Where would you invest £200k and why?

Paul E · Jan 23, 2017

PSQ said:
I was playing 'devils advocate', as I know a couple of fund managers who are doing 'extremely well' from the 2% their firms are charging their clients on similar investments.
One of whom just happens to be following the Lions Tour, and another who has a penchant for...

What I'm trying to get at is sometimes it's best to invest in leading a 'life' while we can, with or without family or other company along the way.
Those memories are worth more than an elderly misers ££££ any day of the week.

I see what you're getting at - and you're bang on, but i'm of the mind that you pay for these things (whatever they are) out of the interest, rather than the capital.
Been enough asset strippers in my family without 1 more.

hindmaist · Jan 23, 2017

Scrambler said:
Someone mentioned on the other thread that you need more like £200k to have some really good investment opportunities.
Well somehow my small arable farm has managed to build up this amount of cash reserves.
We are planning to spend around £50k of it on improving the farm house.
We have considered buy to let, but we already have a couple of terrace houses that bring in around £18k/yr and we are not sure if it is wise to have more of the same.
All advice welcome.

The vast bulk of your net worth is already sunk into real estate of one kind or another.It might be prudent to choose some alternative investments.

oldoaktree · Jan 30, 2017

Scrambler said:
Someone mentioned on the other thread that you need more like £200k to have some really good investment opportunities.
Well somehow my small arable farm has managed to build up this amount of cash reserves.
We are planning to spend around £50k of it on improving the farm house.
We have considered buy to let, but we already have a couple of terrace houses that bring in around £18k/yr and we are not sure if it is wise to have more of the same.
All advice welcome.

Try the student buy to let returns are higher and in the main students are fine remember there just kids away from home . £400 to 500
Per week per student depending on quality and situation in uni towns

Frodo2 · Jan 30, 2017

PSQ said:
Where would you invest £200k and why?

I can't believe this thread has got to post 36, and no one has suggested: tickets for the Lions tour, booze and hookers ?
You only live once...

I just assumed we were talking about the money we could afford to waste. surely all your suggestions are core expenditure.

bazza3034 · Jan 30, 2017

Invest it in the american economy america is going to boom in the next 4 years with a buisness man in charge

Massey mad · Feb 3, 2017

We are in a similar position at the minute (except we don't have all those savings) we just want something thats going to give us a better return than growing wheat and everyone always says buy property, which 30 years ago was absolutely the right thing to do but now houses prices are through the roof we don't see how it's any better than growing wheat. At the end of the day I don't know how old you are but it all comes down to what you want out of life.

oldoaktree · Feb 3, 2017

If I had some spare cash at the moment I'd seriously look at something like this .
http://commercial.bradleyhall.co.uk/properties/manchester-house-commercial-street2/

Andrew K · Feb 6, 2017

What was it George Best once said?

"I spent most of my money on girls, booze and fast cars.The rest of it got wasted"

chaffcutter · Feb 6, 2017

We bought a holiday apartment as a business which qualifies as a rollover for CGT so long as it is let for a high enough proportion of the time, main thing was finding something which can be managed by someone on the spot, ours was on a small holiday park (not caravans !) with owners on site who had a couple of apts of their own, and managed the others for the owners. It worked very well for us and we used to go there ourselves out of season when it was quiet which suited us well. As a long term home for money even though it had good sea views and a good letting history as well as a refurb a couple of years before we sold it, it didn't appreciate as much as if it had been a single property.

welger · Feb 24, 2017

Scrambler said:
Someone mentioned on the other thread that you need more like £200k to have some really good investment opportunities.
Well somehow my small arable farm has managed to build up this amount of cash reserves.
We are planning to spend around £50k of it on improving the farm house.
We have considered buy to let, but we already have a couple of terrace houses that bring in around £18k/yr and we are not sure if it is wise to have more of the same.
All advice welcome.

houses are very good for income.the more you have the more trouble you have with tenants.we have gone through a very bad patch with them .the old man brought a lot of houses for £750 pounds we would sell them and put them in to land if it wasn't for the capitail gains .I assume you have 3 or 4 rented we was ok till we got 10 then that's when there is all ways some one doing a bunk or other sh!t.buy a bit of land and a few more houses spilt the risk

oldoaktree · Feb 25, 2017

welger said:
houses are very good for income.the more you have the more trouble you have with tenants.we have gone through a very bad patch with them .the old man brought a lot of houses for £750 pounds we would sell them and put them in to land if it wasn't for the capitail gains .I assume you have 3 or 4 rented we was ok till we got 10 then that's when there is all ways some one doing a bunk or other sh!t.buy a bit of land and a few more houses spilt the risk

