[Closed] What offers best return for 35k?

Ship has sailed on B2L imo. House price growth is unlike to outstrip inflation over the next few years and the tax regime has become increasingly punitive (loss of interest relief), especially if you're a higher rate tax payer.

It's also extremely illiquid.

It's a tough situation, with markets on a 8 year + bull run I wouldn't be confident of dropping a large sum into equities right now. Depends on the time frame you want to be invested.

People trafficking is quite lucrative if a little hands on.

Stick it in a bank account for the near future.

In time you may have a clearer idea on life direction, or a better/safer investment decision.

I am walking the same road...

Depends how you measure return. If it is memories then coke and hookers!

If money, what about vintage jewellery? My mate also buys two sets of every new Lego and leaves one unopened. He expects to double his money in a few years (albeit from £2000 odd to £4000 odd)

Premium Bonds? You aren't going to get much interest at the bank, you might get lucky and be quids in?

Or is it just coke and hookers FTW?

Pablo seemed to do alright out of it. Until he got killed of course.

Nigerian private equity

Have you got any pension plan? Tax man effectively tops up pension contributions, if you are going to be renting forever you're going to need a lot of income after retirement.

Depends what you want out of BTL..and which part of the country you want to invest in ..
Growth in property prices aren't brilliant ..pre 2008 when the shit hit the fan house prices doubled every 10 years..
Now the best you can hope for is decent yield ..there are some great mortgage deals out there ..with the right tenant you would still get a good return on your investment ..and that's the key getting the right tenant .
Where else are you going to turn £2-300 profit* pcm..after the mortgage has been paid from the rent ..certainly not through any savings account that I know of !
* I would put this money to one side in the early years against any future maintenance
35k gets you a good start..10 years ago that would get you into 3 modest properties!
Fingers crossed that house prices get back to the same sort of increases prior to the credit crunch ..but I don't see that happening any time soon..

Is getting a mortgage on a shared ownership property for yourself not an option, using this £35k for a deposit, solicitor fees etc.?

Property is still good IMO although probably not so good if you are a top rate tax payer. Not sure I'd be going down the BTL mortgage route, the returns are there but it's much more of a commitment. My last buy was a small commercial property under your budget bringing in 8% or so. Not super liquid but I'm sure I could shift it within a couple of months if needed. I'd buy another tomorrow if I could find similar locally. Good long term investment and good right now.

BTL ?

When Jeremy gets in your rents are curtailed, I’d be seeking that Nigerian or Sudanese Prince out for better returns.

Gold, buy Gold.. specifically buy that Gold Gordon sold off.

Commercial property is interesting; hadn’t thought of that. Any tips on what sort of commercial property to look at?

Doesn’t need to be very liquid. Am probably slipping into higher rate tax, just, although sal sac car may take me down below.

NHS pension scheme, so not bad, but can’t top up. Thanks all, esp THM for useful offering; not like you have any real world money smarts on which to offer advice! 😉 (or is it just too piddling for you to bother with...)

Stick £20k in a stocks and shares isa and 15 in premium bonds until next April, then top up the isa.

😆
Jeremy ?
Phhtt ..are you a comedian ..
I'm not particularly political ..dont really like any of the current crop of party leaders ..but Corbynn's a joke .

Congratulations on the relatively pain free divorce, thats a result in itself.

Property has been the best long term investment for most people for the past 60 years, I think it will remain so. We are living longer, more people living alone (post divorce), growing population. BTL still has a substabtial above inflation return on a cash basis (ie without a loan)

So IMO your best plan is to buy a property for you to live in even if its in the “wrong area” and “too small”. Better than spending mkney on rent, can you make a bigger property work with a lodger ? I doubt you could make a BTL work with £35k as the biggest loan you’ll get will be maybe £65k - can you buy a suitable rental for £90-100k ? IMO it does not matter if it doesn’t make money on a short term basis its the longer view you should take.

Aside from property you could take your chances with an index tracking equity fund maybe in an ETF form. With £35k IMO don’t bother with ISA format it’s not worth locking your money up.

