I have just saved 10k and am looking for a way to invest it, i should also be able to save between 7 - 10 k per year thereafter.

the first 10k i would like to keep as safe as possible with the best overall advantage for me.

after that i would be willing to take small to medium risk.

i am considering using it to start paying the morgage off and maybe have that gone in 5 years, (im 29)

although i would then get another morgage and get a bigger house.

also like the idea of buying a small run down house with another morgage and use the 10k or so for deposit and help pay towards doing it up and selling at a good profit.

if i invest now and dont go down either house route i would be happy to tie the money up for about 5 years

Worth considering

Use the 10K to put down a deposit to Buy a 3 bed house in a student area. Make the lounge into another bedroom. Fill it full of old furniture, beds, plates etc. Contact the local University and tell them the house is for rent. They will check it out and if up to standard will get 4 students in at £35 (ish) per person per week exc bills. Unis are always short of housing for students.

£35 * 4 Approx = £600 / month should pay your basic landlords mortgage. Do up and Sell when you need the cash for a bigger house for yourself a few years later. If you get it right you can make a bigger profit than any saving scheme.

e.g. bought house for £75k 2 years later worth £100K. £25K profit as students paid for the mortgage and bills.

Worth a look

Cheers

Neal

buy property!

i had a spare £4k
bought a studio appartment in centre of Nottm (future up&coming part of the city)
managed to get it for £13800

so borrowed £10k, paying the interest payment only (£50 a month, or justabout)over the 25 years (will still owe £10k in 25 years if i don't pay it off!!u know wot i mean)

did the fat up, furnished it with the bare essentals- carpets etc curtains abut of furnature....blar blar blar...

i get £290pcm!!!!

i hope to pay the £10k off in the next 3-4years!

but £290 a month!!
btw, i have to declare the tax stuff on the self assesment form http://bbs.scoobynet.co.uk/wink.gif

+ i have seen another similar studio flat 4sale in the same building for £25,950!!! and i've only owned it since November last year!!!!

(big smile on mi face now)


Phil

£ 13800 oh my god ! can you really buy a flat for that !

thats a nice little profit your going to make there mate.

lol yep 13 800
it started life out at £15950 but after wheeling a dealing with the seller/agents i got it down to £14800 with ALL fixtures and fittings!!!! inc washer and fridge + cooker etc

then when the solicitor found out they were wanting to carry out work on the whole property later this year or next, price of work £100K+VAT and the residants were to pick up the 'tab' £1250 each +VAT
i went back to the estate Agents and said if the guy still wants a sale (the put=rchase had been going on for 5 months!!) i want him to knock the £1250 off! I went for a deal of £1k off! and i made sure the sale went through 4 the following friday!!!!! (which it did) http://bbs.scoobynet.co.uk/smile.gif

i've now heard that they may get a grant funding to get the work done!!!!!!! lol http://bbs.scoobynet.co.uk/wink.gif


Phil

Property is the way to go. If you want to put a little effort in the renting is money for old rope. Given that you have 10k a year to invest, you could be looking at buying one additional house each year. Each house should pay for itself (capital, interest and running,) so your 10k is used for deposits and buying fees. Be careful renting to students. The will disappear in June and you won't get the summer rent out of them. If you can rent to professionals you can charge higher rent and are reasonably safe as far as damage etc is concerned. You should be a millionaire before you are 40.