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Helpful ReplyHot!What to do with 30/40k

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G00SE
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2017/08/12 09:17:34 (permalink)

What to do with 30/40k

Hi guys

I know some of you on here have some decent financial prowess, so I'm asking for a bit of advice really.

I have 40k sitting in the bank doing sod all, and I just don't know what to do with it, I have a house I rent out at £475p/m and have about 38k left on the mortgage, and I'm renovating a house that me and misses will move into soon that will be mortgage free.

So do I pay this mortgage off? I was thinking about just paying the interest on the buy to let and giving it to my kids when they are old enough and they could take on the rest of the negligible mortgage (don't know if this is a good idea?)

Maybe buy another to rent out? as the misses also has a decent bit of money in bank

Invest somehow?

Stocks and shares ( inhave zero knowledge on this)

Gold? Precious metals? Again no knowledge at all!

Peer to peer lending? Same

Bitcoin? Same

Any ideas?
#1
PartyBoy
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Re: What to do with 30/40k 2017/08/12 09:52:40 (permalink)
G00SE

Invest somehow?

Gold? Precious metals? Again no knowledge at all!



I don't view metals as an investment particularly. Priced in fiat (USD) it means little since govts/Fed/Carney/BofJ etc are doing their best to destroy the fiats.
 
It's more about wealth preservation. They can print money till the cows come home and inflation make a loaf of bread £3000 but your 40 oz of gold will still be 40 oz of gold.

 
#2
dazzz
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Re: What to do with 30/40k 2017/08/12 10:47:39 (permalink)
It doesn't sound like you're going to need the money for anything and you're still going to be earning plenty of money to be able to save, so personally I wouldn't invest it. I would do something with a chunk of it. You could get hit by a bus tomorrow, so I'd go and see some of the world.

  




 
#3
Floydy.
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Re: What to do with 30/40k 2017/08/12 10:53:55 (permalink)
Pay off any major debts if you have any, but leave some left for yourself to enjoy
#4
Rasputin
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Re: What to do with 30/40k 2017/08/12 11:11:27 (permalink)
Buy a truck haha 
 
Clear of Mortgage asap then everything you have is truly your own cash to do with what you want. Only invest in markets if you are looking at a 20 year horizon imo that way you can rid out the storms. 
 
Agree with PB on metals I just don't get them anymore I think they are way over odds precious metal is just that nothing else.

Ra Ra Rasputin lover of the Russian Queen, Ra Ra Ra Rasputin Russia's greatest love machine (Allegedly)
#5
G00SE
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Re: What to do with 30/40k 2017/08/12 11:22:05 (permalink)
Haha I was actually looking at a truck this morning, an older Navara long way down, very tempting!

My old man used to say cash is the best but I think if he didn't pay off his house and bought another one he would have been well and truely set for life! But hindsight is a wonderful thing!

That's why I thought about not paying of the mortgage anymore but I suppose it's down to inflation to see if it actually reduces the amount like it has done in the past,

I don't have any debt apart from the mortgage and yes the future is looking rosie with the ability to save a fair chunk every month, so I don't really need more money that what I'll be making so it isn't life or death that I have to do anything with the cash. It just gets to me that all I get is 1.5% from a Santander account!
#6
orange86
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Re: What to do with 30/40k 2017/08/12 11:24:33 (permalink)
buy another buy to let property

boom
#7
GOVINDA
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Re: What to do with 30/40k 2017/08/12 13:23:37 (permalink)
Cocaine, hookers and some bacon.

Alt er mulig
#8
chorleylad
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Re: What to do with 30/40k 2017/08/12 13:33:40 (permalink)☄ Helpfulby gavin882 2017/08/12 21:00:05
GOVINDA
Cocaine, hookers and some bacon.



Totally wreckless advice...
 