Personally I’d be looking low-risk at the moment.

House Prices are at an all time higher, higher than pre crash.

Personal Household Debt is at an all time high.

Interest rates are at an all time low. No further stimulus there and will possibly rise next quarter.

FTSE is at all time high.

Even without the impending “B Word” we’re a decent sized economic shock away from a crash and recession.

@hodgynd as an aside Peckham is up 100% in last 6 years, I was advised to buy there but didn’t 😐 I am not saying that’s typical but IMO it’s wrong to suggest 100% every 10 years isn’t possible

Jambalaya ..sorry ..you are right..
In my defence I did say depending on which part of the country you invested in ..and London is a different matter altogether.
I was basing my " advice " on property in the North East .
Sorry you missed out ..

Scratchcards?

Red.

No, black.

Actually, put it all on red.

Put it all on Jeremy getting in 😆

70000 chewy strawberries

Land.
With trees on. Conifers.

Timber prices have increased 200% in the last 10 years, we aren't planting enough softwood to keep up with future demand, imports are getting more expensive, grants favour homegrown timber.

And you can build your own trails in them.

ETH

Fixed Odds Betting Terminals; £100 per minute - double your money in a tad under 6 hours!
Only a suggestion - not a recommendation....................

When Jeremy gets in your rents are curtailed,

Why, is he going to tell you what you can ask?

I wouldn't do BTL anyway, bloody minefield & if you get the wrong tenant/property, you can lose a LOT of money.

Yes, it was in his speach ... the one yesterday.

Give it to me and I’ll spend it riding around the Workd. I’ll send you all the pictures.

Rachel

Honda NSX

Have you got any pension plan? Tax man effectively tops up pension contributions, if you are going to be renting forever you're going to need a lot of income after retirement.

Depending on your income tax situation this could get you +20% instantly. + the growth as you approach retirement. Guessing all your house sale tax liabilities were dealt with during your divorce. If you’re a higher rate tax payer the chancellor will give you 20% back after your next filing. Only problem might be that you can’t usually touch the pension pot until 55. Though that might turn out to be good.

I can’t agree with buying property in the ‘wrong’ area: location, location, location.

Take some long holidays?

Honda NSX

Surprised about the suggestions of BTL. In about 3 years time you will no longer be able to offset mortgage interest against your profit/income. See a massive exit of the small BTL landlords in the next few years.

Mind you, i know somebody who goes after (small) places that you cannot get a mortgage on (for various reasons) and buys them cash.

Speak to a financial advisor.

I had a lump sum I needed to invest and he spread it over maybe a dozen different funds. I also have some invested in peer to peer lending. Don't put it all in one basket is the basic advice.

P.S. I've not made any money on my investments yet. It has only been a few months though.

I'd buy a canal boat and live on that. Bollox to paying rent if I didn't have to.

I’ve been thinking long and hard over this dilemma, it’s a nice situation to be in.

The only reasonable thought that has some sort of return element is to donate it to us lot here on STW, but only the posters you like.
The only proviso is that we/they enjoy a short lived blast of a time, send you a pic once a week of sheer enjoyment or crushing failure.
And post the pics on here.

HTHs.

You could take a look at this.

[url= http://www.damiancannon.com/blog/how-to-construct-a-high-yield-portfolio/ ]HYP[/url]

I am gradually creating a High Yield Portfolio and it seems to be performing reasonably well, with yields of approx 3.5-4% per annum.
The beauty of it is its flexibility - you can top up when you like by adding a new share to the list or withdraw some if you are in need of urgent finances.

Or..

[img] [/img]

a High Yield Portfolio

yields of approx 3.5-4% per annum.

That's high yield?

^^ Brexit has lowered expectations. 😉

Seriously... Put 20-30k into Fundsmith Equity. Have seen over 70% growth on my money over the last four years or so.

I'm getting between 10 and 18% with Peer to peer lending. Atom bank is offering some good rates on fixed term saving.

Old Motorbikes ...

Old Motorbikes ..

