Best way to invest 60K?

Saxon-g

My Stepdad and mum recently retired and have given me 60K to invest.

I currently live with my girlfriend and we have a baby on the way so i am looking for something that gives me a return every month if possible

It seems i have too much money to be looking at premium bonds but too little to invest into a property anywhere in my area (essex) I dont really want to take out a mortgage on top of this money.

Thought you guys may have some ideas. All welcome

Many thanks
James

Radiantsoul

Are you looking to increase your income? How do you feel about risk.

As a starting point you could probably get around 2% in a highstreet bank. That is about £100 per month(£80 after tax). This would preserve your capital.

atush

scroll back and see the other post on 60K, and the one on 50K where all our answers will be the same.

Starting off with, we can't help you until you give us more details.

Homeowner already? Mtg? Planning on marrying the mother of your child? Pension? Other savings and investments?

Saxon-g

atush - this is the first time i've used the site; or even a forum so bear with me! You make it all sound very complicated! None of what you asked seem relevant to my original question!

Homeowner already - No
Mortgage - No
Yes i am planning to marry, but parents are paying
Pension - Yes at work
Other savings - 5.5K ISA

FYI I was looking to buy to let flat. and something to get a return on every month etc

saintalan

You'll find the more folk respond the more questions there will be

You live with your partner but not a homeowner, is she a home owner? I am guessing that as you are thinking BTL then may be she is?

As a BTL person I would not consider it without a 50% mortgage, but there are also many other things you should consider, all of which are shown on the forum. If you are very specific you will get the best from the forum.

Good Luck

Alan

Radiantsoul

Buy to let is rarely popular on here. I think that boat has long since sailed. It might work if you are a builder, etc and so can do up properties in your own time. Otherwise I am not so sure.

Personally I would buy somewhere to live in. Actually living in a property gives a big capital gains tax advantage and you would save on rent. I might also increase your cash savings.

Saxon-g

Thanks for your input guys. I have read the forum posts and it seems there are many more ways than i thought to use this money!

My girlfriend and i live in a house that has no mortgage on so there is nothing to pay on that side of things, however she has approximately 2k debt;

How about buying a shared ownership on a house with my parents, then renting it out and taking only half the rent money? That way i would have income and also own the property (be it half) for the future? I would have it written in the sale that i would own half in case of anything happening to my family.

atush

None of what you asked seem relevant to my original question!

Believe me, everything is relevant!!

So, you have 5.5 K in cash, great. An emergency buffer, which means you can afford to invest (something we did not know). Another guy on here is in a panic as he was buying some stock for 1500, but cancelled it as he had a family emergency. But he can't get his money for 3 days. Which is why you need an emergency buffer. But with a kid on the way, I think you need a larger buffer. 6 months spending perhaps, but at least 3.

If you are not a homeowner, nor is your partner, then buying your own home over a BTL is the first step as that will pay off better than the rent you are paying. If she owns one, then fair enough, but again- you do not to begin with (now you have).

Next stop, pension. You have one, great. But what kind? How many years/money is in it? What % do you put in, and how much does your employer put in? What is your tax rate? This is pertinent as it could be the best place to put spare cash, esp if you are not putting enough in to get your employer's max contribution.

I am not anti BTL, but unless you are in the building/letting trades with only 5.5K in the bank I would advise against it. For several reasons.

One, almost all your eggs in one basket, never a wise approach. Second, you need a capital float beyond your emergency fund for maintenance/repairs, void periods, vandalism, the list goes on. So you don't really have enough at this time, unless you take the shared route with your parents. With 3 of you to fund it, and help look after it, and if you and they have skills in the trade you could make a go of it even after boosting your emergency funds. With 3x CGT exemptions you'd all pay less tax on a sale later when you disposed of it. But it would produce income that would be taxable (whereas income in a S&S isa is not).

Going forwards, I'd say, w/o knowing more about you and any skills you have in the building trade, i'd increase my emergency buffer, fill this years ISAs (both cash and S&S) and boost my pension. Then other investments from property to more equities could be on the cards.

Newly_retired

Just a sideways thought to add to the excellent opinions already given. As your parents are giving you this money, are they likely to need to claim benefits eg Pension Credit, or fees for a care home?
If you are not sure why I am asking, search for "Deprivation of capital".
Apologies if this has no relevance.