Unique position this young

hicky45 · 23 May 2011 at 8:25PM

Hello guys and thank you in advanced for reading this, my story is somewhat long and drawn out so I will try to keep it short and sweet. I am 22 years old and currently studying Business Management in Leciester.
The reason for the title of the thread is because my sister and I have been left quite a sizeable amount of money after the death of my father. My aim in life is quite simply to be succesful through whichever means is best.

The figure of money which I have is about 300K and I would like as much advice as possible to best secure a regular income for myself and my sister.The money which I have is shared 50% with my sister and much like before, I would like to invest this money in the best way possible as I believe that it can really make life easier.

The question is which is the best way to do it ?

My instincts are telling me that property is the best way to go because of the current climate and the fact that I would not have to apply for mortgages neccesarily.

Obviously the more advice I get, the better view I have on how best to invest. So please do not hesitate to voice your opinions and advice.

Thank you

redned_2 · 23 May 2011 at 8:44PM

Sorry to hear of your loss. I think this is what I would do in your position.

I would probably use 50 - 70% of the money towards buying a property, assuming that you don't already have a mortgage. I would invest 10-30% (depending on how much risk you are willing to take) of the money in the stock market with a view to leaving it in there for some time ie several years, not for getting a quick return - although take it if you do! however you will need to get good advice to do this. I realise this is not for everyone. The most important thing I would say is I don't think in the current climate I would put all my eggs in one basket.

misssarahleigh · 24 May 2011 at 7:53AM

Wow. Big question!

I see your problem. On a professional level I would have no idea where to go and sit down with somebody to talk this through. And then again, would i trust them.

Although i'm not sure what i would do with all the money I would invest in property. I'd buy 2/3 quite newish flats/houses and rent them out as a long term investment. Shop around for a good agent to look after these for you (they take a nice cut so do shop about) and have this money directed into one bank account and let it grow (remember you will have to claim this as income for the tax man)

I'd let the money grow and get another property, and do the same again.

jhp · 24 May 2011 at 8:06AM

The best place to post this sort of question is the Investment and Savings Forum where the Investment Guru,s hang out.

Dont rely totally on any information given , do your own thorough research before investing.;)

DermotFlanigan · 24 May 2011 at 8:32AM

Is there a field of work you are hoping to get into? What does your sister do/want to do for a living?

hicky45 · 24 May 2011 at 9:12AM

Thank you for the suggestions so far

Redned-I think that the stock market is something that I will get into once ive put the initial 300k into property, the reason for this is because I want a secure income for my sister and I whilst we both study at university. Id like to be in a position where money never really has to be a major issue but thanks for the idea.

Misssarahleigh-The idea regarding the letting agent is a good one as I would like the whole process to be as stress free as possible whilst I perusing my first career. Have you any idea what % an agent would take if ?

jhp- Thanks for the advice although I think the thread can be relevant in both boards but I will have a look around there too

matthewandemma- Currently I am unsure the exact route of career that I want to take, I have been a duty manager at Tesco and a salesman at Phones4u, both I was successful at. Both of these kind of roles are a possibility although on a much larger scale. I hope to obtain a masters after my degree which I think will benefit any career that I go into. As for my sister shes currently at university and at this moment wants to be a teacher (she changes her mind every day)

misssarahleigh · 24 May 2011 at 9:52AM

Not sure on the % they would take but do have some advice. Get a good reccomendation. My partner was in a rented property and the estate agent was poor at best. They tried to increase his rent without the landlord knowing (they were going to pocket the extra as comission) but this was soon ended when my partner directally contacted the landlord.

Remember that you want the agent to take care of things such as they legally required gas inspection once a year. If they balls this up and something happens it may be your insurance that has to pay out (as you will need landlords insurance).

Also look at the fee's they charge for giving tennants a contract. I have known people being charged £90 every 6 months to sign another agreement. This goes straight into their pocket and will possibly affect whether a potential renter will take on the property.

I would suggest contacting local agents saying that you already have the property and that you are contracting for a new handler and ask them to send details through of their contracts and fee's.

From this you will get a better idea of what there role will involve, the tasks they will undertake and scope the difference in price between the companies. Then hunt about for a reccomendation if possible. If not take a short term contract with the one you feel most confident with.

I would also pay close attention to how the rent is paid and what happens if the tennant fails to pay e.g. how long will they leave it before chasing, what steps will they take and the legality of getting a tennant out. And on that note, what steps they take on the tennant to start with. e.g. credit check, written reccomendation etc

This is just my commen sense opinion of what I would personally look at, and would suggest you seek somebody who has some experience of renting out properties who can highlight possible problems you may encounter and things to watch out for.

I'm sorry for your loss but do envy the oppotunity your currently in and understand your need to plan a stable future. You sound like you have a decent head on your shoulders. Whatever you decide be sure to talk your decisions through with your sister so your both happy with the plan and to somebody that has some experience in the path you've decided to take.

OldGreyFox · 24 May 2011 at 11:10AM

This board has nowt to do with increaseing existing money by investments,in property, stock market , etc etc.:D I second JHP advice.

hicky45 · 24 May 2011 at 4:54PM

misssarahleigh - Thanks again for your suggestions, the situation im in is a double edged sword and throughout all the deaths that have happened in my family Ive managed to stay focused on my goal of making myself a success

OldGreyFox- How do i get the thread moved ?