Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • fazsnatch
    • By fazsnatch 8th Aug 18, 6:04 PM
    • 22Posts
    • 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
    • 59,500 Posts
    • 52,807 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
    • 22 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
    • 2,745 Posts
    • 2,670 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
    • 22 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
    • 2,745 Posts
    • 2,670 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
    • 9,661 Posts
    • 12,995 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
    • 44,943 Posts
    • 53,559 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
    • 914 Posts
    • 2,179 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
    • 9,965 Posts
    • 5,375 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
    • 879 Posts
    • 1,126 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/
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,810Posts Today

8,098Users online

Martin's Twitter
  • Ta ta... for now. This August, as I try and do every few yrs, I'm lucky enough to be taking a sabbatical. No work,? https://t.co/Xx4R3eLhFG

  • RT @lethalbrignull: @MartinSLewis I've been sitting here for a good while trying to decide my answer to this, feeling grateful for living i?

  • Early days but currently it's exactly 50 50 in liberality v democracy, with younger people more liberal, older more? https://t.co/YwJr4izuIj

  • Follow Martin