Best way to use savings to generate second income.

Aretnap

colsten wrote: »

If it was such a good investment, why is it on the market for more than a nano-second?

Erm, I didn't say that it was a good investment - just that it is indeed possible to buy a house for less than £35K.

There must be good reason why the professional property developers haven't snapped it up yet.

To play devil's advocate, to an extent you could say the same about any house which has been on the market for more than a nanosecond. I presume that someone thinks it's possible to make money from it at something like that price - otherwise the asking prices of houses on that street would be forced even lower. But I agree that, to put it mildly, it's unlikely to be an investment that would suit the naive, the inexperienced or the faint-hearted - for the reasons already alluded to.

Thrugelmir

Ibl0010 wrote: »

P.S. We are open to suggestions on what to invest in to make savings grow.

What's your best personal skill ? What hobbies or interests do you have? Use what you are good at or knowledgable in as the basis. .

Broken_Biscuits

Ibl0010 wrote: »

Is any of his idea a good way to generate better returns than what banks are offering on saving or is it better to just carrying on saving.

P.S. We are open to suggestions on what to invest in to make savings grow.

pyramids of risk.
at the bottom of the risk scale you should be filling the 5% bank accounts and then if you like the 4% ones and even the 6% regular savers.
of your 17k, you would have about 6k to 10k put away earning you a fair bit of loose change each month in interest. That's risk free money in the bank.

next up ratesetter. The safest p2p there is with a 6.5% return (today i matched at 6.8%). Put your next lot of money to the sum of your comfort level here.

then set up a balanced monthly investment into a stocks and shares isa.

now the fun part... With whatever is left or on the months you save a bit more, you can invest in the more risky stuff. But because you are doing this from a position of strength it doesn't matter if it doesn't work out as planned.

for you this might be buying a shed to do up in Middlesbrough, for me this is investing in emerging markets etc.

this is what i do. Feel free to ignore, but makes sense not to blow the lot on an idea. Get your pyramid structure in place to support your more crazy investment ideas.

Eco_Miser

colsten wrote: »

There must be good reason why the professional property developers haven't snapped it up yet.

There is, there's a surplus of property in Middlesbrough, huge swathes of housing like that have been demolished (perhaps that street is scheduled to be next), and still the prices are low.

Still, there's always southerners who'll think they're snapping up a bargain, site unseen.

Ibl0010

Thrugelmir wrote: »

What's your best personal skill ? What hobbies or interests do you have? Use what you are good at or knowledgable in as the basis. .

As far as hobbies goes it would be sports. Mainly football though. I like planning, organised etc

IronWolf

You have £35k but that doesn't mean you are limited to buying a house for £35k. If you both work full-time then you can use that £35k to get a BTL mortgage of up to £140k. That expands your options a lot but obviously a lot of your rent then goes to paying off the mortgage rather than into your pockets.

If it was me personally, I would say stocks and shares, but tbh the market isnt particularly great to be piling into currently, it's far from cheap so I think unless you are picking individual stocks and are very good at it, you are unlikely to get a great return in the long term, and in the short term could even be sitting on losses.

So BTL seems like a decent option to me

atush

Best way to grow your cash overnite? Invest it in a pension.

Best way to beat inflation over time? Invest. Best way to do it tax free? Invest in a S&S isa.

Yes, you can buy houses for 34K in Mbrough and other places incl say, Stoke or the Valleys in wales. And yes you can rent them.

But to do it profitably, you need skills in these areas and local knowledge. And unlike Pensions and Isas, the capital gains and income are taxed on property.

droopsnoot

Ibl0010 wrote: »

What do you think of the idea of using some of saving to put and sell products online. Even if only few product are sold each week. It will probably still get better returns than saving money in bank.

Plenty of stuff on the 'Boost your income' board on this subject. Things to consider are : product going out of date / becoming obsolete while you still have a shed full, customer returns, your responsibilities as a business (such as product warranty), poor quality product - basically loads of reasons not to do it. Lots of people do it very successfully, of course.

jimjames

Ibl0010 wrote: »

In your opinion what would be a good investment or even business idea that some of savings can be used on to generate better returns than those currently offered by banks or is it simply better to keep the all saving in the bank.

I'd be investing in s&s via funds in an ISA. It's not a get rich quick scheme but over time should build into a decent pot. I don't agree that all markets are high, just because something is a certain number doesn't make it expensive. If market level was a factor then no one would be buying houses.

Also far less effort than running your own business or being a landlord.

Ibl0010

IronWolf wrote: »

You have £35k but that doesn't mean you are limited to buying a house for £35k. If you both work full-time then you can use that £35k to get a BTL mortgage of up to £140k. That expands your options a lot but obviously a lot of your rent then goes to paying off the mortgage rather than into your pockets.

If it was me personally, I would say stocks and shares, but tbh the market isnt particularly great to be piling into currently, it's far from cheap so I think unless you are picking individual stocks and are very good at it, you are unlikely to get a great return in the long term, and in the short term could even be sitting on losses.

So BTL seems like a decent option to me

Yeah, we both work full time.

That's a different outlook I never thought about before. As you said for example the 35k can go toward buying a property in the under 100k and above brackets.