify very soon, and how much would you like to bet?

the markets are already factoring a rate rise(gilt yields have been rising) , some say sooner than expected. Yellen in the US has said they will be going up soonish.

Yes there is a political factor at play here where a mini housing boom is being engineered by the gov so most likely they wont rise much before the next may.

However your being completely naive if you think the economy will keep on growing and getting stronger and the gov will just keep i/r where they are ,fundamentally this doesnt work it will just overinflated asset prices and when the economy overheats and i/r eventually have to rise so it will cause a crash.So theres also the risk of leaving i/r low for too long will cause a lot bigger problems .