Lump Sum Investment Advice For Expat

jonnny

Hi,

I hope this is the right thread but I would really appreciate some thoughts / advice on my new financial situation.

I am a recent expat (outside of EU) who is currently selling his property in the UK. I anticipate to have a sum of £500k.

The reason for the sale is to hold the cash for upto two years and buy again in the UK but also to use any interest for rental purposes.

In the UK I share with my wife three bank accounts - Lloyds / HSBC / First Direct. Being an expat I cannot open another UK bank account (I can open an international account).

I consider myself a cautious / scared investor.

What advice or ideas would you have for maximising investment / saving 500k for upto a two year period?

For example I have had a quick look and the most I can get from the banks is 2% - 2.4% interest - mostly tax free. But this is less than inflation.

Thanks to anyone who answers.

J

missile

jonnny wrote: »

Hi,

I hope this is the right thread but I would really appreciate some thoughts / advice on my new financial situation.

I am a recent expat (outside of EU) who is currently selling his property in the UK. I anticipate to have a sum of £500k.

The reason for the sale is to hold the cash for upto two years and buy again in the UK but also to use any interest for rental purposes.

In the UK I share with my wife three bank accounts - Lloyds / HSBC / First Direct. Being an expat I cannot open another UK bank account (I can open an international account).

I consider myself a cautious / scared investor.

What advice or ideas would you have for maximising investment / saving 500k for upto a two year period?

For example I have had a quick look and the most I can get from the banks is 2% - 2.4% interest - mostly tax free. But this is less than inflation.

Thanks to anyone who answers.

J

You have not looked very hard. LTSB Vantage pays 3.0%, or 2.96% if you pay basic tax in the UK.

jonnny

Thanks,

But isn't Vantage upto 5k only?

J

missile

You can open multiple Vantage accounts, I have three and my wife has three, i.e. 6 X £5,000

missile

Are you are 100% sure you will not be returning to the UK?

Many expats choose to retain property in the UK. I am very pleased I did

Loughton_Monkey

For 'safe' investments, I'm afraid you will be rather stuck.

I was abroad (Asia) for 6 years. Before I went, I made the 'obvious' [to me anyway] decision not to sell. Most people who do so find that when they return, there is no way they could buy the same house again - due to rises.

The 'bonus' to me was £2K a month extra tax-free income while I was away.

OK, house prices have stagnated here, but [my opinion] they will not fall significantly and will start to rise some time in the next couple of years. Meanwhile, rental incomes in most areas are going 'ballistic' and so are you you sure you are making the right decision anyway?

jonnny

Thanks for the responses,

I do not know what the future will hold and I may always come back - I visit often though.

The reason for selling has been that in any case we want to move to a smaller flat in central london (had we have stayed). Current property is in SW London.

Interest from lump sum and rent is roughly the same.

What I am looking for is flexibity and maximising interest so when I find the next flat I want I can be an immediate cash buyer.

J