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I have £100k - Best possible returns?

fazsnatch
fazsnatch Posts: 28 Forumite
in House buying, renting & selling
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
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Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    How much of your capital are you prepared to risk?
  • fazsnatch
    fazsnatch Posts: 28 Forumite
    I would be open to risk all £100k
  • steampowered
    steampowered Posts: 6,176 Forumite
    First Anniversary Name Dropper First Post
    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.
  • fazsnatch
    fazsnatch Posts: 28 Forumite
    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.
  • steampowered
    steampowered Posts: 6,176 Forumite
    First Anniversary Name Dropper First Post
    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.

    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.
  • theartfullodger
    theartfullodger Posts: 14,590 Forumite
    Name Dropper First Anniversary First Post
    Give it all to me, I'll guarantee 12.73% !!! Guaranteed!


    PM me for my bank account details,,,


    Honest Art
  • G_M
    G_M Posts: 51,977 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    fazsnatch wrote: »
    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? ...
    Double the rent.
  • NaughtiusMaximus
    NaughtiusMaximus Posts: 2,832 Forumite
    First Anniversary Name Dropper First Post
    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.
  • dimbo61
    dimbo61 Posts: 13,716 Forumite
    Name Dropper Photogenic First Anniversary First Post
    edited 9 August 2018 at 9:49AM
    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 ?
  • caronoel
    caronoel Posts: 908 Forumite
    I've been Money Tipped!
    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/
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