Investment for income

Pobby

I intended to rent out a house but to be frank my wife doen`t want the hassle. This will give me £150,000 to invest. Our pensions are OK plus we have an emergency fund in ISAs and the bank. In the past I invested for capital growth, so long term. I am looking at perhaps 5% return. Any thoughts guys?

takesyourchances

I have a friend who rents out a house and it seems like a lot of hassle and a lot of money going back into to fix things between rents. Also 3 months without renters before the new ones go in. I thought to myself, this is not for me.

I'm not an expert, but maybe some Investment Trusts for income could be worth looking into, although maybe around 4% income for many, income funds and maybe a percentage in P2P which can return higher, but requires research too.

Just some ideas, others way above my experience I am sure can help

Pobby

Yes I was thinking about that.

takesyourchances

I am building up an income portfolio as well but re-investing dividends etc - with P2P re-investing interest to help grow the pots until such times I would want to take any of the income.

While I have had a few bumps with P2P but nothing too drastic, it is also very interesting and can return well, but requires a bit of hands on and spreading around.

Good luck

Audaxer

If you would like to have a good chance of some capital growth to keep up with inflation as well income, maybe 4% income would be a more realistic target with income funds. There is also the option of investing for growth and selling some capital each year for income providing the capital has risen. It should work if you have a good cash buffer to cover lean years. Depends whether you definitely need an additional regular income at this time, assuming you already have a salary or other sources of income.

firestone

you could always stay with the property idea and use IT/REIT like Picton Property income,F & C commercial property,Tritax Big Box among many or look at trusts in the health or student sector for a newer spin on property

Prism

You could always continue to invest in growth and simply take fixed amounts out each month. As long as the growth is higher than the amount you take out.

Thrugelmir

Bottom line is all your money is one basket. You could do well . You could do badly. Who won the race between the hare and the tortoise?

firestone

Thrugelmir wrote: »

Bottom line is all your money is one basket. You could do well . You could do badly. Who won the race between the hare and the tortoise?

The person who wrote the story earning royalties

Drp8713

50% Murray International and 50% City of London would give you diversification, some long term capital growth, and yields nearly 4%.

dividendhero

Drp8713 wrote: »

50% Murray International and 50% City of London would give you diversification, some long term capital growth, and yields nearly 4%.

And a history of nice dividend growth - especially important when earned incomes are going to be stagnant for years