Invest now or hold?

The law of sod

Member
Livestock Farmer
Just wondering on opinions

if you had some money saved up £40,000-£50,000
With inflation taking hold,

Would you invest it into your business or into property?
Or
hold on for a 12-18 months to see how the uncertainty plays out?

Just interested to see what most would choose to do.
 

Frodo

Member
Location
Scotland (east)
It’s anyones guess. Having money on deposit seems madness given inflation.

goods and property seem overpriced for investment so equally madness to buy.

if you ultimately want to buy land The pessimist in me has a theory that in July 2024 tax bills for 2022 will collide with falling returns to force sales. Anyone that can come up with the deposit should be in a good position.
 

pellow

Member
Location
Newquay
Do you have a profitable business that needs investment? Or an idea for a business venture that you think is a dead cert? If not buy some property.

Everyone is waiting for a crash while companies have never made so much profit and the lucky ones in society also have a lot of money. The majority of unlucky ones have never had much money anyway so not sure waiting for a crash is wise, although I like Frodos theory on future tax from these current times causing pressure down the road
 

The law of sod

Member
Livestock Farmer
The business is not in ag its joinery
Been running by myself with wife helping paperwork side ,for 15 years always been busy with 3 months work booked up so i could expand to build a bigger workshop and bigger kit,
Earn comfortable enough living from it now though,
and if we do go into recession (likely in the next 2/3 years?)work could dry up
so ,
The long term i have always viewed property is where to chuck any money i have saved,
Im aged in 30’s,and its taken 4years to save the amount i have now.
And about to have another child on the way this year,

Dont know if the property market will have a correction in next 5 years or so and could grab a house cheaper ,then they are now?or
in those years to the correction will prices still creep up so better to jump on now ,
,once on the market any blips , wouldn’t bother me as in it for the long run20-30 years.


Or have thought about doing both borrowing to expand business and use own saving for property but
i would be very low on any savings and if expansion didn’t work or recession hit or property let out issue,
it would be doable but a big struggle to cover all outgoings if one or both ventures had issues.
But returns could be there if brave enough?
 

unlacedgecko

Member
Livestock Farmer
The business is not in ag its joinery
Been running by myself with wife helping paperwork side ,for 15 years always been busy with 3 months work booked up so i could expand to build a bigger workshop and bigger kit,
Earn comfortable enough living from it now though,
and if we do go into recession (likely in the next 2/3 years?)work could dry up
so ,
The long term i have always viewed property is where to chuck any money i have saved,
Im aged in 30’s,and its taken 4years to save the amount i have now.
And about to have another child on the way this year,

Dont know if the property market will have a correction in next 5 years or so and could grab a house cheaper ,then they are now?or
in those years to the correction will prices still creep up so better to jump on now ,
,once on the market any blips , wouldn’t bother me as in it for the long run20-30 years.


Or have thought about doing both borrowing to expand business and use own saving for property but
i would be very low on any savings and if expansion didn’t work or recession hit or property let out issue,
it would be doable but a big struggle to cover all outgoings if one or both ventures had issues.
But returns could be there if brave enough?
Very carefully research new legislation on buy to let property.

My own experience has been a nightmare.
 

HolzKopf

Member
Location
Kent&Snuffit
I'd speak to an IFA, you need to work out whether that money you've saved should be made to work for capital growth or income. Have you got a pension? If not a proper self invested, managed scheme will grow tax free - even if you have an investment property in it

may sound boring talking to an IFA, use one recommended by someone you know if possible. In your pension scheme you could buy a small industrial unit for that sort of money. It should earn 10% return on capital for very little input, the rental could be added to your pension pot + the unit itself will appreciate in value. I prefer commercial property investment to residential any day

HK
 

toquark

Member
Been having the same thoughts. I'm carrying debt in the form of the loan to buy the place, its fixed very low for the next 4 years so I'm keen to get rid of as much of it as possible whilst its cheap. Equally, as the debt is cheap, and allows some room for maneuver, I've been regularly sticking some spare cash into S&S - mainly well spread multiple funds as a longer term investment to help keep pace with inflation. My thinking being that if the interest rate rises in 4 years and my loan repayment costs go up, I may choose to put the ISA gains into it and reduce the payments. It's a hedge - I may regret not putting it all into S&S, or I may regret not just putting it all against the loan. I also may decide to keep the ISAs working away and just chip away at the loan. Who knows, but I think the key is to be flexible and have a few options. One thing I would shy away from is property at the moment, its got the whiff of a bubble about it and the regulations for BTL are a nightmare.
 

