50 K Cash
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Discussion

355MC

Original Poster:

358 posts

258 months

Monday 12th September 2011
quotequote all
If you were 25 and had 50K cash to invest / have a combination of investment ideas over the next 3 - 5 years what would they be ? How would you use this cash to invet in the most wise way ?

Any input really appreciated...

pacman1

7,323 posts

210 months

Monday 12th September 2011
quotequote all
The CHF has recently been devalued, and one US bank is charging investors to look after their money for them, such is the value of reassurance these days.

So I would suggest either gold, property, or under your mattress! wink

Edited by pacman1 on Monday 12th September 13:42

RedSpike66

2,341 posts

229 months

Monday 12th September 2011
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You've got to get some Premium Bonds, say £10k worth You don't get interest per say, but you can have your capital back any time, and you might win one of the bigger prizes if ur lucky, £1m if you-know-who is looking after you, all winnings tax free !

nocarjames

2,971 posts

175 months

Monday 12th September 2011
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at 25 do you own a property? if not then use it as a deposit towards one.

johnfm

13,709 posts

267 months

Monday 12th September 2011
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Blue chip equities in stocks & shares ISA

355MC

Original Poster:

358 posts

258 months

Monday 12th September 2011
quotequote all
nocarjames said:
at 25 do you own a property? if not then use it as a deposit towards one.
Hi, no I do not have any property as yet and for me does appear to be one of the best long term investment options.

Would you agree? I am yet to do my relevant concise research into property however feel 50k is not enough for a property - I may well be very wrong and find that this is a fair amount for a deposit on something valued at say 230k.

355MC

Original Poster:

358 posts

258 months

Monday 12th September 2011
quotequote all
RedSpike66 said:
You've got to get some Premium Bonds, say £10k worth You don't get interest per say, but you can have your capital back any time, and you might win one of the bigger prizes if ur lucky, £1m if you-know-who is looking after you, all winnings tax free !
Thanks for your input here. Who would you recommend to use to buy premium bonds, this is something I will definitely look into aswell as property.

Luke.

11,461 posts

267 months

Monday 12th September 2011
quotequote all
355MC said:
Thanks for your input here. Who would you recommend to use to buy premium bonds, this is something I will definitely look into aswell as property.
With £10,000 worth, I've won £50 since last December. Not the most exciting investment.

nocarjames

2,971 posts

175 months

Monday 12th September 2011
quotequote all
355MC said:
Hi, no I do not have any property as yet and for me does appear to be one of the best long term investment options.

Would you agree? I am yet to do my relevant concise research into property however feel 50k is not enough for a property - I may well be very wrong and find that this is a fair amount for a deposit on something valued at say 230k.
depending on how much you earn I would say you might struggle to get a mortgage of £180k on your own. so you might have to lower your expectations or you could look at getting your folks to be guarantor and then renting out a spare bedroom to help with the mortgage





surfymark

895 posts

248 months

Monday 12th September 2011
quotequote all
nocarjames said:
355MC said:
Hi, no I do not have any property as yet and for me does appear to be one of the best long term investment options.

Would you agree? I am yet to do my relevant concise research into property however feel 50k is not enough for a property - I may well be very wrong and find that this is a fair amount for a deposit on something valued at say 230k.
depending on how much you earn I would say you might struggle to get a mortgage of £180k on your own. so you might have to lower your expectations or you could look at getting your folks to be guarantor and then renting out a spare bedroom to help with the mortgage
I would agree with this but why not look at what you can get BTL for £100 or £120. In fact you could go up to £200k really and just get someone else to live in it paying your mortgage for a few years until you are ready to get on the property market yourself.

That way, if the whole property market climbs by 10% in that time, you not only have a £220k property already, but you also have £70k in equity. Plus if it was a repayment loan, you may have more than this. At 5%, a repayment loan (which should be covered by the rental) will pay off £225 a month roughly. If you waited for three years that is about another £8k!

10% is fairly conservative in my view over 3 years so you could turn that £50k into nearly £80k or more. Of course, there may be issues with becoming a landlord but I have known people younger than you to make much much more than this on property.

HTH
M

BoRED S2upid

20,763 posts

257 months

Tuesday 13th September 2011
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At 25 with £50k id be driving a 911. Which I would regret by the time im 30 and would be thinking I should have used it as a 25% deposit on a house.

98elise

30,171 posts

178 months

Tuesday 13th September 2011
quotequote all
355MC said:
nocarjames said:
at 25 do you own a property? if not then use it as a deposit towards one.
Hi, no I do not have any property as yet and for me does appear to be one of the best long term investment options.

Would you agree? I am yet to do my relevant concise research into property however feel 50k is not enough for a property - I may well be very wrong and find that this is a fair amount for a deposit on something valued at say 230k.
Making decent money short term on property is a non starter. To make money on property you need to be looking 8 to 10 years at the very least. In the short term we could still see falls in the price of property, the only thing thats keeping prices up at the moment is low interest rates.

