Where to put proceeds of house sale?

Bullfighter

Let me state my position, then offer an option.

I believe that property will drop (correct) by at least c.30% or more in the UK.

However in your position, rather than try to cover your rent by hedging "7 figures" across a ludicrous assortment of insolvent banking institutions, I would:

Buy a small, energy efficient property (£200k?) outright, with cash. Invest in Solar PV and Thermal heating, ground source heat exchange, underfloor heating, triple glazed argon windows and insulation. At this point you will be virtually bill free. Spread the balance into a range of accounts, and consider holding a % of your wealth in physical gold & silver as an inflation hedge. The property may be valued at 30% less than the purchase price, however you will be debt free and enjoying living in your home.

Also consider keeping money outside the 'traditional' banking system. Zopa (http://uk.zopa.com/ZopaWeb/public/lending/lending-at-zopa.html) might give you a decent return...

It all depends on your life goals.

greenface

Bullfighter wrote: »

Let me state my position, then offer an option.

I believe that property will drop (correct) by at least c.30% or more in the UK.

However in your position, rather than try to cover your rent by hedging "7 figures" across a ludicrous assortment of insolvent banking institutions, I would:

Buy a small, energy efficient property (£200k?) outright, with cash. Invest in Solar PV and Thermal heating, ground source heat exchange, underfloor heating, triple glazed argon windows and insulation. At this point you will be virtually bill free. Spread the balance into a range of accounts, and consider holding a % of your wealth in physical gold & silver as an inflation hedge. The property may be valued at 30% less than the purchase price, however you will be debt free and enjoying living in your home.

Also consider keeping money outside the 'traditional' banking system. Zopa (http://uk.zopa.com/ZopaWeb/public/lending/lending-at-zopa.html) might give you a decent return...

It all depends on your life goals.

Whats your position ?

locky123

I had to find a number of esavings accounts last year for the exact same reason. Just make sure that you know what restrictions they specify on withdrawing your money, such as daily limit. Keep to £85K limit. Post Office, Egg and The AA were hassle free and good rates last year. Natwest had good rate but were painfull to get money out.

Loughton_Monkey

Bullfighter wrote: »

.....I believe that property will drop (correct) by at least c.30% or more in the UK......

Wow!

Can you be more specific? I mean the price of a house is split between the calue of the land and the cost of building. Which portion is dropping and by how much?

edinburgher

Let me state my position, then offer an option.

Surreal - so your suggestion for someone who has sold their house for over a million is.... buy another house (energy efficient so as to save the pennies ) and stick the rest in precious metals and social lending?

I use Zopa and think your idea of an energy efficient house is a good one - but the advice offered would seem to be terrifically mismatched when you consider what the OP actually asked for advice on!

I would like to invest it for up to two years in order to provide an income to cover the rent while ensuring that the capital is protected

Bullfighter

greenface wrote: »

Whats your position ?

Do you mean my financial position?

If so, then sold house and now privately renting. Savings and sale proceeds spread across precious metals and cash.

Looking to buy a smallholding outright and 'ecovate' to a passivehouse standard within the next 18 months.

Pretty much what I offered as an option to the OP.

I stated upfront that I believed the property market will drop across the board simply to ensure that my advice to buy a house was not predicated on the belief that property will 'recover'.

As to whether my 'advice' was surreal edinburgher, well he is asking about risk. I am suggesting a way to mitigate risk and reduce opex.

And Loughton Monkey, good attempt at sarcasm, 6/10.

The OP is free to ignore any or all of it.

greenface

Let me state my position then offer a opinion is what you said, you offered a few opinions all way outside what the OP was asking and went onto spew rubbish of no meaning without offering your position, just my opinion . Your name is close nearly your post bullsh1ter.just my opinion

Bullfighter

greenface wrote: »

Let me state my position then offer a opinion is what you said, you offered a few opinions all way outside what the OP was asking and went onto spew rubbish of no meaning without offering your position, just my opinion . Your name is close nearly your post bullsh1ter.just my opinion

And that means what exactly?

How are you adding to this debate?

What is YOUR position?

What is YOUR advice?

Oh, nothing.

Pfffft

I'm guessing you are a sad, fat middle aged builder who hopes property always goes up.

edinburgher

As to whether my 'advice' was surreal edinburgher, well he is asking about risk. I am suggesting a way to mitigate risk and reduce opex.

Somewhat surprised to see this thread resurrected as it is several weeks old? No need to be tetchy, I liked some of your ideas, just thought they weren't applicable to what the OP requested.

Jegersmart

Gold is a very volatile commodity and is as risky as buying a single share (at least). Once inflation starts to come down expect gold to lose 40%+ quite quickly.

I would probably go for a 60% cash holding and 40% holdings in some relatively safe income style funds if it was me. The energy-neutral housing thing could be ok, I don't know too much about that sort of stuff personally or whether you even want to live in a 200k house (with or without bills )

Good luck!