70k to invest, buy to let?

[Pesty]

Hmmm that’s what I was worried about

[audidoody]

Just edited for you!

[Pesty]

fk it those Jl wranglers look nice never bought a new car

Think I’ll look into those isa things


Had a little peak of that in the place abroad. Breaking things fking up pool filter £800quid.

One woman angry that taxi fares were high from airport because she forgot her suitcase and had to go back made three trips so blocked all toilets and left all air cons on all week.

Erm
How much is coke and hookers these days?

Edited by Pesty on Saturday 16th June 21:28

[anonymous-user]

Pesty said:

Think I’ll look into those isa things

Good decision.

[croyde]

ISAs are where I put my money. One in particular has risen 34% in 3 years, another 20% but the third one has lost 27% in the same period. Luckily I didn't put much into that.

I have another that I took out as a lad. Maybe 20 years ago. It's tripled in that time but at one point, about 5 years in it was worth less than I put in.

It started as a PEP before anyone points it out

[joyless lobotomised parrot]

Phooey said:

Property is cheap in Doncaster. Where you buy doesn't have to be local but maybe have a look at commercial. Something like this (previously let at 13k pa) - http://www.rightmove.co.uk/commercial-property-for...

Looks really good. No wonder it sold. It turned into a champagne bar called 'Angels'.

Edited by joyless lobotomised parrot on Saturday 16th June 23:46

[croyde]

Pesty said:

I’m wondering that

I was looking at this. Just down the road

http://www.rightmove.co.uk/property-for-sale/prope...

I can stretch to 80 cash just wanted to have a little buffer in the bank for toys and issues

F me!! £80k for a house. I know it's oop North but what else is wrong with it

I doubt that'd buy me a parking space round here. The tiny 1.5 bed flat I'm renting is about £600k to buy in a not brilliant area of SW London.

[springfan62]

Stock and Shares ISA's are the way to go.

You can invest £20k per annum and its all tax free.

Invest in the index trackers as they have very low cost structures.
In particular the Vanguard Life Strategy Funds where you can decide on risk and choose from 100% to 20% equities and the rest is in bonds.
Legal and General also do the Global 100 Index tracker.


Just be wary of managed funds promising to beat the index as 82% of funds fail to do so but still charge 10 times as much as a tracker.

Stocks and Shares ISA's are easily liquidated if you need the cash but are not for short term investment, you have to be a long term investor to minimise risk.

I have been doing BTL professionally for 15 years now and I am selling mine and putting most of it in to equities over time.
BTL is starting to be taxed and regulated to death.

[bitchstewie]

Agree with springfan62, definitely don't see it as a short term thing as it isn't but then neither should buying property be.

ISA's are great plus you can opt to put in a lump or drip feed depending on finances and circumstances.

Same if you need to quickly take some out, you may take a financial hit if the pot is down at the time but you still have the option of "just" getting at £10k quickly.

The thing I can't stress enough is that this is your future - a few hours/days now can reap thousands in the the future if you get it right.

Most people spend more time reading up on their next car than they do their next investment but of those two, one will pretty much always go down in value whilst done right one should go up, so which deserves the most time?

[DonkeyApple]

Pesty said:

After selling a few assets I’ve ended up with around 70k

I know nothing of finance or investments or shares.

I’m not a risk taker just doesn’t sit well with me. I don’t undertsand or would dare buy shares.

If I leave it just sitting in the bank I know enough to realise inflation with deminish it over the years

So that leaves me buying somewhere and renting it.

It’s all I can think of, money has never been one of my motivations I’m thinking get a return and if I need money in future I can sell and probably not lose anything.

Pitfalls, is going into something like that going to be a huge headache for a novice?

I think some people have made some good observations regarding property in this thread. We had ten years of people being convinced it was a zero hassle, free money mega bonanza but the reality is that if you’re not completely of the mindeaet then it’s another job, another responsibility, another risk, another load of crap to just be a general pain in the arse.

The key is also to look at your age, tax rate, income and current pension provisions. The reason being that if you are thinking of investing in a basic ISA, dripping your allowance in each month over the next few years then it’s always worth looking at doing exactly the same within a SIPP so that you can claim back your income tax at the same time. You may even be in the situation that you can claim back all of your income tax over the coming years which is quite a performance boost that no other form of investment can ever hope to match.

[red_slr]

The affordable housing segment is going to be the place to invest for property over the next 10 years IMHO.
2 bed terrace.

Rents are going up quick round here. I was charging £900 for my 3 bed semi 2 years ago, its just gone for £1200 now.

I am making about 6% ROI. There are ups and downs for sure though.

[Sticks.]

croyde said:

ISAs are where I put my money. One in particular has risen 34% in 3 years, another 20% but the third one has lost 27% in the same period. Luckily I didn't put much into that.

I have another that I took out as a lad. Maybe 20 years ago. It's tripled in that time but at one point, about 5 years in it was worth less than I put in.

