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I have £100k - Best possible returns?
fazsnatch
Posts: 28 Forumite
Hi guys,
I have last year paid off a 3 bedroom house that I purchased for 90k and is now worth 100k.
I am currently getting £450 rent per month which is around £5k rent per year.
Ideally, I want to get around 10% return on that 100k per year. So ideally £10k a year, what would your advice be or best possible steps to get that or close to it?
I would like to avoid going back into any debt if possible.
Thank You
I have last year paid off a 3 bedroom house that I purchased for 90k and is now worth 100k.
I am currently getting £450 rent per month which is around £5k rent per year.
Ideally, I want to get around 10% return on that 100k per year. So ideally £10k a year, what would your advice be or best possible steps to get that or close to it?
I would like to avoid going back into any debt if possible.
Thank You
0
Comments
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How much of your capital are you prepared to risk?0
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I would be open to risk all £100k0
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A 10% return would be very high and implies quite a high level of risk.
The easiest way to get that sort of return would be to invest in stocks and shares.
The average long term return of the major stock markets is about 8-10% per year. The easiest way of investing is through a low cost fund, such as a Vanguard tracker.
You can also invest as much as possible through a stocks & shares ISA to avoid your investment returns being taxed.
Obviously, you would have to understand at the outset that the value of your investment will go up or down (a lot) over time.0 -
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.0
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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.
Crypto is higher risk than stocks, I don't think that really reduces your risk level!
If you want to reduce your risk, you could consider keeping part of your money in savings or in bonds.0 -
Give it all to me, I'll guarantee 12.73% !!! Guaranteed!
PM me for my bank account details,,,
Honest Art0 -
Double the rent.I have last year paid off a 3 bedroom house that I purchased for 90k and is now worth 100k.
I am currently getting £450 rent per month which is around £5k rent per year.
Ideally, I want to get around 10% return on that 100k per year. So ideally £10k a year, what would your advice be or best possible steps to get that or close to it? ...0 -
I doubt any property anywhere would give a rent return of 10% of the property value, the only possible exception would be if you bought a house which required a huge amount of work to bring it up to scratch and you ahd sufficent skills and time to do most of it yourself. The best returns local to me I know of would be to buy a 3 bed maisonette in one of the poorer areas of Brum for around 100k which could be rented out for around 600pcm.0
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Well with the BOE rate now 0.75% and the best cash ISA,s paying 1.4%
You need to look at other uses for what you have !
Can you get a better rent if you rent out each room ?
Can you change the property into 2 flats ? Student rental ?0 -
Might be worth looking at a combination of something like:
One of the more aggressive market funds on Vanguard
https://www.vanguardinvestor.co.uk/investments/vanguard-lifestrategy-100-equity-fund-accumulation-shares?intcmpgn=blendedlifestrategy_lifestrategy100equityfund_fund_link
A higher risk P2P ISA (https://www.money.co.uk/savings-accounts/peer-to-peer-isas.htm)
and a more established VCT to help you claw bakc some tax and get a decent tax free return https://www.wealthclub.co.uk/venture-capital-trusts/0
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