Interest
02 November 2006, 09:58 PM
#5
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Am I the only one that finds it objectionable that the Government taxes your saving. I don't even have substaintial saving but what a joke. So you work your *** of to save up a large capital sum and get raped for income tax the whole way and then when you get to a point that you want your saving to work for you and put them in a high interest account you get taxed. WTF 
02 November 2006, 10:01 PM
#6
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Tell me about it, and the bank declares your interest straight to the inland revnue now as well.
They say that spending and credit is out of hand, you get your pay after tax, invest it and then they tax what you earn again and want up to 40% of it as well if you earn enough, barstewerds !
They say that spending and credit is out of hand, you get your pay after tax, invest it and then they tax what you earn again and want up to 40% of it as well if you earn enough, barstewerds !
02 November 2006, 10:10 PM
#7
Originally Posted by mad555
How much interest on £100000 per year?
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02 November 2006, 10:48 PM
#9
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I'd like to know where i can invest 100 grand risk free yet earn 10% interest-as if you can tell me would sell all my shares tomorrow and put it in this risk free 10% place pronto.
Originally Posted by Nat21
£10k pretty easily. I know my folks, and some mates see that kind of return without too much trouble and risk free i.e. not investing in shares/markets/bonds or anything fancy.
Potentially much more if you take a gamble obviously!
Potentially much more if you take a gamble obviously!
02 November 2006, 11:04 PM
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Property rental would be your best bet and would most likely give over 10% but that's on a technicality and there is of course a degree or risk.
Example:
Lets say you buy a £100,000 property (all in inc stamp duty, etc). If you do your sums right you should be looking to make around 6% ROI per annum in rental income so that would be £500 a month. Finding a £100,000 property that will yield £500 rental income a month isn't that hard.
Provided you keep the property occupied with good tennants and didn't buy a lemon of a property this part is relatively risk free. The other part of the game is to buy into a rising market. Even if the market is only rising slowly at say 5% per annum your capital investment of £100,000 hits 105,000 in after one year and after 3 years the property is worth about £116,000. It is quite possible to buy property that will rise by more than that in 3-years.
If you made this investment over a 3-year period you'd have 36 months of rental income + 16,000 capital gain/36 = £444 a month. If we assume you lose 3 months rental over those years and have £2000 in other costs then your 3 year rental is 33x£500-2000 = £14,500. Divided by 36 that's an average of £402 a month. Added to your capital gain and your 3 year venture gains you approximately £850 a month or 10% a year
I'd say chances are that it would be more than this rather than less if you buy carefully and research your market. The major risk is that something serious happens in the property market causing values to plummet and the other concern is the fact your money is locked up and cannot be accessed quickly. Still a good way to blow £100,000 IMHO
Example:
Lets say you buy a £100,000 property (all in inc stamp duty, etc). If you do your sums right you should be looking to make around 6% ROI per annum in rental income so that would be £500 a month. Finding a £100,000 property that will yield £500 rental income a month isn't that hard.
Provided you keep the property occupied with good tennants and didn't buy a lemon of a property this part is relatively risk free. The other part of the game is to buy into a rising market. Even if the market is only rising slowly at say 5% per annum your capital investment of £100,000 hits 105,000 in after one year and after 3 years the property is worth about £116,000. It is quite possible to buy property that will rise by more than that in 3-years.
If you made this investment over a 3-year period you'd have 36 months of rental income + 16,000 capital gain/36 = £444 a month. If we assume you lose 3 months rental over those years and have £2000 in other costs then your 3 year rental is 33x£500-2000 = £14,500. Divided by 36 that's an average of £402 a month. Added to your capital gain and your 3 year venture gains you approximately £850 a month or 10% a year
I'd say chances are that it would be more than this rather than less if you buy carefully and research your market. The major risk is that something serious happens in the property market causing values to plummet and the other concern is the fact your money is locked up and cannot be accessed quickly. Still a good way to blow £100,000 IMHO
02 November 2006, 11:08 PM
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Oh, and if you want to be really clever you use 5x£20,000 as deposits on buy-to-let flats and aim to have rental pay the mortgages. This way you are looking for all 5 properties to appreciate in value whilst the mortgage balances are heading in the opposite direction.
02 November 2006, 11:18 PM
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Yeah but they have been saying that for years 
I suppose you could just hold on to the property(s) until it recovers and rises back to where you were. At least the mortgages will be mostly paid by then
I suppose you could just hold on to the property(s) until it recovers and rises back to where you were. At least the mortgages will be mostly paid by then
02 November 2006, 11:22 PM
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Not where i live-to get £500 a month rental income you need to spend more like 150k on a house
Example:
Lets say you buy a £100,000 property (all in inc stamp duty, etc). If you do your sums right you should be looking to make around 6% ROI per annum in rental income so that would be £500 a month. Finding a £100,000 property that will yield £500 rental income a month isn't that hard.
Example:
Lets say you buy a £100,000 property (all in inc stamp duty, etc). If you do your sums right you should be looking to make around 6% ROI per annum in rental income so that would be £500 a month. Finding a £100,000 property that will yield £500 rental income a month isn't that hard.
03 November 2006, 07:29 AM
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I guess it depends a little on the area. £100,000 will buy you a 2-bed flat in Edinburgh. £500 per c/m can be achieved fairly easily in my experience. When I bought my flat (2-bed) 3 years ago I paid £85,000 and prior to that me and my mate had been renting it for £450 per month and that was a reasonable enough price at the time.
03 November 2006, 10:58 AM
#17
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Originally Posted by GCollier
An easy 10% pa risk free return on £100k is simply not possible at the current time.