BRB John

Member
BASIS
Location
Aberdeenshire
My advice would be make sure you've paid off your mortgage first then max out your pension pot, max out your ISA allowance and then if you've still got cash to burn look at investing in shares, land or properties.
I have done very well out of my ISA and there usually flexible so if you do run into hard times they're easy to dip into unlike properties and land.

Has any farmer ever set up a business where people can invest in land he owns and then the farmer gets to farm it as his commission?
 

The law of sod

Member
Livestock Farmer
I dont have a pension ,
This money saved and what i invest in is the start,
Im not keen on sticking all money into any isa or shares ,bonds.


Im fortunate that i will inherit a business and a bit of land buildings that will be a pension ,
But i want my own investments away ,
just in case it all goes wrong in the meantime ,
i have another 30 years left before i retire/ slow down.
 

MCook

Member
Trade
Location
Kent
I agree with those suggesting you speak to a financial advisor. Whatever you decide to do with your money, it needs to be aligned with your short and long term goals - both privately and for the business. Those will determine where and how you should look to invest.

Ultimately none of us know what the future holds, having a diversified portfolio is always key.
 

BRB John

Member
BASIS
Location
Aberdeenshire
I dont have a pension ,
This money saved and what i invest in is the start,
Im not keen on sticking all money into any isa or shares ,bonds.


Im fortunate that i will inherit a business and a bit of land buildings that will be a pension ,
But i want my own investments away ,
just in case it all goes wrong in the meantime ,
i have another 30 years left before i retire/ slow down.
Yikes red flags
Sooner you start putting money into a pension the better. Assuming your financial security on an inheritance is very high risk to say the least.
 

DrWazzock

Member
Arable Farmer
Location
Lincolnshire
I'd be wary of financial advisers. Just got rid of mine. The charges go up and up for sweet FA after the initial set up which for me only involved opening a pension and another ISA. I was expecting a lot more than that for my money but he did nothing after the set up and huge wodge of commission. Now £600 a year better off without his charges.
Easy to set up a pension and ISA yourself. But I'd pay off all debts first.
Maybe wait a bit before opening opening a stocks and shares ISA as they will go lower if we hit recession. Buy at the bottom not the top.
But you will know best whether or not to invest in your own business. Generally if you asking yourself if you really need stuff then you don't.
 

The law of sod

Member
Livestock Farmer
Yikes red flags
Sooner you start putting money into a pension the better. Assuming your financial security on an inheritance is very high risk to say the least.

my thoughts exactly
This has been the earliest i have been able to ,
The last few years nearly all my income has been swallowed up on outgoings and daily life
And now in position where only
Have 14 years left on mortgage for own house.
And have these savings that i plan to invest.

i guess what comes down to
Is investing in your own business
A safer bet then investing into a buy to let?
Long and short term?

Or
could pump some more money into some more sheep ,as have small flock sub 50 that could expand also,
But returns are nowhere near the return on the business ,
As can earn the same in around 3weeks then i can on the whole flock of sheep,
But sheep are little work and i dont lose money on them its better then leaving it in the bank ,
 

Hjcarter

Member
Speak to IFA.

Don't know full circumstances but I would be thinking I'd hold £10k back - £5k for base savings and £5k to use (holiday, stuff for new nipper, etc) - rest in pension - where else will you get 20-40% instant growth with on-going tax free income on top, tax free access down the line if you plan it right and pass on free of IHT.

... but i would do the IFA thing first...
 

Hjcarter

Member
Maybe wait a bit before opening opening a stocks and shares ISA as they will go lower if we hit recession. Buy at the bottom not the top.
Good advice, depending on provider you can move your money around within an ISA - move between cash, low, medium or high risk. I tend to put into low risk and then trickle into a mix of medium and high over the year - flattens out the peaks and troughs a bit.
 

Humble Village Farmer

Member
NFFN Member
Location
Cb97ej
Don't take any unnecessary risks, only invest in what you understand/stick to what you know. Even land has been known to fall in value.

There's only one thing worse than having your savings eroded by inflation and that's losing money through fraud or a bad decision.

Is there a family solicitor you could have a word with? They're not known for their business acumen but they are highly risk averse and would help you avoid any disasters.
 

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HSENI names new farm safety champions

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Written by William Kellett from Agriland

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The Health and Safety Executive for Northern Ireland (HSENI) alongside the Farm Safety Partnership (FSP), has named new farm safety champions and commended the outstanding work on farm safety that has been carried out in the farming community in the last 20 years.

Two of these champions are Malcom Downey, retired principal inspector for the Agri/Food team in HSENI and Harry Sinclair, current chair of the Farm Safety Partnership and former president of the Ulster Farmers’ Union (UFU).

Improving farm safety is the key aim of HSENI’s and the FSP’s work and...
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