+1

@bikebuoy

Not sure if you're joking, but diversifying into a few cryptos could be worth it if you can tolerate the volatility.

I was going to suggest cryptocurrencies.

Depends how risk averse you are. I'd back ethereum at the moment.

No I was serious on that point, volatile yes, exciting yes, hair pulling out at times yes but ultimately if you have the stoic balls to do it it’s about the best return out there.
IMO.

Personally I wouldn’t, but I’m not the OP. HMMV..

@njee20 depends on what you want. ETH has been around for a while and the days where you could get 10x or "even" 2x returns look to be over. Along with BTC it's got the 2nd largest market cap out there, so opportunities for growth are limited. The market is also very immature so you can still make money trading the news, but it's very time intensive and you need to be very disciplined. Also, as it's unregulated there are shitloads of dodgy things going on (wash trading).

Check this blog out:

http://blog.mclain.ca/buy-and-hold-31-cryptocurrencies-for-365-days-week-6/

The guy is down approx 20% from what I can see from the beginning.

Along with that you have problems with the security of the exchanges. Your average private investor probably hasn't got the savvy to maintain wallet cold storage for multiple currencies if they're looking to diversify and will most likely wind up leaving everything on the exchange where it's anyone's guess what could happen to it. If you lose your money it's pretty much gone. You'd need to have a huge amount of comfort with saying goodbye to your money.

You also have the problem with everything having a huge correlation with the price of BTC. BTC goes up? All cryptos go up. BTC goes down? All cryptos go down. Right now they're mostly being used as vehicles for speculation instead of actual currency which is frustrating because the possibilities for transacting are really cool. The irony of writing that here is not lost on me by the way.

@bikebuoy sounds like you've dabbled? Do tell! Would be fun to have a cryptocurrency thread 🙂 Personally, I think there are more reliable returns out there. If you can tolerate "only" ~20% pa 😀

No I’ve not dabbled, I’m too risk adverse. I have two mates that do, in the early days one mate put 10k in and returned near 20k in less than a month, then he went through all sorts of losses and pulled out. The other mate dabbles in chunks of 5k at a times and just bought a new car on his returns (2017 reg)

It’s incredibly risky, but also incredibly rewarding if you have the balls to do it.

Also, regulation is almost none existent. And Russia is banning Crypto’s trading in thier country.. I would expect other countries will follow once Russia has done the hard work on forming out the regulations..

I put it out there as an opportunity, and as mentioned only an opportunity if you have the balls to do it.

I wouldn’t personally..

If you aren't looking to put down a deposit on a house in the near future, the obvious thing to do is to trickle it into the stock market in the form of a stocks and shares ISA. I'd suggest maybe 1-2k per month until you run out, rather than all in one go.

That way you'll get a return of about 3% pa tax-free from dividends, plus the sum itself will grow faster than inflation in the long term (though maybe not over a short interval).

Oh yeah I wouldn’t put £35k into crypto either, but you [i]could[/i] make massive gains!

I keep flirting with the idea of chucking a few hundred into it, guy I work with is very into it, mines Ether plus another I forget, all over all the values etc, annoyingly he told me to buy Ether when it was $60, and I didn’t. Could’ve got a 5x return in 4 months!

@njee20 crypto is full of stories like that to be honest. For every person who did that I guarantee there's someone who got stiffed holding the bag on some shitcoin a mate told them to buy.

Happy to help you get started if you still want to do it. I think LTC and XMR are worth getting into right now. ZEC is due a pump today if you're feeling brave, but I don't think you'll have enough time to get verified and trade on an exchange today to take advantage of it.

Oh yeah I wouldn’t put £35k into crypto either, but you [i]could[/i] make massive gains!

I keep flirting with the idea of chucking a few hundred into it, guy I work with is very into it, mines Ether plus another I forget, all over all the values etc, annoyingly he told me to buy Ether when it was $60, and I didn’t. Could’ve got a 5x return in 4 months!

@bear-uk how do you manage 10-18% on p2p lending? For the OP I would say put a deposit on a shit house, live in it for a few years to save rent then sell & move up the ladder.