03 November 2006, 11:12 AM
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Originally Posted by Nat21
Well not having 100k spare (or indeed not spare, lol) myself i don't know but i know my folks got around that when they came into that sort of money after selling a property last year (the word risk isn't in their vocabulary) and they have no reason to lie to me. My dads been an accountant all his life and knows loads of people who know a trick or two which i guess helps. Go see a good FA!
Risk free 10% on 100k = not possible, simple as.
Risk free is Government backed securities and the like only. Perhaps their percieved risk is very low but no way is it risk free.
03 November 2006, 11:19 AM
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Originally Posted by Saxo Boy
Property rental would be your best bet and would most likely give over 10% but that's on a technicality and there is of course a degree or risk.
Example:
Lets say you buy a £100,000 property (all in inc stamp duty, etc). If you do your sums right you should be looking to make around 6% ROI per annum in rental income so that would be £500 a month. Finding a £100,000 property that will yield £500 rental income a month isn't that hard.
Provided you keep the property occupied with good tennants and didn't buy a lemon of a property this part is relatively risk free. The other part of the game is to buy into a rising market. Even if the market is only rising slowly at say 5% per annum your capital investment of £100,000 hits 105,000 in after one year and after 3 years the property is worth about £116,000. It is quite possible to buy property that will rise by more than that in 3-years.
If you made this investment over a 3-year period you'd have 36 months of rental income + 16,000 capital gain/36 = £444 a month. If we assume you lose 3 months rental over those years and have £2000 in other costs then your 3 year rental is 33x£500-2000 = £14,500. Divided by 36 that's an average of £402 a month. Added to your capital gain and your 3 year venture gains you approximately £850 a month or 10% a year I'd say chances are that it would be more than this rather than less if you buy carefully and research your market. The major risk is that something serious happens in the property market causing values to plummet and the other concern is the fact your money is locked up and cannot be accessed quickly. Still a good way to blow £100,000 IMHO
Example:
Lets say you buy a £100,000 property (all in inc stamp duty, etc). If you do your sums right you should be looking to make around 6% ROI per annum in rental income so that would be £500 a month. Finding a £100,000 property that will yield £500 rental income a month isn't that hard.
Provided you keep the property occupied with good tennants and didn't buy a lemon of a property this part is relatively risk free. The other part of the game is to buy into a rising market. Even if the market is only rising slowly at say 5% per annum your capital investment of £100,000 hits 105,000 in after one year and after 3 years the property is worth about £116,000. It is quite possible to buy property that will rise by more than that in 3-years.
If you made this investment over a 3-year period you'd have 36 months of rental income + 16,000 capital gain/36 = £444 a month. If we assume you lose 3 months rental over those years and have £2000 in other costs then your 3 year rental is 33x£500-2000 = £14,500. Divided by 36 that's an average of £402 a month. Added to your capital gain and your 3 year venture gains you approximately £850 a month or 10% a year
I'd say chances are that it would be more than this rather than less if you buy carefully and research your market. The major risk is that something serious happens in the property market causing values to plummet and the other concern is the fact your money is locked up and cannot be accessed quickly. Still a good way to blow £100,000 IMHO
03 November 2006, 12:02 PM
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Wouldn't you have to pay tax on the rental income from these properties?
And when you sell additional properties, don't you have to pay 40% capital gains tax on any profits, as they are not your main residence?
You could of course "live" in each one for 6 months prior to selling.
And when you sell additional properties, don't you have to pay 40% capital gains tax on any profits, as they are not your main residence?
You could of course "live" in each one for 6 months prior to selling.
03 November 2006, 12:23 PM
#21
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Or instead of buying 1 property at £100,000 you could buy 3 or 4 for properties with say £25,000 deposit. Rent out the properties for 10 years, and when you sell 4 properties you'll make more money than with just the one property.
ahem
03 November 2006, 12:32 PM
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Originally Posted by JamieMacdonald
Wouldn't you have to pay tax on the rental income from these properties?
And when you sell additional properties, don't you have to pay 40% capital gains tax on any profits, as they are not your main residence?
You could of course "live" in each one for 6 months prior to selling.
And when you sell additional properties, don't you have to pay 40% capital gains tax on any profits, as they are not your main residence?
You could of course "live" in each one for 6 months prior to selling.
03 November 2006, 01:06 PM
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Originally Posted by Saxo Boy
*Cough** Post 12 **Cough*
ahem
ahem
03 November 2006, 01:11 PM
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Originally Posted by AudiHater
You only pay tax on profit after costs. Naturally you don't make a profit
If you are going to break the law why not go the whole hog, I reckon that £100k worth of drugs (wholesale) would return 100% plus interest, just the jail thing that could be a prob. tho.
03 November 2006, 01:30 PM
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Originally Posted by mad555
Where can I invest it so as not to pay tax, also want to be able to get at money quick if needs be.
03 November 2006, 01:34 PM
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Originally Posted by Nat21
£10k pretty easily. I know my folks, and some mates see that kind of return without too much trouble and risk free i.e. not investing in shares/markets/bonds or anything fancy.
03 November 2006, 01:49 PM
#28
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I suppose the property proposers missed this bit. 5% would be about the limit.
03 November 2006, 03:49 PM
#29
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Originally Posted by TopBanana
PM me the details. If it turns out you're not talking crap I'll send you a cheque for £1000
....like i already said above i have no reason to disbelieve my folks about this, in fact i know they've already spent the ~£10K on a couple of new bathrooms and reinvested the original money in another property abroad. Ditto my mates,they also have nothing to prove to me. I wish i had that sort of cash but until i do (and prob not even then) i'm sure you can understand that i won't be asking my family/friends the finer details of their financial affairs.
03 November 2006, 04:42 PM
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Originally Posted by AudiHater
You only pay tax on profit after costs. Naturally you don't make a profit