What should I do with 85 thousand?

boris233

Hello there, Sorry if I posted in the wrong place, I am new this forum. In the next week or so I am going to receive a check for 85 thousand pounds. This is gonna sound ungrateful but I am at a loss of what to do with this money. I basically need some wise words from you guys as to what you would do, if you were in my shoes. I am 26 and my job is not stable, I probably have up to six months left. Mean while I am setting up my own business and hoping it will support me once I am no longer employed. I am not a home owner and currently rent on the cheap with the in-laws . Knowing that my job will never bring me vast bucks, I need to use this money very wisely. So I am thinking of several options:

1. Whether I split the money down and invest the money
into shares.
2. Split the money again but put a small amount into high risk
shares and some into low risk
3. If I should find a business that is doing well but needs
the investment
4. If I should find a property and get a mortgage whilst I still have
my position at my job, fix the place up and rent out

Sorry for the long winded post. What would you do in you were in my shoes and how would you go about it? Thanks a lot for your time

Kayalana99

I think the first 3 are high risk, I would go with the 4th.

Do you have any knowledge of shares?

Wish you luck anyway :-)

boris233

Kayalana99 wrote: »

I think the first 3 are high risk, I would go with the 4th.

Do you have any knowledge of shares?

Wish you luck anyway :-)

I dont have any knowledge of shares, only the ones that my mum did with banks.

cheers

gb12345

Kayalana99 wrote: »

I think the first 3 are high risk, I would go with the 4th.

2 and 3 are high risk.

1 depends on what type of shares or whether you use a managed fund of some sort.

4 is also not without risk - it's one thing to have the cash for the initial outlay, but if you were to lose your job and then have 3 or 4 month empty period would you be able to afford the mortgage payments.

The best place for this question is probably the savings and investments forum.

boris233

gb12345 wrote: »

2 and 3 are high risk.

1 depends on what type of shares or whether you use a managed fund of some sort.

4 is also not without risk - it's one thing to have the cash for the initial outlay, but if you were to lose your job and then have 3 or 4 month empty period would you be able to afford the mortgage payments.

The best place for this question is probably the savings and investments forum.

Thanks for your reply. I mean if I did go with number 4. I would do it on the intention of renting it out every month. This way if I did and will lose my job, it will be paying for its self. But is this a good option obviously I cannot keep the money sitting in a bank, it will depreciate. I would like to keep the other options open but just dont whats the best thing to go with?

thanks

gb12345

boris233 wrote: »

I mean if I did go with number 4. I would do it on the intention of renting it out every month. This way if I did and will lose my job, it will be paying for its self.

With BTL though you can't guarantee that you will have it constantly let. The closest you have to a guarantee is the 6/12 month contract you have with your current tenant (and this isn't guaranteed if they stop paying or disappear mid term).

Putting all your eggs in one basket is very risky, so if this £85k is your only savings you need to think carefully about the best way to invest it and also how quickly you might need to get at the money.

You say you are likely to lose your job in 6 months or so - how quickly do you think you will find another one? Wherever you invest this money, it is not going to provide you with sufficient income to support yourself while you look for another job, so you will be looking at accessing some of the capital (which you can't do if it is tied up in a property).

boris233

gb12345 wrote: »

With BTL though you can't guarantee that you will have it constantly let. The closest you have to a guarantee is the 6/12 month contract you have with your current tenant (and this isn't guaranteed if they stop paying or disappear mid term).

Putting all your eggs in one basket is very risky, so if this £85k is your only savings you need to think carefully about the best way to invest it and also how quickly you might need to get at the money.

You say you are likely to lose your job in 6 months or so - how quickly do you think you will find another one? Wherever you invest this money, it is not going to provide you with sufficient income to support yourself while you look for another job, so you will be looking at accessing some of the capital (which you can't do if it is tied up in a property).

Well hopefully my business will have kicked off, if hasn't i will do freelance stuff in between.

Kayalana99

Although low risk shares are low risk...if you have no experience I still think 4th is a better idea. As above though, don't put all your eggs in one basket if you *do* decide to do option four maybe think about only putting 70k down? Or even buying two houses at 35k deposit?

Just keep some in savings for bad months etc and you'll be fine.

saterkey

how about buying a small property with at least two bedrooms and rent out one and live in one. I lost a lot on shares so I wouldn't go there, as you have to know what your doing, even just putting it in the bank would earn you a couple of grand im sure in interest depending on how long its there, for nothing and less hassle than shares. This is your chance to get on the step ladder of housing, you could always use your house as premises to start up depending on what sort of business you want. Have a look at shops with accommodation over the top maybe. don't wait for your job to go, be proactive and look for another even part time while you do your business, but above all cover yourself, your probably unlikely to get that sort of money again. good luck.

jenniemiller177

Perhaps spend £70K on a property and the rest keep back for business and see what happens over the next 6 months in your job.

tuttifruiti20

I would invest in property and then use the rental income you could make towards a business venture.