Does anything out there pay about 10% interest/year?
Discussion
Leicesterdave said:
Seems a scary world out there with regards to investing.... I'm not wanting to be greedy as such but obviously would like I nice enough return!
Think about diversification and tranche your investments across different risk levels. Putting a small amount in EIS schemes could be appropriate.Leicesterdave said:
Seems a scary world out there with regards to investing.... I'm not wanting to be greedy as such but obviously would like I nice enough return!
Buy twenty of these via Leicesterdave Ltdhttp://www.rightmove.co.uk/property-for-sale/prope...
...in any provincial town of your choice. Find a good letting agent.
£6k a month maybe £5k nett income taking out £12kpa salary and the rest as dividend.
Then 10 more by drawing down 50% of the val from Shawbrook or Aldermore. Rent easily covers the 10 yr fixed repayment loan and some left over for spending.
Then.....well, you get the idea I'm sure....part two of the strategy can wait till you've accumulated 50? 75?
ps: if you think they're illiquid just watch how long that one lasts on Rightmove and/or how long it takes you to suck out some liquidity via Shawbrook.
pps: if owning a large portfolio makes you worry about diversification ask yourself "How worried is the Duke of Westminster"?
ppps: Oh and don't worry about being greedy. There's a bloke who's been doing this in Deutschland. Last I heard (some years ago) he had 40 THOUSAND units!
Edited by joyless lobotomised parrot on Sunday 1st April 12:42
joyless lobotomised parrot said:
Buy twenty of these via Leicesterdave Ltd
http://www.rightmove.co.uk/property-for-sale/prope...
...in any provincial town of your choice. Find a good letting agent.
£6k a month maybe £5k nett income taking out £12kpa salary and the rest as dividend.
Then 10 more by drawing down 50% of the val from Shawbrook or Aldermore. Rent easily covers the 10 yr fixed repayment loan and some left over for spending.
Then.....well, you get the idea I'm sure....part two of the strategy can wait till you've accumulated 50? 75?
ps: if you think they're illiquid just watch how long that one lasts on Rightmove and/or how long it takes you to suck out some liquidity via Shawbrook.
pps: if owning a large portfolio makes you worry about diversification ask yourself "How worried is the Duke of Westminster"?
ppps: Oh and don't worry about being greedy. There's a bloke who's been doing this in Deutschland. Last I heard (some years ago) he had 40 THOUSAND units!
Some very clever people on here, clearly with a wealth of experience in investing money wisely. I'm an absolute beginner as can be seen- and I realise it will be quite a task to get investing wisely.... As I said I just hope I can meet a good financial adviser and be guided well. Would paying someone to manage your investments be a good idea? I'd say so...http://www.rightmove.co.uk/property-for-sale/prope...
...in any provincial town of your choice. Find a good letting agent.
£6k a month maybe £5k nett income taking out £12kpa salary and the rest as dividend.
Then 10 more by drawing down 50% of the val from Shawbrook or Aldermore. Rent easily covers the 10 yr fixed repayment loan and some left over for spending.
Then.....well, you get the idea I'm sure....part two of the strategy can wait till you've accumulated 50? 75?
ps: if you think they're illiquid just watch how long that one lasts on Rightmove and/or how long it takes you to suck out some liquidity via Shawbrook.
pps: if owning a large portfolio makes you worry about diversification ask yourself "How worried is the Duke of Westminster"?
ppps: Oh and don't worry about being greedy. There's a bloke who's been doing this in Deutschland. Last I heard (some years ago) he had 40 THOUSAND units!
Edited by joyless lobotomised parrot on Sunday 1st April 12:42
Leicesterdave said:
Some very clever people on here, clearly with a wealth of experience in investing money wisely. I'm an absolute beginner as can be seen- and I realise it will be quite a task to get investing wisely.... As I said I just hope I can meet a good financial adviser and be guided well. Would paying someone to manage your investments be a good idea? I'd say so...
Erm, you're not a beginner. You're already invested in property you make profit from. Just more of the same if you own more.The RIGHT manager isn't just a good idea it's a 100% essential necessity. When you're at over 100 units how else can you manage them? Even at 60-70 you'll be meeting yourself coming out the door as you're going in it. So you need the right manager who puts together the right team as soon as you're getting uncomfortably busy. Or else hire a management agency. Until you're across 150 units then start your own.
Anyway, who the f
k wants to work? Management all the way. As to meeting a "good financial adviser" ..... no comment other than to say 'experience' doesn't buy much at the shops.
Edited by joyless lobotomised parrot on Sunday 1st April 13:09
Leicesterdave said:
New one on me too! Could be a good gamble but would need to look at the costs they want to deduct for the staff to clean it, repair it, the electrical costs, laundering etc as I would imagine they will charge you well for this along with a management fee for finding the guests so you could end up with a very tiny margin.Leicesterdave said:
"Investing in a hotel room tends to be one of the lowest risk investments"
£410k. 10% (41k pa) is asking a lot without taking big risks and a lot of work and headaches. Stock markets are out as a bad year or two could see you losing much over 10% pa. I think I'd try and find a decent stand alone commercial property and let it on an FRI lease for 7% pa. I wouldn't be wanting anything where service charges are out of your control either.
