What to do with 100K?

[Maycott]

I know there has been a spate of these type of threads recently, but this is not a hypothetical situation. I'm after suggestions / advice relating to a specific situation:

I am 90% of the way clear to selling a portion of my garden to a property developer. Its looking more and more likely every day that competion of the deal is not a long way off, so what to do with the proceeds?

I will have 100 thousand pounds. I could take it off the mortgage and reduce monthly outgoings by around 600 a month...nice, and having been made redundant in February the feeling of security is apealing. But work has picked up again and I'm feeling more confident.

So, is there a way to make the money work harder? Is long term gain a better scenario overall that a quick win to improve my lifestyle? Basically, what would you do?

Bit of context: I'm married, three kids and I'm 32. I make enough to pay the bills and life is OK. Live in 'the sticks' near Basingstoke.

[alexkp]

First of all, don't forget you will get taxed on that...

[jimothy]

Maycott basically said:

I've got a lot of money. What do people on a car forum think I should spend it on?

TVR Typhon?
AMV8?

Both will leave you some change for insurance/maintenance

[nervous]

spend it on me. simple pimple.

[Maycott]

Sorry nervous, not my type

[robdickinson]

anonymous said:

[redacted]

Will he tho, selling your 'home' is CGT exempt, and this is part of that, also you'll have an allowance per year if its not?

Quite possable that some , or the bulk of the £100k will be due CGT tho, time to talk to an accountant.

[parrot of doom]

Pay all of it into your mortgage. Its the best investement you could make.

[vixpy1]

parrot of doom said:

Pay all of it into your mortgage. Its the best investement you could make.

[Incorrigible]

The best way to make shit loads of cash would be to develop the property yourself

I assume you've seen plans of what he intends to do. Work out the retail value of that

[srebbe64]

I paid off my mortgage years ago and it was the best (and most liberating) financial decision I've made.

[B17NNS]

buy some big trees to hide the huge block of pikey flats he's going to build 3 feet from your front door?

[john_p]

Incorrigible said:

The best way to make shit loads of cash would be to develop the property yourself I assume you've seen plans of what he intends to do. Work out the retail value of that

Seconded

[MilnerR]

My parents are in the process of selling off 11 acres of land for development and it would appear that the main winner from the deal is Gordon Brown

Personally with 100k in the bank i'd pay off as much of the house as possible. The saving (£600 per month) represents 7.2% of the 100K with no risk at all. You're not going to get mega rich off 100K but you can make yourself more secure. Either that or do as already suggested and do 50k on the house and 50k in investments. This is all assuming that the 100k is net. If the tax man hasn't had his bit expect to lose a third of it!

[titiany]

In this particular case, I'd say shift the mortgage.

Not very exciting, but the best thing to do.

[silverback mike]

Half and half.....pay a wedge of the mortgage, and buy something very nice to pop in the garage. The sort of car that you are unlikely to get rid of in the near future.

Conscience clear (mortgage), funtimes ahead.

[Trooper2]

srebbe64 said:

I paid off my mortgage years ago and it was the best (and most liberating) financial decision I've made.

titiany said:

In this particular case, I'd say shift the mortgage. Not very exciting, but the best thing to do.

sound advice I think, Titiany and Srebbe.

[off_again]

Seems that the common consensus is mortgage, but I would have to agree with that..... best thing I am afraid - very dull and totally predictable, but given that interest rates are likely to rise, it would give a large amount of smug satisfaction to know that it wont affect you much....

Now, all I need to do is figure out how I can get a similar amount of money to pay off a chunk of my mortgage - back garden is the size of four postage stamps so no chance there then!!!

[speedy_thrills]

vixpy1 said:

parrot of doom said: Pay all of it into your mortgage. Its the best investement you could make.

I tend to be in agreement

[pesty]

forget sensible.

AM V8 or lambo gallardo

if you must be sensible buy a second hand 911 turbo and invest the rest

[cosmoschick]

anonymous said:

[redacted]

A good suggestion IMHO

Then you will have the best of both worlds, ie, a much reduced mortgage/monthly outgoings but with enough spare cash to spend as you see fit.

Lucky you.