^OPM^

Im 34 i own my house outright-not a big flash house but just a 3 bed semi in a nice area and i have a fair few grand invested over years in PEPs and ISA's, now what should i do-i would like to retire at 40 so just over 5 years to go-should i carry on using up my ISA allowance every year etc, or buy myself a flat as i live alone and rent house out etc to make money and if i do this do i take out a mortgage to buy flat or sell my ISA's knowing then i have lost that tax advantage of them for good-or what i think is best plan is to keep with shares for 5 years while house prices settle then at 40 move into property to keep me in a steady income while i retire from full time work?

anyone on here try to persuade me that property in 5 years can make me more money then shares?

any property landlords on here?

davegtt

maybe not 5 years but in 10 years Id say you'll have made more money on property IMO. nothing is guarenteed though is it...

Scoob99

iTrader: (1)

If property prices carry on like they have bee you could'nt go wrong

pslewis

Shares!!

Pete

john coffey

Buy a bar in Thailand and **** yourself to death is my advice.

DaveMiddleton

We are floating 20% of our company on AIM on 19th May. Even this small flotation will be huge value to even minor owners like myself, but our projections are for the company to quintuple in value in the next 3 years as we have patented enabling oilfield technology. You may wish to look at this in May. www.posgrip.com.

Petem95

Shares no doubt about it - maybe 80% of them just regular shares, and say 20% shares in emerging markets such as China (higher risk, but potentially much higher returns).

Wouldnt even consider property right now - prices have only really begun to fall, and the likelyhood of a crash is very high IMO, just ignore all those articles with vested interests when reading about property market "Big chain of mortgage lenders/EA's say outlook for housing rosey etc"....

Investing well for 5years, then buying a property(s) when prices have bottomed out could put you in a very good position.

J4CKO

iTrader: (1)

I expect a woman will enter the equation, now then your plans will be f*cked !

^OPM^

lol

GCollier

You'll need a fair wedge of cash - possibly more than you might think - to retire at 40 and enjoy a good standard of living. With average life expectancy nowadays you can expect to be around for a good few years. If you're not working you'll also have more time on your hands in which to spend money.

I think 5 years is too short a period of time in this instance to gamble on the property market. I don't think property prices are going to crash, but in the short term I can't see any massive rises. Longterm I think investing in a bigger primary residence is a good bet as demographics and increasing national wealth will always push up the price of desirable property, and any gains on it are of course tax free.

Unless you already have hundreds of grand stashed away I think you're probably going to have to take a bit of a gamble. Regular ISA funds, even good ones are unlikely to make more than 10% pa apart from in exceptional years. I'd search out some speculative punts on individual smaller shares, and maybe check out some "alternative investments" such as hedge funds.

Gary.

harvey

iTrader: (48)

Get an insurance policy, buy a gun so you can shoot your brains out when your plans go apesh1t.

^OPM^

what about giving it to King Blair and his bunch of merry men? Pete-then again-i already do give bloody loads to him already

jimmy wrx

Your not wong m8 lol

Houses should go down in price in the next few years .I would put it under your matress until your RETIRE !

@ 40 you are a lucky man !!!!!

Saying all that why not buy a ticket for a cruise around the world ?

Hol

iTrader: (1)

Buy some land off-shore,

In some other sunny climate that will have a big boom in tourism due to its weather.
Places like Croatia etc...

Not short term though.

BI6 BHP

Land is the best investment as they stopped making it ages ago.

Gold/stocks and shares etc are a bag of ****e unless you are the broker.

Best land returns abroad are presently land in Northern Florida@ $3.5 per acre that are now doing $20-35k per acre) and Northern up state.

Most of the large Eastern block cities are really on the up.

If you dont fancy sitting on some land and want properties to rent/renovate its worth paying for a specialist to advise you where to buy. Unlike the UK the govts of most EU countries will divulge information on companies/individuals offering info etc and only go with one they endorse esp in the East.

