100k to invest

Bluenose123

Hi

I am fortunate enough to be debt free and own my own home.

I am looking for the safest way to invest £100,000 without risk to my capital. I have considered P2P and stocks and shares but do not like the fact that capital is at risk so could lose all of the investement and I definitely fall into the risk adverse category. I have also looked at bonds which although safe, rates not much better than savings accounts and money is tied up.

One option I thought may be worthwhile is buying a property to let out specifically in the North East around Durham area because property is still cheap therefore potential yields are quite high and I estimate could get net yield of around 5%.

Does anyone have any experience and tips for letting in this area or alternatively any other options on how best to invest £100k without risking the capital (Yes I know buying a property risks the capital but I would still have the house )

dunstonh

I am looking for the safest way to invest £100,000 without risk to my capital.

Are you only talking about investment risk or are you including shortfall risk and inflation risk in that as well?

I have considered P2P and stocks and shares but do not like the fact that capital is at risk so could lose all of the investement

What makes you think you can lose all of the investment?

One option I thought may be worthwhile is buying a property to let out specifically in the North East around Durham area because property is still cheap therefore potential yields are quite high and I estimate could get net yield of around 5%.

But that doesn't fit your views on investment risk. And a single investment property is higher risk than a diverse portfolio

Is that net yield of 5% after management fees, building repairs/maintenance, refurbishment, taxation, services checking etc?

Bluenose123

Talking about risk to the £100k Capital and the reason I say could lose all of my investment with P2P and stocks and shares because of the standard disclaimer which always states capital is at risk .

When calculating the net yield of 5% i am mean after all costs (my personal allowance would cover taxation as I no longer work).

I understand why you say a single investment is riskier than a diverse portfolio however at least with a property I have the property as an asset should I have problems with the tenant

Linton

Bluenose123 wrote: »

Talking about risk to the £100k Capital and the reason I say could lose all of my investment with P2P and stocks and shares because of the standard disclaimer which always states capital is at risk .

When calculating the net yield of 5% i am mean after all costs (my personal allowance would cover taxation as I no longer work).

I understand why you say a single investment is riskier than a diverse portfolio however at least with a property I have the property as an asset should I have problems with the tenant

You may have the asset but its capital value is at risk.



With mainstream investing in shares from across the world using funds the chances of losing everything is extremely small. For it to happen would require a catastrophic global economic collapse after which the loss of your capital would be pretty low down on your list of problems.


The day to day risk of shares is that prices fluctuate, so your total capital value will vary, sometimes significantly, over short time scales. Property does not appear to have this problem because its value isnt being continuously re-evaluated.

xylophone

https://www.which.co.uk/money/mortgages-and-property/buy-to-let/becoming-a-landlord-ak37s4b81j0b

Do you really want to be a landlord?

Bluenose123

Thanks for the link xylophone. I did not know government were thinking of making tenancies a minimum of three years .

Bluenose123

Thank you for the replies which as certainly made me rethink a buy to let.

Would low risk multi asset funds be a better way to invest and what sort of returns could I reasonably expect