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What would you do with £100k?

Legacy_user
Legacy_user Posts: 0 Newbie
in Savings & investments
My savings rate of 2.8% has now ran out and checked to see the latest offerings and they are around 1.5%, completely depressing.


Have thought about peer to peer lending.

I don't need access to the cash but will need in 2 years when I move out.

Would it be a good idea to buy a house for £100k and let it? Would the % of net income be greater than 4%?
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Comments

  • itch_for_a_glitch
    itch_for_a_glitch Posts: 10,705 Forumite
    Ive just opened a Santander 123 account £3k-20 k gets 3% , you can have 2 accounts, if you have a partner thats £80k stashed.
  • System
    System Posts: 178,365 Community Admin
    10,000 Posts Photogenic Name Dropper
    yeh but need to set up 2 direct debits, not sure its possible
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 3 September 2013 at 6:47PM
    berbastrike wrote: »
    My savings rate of 2.8% has now ran out and checked to see the latest offerings and they are around 1.5%, completely depressing.


    Have thought about peer to peer lending.

    I don't need access to the cash but will need in 2 years when I move out.

    Would it be a good idea to buy a house for £100k and let it? Would the % of net income be greater than 4%?

    We are in a similar position with our savings, I just don't like the idea of peer to peer lending so I have been putting more cash into ftse trackers. My wife isn't keen on shares so we are looking for a house to buy to let out.

    EDIT: Forgot to mention I am putting more into my pension too.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • eskbanker
    eskbanker Posts: 37,846 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    berbastrike wrote: »
    yeh but need to set up 2 direct debits, not sure its possible

    See this thread for details of how to set up qualifying DDs to other savings accounts if you don't have enough 'normal' ones:

    https://forums.moneysavingexpert.com/discussion/4168667
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    chucknorris wrote: »
    I have been putting more cash into ftse trackers.

    Why limit yourself to such a small part of the investment sphere?
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • SG27
    SG27 Posts: 2,773 Forumite
    berbastrike wrote: »
    My savings rate of 2.8% has now ran out and checked to see the latest offerings and they are around 1.5%, completely depressing.


    Have thought about peer to peer lending.

    I don't need access to the cash but will need in 2 years when I move out.

    Would it be a good idea to buy a house for £100k and let it? Would the % of net income be greater than 4%?

    Problem with buying a house is that it has very high buying and selling fees so if you need the money back in a couple of years any yield over that period will be wiped out by the costs. That's if you can find somewhere with a 4%+ net yield.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    gadgetmind wrote: »
    Why limit yourself to such a small part of the investment sphere?

    Because I can't really bothered with shares and I don't want to try and outperform the market (I have made my money now), just mirroring the average market return/growth is good enough for me.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    chucknorris wrote: »
    Because I can't really bothered with shares and I don't want to try and outperform the market (I have made my money now), just mirror the market.

    But why choose to just mirror FTSE when you can hold a single tracker or ETF with much broader coverage.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • chucknorris
    chucknorris Posts: 10,795 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    gadgetmind wrote: »
    But why choose to just mirror FTSE when you can hold a single tracker or ETF with much broader coverage.

    I have ftse 100 and all share trackers and I am happy with them.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • Bromley86
    Bromley86 Posts: 1,123 Forumite
    eskbanker wrote: »
    See this thread for details of how to set up qualifying DDs to other savings accounts if you don't have enough 'normal' ones:

    https://forums.moneysavingexpert.com/discussion/4168667

    Don't forget you'll need 2 of those savings accounts. I'd originally opened just one Tesco savings account and Santander treated the 2 DD that I set up as just one (as they shared the same mandate). That was a nasty surprise. Easy enough to open 2 Tesco savings accounts though.

    When I opened them a couple of months ago, there appeared to be no limit (currently have 3 + 1 joint). That may have changed now though.
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