100k where to invest?

returntotheuk

Hi Guys,

I have assets of 100k which I am thinking of selling, however I am not sure where to put the cash.

My original idea was to buy flat and then rent it out, but I am not sure if that is the best option as it maybe to much hassle. By the way, I am British but I do not live in the Uk. I may return one day but not sure, however I would like have some money either invested in the UK or in bank accounts in the UK.

I am a little concerned of having cash tied up in a property if I am not in the UK, and if the property is empty then I still pay management fees and council tax?

I am now thinking, that it would be better to have money as a liquid asset, something I can get hold of quickly if I need it. So, my question is where do I bank 100k? I know about ISA's and stuff and bank accounts but interest rates are low and I am not sure ISA's are suitable for me when I do not live in the UK.

I would appreciate any ideas?

kidmugsy

You could check the website of ns&i (National Savings and Investments) to see whether non-resident citizens can use their accounts.

returntotheuk

Thanks, I will take a look.

I am sure I can use my accounts though, I am sure if I can set new ones up though. I would be interested to see if anyone else know about the banks for non-residents saving money.

Maybe I need to go down the property route?

BeachNut

You can't open/add to an ISA if non-UK resident. Also difficult to open UK bank accounts unless you have a UK address (ie. to hide the fact that you are non-resident). Re property, you'll have to pay council tax if no tenants but usually at a reduced rate for 6 months. Also, if long-term non-resident, no capital gains tax on sale of the property in future.

returntotheuk

After doing some more researching, it looks as though, because I am a non resident it is near impossible to open an onshore account in the UK? And, offshore accounts have little to no interest plus high bank charges?

Will I be better off buying a property???

returntotheuk

BeachNut wrote: »

You can't open/add to an ISA if non-UK resident. Also difficult to open UK bank accounts unless you have a UK address (ie. to hide the fact that you are non-resident). Re property, you'll have to pay council tax if no tenants but usually at a reduced rate for 6 months. Also, if long-term non-resident, no capital gains tax on sale of the property in future.

I think I posted at the same time as you ; - )

The property option maybe a better bet then a savings account, I am not sure if I want the hassle of a property in the UK though. I am weighing up my options, I live in Cambodia but banks here are not the safest in the world but actually pay much highest interest rates. A lot to think about.

MurrayJ2013

An ISA is just a tax wrapper. With that kind of money you can open up a fund or share account with no restrictions on the amount invested. Or you could seek the help of a financial adviser who now typically require £50k to play with.

ermine

returntotheuk wrote: »

Hi Guys,

I have assets of 100k which I am thinking of selling, however I am not sure where to put the cash.however I would like have some money either invested in the UK or in bank accounts in the UK.

I am now thinking, that it would be better to have money as a liquid asset, something I can get hold of quickly if I need it.

You appear to be confusing investing and saving. With investing you accept risk in order to grow or preserve the value of your money; the downside is the risk means you suffer volatility of the capital value. Stocks are the canonical investing example, though a BTL is an investment too. The cost of servicing and voids make it a volatile investment, more volatile than if you live in it.

Saving is where you tend to have access to your money and the nominal value doesn't go down, though you'd have to use two financial institutions to get the government guarantee, which is only up to £85,000 per institution.

You still take a very serious risk with saving, but nobody seems to ever see it compared with the obvious risk of a stock market crash. Our nice new Governor of the Bank Of England, Mark Carney, will print money meaning inflation with destroy the purchasing power of your money over the years. The upside is the government will find that in needs to pay less real value for its debts.

So before you start doing anything with this you have to ask yourself what are you doing - saving (ie you do not wish to accept any nominal fall in the value of your investment, and you can usually get it out instantly), or investing. A guide is the time scale you expect to need the money - less than five years and saving is probably okay, more than that and you should bear in mind the real value of your money will probably halve in ten years.

returntotheuk

Thanks for the advice guys.

Having done a bit more research, it seems that a lot of people advise that you should have 60% of your assets as investments and 40% as liquid cash? This does not include your the house you live in. Does this sound about right?

So, if this is the case then I am best to keep the majority of this 100k in savings so I can easily get to it if I need it. I already have a number of investments in property/land so it looks like the best thing to do it just put it some where as savings.

Finding the right place to save the money is not easy as a non resident of the UK ; - (

ermine

returntotheuk wrote: »

Having done a bit more research, it seems that a lot of people advise that you should have 60% of your assets as investments and 40% as liquid cash? This does not include your the house you live in. Does this sound about right?

Depends how old you are and what your requirements are. If they're similar to that 'lot of people' then yes. However, your situation is a little more complex as presumably you have assets outside the UK so you have currency risk to think about too.

Finding the right place to save the money is not easy as a non resident of the UK ;-(

Dunno if it makes you feel any better but it's also pretty damn difficult for residents of this septic isle, too

G_M

"all your eggs in one basket"- so not all in property (or anything else..)

Reduced council tax on empty property for 6 months? Not any more! But check the relevant council.

Also see

New Landlords (information for new or prospective landlords)