How would you invest 1 million pounds

doughnutmachine

atush wrote: »

I invest in commercial property myself, thru funds. But the OP was advised to invest in residential property. and not all commercial property is in the millions.

thanks very much for sharing your commercial property investing experience. i'd imagine most professionals advising on property investment have a little more on their cv than "investing in funds".

doughnutmachine

sabretoothtigger wrote: »

Gilts are fixed return. Land is way better over time but may not give the same liquidity or cashflow which can make it terrible for some

People can just bid on these things?

if you rent a property on a Full Repairing Insurance (FRI) lease the tenant is liable for all major costs for the property. the rent is normally paid every quarter. so an investor can be very certain of the cashflow over the life of the lease.

it was a private owner selling the property with the network rail lease.

atush

doughnutmachine wrote: »

thanks very much for sharing your commercial property investing experience. i'd imagine most professionals advising on property investment have a little more on their cv than "investing in funds".

I never said I was a professional, and you certainly don't sound like one either. But I do have extensive experience in residential property (i own 3) and also self build/renovation.

All my commercial property is in REITs etc.

doughnutmachine

atush wrote: »

I never said I was a professional, and you certainly don't sound like one either. But I do have extensive experience in residential property (i own 3) and also self build/renovation.

All my commercial property is in REITs etc.

if your sole experience of commercial property is owning REITs i definitively know more about commercial property than you.

i dare say that you know more about some things than me though...

ButlerT

Especially these days during the financial world crisis, I presume that every financial adviser is seeking the best, for him or her, way to earn money from people that have rough idea on the market.
Based on the tough situation our society is living it is obvious that the profession of that field is not trustworthy anymore! My wife is a financial analyst and she keeps saying that all the theories and logic she was tought at uni have been collapsed!
I would suggest to move in a more safe field of investment, such as internet. Either create a website or sponsor an existing one that has much more chances to earn money out of it.

grey_gym_sock

doughnutmachine wrote: »

if your sole experience of commercial property is owning REITs i definitively know more about commercial property than you.

i dare say that you know more about some things than me though...

i know we're meant to be nice to newbies, but it doesn't follow that they should be rude to the rest of us

saintlysimon

jamesd wrote: »

Her age and current income

Her objectives for her life also matter hugely. Does she simply want to stop working? How much income does she think she'll need for her plans? Does she want to prioritise long term income or blow half of it on immediate luxuries and halve the long term income?

Risk is something that needs more discussion. What does she mean by low risk? Low chance of losing all of the money? Or low up and down movements in value from year to year?

Thank you for such a considered reply.

Her age is 33
Her current income is around £100,000 a year
She has one dependent child and a partner - they would like to work a lot less, not sure about stop work completely. Long term goals I'm not to sure on specifically.
She thinks an income of around 50k a year would be quite sufficient.
She may wish to spend some of the initial million, to pay off her current mortgage, 160k outstanding, but as for blowing some of that on luxuries, no - she would very much like to invest this wisely so she can work less.
Risk - I think she simply would like as secure an investment as possible, so little chance of losing any money for sure, with as guaranteed level of return as possible - I guess that would be most laypeoples answer. But honestly, thats about it.

Thanks again

atush

With that sort of income, and a partner working, and that sort of capital i'd be looking to use as much of the last 3 years pension allowance (for both partners IF married) as possible esp given 40% tax relief.

I would set up a pension and JISA for the child and invest max into both each year. This would in all likelyhood be paid for by the 40% tax relief from the above.

I would pay off the mtg, unless it is a tracker at less than 2% in which case I would pay it off later when rates rise.

waiax73

Buy yourself a property in Asia, put the cash into a steady 5-8% p.a. investment and live off your income being happy all the time

saintlysimon

Asia would be nice, not sure that's an option though!