£75000 to invest.

Sam_J12

davethom wrote: »

Looking for all advice please. Greatly appreciated.

Would be ideal to have £8000 return in 1 year off the 75000.

Thanks

If I were you, I would work out how much of this money you will need in the next few years - holiday, house deposit etc. - and put the rest in equities. You can't go too far wrong with picking cheap tracker funds in developed markets. Just don't withdraw your money shortly after market collapses and you will be ok.

Jonbvn

WannaBLoaded wrote: »

If someone was to invest 75,000 smackers, that would mean i could buy outright and sell in less than 6 months, do 2 and a half / 3 refurbs in a year, save 12 x 400 ish a month in mortgage repayments, mortgage fee's, commissions, estate agents fees yadda yadda which would mean giving an investor 8000 back + their original investment over around 12 months would be very possible.

Plus, it would probably all be tax free.

Some issues with your plan:

1. It would not be tax free.
2. What is stopping you running off with the money?
3. The property market does not always go up.

WannaBLoaded

Jonbvn wrote: »

Some issues with your plan:

1. It would not be tax free.
2. What is stopping you running off with the money?
3. The property market does not always go up.

Hi,

It would be my only residence, tax free once sold.

Nothing, although i wouldn't. But i guess i would have a 70 or 80k asset and a loan agreement could be drawn up, either way it would be secured. And we could fiddle it so that once he gets his money no tax is payable on his profit.

I would be buying a run down property for about 70k, spending about 8k on it and selling it on for between 95-100k.

i would be doing all of the work and it would take about 10 weeks. But when you have a mortgage you can't sell for 6 months so cash buying would be better.

Eventually when i have bought and sold say 4, i would be able to cash buy myself.

Archi_Bald

WannaBLoaded wrote: »

And we could fiddle it so that once he gets his money no tax is payable on his profit.

Hope they catch you if you feel fiddling is ok.

Jonbvn

WannaBLoaded wrote: »

Hi,

It would be my only residence, tax free once sold.

Nothing, although i wouldn't. But i guess i would have a 70 or 80k asset and a loan agreement could be drawn up, either way it would be secured. And we could fiddle it so that once he gets his money no tax is payable on his profit.

I would be buying a run down property for about 70k, spending about 8k on it and selling it on for between 95-100k.

i would be doing all of the work and it would take about 10 weeks. But when you have a mortgage you can't sell for 6 months so cash buying would be better.

Eventually when i have bought and sold say 4, i would be able to cash buy myself.

When someone else invests, it is not their residence.

You fiddle it so it is tax free? Great approach:o

WannaBLoaded

Jonbvn wrote: »

When someone else invests, it is not their residence.

You fiddle it so it is tax free? Great approach:o

They will give the money to me, it will be my residence.

You are legally allowed to buy a house and sell it tax free, as long as it is your only residence.

Thrugelmir

WannaBLoaded wrote: »

that would mean i could buy outright and sell in less than 6 months, do 2 and a half / 3 refurbs in a year,

The issues I foresee are finding suitable houses and secondly completing a sale once refurbished to achieve that level of turnover. Lenders are reluctant to advance mortgages against properties owned for less than 6 months as well.

Thrugelmir

Sam_J12 wrote: »

Is it? The S&P 500 has returned around 10% since its inception. Obviously in any one year the return is unlikely to be 10%, but in the long term I can't see why OP can't achieve 10% returns.

The S&P 500 has arisen around 2,000 points over the past 40 years. That equates to a flat average of around 50 points. No where near the 10% you suggest it has.

davethom

Appreciate all the comments so far... any more ideas??

Sam_J12

Thrugelmir wrote: »

The S&P 500 has arisen around 2,000 points over the past 40 years. That equates to a flat average of around 50 points. No where near the 10% you suggest it has.

Erm, for someone with so many posts on an investment forum I am surprised your maths is so poor. The S&P 500 has indeed gone up by around 2000 points in the last 40 years but your method does not calculate the annualised return - a 50 point increase in 1975 would be over a 50% return (plus you ignore dividends reinvested ). The annualised return of the S&P 500 over the last 40 years is actually over 12% (or almost 9% without dividends). There are tons of sites that can calculate this for you e.g. http://www.moneychimp.com/features/market_cagr.htm