Bit more long term and a bit boring but 410k buys a lot of yearly ISA max subscriptions.
The markets return on average 7%. However c.3% of that is eaten away by inflation. So somewhere around 4%, on average.
The only way, IMHO, to return anything like 10% over the long term is in a business. This comes with some risks though, plus costs can be high and taxes can also be unpredictable.
The only way, IMHO, to return anything like 10% over the long term is in a business. This comes with some risks though, plus costs can be high and taxes can also be unpredictable.
Phooey said:
"Investing in a hotel room tends to be one of the lowest risk investments"
£410k. 10% (41k pa) is asking a lot without taking big risks and a lot of work and headaches. Stock markets are out as a bad year or two could see you losing much over 10% pa. I think I'd try and find a decent stand alone commercial property and let it on an FRI lease for 7% pa. I wouldn't be wanting anything where service charges are out of your control either.
Bit more long term and a bit boring but 410k buys a lot of yearly ISA max subscriptions.
Too right.£410k. 10% (41k pa) is asking a lot without taking big risks and a lot of work and headaches. Stock markets are out as a bad year or two could see you losing much over 10% pa. I think I'd try and find a decent stand alone commercial property and let it on an FRI lease for 7% pa. I wouldn't be wanting anything where service charges are out of your control either.
Bit more long term and a bit boring but 410k buys a lot of yearly ISA max subscriptions.
See Guest Invest failure of c.2008
Steer clear.
Leicesterdave said:
I thought you wanted low risk?bhstewie said:
hstewie said:Leicesterdave said:
I do.... But you would say the above is high risk? Spreading money evenly does seem to be more of a medium to low risk?
Betting on red or black 5 times @ 20% of your pot doesn't make it lower risk than betting on red or black once @ 100% IMO.joyless lobotomised parrot said:
Leicesterdave said:
Seems a scary world out there with regards to investing.... I'm not wanting to be greedy as such but obviously would like I nice enough return!
Buy twenty of these via Leicesterdave Ltdhttp://www.rightmove.co.uk/property-for-sale/prope...
...in any provincial town of your choice. Find a good letting agent.
£6k a month maybe £5k nett income taking out £12kpa salary and the rest as dividend.
Then 10 more by drawing down 50% of the val from Shawbrook or Aldermore. Rent easily covers the 10 yr fixed repayment loan and some left over for spending.
Then.....well, you get the idea I'm sure....part two of the strategy can wait till you've accumulated 50? 75?
ps: if you think they're illiquid just watch how long that one lasts on Rightmove and/or how long it takes you to suck out some liquidity via Shawbrook.
pps: if owning a large portfolio makes you worry about diversification ask yourself "How worried is the Duke of Westminster"?
ppps: Oh and don't worry about being greedy. There's a bloke who's been doing this in Deutschland. Last I heard (some years ago) he had 40 THOUSAND units!
t figures. You are suggesting £6k per month from residential letting from £400k which equates to circa 18% gross margin. My experience on this topic is from my family who specialise in this niche.
Firstly you are talking subprime property, and there are a lot of issues/costs to take account of most agents won't deal with. Secondly, you have exaggerated the returns.
Not sure how big your property portfolio is but dangling juicy carrots which don't exist doesn't help the OP.
Just to add my thoughts to the OP's question.
Let's say a bank will lend money at circa 2-3% for a secured loan. That gives you a good indication of the starting point for a "risk free" return.
Returns above that will require value to be added, and invariably involve some degree of work and/or risk.
You don't give many other details as to your overall financial position, nor how much effort you are prepared to commit to put the money to work.
But if I had £400k free and available (and assuming you don't want to use it to start a business etc) I would take a three prong approach. Firstly, decide how much you need available in cash as a rainy day fund. Then I would review your pension to ensure they are maximised, even if it means using some of the £400k to support your day to day spending. After that I would use your annual ISA allowance to invest in something like a Vanguard tracker fund.
Over the course of a decade or two, this should give you a pretty good solution.
Let's say a bank will lend money at circa 2-3% for a secured loan. That gives you a good indication of the starting point for a "risk free" return.
Returns above that will require value to be added, and invariably involve some degree of work and/or risk.
You don't give many other details as to your overall financial position, nor how much effort you are prepared to commit to put the money to work.
But if I had £400k free and available (and assuming you don't want to use it to start a business etc) I would take a three prong approach. Firstly, decide how much you need available in cash as a rainy day fund. Then I would review your pension to ensure they are maximised, even if it means using some of the £400k to support your day to day spending. After that I would use your annual ISA allowance to invest in something like a Vanguard tracker fund.
Over the course of a decade or two, this should give you a pretty good solution.
Phooey said:
Leicesterdave said:
"Investing in a hotel room tends to be one of the lowest risk investments"Seriously OP, stay away from unregulated and unaccountable hotel room "investments". They are seriously bad news.
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