Investment advice...need help pls

jodiewright

Hello,

I have £30,000 to invest due to my mum passing away and Ireally need advice.

My mum and I planned to invest money in property to buy andsell on so I’d really like to go down this path but I keep thinking I shouldpossibly invest it in starting a business or buying a franchise. I want to provide for my families future and wantto make the right decision and would love some advice. I also have £50,000 profit tied up in myhouse too.

My brothers have received the same amount and they are alsointerested in investing it in property.

We have the necessary skills, i.e. I’m in business, my dadsa builder, one brother in a plasterer, my husband is a gardener, the other brotheris in internal construction and I can do tiling, floor laying etc etc.

I want to make my mum proud, she was only 55yrs old and passedaway a couple of months ago so I need to focus on something.

Does anyone have any good advice for me?

Jodie

atush

Yes, a small property could be a good idea if you all pitch intogether and share the costs and labour and profits. This way, should things not turn out well, you would not lose all your money. So sit down and discuss with them all and only go into it if most agree to do it together. Look for a small property, perhaps at auction (father and brother to inspect as they are in the biz) with too much work to discourage casual diy-ers but not too bad structurally. Make sure before you attempt purchacs you have a mtg agreed on your mutual credit records.

So each should put in say 10K for purchase and refurb. And you should save the rest to:

1- pay off non mtg debt
2-fill your isas
3-start a pension if you don't have one
4- save for children's further education if you have any

jodiewright

Thanks for the feedback, great advice. We'll definately go to auction and start off small.

I just need to start the ball rolling I guess and make sure it's carefully planned.

Thank you!

xylophone

If you plan to go into business with your husband and brothers, then you need a proper business plan and specific qualified advice.
http://www.hmrc.gov.uk/startingup
http://www.businesslink.gov.uk/bdotg/action/layer?topicId=1073858805

In the meantime, get the money into interest bearing accounts - have you and your husband opened cash ISAs this year?
http://www.moneysupermarket.com/savings/?gclid=CM7NuIjv3LACFW1ItAoddD44yw&source=GOO-131766A5&p=0&keywords=best+savings+ratesExact&ef_id=TKI1yAqoEGQAAHIBs24AAAzI:20120620125729:s

jodiewright

Thanks xylophone I'm planning on putting together a business plan and have just opened an ISA but I'm opening some more too this week.

Great links too, thanks

Totton

Hi,
Good luck with the property portfolio. Mixing money with friends and family can be a problem so be sure to have everything formally agreed, for example what % ownership etc. In reality £30k is not a lot of money for property but is an awful lot if the project doesn't work out. Hence I would seek to retain some of the cash and invest just a percentage that felt comfortable, having said that, if you want to become rich then perhaps you need to take a gamble or two!

I also heard often that you shouldn't get emotionally involved with a property you are buying for development, keep the costs down and stay focused on 'it's a business not a labour of love'.

Best of luck,
Mickey

atush

I agree there are huge risks in investing in property with friends and family. My advice in this case was based on having a builder and plasterer in the family so costs would be kept low, and experience could be high.

And yes, invest no more than 33% or so of your windfall.