Where to invest £25,000 to £50,000?

Hominu

I bought some land recently which I think was a good price and I expect to get a yield of about 7% on. Its still a risk though, as it completely depends on what other people are willing to pay for it when it comes to sell.

I bought some property last year from auction, but I ended up only making about 3% on that due to the current market conditions and after all the fees/etc were taken into consideration.

Making 6 - 7% as a safe investment is currently impossible IMO.

gkerr4

if you find a 'safe' 7% let us all know!

ttoli

In Northern Cyprus 6% is the standard for Sterling or in Turkish Lira 11.5% +
http://www.iktisatbank.com/SPhERE/cPortal/iktisat/layouts/home.jsp

it would require a trip out here to set the account up

SailorSam

jimjames wrote: »

Read this thread and I think you'll see it isn't a safe way to lend or at least your capital certainly isn't guaranteed.

I didn't read the link before posting it. I remembered listening to R4 when they were talking about it and they were comparing figures from other investments, their conclusion was 'cos of the way you could spread risk it could be a good deal for a borrower. Equally it could give a healthier return for an invester who had money sitting in the bank giving a loan return.

grey_gym_sock

ttoli wrote: »

In Northern Cyprus 6% is the standard for Sterling or in Turkish Lira 11.5% +
http://www.iktisatbank.com/SPhERE/cPortal/iktisat/layouts/home.jsp

it would require a trip out here to set the account up

going into any foreign currency (e.g. turkish lira) makes it much higher risk, because you could easily lose far more in exchange rate fluctuations than you gain in interest.

for sterling deposits in N. Cyprus, you need to compare the default risk (i.e. the lender failing to pay) with the default risk of a retail bond issued by a UK company or of p2p lending. unless you are already out there and have local knowledge, i think it's unlikely that N.C. will look like the best option ...

ttoli

grey_gym_sock wrote: »

going into any foreign currency (e.g. turkish lira) makes it much higher risk, because you could easily lose far more in exchange rate fluctuations than you gain in interest.

for sterling deposits in N. Cyprus, you need to compare the default risk (i.e. the lender failing to pay) with the default risk of a retail bond issued by a UK company or of p2p lending. unless you are already out there and have local knowledge, i think it's unlikely that N.C. will look like the best option ...

I only Invest with Turkish Banks, they cover each account for 20k Euros, Turkish lira is high at the moment (2.9) so would only tie it up for a 6 month period(and trust me It will drop!!), though If you have to convert it back to sterling there is a risk.

grey_gym_sock

ttoli wrote: »

I only Invest with Turkish Banks, they cover each account for 20k Euros, Turkish lira is high at the moment (2.9) so would only tie it up for a 6 month period(and trust me It will drop!!), though If you have to convert it back to sterling there is a risk.

who covers each account for €30k? the turkish parent bank? the northern cypriot state? the turkish state? there's a lot to understand to have any idea of how reliable this guarantee is; you may have this knowledge, but i don't, and probably OP doesn't either. i'd generally be reluctant to rely on guarantees from any overseas government (because there are no electoral consequences for a government who fails to protect external investors). and the legal situation of northern cyprus makes it more complex.

i don't know about the prospects for the turkish lira, but going into any other currency to get a few extra % interest, when you'll want to convert back to the original currency later on, is very speculative.

rockitup

ttoli wrote: »

I only Invest with Turkish Banks, they cover each account for 20k Euros, Turkish lira is high at the moment (2.9) so would only tie it up for a 6 month period(and trust me It will drop!!), though If you have to convert it back to sterling there is a risk.

ttoli,

If you are so sure of Turkish Lira dropping, maybe you can earn more money using this site http://www.fxcm.co.uk and having a trade.

I never forget when my brother went to Turkey for 3 weeks, did not spend all his Turkish Lira and only managed to change it back to GBP for about half what it was worth a few weeks earlier... Toooo risky!:D