It started as a PEP before anyone points it out

Take note. Everyone will say ISAs are the dogs' but I've had 2. First one lost @ 1/3, reluctantly persuaded to take out another some time later, £10k. Eighteen months later, made £50.

[bitchstewie]

Pedantic point but maybe worth mentioning if the OP isn't into ISA's and shares, ISA's are just the wrapper to make things tax free, what you put in them is what makes or loses money

i.e. a bad investment will lose money regardless of whether it's in a wrapper and a good investment will make money regardless of whether it's in an ISA.

[DonkeyApple]

Sticks. said:

croyde said:

ISAs are where I put my money. One in particular has risen 34% in 3 years, another 20% but the third one has lost 27% in the same period. Luckily I didn't put much into that.

I have another that I took out as a lad. Maybe 20 years ago. It's tripled in that time but at one point, about 5 years in it was worth less than I put in.

It started as a PEP before anyone points it out

Take note. Everyone will say ISAs are the dogs' but I've had 2. First one lost @ 1/3, reluctantly persuaded to take out another some time later, £10k. Eighteen months later, made £50.

The ISA itself doesn’t gain or lose anything. It is merely the vessel, or in correct parlance the wrapper.

It’s the assets that you personally chose to place in it that are what makes or loses the returns.

The issue is that there are a huge number of st fund managers as it is an industry that financially rewards mediocrity. Personally, I would only look to use funds for esoteric markets and for main markets I stick to index ETFs on the grounds that few fund managers consistently outperform the true index and the odds of finding them and then predicting when to change as they burn out or their luck runs out are simply far too long to be messing about with.

It also sounds as if you have an advisor sitting in the middle? But if not then you have to ask why you chose the funds that you did? What was your reasoning etc?

[springfan62]

Sticks. said:

Take note. Everyone will say ISAs are the dogs' but I've had 2. First one lost @ 1/3, reluctantly persuaded to take out another some time later, £10k. Eighteen months later, made £50.

There are winners and losers.

Often the losers are the ones who see a loss and then sell rather than seeing out the long term cycle.
The other important decision is not selecting funds based on historical returns but based on future prospects.
The Vanguard Life Strategy 100 grew by 9% in the last 12months and 33% the 12 months prior but only 1% the previous 12 months.
Thats a 40% growth over 3 years after costs. So historically not bad and in the future will continue to track the markets.

Thats why I buy trackers because they track the market be that UK, Global, US or others.

Therefore over time they will always grow but perhaps not be the market leaders in returns.
Its risk v reward.

I aim for long term steady growth and low management costs.

[Sticks.]

DonkeyApple said:

The issue is that there are a huge number of st fund managers as it is an industry that financially rewards mediocrity. Personally, I would only look to use funds for esoteric markets and for main markets I stick to index ETFs on the grounds that few fund managers consistently outperform the true index and the odds of finding them and then predicting when to change as they burn out or their luck runs out are simply far too long to be messing about with.

It also sounds as if you have an advisor sitting in the middle? But if not then you have to ask why you chose the funds that you did? What was your reasoning etc?

Yes, as advised. Looking for a new adviser, funnily enough (not just because of that). Thanks for the 1st point, useful (as are other posterts here tvm)

[dogz]

BTL is where I put my money. Yes it can be hard work, you can get st tenants and you can get voids or unexpected bills but overall, for me it’s served me well and forms the bulk of my retirement planning

If you end up buying a BTL, just go in with your eyes wide open. It will cost you a tidy sum to buy - survey fees, mortgage fees, 3% stamp duty, solicitor fees etc. Every property I’ve bought, even if it looks tidy, will need money spending on it often new boiler, redecoration, getting issues with PVCU stuff sorted, sorting gardens which look like jungles etc. You will need money to sort this as well as a bit of a buffer in case it doesn’t let quickly.

I’ve tried investing in self select stocks and I wasn’t very good at it so I also invest in tracker ETFs. I tend to go for UK, US and emerging market types ETFs

Good luck on what ever direction you choose

[Pesty]

Thanks guys

Some good reading there even if I don’t understand a lot of it.

I’m one of the most impulsive and quick at making decisions people you could ever meet except when it comes to money I need a gun to my head. It’s strange I can see me researching this and then being scared to do anything.

I like the sound of these isa where you can adjust the risk

[Turn7]

All this assumes you have zero debts Pesty ?

If not, then if it was me, Id be looking to get debt free first.....

[Badda]

If you’re as indecisive regarding money as you say, you might find yourself selling stocks/funds as and when they drop ( and they will at some point) which is most often a bad thing to do! The advantage of property is that you can’t just click a mouse and sell so you do ride out the troughs along the way without fiddling around!

Saying that, I’d say property isn’t for you and you’d be far better off using a SIPP, ISA and fund account to invest in some cautious funds.