Turning £250K into £1 million

SteveCat

dunstonh wrote:

How naive is that!

Apologies but it came from personal experience so no its not naive.

dunstonh

personal experience of the last 5-10 years?

tom188

What would had happened if youd put all your money into property in 1990 or so? Its not exactly been rocket science making money from houses over the last ten years has it.

melbury

I agree with SteveCat - as Mark Twain said "buy land they don't make it anymore."

Jim_B_3

SteveCat wrote:

One word, PROPERTY! A sure fire way of getting good returns on your investment if you do things the right way.

Everything is a sure fire way of getting good returns on your investment if you do things the right way. You might as well say to bet it all on a horse; done the right way, you'll make a lot of money.

si1503

tom188 wrote:

What would had happened if youd put all your money into property in 1990 or so? Its not exactly been rocket science making money from houses over the last ten years has it.

That is the point. Past performance is not a guide to future returns!

pantsmachine

If you are stopping work you woud be able to bank your money tax fee as you would be below the min salary threshold(after April). Maybe a flat or two in good condition to let out. Beat the bank interest rates with the rents you take and hopefully make cash longterm if the market continues to rise? Oh yeah, i agree with the other peeps, kill that mortgage stone dead first thing!

Moonbeam

Wow - thanks for all the comments so far - The shares are mine, so I know I will have CGT to pay - unfortunately sold some this tax year too, so have deferred selling next lot until after April 6th so that I can straddle the tax years....

Had forgotten about the Motley Fool website - got so used to using this one for all my financial concerns, so thanks for that great reminder...

happy to try a small amount of investing myself - Martin recommends a book in his investment section so going to order that from Amazon today - I have some financial understanding thanks to working in banking, but have always found the investment/pension side the scariest bit and the hardest to get my head around.

Thinking about property investment, but feel that if I pay off my mortgage then that is £250k invested in property anyway, so not sure I want to put any more of the cash I'm about to get into it - I'm leaning towards stocks & shares more. Although as a business I would consider a small property as a holiday let as we live in a very beautiful and touristy part of Scotland - it would also give me something else to focus my mind on if I have to go back part-time to work due to childcare issues!

All of you have said stay away from banks/building societies for investments...as I work for Halifax if I do an investment with them I get 3% cashback up to a maximum of £3000 per investment - on this basis would it be worth leaving some with them - (by the way when it comes to risk my husband is cautious and I'm medium adventurous) - I wondered if I should leave a small amount in something like an investment ISA with them to satisfy my husband's cautious side.....and also benefit from the cashback system!!!

thanks again for your help - I really appreciate it:T

dunstonh

All of you have said stay away from banks/building societies for investments...as I work for Halifax if I do an investment with them I get 3% cashback up to a maximum of £3000 per investment - on this basis would it be worth leaving some with them - (by the way when it comes to risk my husband is cautious and I'm medium adventurous) - I wondered if I should leave a small amount in something like an investment ISA with them to satisfy my husband's cautious side.....and also benefit from the cashback system!!!

3% cashback is a short term gain. 12 months of sub standard performance (which is typical of Halifax products) could see that 3% wiped out plus more. Then every year you would be losing out.

EdInvestor

Along with paying off the mortgage, I would fill up this year's investment ISAs @ 4k x2 and then put 7k each into next year's maxi ISA, that's 22k accounted for.

Suggst you start them off at https://www.h-l.co.uk a discount broker which will save you a lot on charges and also features the best funds.

It's probably sensible to keep a largish chunk in cash and invest the rest directly in shares or unit trusts.A basic or lower rate taxpaper won't have any tax to pay on dividend income from shares, so you can get a better deal than cash if you choose higher yielding shares or funds.

The HYP idea is worth a look