I own a couple of BTL's, but they were bought in the past few years as pension investments so I'm not interested in the short term. I'm only interested in them being paid off in a set time, and then generating a cash income. Its my kids who will be interested in the capital value smile

If you are interested then 50k should be fine. I'm in the process of buying my 3rd BTL, a 2 bed EOT with off street parking and a garage, within a 1 hour commute of London. It was £107k (27k deposit 80k mortgage), the mortgage cost is £320 pcm and It will rent out at £625 - £650 pcm easily, in fact we have a tenant who wants first refusal once we complete. I'll be managing it myself so no agency costs.

355MC

Original Poster:

358 posts

258 months

Tuesday 13th September 2011
quotequote all
98elise said:
Making decent money short term on property is a non starter. To make money on property you need to be looking 8 to 10 years at the very least. In the short term we could still see falls in the price of property, the only thing thats keeping prices up at the moment is low interest rates.

I own a couple of BTL's, but they were bought in the past few years as pension investments so I'm not interested in the short term. I'm only interested in them being paid off in a set time, and then generating a cash income. Its my kids who will be interested in the capital value smile

If you are interested then 50k should be fine. I'm in the process of buying my 3rd BTL, a 2 bed EOT with off street parking and a garage, within a 1 hour commute of London. It was £107k (27k deposit 80k mortgage), the mortgage cost is £320 pcm and It will rent out at £625 - £650 pcm easily, in fact we have a tenant who wants first refusal once we complete. I'll be managing it myself so no agency costs.
This is very informative - thank you. Agree with you totally on all your points - this is very absorbing to read. I would definitely be looking at a far longer term investment if I go down the property route (which is prob best for the 50K - and I may not necessarily need to use all of it) - 10 years minimum is exactly what I will be looking at in terms of the investment time - this is fine in terms of duration.

355MC

Original Poster:

358 posts

258 months

Tuesday 13th September 2011
quotequote all
BoRED S2upid said:
At 25 with £50k id be driving a 911. Which I would regret by the time im 30 and would be thinking I should have used it as a 25% deposit on a house.
I guess alot of 25 year olds with 50K would want a 911 but thats def not what I want to do. Not at all interested in cars. I ve driven more Ferraris since the age of 18 then I've had hot dinners ! Doesnt interest me...

355MC

Original Poster:

358 posts

258 months

Tuesday 13th September 2011
quotequote all
98elise said:
Making decent money short term on property is a non starter. To make money on property you need to be looking 8 to 10 years at the very least. In the short term we could still see falls in the price of property, the only thing thats keeping prices up at the moment is low interest rates.

I own a couple of BTL's, but they were bought in the past few years as pension investments so I'm not interested in the short term. I'm only interested in them being paid off in a set time, and then generating a cash income. Its my kids who will be interested in the capital value smile

If you are interested then 50k should be fine. I'm in the process of buying my 3rd BTL, a 2 bed EOT with off street parking and a garage, within a 1 hour commute of London. It was £107k (27k deposit 80k mortgage), the mortgage cost is £320 pcm and It will rent out at £625 - £650 pcm easily, in fact we have a tenant who wants first refusal once we complete. I'll be managing it myself so no agency costs.
Following on from your comments, I think the first thing I need to do is read properly around this area (can recommend any websites or books that influenced you?), do all the relevant research I need to to become fully aware of whats involved, talk to relevant people to get more advice and their experiences and then drive it to make it happen : )

okgo

40,679 posts

215 months

Tuesday 13th September 2011
quotequote all
355MC said:
I guess alot of 25 year olds with 50K would want a 911 but thats def not what I want to do. Not at all interested in cars. I ve driven more Ferraris since the age of 18 then I've had hot dinners ! Doesnt interest me...
on the right site then!!!

£50k deposit assuming your salary is similar (per year) I would think £250k would be perfectly do-able.


355MC

Original Poster:

358 posts

258 months

Tuesday 13th September 2011
quotequote all
okgo said:
on the right site then!!!

£50k deposit assuming your salary is similar (per year) I would think £250k would be perfectly do-able.
I def want to go down the property route. Just need more confidence and knowledge to know that I can do it...

okgo

40,679 posts

215 months

Tuesday 13th September 2011
quotequote all
Speak to Scotal on here, he told me how much I could borrow etc.

355MC

Original Poster:

358 posts

258 months

Tuesday 13th September 2011
quotequote all
okgo said:
Speak to Scotal on here, he told me how much I could borrow etc.
Noted - thanks : )

CaptainSlow

13,179 posts

229 months

Tuesday 13th September 2011
quotequote all
98elise said:
I'm in the process of buying my 3rd BTL
Would you mind saying which lender you are using please? I'm looking around for a btl.