Investment options

beckysbobbles1

I'm tryin to decide on a few investment options for some additional money I have.

Currently it's sitting in cash and not earning a lot at all.

I have a fully holistic investment portfolio which covers my interest only mortgage and excess. At the moment I don't want to add more money to this, although it is doing very well (6%p.a.) I am a little cautious of the FSCS limits.

At the moment I do not have plans for this money. Originally I was considering using it when I go to study but those plans have been delayed.

I was wondering whether to invest in a Buy to Let property? I could use the money towards a deposit and the rent I receive will pay for the mortgage.

I ahve enough money to cover the mortgage as well but you never know when things may change so I would be a little cautious of over committing.

What other options are out there? I don't really need to generare income so it's more capital growth.

FatherAbraham

beckysbobbles1 wrote: »

I was wondering whether to invest in a Buy to Let property? I could use the money towards a deposit and the rent I receive will pay for the mortgage.

Why would you want to hold such a lumpy. illiquid and risky investment asset as a single domestic property? There's no way to diversity the risk away. There's capital gains tax. There's the hassle and cost of maintaining a property.

You investment goal is a bit unclear, perhaps you could restate to there's a better picture of the term and necessity of this proposed investment?

Warmest regards,
FA

beckysbobbles1

I split my investment objectives up so the others are covered.

This £50k is purely capital growth ober medium-long term. I have no actual plans for the money so being illiquid is not an issue.

bigadaj

Buy to let is a business, not an investment so consider the risks and costs in doing this, or paying someone else to do it.

I can't see house prices increasing much for years to come, but who knows. Demand and a relative lack of supply is one argument in favour of increasing house prices but with current values only being underpinned by record low interest rates, pressure on banks not to repossess, and the government having to come up with ever more ingenious ways of subsiding people to buy over priced houses it seems to me that house price falls, probably in real rather than absolute terms, is more probable than rises of any significance.

Thrugelmir

beckysbobbles1 wrote: »

I could use the money towards a deposit and the rent I receive will pay for the mortgage.

Is that a guess or after a number crunching session?

If was a certainty then house prices would be rising surely.

beckysbobbles1

That's after 'crunching the numbers'...

Anyway, It's dawn on me that I need a capital growth option. I do not need to generate income so need to consider capital growth.

jimjames

beckysbobbles1 wrote: »

That's after 'crunching the numbers'...

Anyway, It's dawn on me that I need a capital growth option. I do not need to generate income so need to consider capital growth.

Why not just invest in a selection of funds using your ISA allowance? Far less hassle than BTL and potentially more scope for capital growth with less risk. With BTL you can lose more than your initial capital, with funds you can only lose at a maximum the amount you invest.

grey_gym_sock

what is "a fully holistic investment portfolio"?

if you have neither BTL nor shares, bonds, etc already - i'm not sure from what you said - then i'd tend to go for some funds (1s which invest in shares) to start with. much less hassle. and if anything, likely to give higher returns than BTL. (though either shares or BTL can do better in different periods - which is the argument for doing both if you have enough to do both.)

beckysbobbles1

It's fine, I'll go to a Financial Advisor.

I just thought some people may have some good investments to recommend.

jimjames

beckysbobbles1 wrote: »

It's fine, I'll go to a Financial Advisor.

I just thought some people may have some good investments to recommend.

Just as the IFA will need more information to be able to make any recommendations so will anyone here.

I could suggest a selection of the funds I hold but without knowing anything about you or your current setup it would be completely wrong to do so.