Talk to me about investment possibilities
Discussion
I'm turning 21 next March and to be earning between 21-23k a year. I am putting away money into a seemingly stable pension scheme. Job seems to be secure for a good number of years yet. I live at home, it's a nice place and it's all here and comfortable. Liking the single life.
What is a good way to spend/invest the money? Many folks say - buy a property, but I don't need a place to live. Buy to rent...now that seems reasonable. But I don't like the idea of interest rates going through the roof a year after I commit myself. Or do I save 13k and buy TVR Cerbera?
Talk to me before I squander it all...
What is a good way to spend/invest the money? Many folks say - buy a property, but I don't need a place to live. Buy to rent...now that seems reasonable. But I don't like the idea of interest rates going through the roof a year after I commit myself. Or do I save 13k and buy TVR Cerbera?
Talk to me before I squander it all...
Squander means waste.
You cannot squander such a small amount of money. You can only spend it.
Im not being flippant.
You are young and at home and thus have a modest amount of disposable income as a result.
Although I suspect it is hugely against your careful nature- enjoy it while you can FFS.
If you buy a Cerbera for 13k in 3 years it will probably be worth 13k.
You wont be able to afford one on that kind of money once you move out so do it now and you will still have the capital when you need it.
You cannot squander such a small amount of money. You can only spend it.
Im not being flippant.
You are young and at home and thus have a modest amount of disposable income as a result.
Although I suspect it is hugely against your careful nature- enjoy it while you can FFS.
If you buy a Cerbera for 13k in 3 years it will probably be worth 13k.
You wont be able to afford one on that kind of money once you move out so do it now and you will still have the capital when you need it.
Since you're young, you could go highly risky and try the stockmarket. On the upside, you've got a lifetime to earn it back. On the downside, you'll think you it's piss easy, that you know everything you need to know and won't be able to admit when you're wrong. Sweeping generalisation but 90% likely to be correct.
AS an IFA and a serial TVR custodian ( 5 over the last 12 years inc. most recently a Cerbera) I'll ad my tuppenneth...
I'm all for doing now what you will struggle /won't do as you get older and more sensible with bigger responsibilities, however, the £13k cost of a Cerb needs to be in addition to the £2-3k pa av. running costs + your insurance may be a killer.
Also a Cerb is so fast that unless you spend a massive amount more on the next car you may well be disappointed in future choices ie depending on your car history why not progress to a Cerb after a few 'stepping stone' cars on the way (in terms of cost/performance and insurance).
On the other hand you may die tomorrow - so just do it!
HTH.
I'm all for doing now what you will struggle /won't do as you get older and more sensible with bigger responsibilities, however, the £13k cost of a Cerb needs to be in addition to the £2-3k pa av. running costs + your insurance may be a killer.
Also a Cerb is so fast that unless you spend a massive amount more on the next car you may well be disappointed in future choices ie depending on your car history why not progress to a Cerb after a few 'stepping stone' cars on the way (in terms of cost/performance and insurance).
On the other hand you may die tomorrow - so just do it!
HTH.
Start saving now to buy your own place.
You may not think you need it now - but by the time you're 24/25 you may find yourself desperately needing and wanting to get out of your parent's place.
In fact, at 21, I couldn't have imagined living with my parents, as I moved out at 18.
I know it's not a very PH way of thinking - but flash cars should come lower on your list of things to spend money on than bricks and mortar.
IMHO, the younger you are when you buy a house, the better - it may hurt financially now - but in 10 years time, your mortgage will be a significantly smaller proportion of your income than it is today, leaving you the money to do what you want with cars.
Also, remember that every year you waste whilst you're young is another year of mortgage payments when you're older and more likely to be in a position to spend that money.
It's a hugely liberating experience, making that final mortgage payment - you want to do that at as young an age as possible.
You may not think you need it now - but by the time you're 24/25 you may find yourself desperately needing and wanting to get out of your parent's place.
In fact, at 21, I couldn't have imagined living with my parents, as I moved out at 18.
I know it's not a very PH way of thinking - but flash cars should come lower on your list of things to spend money on than bricks and mortar.
IMHO, the younger you are when you buy a house, the better - it may hurt financially now - but in 10 years time, your mortgage will be a significantly smaller proportion of your income than it is today, leaving you the money to do what you want with cars.
Also, remember that every year you waste whilst you're young is another year of mortgage payments when you're older and more likely to be in a position to spend that money.
It's a hugely liberating experience, making that final mortgage payment - you want to do that at as young an age as possible.
Edited by Alfa_75_Steve on Sunday 26th July 16:46
My folks have got additional 'buildings', one is currently the 'garage' and will be a 3 bedroom house, and two holiday cottages attached to the main house. My old man says he'd sell me one of these if I want to have more space. Maybe I could go through life and not worry about a mortgage at all!
I don't want to live anywhere else at the moment, it's a nice place and it's quiet, yet not too far away from town. I'm talking about investment and not somewhere to live, BTL sort of thing. Can anybody enlighten me on the general sort of thing with that? I thought of paying the mortgage of 600-700 a month and the rent nearly breaking even sounds like I could afford a nice car on top of a buying a house. Then in 10-15 years time, I'd have payed off the mortgage and have a constant income.
I just need more info really.
I don't want to live anywhere else at the moment, it's a nice place and it's quiet, yet not too far away from town. I'm talking about investment and not somewhere to live, BTL sort of thing. Can anybody enlighten me on the general sort of thing with that? I thought of paying the mortgage of 600-700 a month and the rent nearly breaking even sounds like I could afford a nice car on top of a buying a house. Then in 10-15 years time, I'd have payed off the mortgage and have a constant income.
I just need more info really.
Couple of points for you.