Renting houses is the same as any business the more you have the more problems.
50 sheep it's ok 500 sheep there's lots of problems
10 cows ok 100 cows (beef or dairy) more problems.
You get the picture.
I have tenant house of different types and they'll always causes you problems it's not stick a tenant it and watch the money roll in .
Things happen- oddest thing probably was a tenant left owning rent but left a snake behind.
Dead rat under floor boards in student house .
It's just like farming in away problems arise and you sort them out .
Such as what's that noise out side ? Fat cattle have got out of shed at 2 in the morning.
Combine tyre decides to explode on Friday afternoon of the august bank holiday.
Things things get sorted same problems in rented houses .
It's just a mind set if you don't like dealing with tenants there are companies who will do it for , I'd say a small fee usually less than 10% of the rental income.
Some will even take the house off you and guaranty you full income regardless if the house has a tenant or not . I've never tried this so can't comment on the outcome for the owners, I get letters often offering this service

Clive · Feb 25, 2017

oldoaktree said:
Renting houses is the same as any business the more you have the more problems.
50 sheep it's ok 500 sheep there's lots of problems
10 cows ok 100 cows (beef or dairy) more problems.
You get the picture.
I have tenant house of different types and they'll always causes you problems it's not stick a tenant it and watch the money roll in .
Things happen- oddest thing probably was a tenant left owning rent but left a snake behind.
Dead rat under floor boards in student house .
It's just like farming in away problems arise and you sort them out .
Such as what's that noise out side ? Fat cattle have got out of shed at 2 in the morning.
Combine tyre decides to explode on Friday afternoon of the august bank holiday.
Things things get sorted same problems in rented houses .
It's just a mind set if you don't like dealing with tenants there are companies who will do it for , I'd say a small fee usually less than 10% of the rental income.
Some will even take the house off you and guaranty you full income regardless if the house has a tenant or not . I've never tried this so can't comment on the outcome for the owners, I get letters often offering this service

Trouble is 10% is more than the return on capital investment !

bobk · Feb 25, 2017

Buying house is no different to buying cattle , you make/ lose the day you buy them.

oldoaktree · Feb 25, 2017

Clive said:
Trouble is 10% is more than the return on capital investment !

I'm not sure if we are on about the same thing here .
Rent on house £1500 per month.
Management company take 10% often can get it around 7-8 % but use 10%
So they take £150 per month

oldoaktree · Feb 25, 2017

bobk said:
Buying house is no different to buying cattle , you make/ lose the day you buy them.

If you buy a house to do up as you say it not what you sell if for it's what you pay for it to start with.
Did a bit of that work ok most of the time then the crash , live and learn.

Clive · Feb 25, 2017

oldoaktree said:
I'm not sure if we are about the same thing here .
Rent on house £1500 per month.
Management company take 10% often can get it around 7-8 % but use 10%
So they take £150 per month

10% is more than the ROI of a buy to let property

Can you find me a 200k house I can let for 20k pa ?

And if I did I would be spending the complete return on someone else to manage it for me

Kind of pointless !

Typical ROI on a rental is more like 6% so if you paid management 10 it would cost you to own it !

oldoaktree · Feb 25, 2017

I'm a bit thick here roi ?

Clive · Feb 25, 2017

oldoaktree said:
I'm a bit thick here roi ?

return on investment

The entire point of buying houses you don't live in !

bobk · Feb 25, 2017

Clive said:
10% is more than the ROI of a buy to let property

Can you find me a 200k house I can let for 20k pa ?

And if I did I would be spending the complete return on someone else to manage it for me

Kind of pointless !

Typical ROI on a rental is more like 6% so if you paid management 10 it would cost you to own it !

Sold our last house to a barrister , he buys ex council houses ... lots of them .

edit , ours wasn't a council house

oldoaktree · Feb 25, 2017

Clive said:
10% is more than the ROI of a buy to let property

Can you find me a 200k house I can let for 20k pa ?

And if I did I would be spending the complete return on someone else to manage it for me

Kind of pointless !

Typical ROI on a rental is more like 6% so if you paid management 10 it would cost you to own it !

Student houses in Carlise might be an idea £200 k should get you something decent.
Think Carlise are on 40 odd weeks of the year but not sure .
Rent should be £80 odd per week per room turn living room into 5th bedroom attic bedrooms? Beware HMO's but follow rules and it's not a problem.
Pays better than tenant farming

Where would you invest £200k and why?

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0 %

Up to 25%

25-50%

50-75%

75-100%

100% I’ve had enough of farming!

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