Property in dubai, in the next few years it's really going to take off, in fact it's started now, get in quick, but forget palm island thats way over budget.

turboman786

Crack is the best investment, it is easy to invest in, provided you have a good broker, comes with great security during the investment period from all the g's who will be looking after your enterprise, the profits are phenomenal, and can be increased/decreased depending on your mood with the assistance of random adulterants. Much better than property, I guess it could be classed as a type of share, as its unlikely you will be able to run a succesful enterprise singlehandedly. Retirement at 34 1/2 is reaslistic, although death at 35 is a possibility. Live fast, die young.

Pauleds2

Put some money into a couple of properties in France. In certain areas property is still mega cheap but prices are rising fast.

Rent them for a few years and flog them when the prices peak or just keep them and rent them out long term.

moses

buy flats between 30 to 50k and rent them out mate, get a interest only mortgage , payments will be alot less

turboman786

Moses.......flats for 30-50k.....? Where can these be found....?Even in my neck of the woods flats are £120k ish, the only flats you'll get for 30-50k are ex council ones....

Petem95

And buying them with an interest only mortgage? Financial suicide doing that in the current property market where prices will sooner or later fall significantly - as history tells us, asset booms ALWAYS end in bust - thats just the way the cycle works.

Chip

Why is that financial suicide?

Chip

Petem95

Because with prices as high as they are the rent you will receive is likely to only just about cover the interest on the mortgage, so you'd be banking on the property rising in value to make money on the investment, however with the likely hood of prices falling you will simply be making nothing off a depreciating asset which still requires managing and maintaining.

turboman786

Property should never be boguht as a short term investment..in the long run, you simply cannot lose IMHO.

moses

lol sorry bros i forgot u guys are in england

in scotland in rough areas u can get them for that price and not too bad places

moses

pete but they may go down now for a yr or 2 but property is def gonna rise alot more mate in a few yrs, its a long term investment

my house when my dad bought it when i was small was 40k now its over 350k

i was 6 or 7 then now 28


in 21 yrs it went up that high, wonder what its gonna be like in the future

MartinM

...as history tells us, asset BUSTS always end in BOOMS - thats just the way the cycle works...

...so if you're into it for the long term, I can't belive it's suicide

blueone

So you would recommend buying property in a Boom and not a Bust?!?
For the moment I would sit on the dosh if property was the only vehicle you wished to consider for investment for either capital growth or as a source of income when retired. You could always buy property when you do retire to use as an income source and let the money get a decentish rate in a bond for 5 years or so. We do not currently have a high inflationary period to counter act the boom in property prices we have recently seen. If the rate of wage increases was double digits or near too each year then yes go for it at the moment and buy. But we have had house prices rocket with low wage increases and low interest rates. I know which of these I would rather was rocketing. In my parents day the thing to do was to mortgage yourself to the hilt, as in a few years inflation would take care of the mortgage payments and bring them down to a more reasonable percentage level of income. With us unlikely to see a return to high wage increases but the likelyhood of interest rates shooting up after the next election, I would personally hold off before committing to anything.

ProperCharlie

Either:

Put it all on the top weight, first race at Newmarket; or

Take your financial advice from scoobynet.

Seriously, if you are doing something that will enable you to retire at 40, then you know a lot more about how to make money than most people on here, including me.

Moray

Property is always a dead cert if you are sensible where you buy. Less of a gamble than stocks and return is almost guaranteed.

ProperCharlie

With either property or stocks, the income yield is likely to be about 5%, if you buy carefully. It could easily be less. With property you also have to factor in voids, maintenance, insurance etc. If you are looking to live off the money for the long term, capital appreciation doesn't really help you that much, unless you are planning on a trading strategy (in either property or stocks), which will be more risky. So anyway, assuming a 5% yield, you will need £1M of investments to generate you an income of £50k p.a., before tax. Have your numbers come up?