How to invest 50k other than buy property?
Discussion
Hello all,
I very rarely venture in this part of PH but wondered if anyone fancied sharing what they would do with 50k other than buy property.
My wife and I had saved to buy but due to unforeseen oversight we were declined by the banks and told to return in 5 years (long story short)
We have 0 debts and are renting. We live well within our means and can very comfortably save 1-2k per month going forward but we do have a lump sum resting in the savings account not doing anything.
We are cautious people so have no interest in a great deal of risk and the objective would be to as securely as possible, add to the capital in preparation of a future house purchase.
Ideas welcome and thanks in advance.
I very rarely venture in this part of PH but wondered if anyone fancied sharing what they would do with 50k other than buy property.
My wife and I had saved to buy but due to unforeseen oversight we were declined by the banks and told to return in 5 years (long story short)
We have 0 debts and are renting. We live well within our means and can very comfortably save 1-2k per month going forward but we do have a lump sum resting in the savings account not doing anything.
We are cautious people so have no interest in a great deal of risk and the objective would be to as securely as possible, add to the capital in preparation of a future house purchase.
Ideas welcome and thanks in advance.
I would invest in a variety of funds using your ISA allowances. Some funds have returned 100% over the course of a few years. I've just started investing via SIPP and ISA and my funds are up about 10% in about 3 months.
Looking back at how those funds performed over the a past few years, I wish I'd started much earlier.
Looking back at how those funds performed over the a past few years, I wish I'd started much earlier.
FlatToTheMat said:
We are cautious people so have no interest in a great deal of risk and the objective would be to as securely as possible, add to the capital in preparation of a future house purchase.
Ideas welcome and thanks in advance.
What do you view as a great deal of risk ? If you want zero risk then it has to be premium bonds or a savings account. Another option with more risk would be to dribble it into some sort of market tracker every month e.g. Buy £1,500 a month of a FTSE or S&P tracker. Still risk but monthly payments smooth out the bumps of just dumping £50k in on day one. Ideas welcome and thanks in advance.
And then cash out at the end when you want the money.
bogie said:
Depends on circumstances, I would just put it in my pension as then I can get 40% tax relief on it, stick it in a low cost Vanguard fund and forget about it for 10-20 years.
I think OP states the money will be needed as deposit for first house purchase, in maybe 5 years time.
Having begun with a tiny stake in equities 30 years ago, and now ..... , I would usually recommend doing the same.
However, not in the case of the OPs circumstances, because it breaks one of my golden investment rules.
IE. If a portfolio needs to be liquidated to use the money for a transaction such as house purchase, there is always a chance that a stock market decline occurs at just the wrong time. Equity investment works best when there is absolutely no reason ever to sell.
Thanks all for your time, didn't expect such a response.
Lots to look at with regards to bonds and ISAs it seems. Skim reading over a few pages on google so far and it seems straight forward enough, if not as 'available' to us here in Ireland.
The air cooled 911 ship has sailed I fear and besides, inner city street parking and an appreciating classic can't mix well!
Lots to look at with regards to bonds and ISAs it seems. Skim reading over a few pages on google so far and it seems straight forward enough, if not as 'available' to us here in Ireland.
The air cooled 911 ship has sailed I fear and besides, inner city street parking and an appreciating classic can't mix well!
Jon39 said:
I think OP states the money will be needed as deposit for first house purchase, in maybe 5 years time.
Having begun with a tiny stake in equities 30 years ago, and now ..... , I would usually recommend doing the same.
However, not in the case of the OPs circumstances, because it breaks one of my golden investment rules.
IE. If a portfolio needs to be liquidated to use the money for a transaction such as house purchase, there is always a chance that a stock market decline occurs at just the wrong time. Equity investment works best when there is absolutely no reason ever to sell.
BoRED S2upid said:
Jon39 said:
I think OP states the money will be needed as deposit for first house purchase, in maybe 5 years time.
Having begun with a tiny stake in equities 30 years ago, and now ..... , I would usually recommend doing the same.
However, not in the case of the OPs circumstances, because it breaks one of my golden investment rules.
IE. If a portfolio needs to be liquidated to use the money for a transaction such as house purchase, there is always a chance that a stock market decline occurs at just the wrong time. Equity investment works best when there is absolutely no reason ever to sell.
Sadly, I don't have much luck and I have won so much as an argument in years so wouldn't hold my breath for €25!
Croutons said:
98elise said:
my funds are up about 10% in about 3 months.
Out of interest, have you told us all what they are on any thread? The main fund is lindsell train global equity. It's growth in the past year has been 37% and I've got over 10% since I invested.
http://www.hl.co.uk/funds/fund-discounts,-prices--...
There are other funds with similar growth. Just look through the HL wealth 150 and you can find others will similar levels of growth (some more).
I started a thread on here about a month ago about diversifying and the consensus was that I should which I'm now doing. Lindsell Train is still over 50% of my portfolio, but I've not finished yet.
98elise said:
It sounds like you think I keep posting it but don't have any evidence?
No, no, not at all! I'm not on here often enough to keep up with things and am genuinely interested as I'm moving a crap pension to a SIPP so am nosing at other people's fund choices!ETA, the change of mobile "skin" enforced on this site has killed much of my interest as it's much more time consuming to navigate, such a school boy error from the owners...
Edited by Croutons on Sunday 11th June 09:09
Bikesalot said:
Without knowing all the circumstances, have you tried all the banks to get a mortgage, have you tried using a broker and talking your circumstances through with them?
Depending on the size of property you want to buy that's a fairly chunky deposit.
Thanks for your reply. We went through a broker who tried all the banks with a letter of explanation etcDepending on the size of property you want to buy that's a fairly chunky deposit.
It was due to an unpaid and forgotten credit card that I had €600 on but was ultimately forgotten about for 2 years (we had emigrated)
50k was a 20% deposit, we are both on decent salarys too, my wife especially. We have been told to try again in 3-5 years. According to the broker we used, Irish banks are far more cautious than uk banks after the Celtic Tiger fiasco, and no one is willing to stick there heads above the parapet. Even with her father offering to stick a further 20k in a gaurentee type account attached to the mortgage for 2 years.
No one to blame but myself
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