1. Your level of income is going to restrict the number of lenders who will lend to you on a BTL basis. SOme reuire a minimum income, and your incomes doesn't meet it.
2. Your FTB status will rule you out of a lot of BTL schemes, Lenders beleive that someone without their own property will be buying a property that they couldnt afford on a residential mortgage, and then instead of letting it, living in it.
Sorry to piss on your chips.
1. Your level of income is going to restrict the number of lenders who will lend to you on a BTL basis. SOme reuire a minimum income, and your incomes doesn't meet it.
2. Your FTB status will rule you out of a lot of BTL schemes, Lenders beleive that someone without their own property will be buying a property that they couldnt afford on a residential mortgage, and then instead of letting it, living in it.
Sorry to piss on your chips.
£21k pa and you want a TVR?????? I'm surprised you can eat on that, let alone think about running a sports car.
Trust me...you'll be far happier driving a car at 40 years of age that isnt a bag of bolts that sucks your wallet dry each month than getting a TVR now.
Also - how do you pull in a TVR when you live at home..."hey, fancy in drive in my flash motor? let me just call mum and tell her i'll be in after dark"
Trust me...you'll be far happier driving a car at 40 years of age that isnt a bag of bolts that sucks your wallet dry each month than getting a TVR now.
Also - how do you pull in a TVR when you live at home..."hey, fancy in drive in my flash motor? let me just call mum and tell her i'll be in after dark"
scotal said:
Couple of points for you.
1. Your level of income is going to restrict the number of lenders who will lend to you on a BTL basis. SOme reuire a minimum income, and your incomes doesn't meet it.
2. Your FTB status will rule you out of a lot of BTL schemes, Lenders beleive that someone without their own property will be buying a property that they couldnt afford on a residential mortgage, and then instead of letting it, living in it.
Sorry to piss on your chips.
That could pose a problem. However I am open to suggestions. Property can't be the only way to invest money with 'small' risk?1. Your level of income is going to restrict the number of lenders who will lend to you on a BTL basis. SOme reuire a minimum income, and your incomes doesn't meet it.
2. Your FTB status will rule you out of a lot of BTL schemes, Lenders beleive that someone without their own property will be buying a property that they couldnt afford on a residential mortgage, and then instead of letting it, living in it.
Sorry to piss on your chips.
Tiggsy said:
£21k pa and you want a TVR?????? I'm surprised you can eat on that, let alone think about running a sports car.
Trust me...you'll be far happier driving a car at 40 years of age that isnt a bag of bolts that sucks your wallet dry each month than getting a TVR now.
Also - how do you pull in a TVR when you live at home..."hey, fancy in drive in my flash motor? let me just call mum and tell her i'll be in after dark"
I'm on 16k PA at the moment and find it adequate. I know what TVRs are all about and the problems they can pose. I'm asking about investment possibilities, not the choice of car or my lifestyle. Trust me...you'll be far happier driving a car at 40 years of age that isnt a bag of bolts that sucks your wallet dry each month than getting a TVR now.
Also - how do you pull in a TVR when you live at home..."hey, fancy in drive in my flash motor? let me just call mum and tell her i'll be in after dark"
Plus women can wait and cost far more to run than a sports car
ALright, how much risk do you want to take?
If the answer is zero then there are few worthwhile investments. You would be just as well spreading your money randomly across a load of FTSE100 shares and hoping the economy picking up enhances your shares (which it probably will).
If you don't mind taking a bit of a risk, and are prepared to look at a long term view then you could do far worse than buying shares in the 'bad' banks like RBS and Lloyds.
My opinion (and it is purely an opinion and quite possibly wrong) is that the latter over a 2-3 year period is going to do fantastically well and be worth several times its current price.
However- bad things are likely to happen between now and then so it will be a rather uncomfortable investment.
I would buy the car. Genuinely.
If the answer is zero then there are few worthwhile investments. You would be just as well spreading your money randomly across a load of FTSE100 shares and hoping the economy picking up enhances your shares (which it probably will).
If you don't mind taking a bit of a risk, and are prepared to look at a long term view then you could do far worse than buying shares in the 'bad' banks like RBS and Lloyds.
My opinion (and it is purely an opinion and quite possibly wrong) is that the latter over a 2-3 year period is going to do fantastically well and be worth several times its current price.
However- bad things are likely to happen between now and then so it will be a rather uncomfortable investment.
I would buy the car. Genuinely.
How much risk? Not a great deal of risk because as the money is indeed spare, it could be used for other things obviously. Like you said, I'd rather spend 13k on a car than the shares I buy increase very little over a year or so.
I've recently heard that the company I work for may be running low on work come 2012. I can always find work as I am by trade a plumber and could even go self employed.
Maybe I could just try out a few shares. Maybe just try 1k for now into a good bank (I'm with Barclay's so naturally I could always buy some of their shares...)
I'm leaning towards just buying a damn car
ShadownINja said:
The Lukas said:
Maybe I could just try out a few shares. Maybe just try 1k for now into a good bank (I'm with Barclay's so naturally I could always buy some of their shares...)
Snag is, if Barclays are in trouble, you're doubly f
ked.ked? Unless he has more than £50k on deposit with them?not the most exciting possibility in the world, but why not just save your money in a good old fashioned savings account?
yes this coming from a hardcore stock market gambler
if you must "invest" then there are so many possible options. unless youv got a decent chunk where a 10% rise in share price would give you a worthwhile return then in my opinion youd be better steering clear of the big "safe" blue chips, theres not much reward but still a ton of risk
yes this coming from a hardcore stock market gambler
if you must "invest" then there are so many possible options. unless youv got a decent chunk where a 10% rise in share price would give you a worthwhile return then in my opinion youd be better steering clear of the big "safe" blue chips, theres not much reward but still a ton of risk
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