Nothing makes me feel thick... (£1000pm to invest)

Mistermeaner

Some good advice above.

Just picking up one point in your original post - you mention wanting a mortgage of 400-500k in 5-6 years.

Such a mortgage will approx require a 10% deposit so you need to save approx 1k per month to achieve this which you appear to have (can you still do this if you take the pension advice?)

However the repayments on such a mortgage are going to be in the 2k - 2.5k per month range which you don't appear to have : where will this come from and what about continuing saving etc once you have your mortgage?

AndyT678

Mistermeaner wrote: »

Some good advice above.

Just picking up one point in your original post - you mention wanting a mortgage of 400-500k in 5-6 years.

Such a mortgage will approx require a 10% deposit so you need to save approx 1k per month to achieve this which you appear to have (can you still do this if you take the pension advice?)

However the repayments on such a mortgage are going to be in the 2k - 2.5k per month range which you don't appear to have : where will this come from and what about continuing saving etc once you have your mortgage?

All true £50,000 deposit + £15,000 for stamp duty + an income of at least £100,000 (guesstimate). And I reckon repayments would be closer to £3,000 per month at the likely rates for low deposit contributions.

atush

I would start with several things. Building uip an emergency cash fund (which could be added to a deposit) of 3-6 months outgoings. Use current accts and regualr savers (not cash isas) due to higher interest rates.

then, S&S isa. for long term and property purchase as you say you have a 5 yr min term.

Then consider a Sipp or PP for any money above the HRTax threshold. This will help you retire early, save tax, and perhaps the TFLS will help pay off your mtg should you still have one at retirement

Pincher

There is one born every minute.

We are designed to start from scratch, so we can form our own survival strategy, depending on prevailing environment conditions.

If you are a polar bear, and you insist on living on hunting from land, you are doomed. One day, a young polar bear will realise it's much better to go into modelling, look cute, pose for cameras, and demand royalties.

South sea bubble, Tulip mania, Shanghai stock market last month; it's all prime examples of following in established wisdom. The whole system is based on a large number of mugs losing money, so the smart ones can profit.

Learn from the young polar bear, become a financial adviser, the house always wins.

masonic

Pincher wrote: »

If you are a polar bear, and you insist on living on hunting from land, you are doomed. One day, a young polar bear will realise it's much better to go into modelling, look cute, pose for cameras, and demand royalties.

South sea bubble, Tulip mania, Shanghai stock market last month; it's all prime examples of following in established wisdom. The whole system is based on a large number of mugs losing money, so the smart ones can profit.

Learn from the young polar bear, become a financial adviser, the house always wins.

If you think piling your money into Tulips or the Shanghai stockmarket represents the conventional wisdom, then you might benefit from reading a few more investing threads here.

If you don't want to pit yourself against the "smart ones", then simply buy the market and accept the average market return - and by that I mean spread your money around global markets, not just China!

Bonus55

Mistermeaner wrote: »

Some good advice above.

Just picking up one point in your original post - you mention wanting a mortgage of 400-500k in 5-6 years.

Such a mortgage will approx require a 10% deposit so you need to save approx 1k per month to achieve this which you appear to have (can you still do this if you take the pension advice?)

However the repayments on such a mortgage are going to be in the 2k - 2.5k per month range which you don't appear to have : where will this come from and what about continuing saving etc once you have your mortgage?

Good point, I guess it hadn't quite registered how much that would cost and there was an element of putting an arbitrary figure on it for argument's sake.

5-6 years from now... in an ideal world, I'd be on more by way of salary and potentially other incomes plus the possibility to rent a room out to lodge and/or share the mortgage with a partner. But the realistic expectation is likely no, I'm aiming too high based on my current situation. I'd also rather be closer to 33% or more deposit for the better rates and shorter terms.

If this thread has taught me anything it's made me realise the gap between middle incomes and top incomes is a LOT bigger than I imagined!!

colsten

Alpaca wrote: »

This strikes me as a bit of a naïve comparison. Just because an individual (and then, only with strong credit history) can borrow £10k at 3.5% for 2 years, doesn't mean that a business can walk into their high street bank and get £2.5m for 6 months at the same rate! They're totally different markets with totally different requirements, levels of funds and therefore totally different going rates as well. Which means that higher rates doesn't immediately infer less credit-worthy borrowers, particularly if (as here) you're comparing apples and oranges.

Most of the platforms I mentioned don't lend to individuals so the rates Tesco (or others like them) will do for punters are irrelevant.

Of course business and retail APRs can vary. It still holds true that anyone - private borrower or business - who is borrowing at the rates you promise is quite desperate and high risk.

masonic

colsten wrote: »

Of course business and retail APRs can vary. It still holds true that anyone - private borrower or business - who is borrowing at the rates you promise is quite desperate and high risk.

I agree with desperate (in the sense that the borrower needs the money in a hurry and cannot/doesn't want to wait for cashflows or other finance to be arranged). However, I completely disagree that anyone in this situation is high risk. Some are some aren't... but this is also where the assets used to secure the loan come into play.

For a very brief guide to this type of loan, see: http://www.moneysupermarket.com/loans/bridging-loans-guide/. This is geared mainly around individuals, but businesses also use them for analogous reasons.

oatman

Buy property. Don't go pensions, I was also ripped off like your parents. NEVER touch forex or any futures markets. Professionals only tell you about their profits. Financial markets are choppy and you are young. Stay close to cash/ liquidity.

Mistermeaner

oatman wrote: »

Buy property. Don't go pensions, I was also ripped off like your parents. NEVER touch forex or any futures markets. Professionals only tell you about their profits. Financial markets are choppy and you are young. Stay close to cash/ liquidity.

^ this is some of the worst advice you could possibly get