Saving or investing?

SarahQuinton65

Hi everyone first time here.
We have just sold our 2 rental properties so we will have about 90k proceeds. This was our income so we need to invest it to maximise return. We ideally would like to reinvest in property but it's very volatile at the moment. Any suggestions on where to put it until things settle. Thank you 

El_Torro

So you want to buy another rental property? You're not considering investing in the stock market? The stock market (mainly via a pension) is what most people on this forum invest in. 

If you want to keep some / all of the money in cash then find the highest rate you can and put the money there.

Also, BTL is generally considered a pretty long term endeavour so I'm not sure why you are hesitating now, if BTL is the right place for your money. 

eskbanker

Investing would generally be considered suitable for long term money that won't be needed for at least five years (preferably more), so if you're likely to want access to it during that timeframe then you'd be best to stick to savings.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

jimjames

SarahQuinton65 said:

Hi everyone first time here.
We have just sold our 2 rental properties so we will have about 90k proceeds. This was our income so we need to invest it to maximise return. We ideally would like to reinvest in property but it's very volatile at the moment. Any suggestions on where to put it until things settle. Thank you 

What reason did you sell property and now want to buy again? The transaction costs must be substantial but knowing the rationale would help with suggestions of where to put the money. If it is temporary then the only real option is savings accounts. Watch out for some investment companies that advertise for property bonds, these are very high risk and although they might claim to give you a stake in the property market you are only lending money to them so have no actual property asset.

Albermarle

so we need to invest it to maximise return. 

Investing for maximum return always has some risk attached. The more 'maximum' the return, the more risk has to be taken.

When investing in stocks and shares the way to dilute the risk is to keep the investments long term. Minimum 5 years, preferably 8 to 10 years. Ideally even longer, which is where pensions come in.

Otherwise keep it in safe cash savings, but here the value is reduced by inflation.

No easy options......