@bear-uk how do you manage 10-18% on p2p lending?

https://www.moneything.com/

Invest it in R.I.T Capital Partners,tick the dividend reinvestment box and waaaaaaaiiiiiiiit!

I'm too risk adverse and chuck all my left over cash at the mortgage, however if I didn't have that I'd trickle it into commodities like oil atm.

I've got a lot of money on the ftse (pensions etc) but I reckon that's going to go tits up pretty soon.

Friends of mine dabble in crypto currency with mixed results it's just gambling however I feel the ship has sailed on those. I guess in theory as they get more widely adopted the price will rise due to supply/demand.

Sandy,what evidence do you have in relation to the ftse going tits up soon?Why would you buy into commodities if you believed that?

Sandy,what evidence do you have in relation to the ftse going tits up soon?

Probably none.

A lot of amateur investors are thinking post Brexit the FTSE will take a massive dump.

It may, and if it does you'd still have to time the market to take advantage of it. Good luck with that. Seriously.

Yeh I agree crypto's are here to stay and have a benefit but at the moment it appears no different than playing at Forex

Am interested in the P2P returns people are getting as never dabbled in that

PJ-The ftse us barely above levels it reached 18 years ago.Also,what evidence do you have that Brexit and other political decisions will produce a bear market?The opposite has happened so far.

Am interested in the P2P returns people are getting as never dabbled in that

I think that £35k has to go towards owning so that you stop renting.
No future CGT if main residence, saving the rent yield rather than having to pay tax on the rental income.

Few v8 90s might be a sound investment the way landrover prices are going!

Love love loving the implicit disappointment in this thread that BTL doesn't pay off anymore. A crying shame 8)

I've got no evidence whatsoever, obviously. I just feel that the country has a number of headwinds it has to overcome, not just brexit. By "tits up" I'm thinking maybe 30% off the peak again purely speculation on my part. I'm not moving money around either based on these fears.

I feel that oil is reasonable value at the moment (Was sooo tempted to buy at sub $40 a barrel - in hindsight I should have!)

If the next bear market is only a 30% job,I for one will be dancing in the streets.On the positive side perhaps world stock markets could be due a 30% rise!This bull market has hardly been euphoric from my observations.Anybody feel or see irrational exuberance?No,thought not.

I think that £35k has to go towards owning so that you stop renting.
No future CGT if main residence, saving the rent yield rather than having to pay tax on the rental income.

Is this a completely daft idea?

I'm not 100% sure what the implications of that would be for other things as it wouldn't be your main residence - would it be classed as a second home?

Also, you run the risk of bad tenants that don't pay/wreck the place which could cost you dearly. If you are managing it yourself there is less likelihood (IMO) of that happening as you'll probably pay more attention to who's going in there compared to a property manager...

You say you have to house 3 kids between you? I assume she'll be keeping the kids but they'll be visiting you (hence the need for a larger rental property to live in)? If so could you really not make do with a smaller place + sofa beds + camp beds etc when they do stay over? This seems like a fairly massive financial decision for you that could affect the rest of your life, not to put it bluntly ...

Hmm. You assume (understandably) incorrectly. We both co parent our children, who spend 50% time with either parent. It’s a challenging situation; not very flexible but a price we pay in order to be together. All four parents work shifts and are able to work full time whilst not being at work at all while their kids are with them. It’s an unusual situation, but it works (as it stands) for all seven individuals it involves.

Bitcoin going on a rampage today. Hold your horses folks!

buy one of these:

http://www.bbc.co.uk/news/uk-scotland-north-east-orkney-shetland-41461592

Leaving a decent £5k for coke and hookers.

Btl is difficult now but theres a 2 bed flat in morecambe in the barnard marcus auction, guided at 15k. Plus a house in a not too bad area at 70k. Morecambe wont get any worse, say you got the flat for 20k, rent at whatever the govt benefits pay, say 250 pcm, thats 3k pa, thats a 15% yield.

Downside is a morecambe benefits tenant so you may need a few big mates to accompany you on the inspections,

Or buy it, paint it and sell it on.