What should I do with £50K?

chant1l

Yup, buy a house;
£60k in the bank = £1800 taxable income PA.
4.5% inflation means you actually lose 1.5% by doing so.In 10 years your money is worth a lot less.
£60K in bricks and mortar = £4800 mortgage non payment, or about the same in rental non payment.
Property uplift may mean a doubling of the value of this money (inflation working in your favour)

Snow_Dog

I reckon about 20 of the 32 posts on here must be saying buy a house. Now somewhere in about post 19 bobson stated that the 90K houses were now selling for 85K in one area he was looking at, does this sound like a fast rising market?

In reality rental yields are dropping due to the high property prices across most of the country. Typically figures now being bandied about are 3% 4% ish. We are at the end of the buy to let profit cycle. If thats what you want to do then at least wait for a couple of years.

Meanwhile, 3% interest is bad. You have the immediate option of opening an ISA now and another in about 2 months time, thats 10% of the money, earning at the moment 5.75% (about that in NS&I) if you just go for 3K cash ISAs.

Open an A & L regular saver and Lloyds regular saver immediately, these are paying 12% and 8% (taxed) interest, with the Lloyds account you can juggle it to get 1K in there within days of opening. There are also other good paying reg savers.

If you can leave the money tucked away for longer go and talk to an IFA, a good one will give you much better advice on things like bonds and other similar investments. Plus I bet they will tell you NOT to purchase a buy-to-let at the moment.

As for the people demanding you buy them drinks and stuff, the best principle in life is not to tell anyone your worth, it is human nature for a lot of people to be envious of someone who is better off than them and to be smug about someone who is worse off, whichever way, you cannot win. Plus, its none of their business.

All the best with whatever you decide to do with the money anyway.

Paulxo

This is a fascinating thread.

At first I thought, 'Hmm, what would I do with £50k?' and I couldn't come up with anything. It's so tempting to think of all the pretty things you can buy.

A moment's thought later and I thought, 'I know exactly what I want to do'.

And it's something I try to do every day.

It is to use it to become financially free. You're very fortunate to have a starting point of £50k to get yourself started on this.

I am frankly amazed noone else has mentioned this. Buy a property? Is that it?

Think bigger. Think about in 10 years time...where do you want to be? What do you dream of? Use that money to make those things happen. For me, it's all about being DIMED.

Desire
Inspiration
Motivation
Education
Dedication

If I hadn't turned it into 1million by 2017 I would be unhappy. (but that's my dream)

Read some books, eg.

Rich Dad Poor Dad
One Minute Millionaire

Learn how to invest it - not just the secure stuff, like 5% savings accounts. Learn about the stock market and buy some assets that generate income.

I'm in Lincolnshire too mate, so if you want to know more, PM me.

There are lots of ways to invest, too many to list.

[If you're going to buy a property, look abroad.
Dubai is my top tip.]

Also, think about your future - have you got a pension?

It really is scary that noone has advised you to leverage that money to become financially free.

painted_lady

I would buy house. Dont wste money renting, put a good deposit down, esp while you have a good income. In your sitution, thats what I would do, maybe with a bit in an ISA too. Dont worry about your debt because its under control and chep debt anywy. The money would be better spent on property.

tom188

Rents in many parts of the country are significantly lower than even interest only mortgages at the moment. Therefore in the early years at least you are actually wasting more money on the mortgage than you would be renting. (you are just paying the bank rather than the landlord). The only incentive is capital growth which is by no means a certainty in the current climate.

A better option for some is to continue renting and saving the difference between the rent and mortgage. Of course most people prefer to own their house as it allows them to do what they want with it, but particularly with the costs and expenses associated with buying and owning a house it is not always the optimal strategy, especially if you do not intend to stay in it long term.

sashabella_2

Wow the world is your oyster :eek:

I forsee 4 options.

1 blow it on a trip around the world
2 give all or part to charity
3 invest in a high interest account or seek a financial adviser to help you place it in the best place. I would suggest the property market. I let oyu know of a really good impartical independent one actually.
4 you could start a new business

When got my heritance I did put of each. I researched into how much a new business would actually cost and then saw how much I could leave aside for charity, a little break and my future.

I choose a business and saw that creating the advertising and corporate stationary would actually be very affordable. I found print24. There could get it all done with a choice of designing on the website or on my own packages.

Take Care and remember the future is in your hands.;)

Laura_theres_Trouble!

MAybe Shares?

Dont go mad as you could loose out! A couple of hundred, and it could be a great investment!!

LITTLE_LISA_2

erm do you want any wades im currently sellling some on ebay !!! lol -- no seriously

ormus

buy a house.
dont even have to buy one to live in.
and you dont even req a mortgage!
buy 2 terraced houses on salford/burnley area etc.. seen some recently for 25/26k each!
get some dss tenants in. and wait. simple.
even if the council CPO it, you are quids in.

Scully's_Girl

I definately would take the financial advisor approach. This is alot of money for someone who has never seen that much before, however, as you mentioned previously, £60,000 while impressive at the moment, will not spread very far as you are only 27. Life happens. What if you marry your girlfriend (since you paid her debt looks like you're headed that way). It's no longer realistic to assume the parents will pay for a wedding, what about a family later on, raising children isnt cheap. You need to make that money work for you in any way you can, and an untied advisor might really help in that regard.
I'm also absolutely horrified by what happened with the friends of your friends. This is why although I can tell ya'll that we have no debt at all, other than our financial advisor, no one else knows this. People assume we still have a mortgage on the house and they couldn't fathom we paid cash for our car. It's sad but true that you cannot share that information. What you should do is tell your friends that you used the money to pay off your debts, and leave it at that. Many people assume if you invest it the money is still there to be spent on them, which sickens me, I must say.