How would you invest £150k?

MarcoM

bigfreddiel wrote: »

£75k balanced portfolio of trackers
60% world equities
40% bonds/gilts

£70k £7k x 10 high yield ftse100 shares (reinvest divis)

£5k cash isa

simple enough and boring

fj

Interesting choice.
What yeld do you think the above would get you?

Also would you take the same approach for 1.5million?
It may well be that your approach gets the same gain one would get by employing an IFA on a 1% fee. What do you think?

atush

Nonsense,

instead you worry about council tax, void periods, maintenance, vandalism and property market falling again.

Every study over the last 120 years has shown property to fall below gains made thru investing in equities.

gkerr4

noah_herman wrote: »

Hi,
I would like to invest cash in Real Estate.
Because it is always three time Beneficial then others
and also no need to worry about taxes and all.

Thanks

"no need to worry about taxes and all"

how do you get to that? are you not expecting to make any income from rental from them (income tax anyone?) or even any capital gain on the asset (CGT anyone?)

gkerr4

atush wrote: »

Nonsense,

instead you worry about council tax, void periods, maintenance, vandalism and property market falling again.

Every study over the last 120 years has shown property to fall below gains made thru investing in equities.

i understand this i do, but still, the richest people i know are buy-to-let landlords - the people that have 50+ properties and do it "full time" - the opportunity to buy cheap properties in town centres and take £100 a week from DSS tenants is a massive money earner - the capital gains might not beat equities over £20yrs - but the income is huge.

bigfreddiel

MarcoM wrote: »

Interesting choice.
What yeld do you think the above would get you?

Also would you take the same approach for 1.5million?
It may well be that your approach gets the same gain one would get by employing an IFA on a 1% fee. What do you think?

i did say it was boring but simple so why pay an ifa when you can diy

and anyway it wouldn't stop at 1% - you could kiss goodbye to £4-5k with an ifa - why do you think rdr/rdr2 has been designed and implemented?

could you do better?

joe_mcclaine

£150k of 'found' money, that I hadn't earned myself?

I'd give it to loads of different groups and clubs within my community.

atush

gkerr4 wrote: »

i understand this i do, but still, the richest people i know are buy-to-let landlords - the people that have 50+ properties and do it "full time" - the opportunity to buy cheap properties in town centres and take £100 a week from DSS tenants is a massive money earner - the capital gains might not beat equities over £20yrs - but the income is huge.

but this is full time, over 30 years perhaps and also perhaps a bit of a slum landlord (ie flats over shops and not to a good standard?)

I agree, the income (and perhaps eventual gains can be good) but even sourcing the properties much less doing the work on them and then looking after the rental side would mean you would have to know a whole lot about 3 sides of the business and some serious contacts.

Not for the smaller more casual investor lol.

gkerr4

atush wrote: »

but this is full time, over 30 years perhaps and also perhaps a bit of a slum landlord (ie flats over shops and not to a good standard?)

I agree, the income (and perhaps eventual gains can be good) but even sourcing the properties much less doing the work on them and then looking after the rental side would mean you would have to know a whole lot about 3 sides of the business and some serious contacts.

Not for the smaller more casual investor lol.

very true, although most would take offence at the "slum landlord" bit - even if it was a valid point - but still, a flat for £15 - £25k (yes really) taking £4800 a year in rental income takes some beating for yield.

Nine_Lives

*SIGH*

Why do people feel the need to turn a really simple question into something testing?

What i would do is what i would do which may be different from what you would do.

Oh really? No poop Sherlock!!

Correct me if i'm wrong, but the question was what would YOU do.

I can't find in there "what do you THINK I SHOULD DO"

So the only question i see getting asked is what would YOU do.

Just pointing it out in a more obvious way for those who missed it.

If OP wanted to know what you recommended THEY should do with it then they would've either asked that or should've asked that.

grey_gym_sock

but then, if ppl had wanted to *answer* the question "what would you do?", instead of "what should the OP do?", they probably *would* have answered it ...