scoobydooooo

i've got 20k to invest for 12 months , whats the best rates i could get ? anyone ?

Rob D

If your not looking into the stock market, I would shove the whole lot into Premium Bonds for the year.

jods

Depends on what level of risk you are prepared to face.

could convert it into £60K pretty quickly if you stuck it all on red on a roulette table.

downside is you could always lose the lot - but hey what a buzz !!

paulr

Being cautious i'd put 3k in a cash ISA,and the rest in some web based savings account.

matt85

Do a search on here for 'arbing' and i guarantee you wont be happy with anything the bank will offer you after reading it!

scoobydooooo

cheers boys !!

lordharding

iTrader: (1)

stick it in the bank and you might get 5 % interest
so after tax say £ 700

15 quid a week

why not spend it on

Booze and Hookers

You will rember it for the rest of your life

dpb

or £5 A WEEK, an a hooker + booze + a few class A's at the end o the month...

scoobydooooo

class A's ? what are they ??

Luminous

iTrader: (3)

I'd invest in property. With leverage you should be able to attain a 5 to 1 growth ratio. So as long as the property market grows by more than 1% (assuming the best interest rate you can get is 5%) you are quids in

Not everyone will agree with that though....

fast bloke

Luminous

iTrader: (3)

like I said, some people just don't know a good deal when it smacks em in the face

fast bloke

so what sort of leverage are you going to apply with 20k?



p.s. - still

Luminous

iTrader: (3)

5 to 1?? Said that above. Some places will let you put down a 15% deposit, so with 20K thats a 100k house with 5k in your pocket just in case. Leverage is still 5 to 1.

Its not for everyone, but it does work

+Doc+

Spread it imo, Premium Bonds, High interest saving, Shares.
Take the majority on the low risk first two and go as mad as u want on the last one, you could have a bit of fun on the journey speculating the share market
I wouldnt expect a massive return without high risk situations, 5 years maybe, 1 year isnt much tbh.

XS-Home

Premium Bonds...............

Deep Singh

What a load of nonsense.

If property value goes up 1% and you are paying 5% to borrow + buying/selling costs and CGT, how are you quids in?????

Did you do a YTS in Economics??

Deep Singh

If you want something low/no risk and your lender allows pay off some of your mortgage.

If you fancy a punt lots of options. How about an off plan property in Dubai? Its tax free!!!! Could turn cold very soon though

fast bloke

OK - Maybe you need to explain the plan to me very slowly - If you put down 15%, who provides the other 85%? Do you pay interest on it? Who pays for conveyancing? How do you get out after a year - The way I see it, 20k deposit gets you a 133k house with 113k loan - costs are 5650 interest, 1300 stamp duty, 700 legal fees. You 133k house goes up by 1% it is worth 134.5k, less 7650 costs gives you 126850 - pay off the 113k loan and you have turned 20k into 13k.
In reality you wouldn't get a loan/mortgage with no redemption after 1 year, unless you pay SVR (6.7-6.9) - you really need to get 8% price increase to break even, so you need 10% to equal what you might get in a decent current account, or 13% to return what you might get from a bond.

Luminous

iTrader: (3)

I see where you are coming from Fast Bloke Its nice that have thought it through, although with a different point of view to mine.

1) If you only have 20k, I would not invest all of it into a house, what are you going to do if you need to repair something? That is why I suggest only borrowing 100k so that you have 5k in your back pocket (high interest account)
2) You do not sell after one year. Property investment, imo, has a min term of 5 years. Your exit route at that point is to re-mortgage to property to get tax free cash out
3) You effectively do not pay any interest on the loan. You rent the property out. The tenant covers all of your costs. Depending on where you are in the country, you may make a small profit from this.

If you rework your example with the above points, things start to look a little better. If you then factor in that there are still areas in this country where prices are moving at more than 10% per year (I have a house in one of them), then you will really start to see some gains.

But there is risk. The housing market shows volatility, just generally not as much as the stock market. You also have additional risks, and hassles, such as bad tennats, forces of nature knocking your roof off etc.

Still a valid way to use 20k, but it is really the minimum that you would need to start in todays market.

P.S. no, I'm not saying where I have my house, I want to get another, there is enough pressure on decent properties these days as it is

fast bloke

Did you look at the thread title

Luminous

iTrader: (3)

Not till recently, no I read it as best 12 monthly rates....*sigh*

Hold onto the 20k for longer

Poor Guy

hehe, ive just put 20k into a 6month bond at the woolwich. 4.6% = £1840 after year. Free mullah! then my free profit shall be ISA'd till im a million years old, or 30something.

Tiggs

what is it with SN and advice???

someone whants to put his money away for 12 months....he needs a BANK!
not equites, not leverage, not gambling...just........A BANK

its the same with diet...someone asks how to drop a couple of lbs and is advised on steriod use!

fast bloke

not the bookies then?

Tiggs

Is that a depolorisation term? Tied, Multitied, IFA, Bookie?

Deep Singh

Thats because on SN we think out of the box. !!!!!!!!!!!!!

Petem95

Fill your ISA up then stick the rest into ING/A&L high interest. Safe bet - gives you instant access to your cash. To get more interest you take either more risk and/or dont have instant access to the cash, and the extra return probably means its not worth it. Might be different with 200k, but not 20k.

Oh dear, someone who's been watching all the get-rich-quick property programmes over the last 5years then, and thinks theyre an expert?...

Why would you want to buy a depreciating asset? Property prices have been falling for the best part of the year, and will more than likely continue to do so for a good few years with the rate of falls increasing. Maybe invest 20k FOR 5years, then buy property IN 5years when prices are significantly lower might be sensible, but not buy now, just after the peak of the biggest property boom in history.

fast bloke

Try Belfast - property price movements lag about 4-5 years behind South of England (and have done so for the last 25 years without fail) You can still get a reasonalby habitable house for 70ishk, which keeps the rental required in a reasonable band. Average terrace house price in Belfast went from 54k in 2003 to 68k in 2004 (near enough 30%) and there is stil plenty of room for them to increase to 120k before Joe Average on average FTB salary starts to feel the pinch.

BTW - Tiggs - Bookies seems like a good option - paperwork required - betting slip - forget IDD, CR, KFI, SOP, D&N, MROS... ad infinitum

Luminous

iTrader: (3)

Where did you get those figures for average price rises in Belfast?

Sounds like a reasonable option to me. Plus you can then register your car with an Irish plate to help avoid the speed traps...