Advice please - 70k equity what to do with it?

jamesd

How long do you think you will rent? That is, what is the time for which you are looking to save or invest the money?

Guy_Montag

Fair enough, I was out the country for almost two years & couldn't do it myself. By the time I got back my funds were worth about 1/2 what I had invested. At that stage I decided I would leave them & see what happens. Like I said they're finally coming up again.

If I was doing it again, I would do it myself as you did. I remember there was a study a few years ago which showed punters could do a better job than the professionals, with a bit of knowledge...

Martinslovechild

Guy_Montag wrote:

Fair enough, I was out the country for almost two years & couldn't do it myself. By the time I got back my funds were worth about 1/2 what I had invested. At that stage I decided I would leave them & see what happens. Like I said they're finally coming up again.

If I was doing it again, I would do it myself as you did. I remember there was a study a few years ago which showed punters could do a better job than the professionals, with a bit of knowledge...

Glad to hear that your funds are picking up. I actually believe that tech stocks will see a resurgance at some point - there's going to be a lot of consolidation there. It's already happening with the likes of companies like MySpace and YouTube being snapped up for big bucks -- and they're not even making any money!

I got burned by the so-called professionals too! It was this that got me thinking - when my funds were doing really badly, I figured that if the professionals are this bad, then surely i'll do a better job myself. So I sold the funds and started an Investment Club with friends and family members - we're still doing it today. Like I said previously, I'm an amateur but it's a great hobby which I really enjoy and one day the cash will go towards something useful.

Jags_2

Good to see no-one advising you to follow the financial suicide route of buying a flat off plan! This was all the rage a few years back, but with massive oversupply of these carboard boxes, pirce drops of 25% from new are not uncommon. BTL in general has had its day, unless you got in years ago, as the profits are tiny, especially with flats! - steer clear.

Martinslovechild

Jags wrote:

Good to see no-one advising you to follow the financial suicide route of buying a flat off plan!

Hear! Hear!

whambamboo

Gorgeous_George wrote:

It will all depend on how much risk you are prepared to take.

Personally, I would only gamble 10% on the stock market. The rest I'd bank in the highest paying account that I could find and then syphon the max into cash ISAs each year. Don't forget the kids have tax allowances too.

Remember, the I in IFA stands for I (meaning me, the financial advisor).



GG

That sounds a bit conservative to me.

£70k is not enough to live off, but if you invest it and get 10% a year for 20 years (which is actually about average), then it would be a nice pension.

Leaving it in cash is never going to really make you better off.

whambamboo

egg345 wrote:

Please advise:

We have 70k equity after selling house. have no debts.
Renting perfect house on 6 mnth contract (cud never afford to buy it if it was for sale)
Want to 'make' equity work for us to cover rent.
Should we put it in lots of 'pots' eg.Buy a flat off plan and sell when ready? Buy flat to rent out? savings? shares? isas? go to a financial advisor? Buy a property so are not out of the market?

Any thoughts would be very welcome.

Very confused!

By the way, when you say 70k equity, you mean you have 70 thousands english pounds in cash I assume? Not some offset mortgage or some

Equity is a weasel word often used in relation to housing to mean "vast debt" dressed up as an investment by a bank as in "equity release" meaning remortgage to buy loads of crap.

egg345

Thank you all for ALL your points, ideas, opinions, we GENUINELY appreciate them. Thank you.:rotfl:

Boy have we learnt a lot!

We need to find a financial advisor I guess!

Yes it is £73,000 cash.

We are planning to rent for 1-2 years (would do more if the investments/cash were making enough to pay the rent -just under £1k per month)with a 6 month contract then monthly after that, to see what happens to the market and let our kids enjoy the space this rental house has - 10 acres.

We are keen to try things 'out of our normal' way of thinking, ie happy to invest a portion on stockmarket aswell as doing the ISAs and childrens accounts etc. We obviously cannot afford to lose it all as it will be the deposit on our next house.

So property not the way to go then?

Was really thinking with £73k we could make a decent return to cover our rent and then perhaps help us towards our dream of being mortgage free in 10 years??!!years are flexible!

When we've had the money tied up in our house we couldn't use it so thought this was a way of getting the cash out and using it...have we gone horribly wrong? apart from the fact we are able to rent 'dream house'.

Please advise further if you can.
We are open to any suggestions.

PoorDave

egg345 wrote:

Thank you all for ALL your points, ideas, opinions, we GENUINELY appreciate them. Thank you.:rotfl:

Boy have we learnt a lot!

We need to find a financial advisor I guess!

Yes it is £73,000 cash.

We are planning to rent for 1-2 years (would do more if the investments/cash were making enough to pay the rent -just under £1k per month)with a 6 month contract then monthly after that, to see what happens to the market and let our kids enjoy the space this rental house has - 10 acres.

We are keen to try things 'out of our normal' way of thinking, ie happy to invest a portion on stockmarket aswell as doing the ISAs and childrens accounts etc. We obviously cannot afford to lose it all as it will be the deposit on our next house.

So property not the way to go then?

Was really thinking with £73k we could make a decent return to cover our rent and then perhaps help us towards our dream of being mortgage free in 10 years??!!years are flexible!

When we've had the money tied up in our house we couldn't use it so thought this was a way of getting the cash out and using it...have we gone horribly wrong? apart from the fact we are able to rent 'dream house'.

Please advise further if you can.
We are open to any suggestions.

Are you happy? If you are, then you haven't done it wrong!

egg345

Yes Dave, happy thanks! :j
Have cleared debts by selling up so clean slate and much more aware of spending limits.

Just clear one thing guys, should no-one be buying a house at the minute because the market is going to crash? I don't understand this bit.
In our local town (midlands) 8 apartments were bought by 1 guy off plan 6 months ago and he's just sold them all making just under 40k on each.
Surely it's a way of trying to make even a small amount which should hopefully come out at better than a 6% return???? AM I wrong????
Isnt it the same as the stockmarket??

Please advise.