£500,000 Investement

xmodz

russell_anderson wrote: »

If I had £500,000, I wouldn't need to invest! That would let me live comfortably for the rest of my life!!!!

depends how old you are and how long you have to live.

mark55man

so for me assuming the target was general long term growth and ignoring tax (which is dangerous coz it can make a mockery of your selections)

* 50% accumulation trackers to cover UK/ US/ Europe/ Asia / Frontier (equal proportions - emerging frontier is less in my actual portfolio but with 500K and time I would risk it) - this hedges most national risks and also is fire and forget initially
* 30% Banking Prefs/PIBS (perpetuals) yielding 7-10% as per WShak's thought piece portfolio on the banking sector board on fool.co.uk to give steady income stream for use or reinvestment in riskier investments (small cap)
* 20% Other asset classes eg mainly property and gold but some for more esoteric collectables if any such lights your fire
* no cash

socrates

I would not do any of the above.

Personally I would look to buy a commercial property outright.

Look through the auctions for a Freehold property with a full insuring and repairing long lease with an A1 tenant - look for a yield of around 7.5% +

All you have to do is sit there and collect the rents and every 5 years deal with the rent reviews.

Meanwhile the property will eventually pay for itself and still be an asset.

Residential has too many variables and is not for accidental or novice landlords

Allsops Auctioneers have a very good auction every 2-3 months - but there are others too

http://propertyauctionaction.co.uk/html/commercial_property_auctions.html

xmodz

socrates wrote: »

I would not do any of the above.

Personally I would look to buy a commercial property outright.

Look through the auctions for a Freehold property with a full insuring and repairing long lease with an A1 tenant - look for a yield of around 7.5% +

All you have to do is sit there and collect the rents and every 5 years deal with the rent reviews.

Meanwhile the property will eventually pay for itself and still be an asset.

Residential has too many variables and is not for accidental or novice landlords

Allsops Auctioneers have a very good auction every 2-3 months - but there are others too

http://propertyauctionaction.co.uk/html/commercial_property_auctions.html

I wouldnt put my eggs in one basket

PaulF81

acc2007 wrote: »

£500,000 to invest

No Mortgage

ISA's fully subscribed

30 years away from retiring

50% profit/Intrest going to charity

Dont want any investement to complex so I dont understand how it works.

IFA Appointement already booked

What would you do ?

Bank it all in Cyprus

socrates

xmodz wrote: »

I wouldnt put my eggs in one basket

How is the OP putting all his eggs in one basket

He has told us his financial affairs and his investments are spread


What better than bricks and mortar with little if no risk

All that is required is to collect the rents with no worries about voids or maintenance

The reason most people would not look at this is because they would look to pay down debts and invest in ISAs and possibly clear their mortgage

The skill is finding the right property there might only be four or five a year that fit the bill

atush

Don't be silly. You have named yourself after a great philosopher.

How is the OP putting all his eggs in one basket

Commercial property (or property in general) is one asset class. Putting 100% of your money into ANY one asset class is risky. Period.

mark55man

Whilst true the OP claims to be fully ISA'd and therefore have a reasonable spread of diversity I'm not sure its true property (esp commercial property) is as safe as all that - look at Ireland where it fell over 50%.

However, I agree that commercial property is a sector worth considering at the moment, but I would do it via funds to spread the specific risk of one property. In fact my next tinker with my DC funds allocation is heading that way

One other observation (the wisdom of Socrates) - you can take diversification too far, and overdiversify each savings vehicle (pension, ISA, others). I have all my SERPS pot money in 2 shares and it feels wrong, even though I have plenty of diversification elsewhere in my portfolio. So you do need to look at the overall picture

chucknorris

socrates wrote: »

I would not do any of the above.

Personally I would look to buy a commercial property outright.

Look through the auctions for a Freehold property with a full insuring and repairing long lease with an A1 tenant - look for a yield of around 7.5% +

All you have to do is sit there and collect the rents and every 5 years deal with the rent reviews.

Meanwhile the property will eventually pay for itself and still be an asset.

Residential has too many variables and is not for accidental or novice landlords

Allsops Auctioneers have a very good auction every 2-3 months - but there are others too

http://propertyauctionaction.co.uk/html/commercial_property_auctions.html

We have quite a lot tied up in residential property and we were thinking of selling up when the market is better (maybe in about 10 years time?). What we don't like about residential property is the hassle, what we do like is the protection against depreciation (yes I know the market is cyclical and can fall but it can also rise again).

I was starting to be drawn towards commercial property as a possible investment (as you say on FRI terms) but I think due to sales via the internet affecting the high street, commercial property could be vulnerable in the long run. We are currently rethinking out strategy for retirement and may elect to only partially sell off our properties (then use letting agents) and opt for more conventional investments such as shares, bonds etc) after all we don't have to make money, merely make what we have last.

We could of course just buy one large commercial property for a bit of diversity, possibly a building that looks attractive and could possible be converted into residential, if at some point in the future it is no longer viable in its current form..

socrates

atush wrote: »

Don't be silly. You have named yourself after a great philosopher.



Commercial property (or property in general) is one asset class. Putting 100% of your money into ANY one asset class is risky. Period.

Atush did you read from the start

The OP is not putting all their money into on investment

They have no mortgage, fully ISA's up, I would imagine no loans or credit cards. If they are in that situation - they have certain savings and probably a pension - and this is not all their money.

Putting myself in the hands of financial advisors and stock markets and complex products that I do not understand is not for me. And by the OP's statement not for him either

Residential property - I have a number of these and they are nothing but hassle - just this week - one new flat roof - £1600 - a month ago a new boiler - £1500 etc etc - and I am an experienced LL

For the OP a decent commercial property in the right location, the right tenant, the right lease terms - he has the kind of budget to achieve this - no hassle, no voids etc etc

As I said though there are not many of these around - at this level maybe 4-5 a year

I may look back later on previous results and provide a few examples of what I mean