We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

I have £100k - Best possible returns?

2»

Comments

  • Brynsam
    Brynsam Posts: 3,643 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper Combo Breaker
    fazsnatch wrote: »
    I would be open to risk all £100k

    You seem to be very confused. If you own the house and claim it is worth £100K, how would you put 'all £100K' at risk, especially as you say you don't want to go into debt?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    edited 29 August 2018 at 7:44AM
    fazsnatch wrote: »
    I would be open to risk all £100k .

    fazsnatch wrote: »
    I got some side investments in stocks and cryptocurrency. In terms of 100k would be too much of a risk with both markets due a correction


    Make your mind up !
  • knightstyle
    knightstyle Posts: 7,370 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    But a classic car, enjoy it and get 20% return! Look at the Ferrari which sold recently!
  • To get a 10% return on a 100k capital investment in property you need to leverage (ie borrow money). If you buy a place for 400k and put 100k down then its possible.

    Your 300k loan will cost you £7000 per year to service if you get 2.5% IR which appears to be possible (from a quick google)
    Your 400k property might rent for £400 per week which is £20,800
    Your gross profit - assuming no tax or outgoings will be £13,800 which is a 13.8% return on your capital of 100k
    your net return will depend on your letting costs. You do also need to factor in loan arrangement costs, SDLT and agency fees, but this is by no means a particularly high leveraged return.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 353.8K Banking & Borrowing
  • 254.3K Reduce Debt & Boost Income
  • 455.2K Spending & Discounts
  • 246.9K Work, Benefits & Business
  • 603.4K Mortgages, Homes & Bills
  • 178.2K Life & Family
  • 261K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.