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  • FIRST POST
    • fazsnatch
    • By fazsnatch 8th Aug 18, 6:04 PM
    • 23Posts
    • 0Thanks
    fazsnatch
    I have 100k - Best possible returns?
    • #1
    • 8th Aug 18, 6:04 PM
    I have 100k - Best possible returns? 8th Aug 18 at 6:04 PM
    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
Page 1
    • Thrugelmir
    • By Thrugelmir 8th Aug 18, 6:09 PM
    • 60,195 Posts
    • 53,525 Thanks
    Thrugelmir
    • #2
    • 8th Aug 18, 6:09 PM
    • #2
    • 8th Aug 18, 6:09 PM
    How much of your capital are you prepared to risk?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • fazsnatch
    • By fazsnatch 8th Aug 18, 6:12 PM
    • 23 Posts
    • 0 Thanks
    fazsnatch
    • #3
    • 8th Aug 18, 6:12 PM
    • #3
    • 8th Aug 18, 6:12 PM
    I would be open to risk all 100k
    • steampowered
    • By steampowered 8th Aug 18, 6:30 PM
    • 2,886 Posts
    • 2,866 Thanks
    steampowered
    • #4
    • 8th Aug 18, 6:30 PM
    • #4
    • 8th Aug 18, 6:30 PM
    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
    • By fazsnatch 8th Aug 18, 6:36 PM
    • 23 Posts
    • 0 Thanks
    fazsnatch
    • #5
    • 8th Aug 18, 6:36 PM
    • #5
    • 8th Aug 18, 6:36 PM
    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
    • By steampowered 8th Aug 18, 6:37 PM
    • 2,886 Posts
    • 2,866 Thanks
    steampowered
    • #6
    • 8th Aug 18, 6:37 PM
    • #6
    • 8th Aug 18, 6:37 PM
    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.
    Originally posted by fazsnatch
    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
    • By theartfullodger 8th Aug 18, 6:48 PM
    • 9,839 Posts
    • 13,352 Thanks
    theartfullodger
    • #7
    • 8th Aug 18, 6:48 PM
    • #7
    • 8th Aug 18, 6:48 PM
    Give it all to me, I'll guarantee 12.73% !!! Guaranteed!


    PM me for my bank account details,,,


    Honest Art
    • G_M
    • By G_M 8th Aug 18, 9:58 PM
    • 45,564 Posts
    • 54,793 Thanks
    G_M
    • #8
    • 8th Aug 18, 9:58 PM
    • #8
    • 8th Aug 18, 9:58 PM
    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? ...
    Originally posted by fazsnatch
    Double the rent.
    • NaughtiusMaximus
    • By NaughtiusMaximus 9th Aug 18, 9:00 AM
    • 1,266 Posts
    • 3,080 Thanks
    NaughtiusMaximus
    • #9
    • 9th Aug 18, 9:00 AM
    • #9
    • 9th Aug 18, 9:00 AM
    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
    • By dimbo61 9th Aug 18, 9:07 AM
    • 10,046 Posts
    • 5,424 Thanks
    dimbo61
    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 ?
    Last edited by dimbo61; 09-08-2018 at 9:49 AM.
    • caronoel
    • By caronoel 9th Aug 18, 1:51 PM
    • 882 Posts
    • 1,132 Thanks
    caronoel
    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_lifestrategy10 0equityfund_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/
    • Brynsam
    • By Brynsam 29th Aug 18, 8:32 AM
    • 1,676 Posts
    • 1,231 Thanks
    Brynsam
    I would be open to risk all 100k
    Originally posted by fazsnatch
    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
    • By AnotherJoe 29th Aug 18, 8:42 AM
    • 11,036 Posts
    • 12,716 Thanks
    AnotherJoe
    I would be open to risk all 100k .
    Originally posted by fazsnatch

    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
    Originally posted by fazsnatch

    Make your mind up !
    Last edited by AnotherJoe; 29-08-2018 at 8:44 AM.
    • knightstyle
    • By knightstyle 29th Aug 18, 8:59 AM
    • 4,856 Posts
    • 1,830 Thanks
    knightstyle
    But a classic car, enjoy it and get 20% return! Look at the Ferrari which sold recently!
    • SmashedAvacado
    • By SmashedAvacado 29th Aug 18, 9:03 AM
    • 384 Posts
    • 418 Thanks
    SmashedAvacado
    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.
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