I would swap out the bacon for a decent steak.
#9
NuttySS
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Re: What to do with 30/40k 2017/08/12 19:10:28 (permalink)
personally I would build up the BTL portfolio. with a view to early retirement and experiencing as many things as possible
#10
Manuforti
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Re: What to do with 30/40k 2017/08/12 21:30:08 (permalink)
Get a Financial advisor. I wouldn't start off investing in bitcoins etc. You can pick a managed fund if you want shares. A bit more balanced/ stable usually. Pay some off your mortgage. Save the surplus in rent to pay off more of your mortgage.
#11
G00SE
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Re: What to do with 30/40k 2017/08/12 21:38:32 (permalink)
What's the deal with financial advises manuforti? How much do they charge you for their advice?

I would have thought they would be dealing with people with at least 100k and over in the bank for some reason? Do they offer mortgage advice as well? I have heard of people using these but I never understand why because it's easy to get the rates the bank offer, or do they get better deals?
#12
chorleylad
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Re: What to do with 30/40k 2017/08/12 21:40:17 (permalink)
Interesting that people often suggest seeing an IFA. On the face of it a reasonable suggestion, however...
 
The one question I would ask any IFA is do they earn the majority of their income from their own investments or is it from the commission they charge on investing your money?
 
A great book to read to be in charge of your own financial future is this one - (I would read this before lining the pockets of any IFA.)
 
How to Own the World: A Plain English Guide to Thinking Globally and Investing Wisely
 
https://www.amazon.co.uk/...keywords=own+the+world
 
'It is time to get your money working for you. How to Own the World explains why you can and must learn about investment, and highlights the significant advantages you have over many finance professionals. The knowledge needed to grow your money isn’t complicated, just very poorly distributed throughout the population. Successful investment can turn hundreds into millions over time thanks to the power of compound interest, something Einstein described as “The Eighth Wonder of the World”.

There has never been a greater need for you to take charge of your financial affairs. Fortunately the tools available have never been more powerful or inexpensive. How to Own the World explains why this is and what you can do to make the most of your money.'
post edited by chorleylad - 2017/08/12 21:42:59
#13
G00SE
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Re: What to do with 30/40k 2017/08/13 07:01:45 (permalink)
I'll take a look at the book mate,

I would like another house but if interest rates start increasing it really reduces your profit and with the government unfairly targeting landlords it's getting harder and harder by the year!
#14
chorleylad
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Re: What to do with 30/40k 2017/08/13 08:48:03 (permalink)
Agreed, i read somewhere the 300 year average for interest rates is 7%.
 
They can swing either way of this, and of course we are on the right side of this right now.
 
I remember when my mum and dad bought a house in the early 90's. Interest rates went to 15% overnight. ****ing difficult time. Nearly sent us under.
 
How long they stay where they are is anyone's guess.
 
Other options to investing in property without having the hassle of the actual bricks and mortar - REITs being one.
 
Edit - I think this is where I heard the interest rate fact. Watch this on why right now is NOT the right time to buy a house. Of course I'm sure there are a million other vids out there saying that right now IS the right time, but good to consider both sides of the coin...
 
https://www.youtube.com/watch?v=VvIM8v1FCNM
post edited by chorleylad - 2017/08/13 08:54:45
#15
Dr Z
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Re: What to do with 30/40k 2017/08/13 09:04:20 (permalink)
Single arm rows,  Single arm floor press, Single arm OHP, Goblet squats ... 
 
     You are going to need more weight inevitably though. 

Lazy is a word used by the obsessed, to describe those with a life.
#16
Manuforti
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Re: What to do with 30/40k 2017/08/13 10:19:10 (permalink)
Lol. U can search around and it is a small amount of money for an ifa, a lot of them will be able to provide Mortgage advice too. You would expect them to charge, there will be a lot of bad ones but you would be able to find a good one. Quite often they may have lender exclusive deals.

It may not be worth paying a fee for £40k, bit you would be paying a fee for your overall situation potentially - assets pensions insurances etc.

You may feel you simply do not need one.

Now is a bad time to be over exposed to mortgage interest rates. Arguably it is always a bad time to be so. BTL as an investment still makes sense for cash buyers I think. Outside of London perhaps where astronomical rents have priced in what is surely a bubble to some degree in house prices, but who knows.
#17
Manuforti
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Re: What to do with 30/40k 2017/08/13 10:27:12 (permalink)
I would say at least consider paying down your btl mortgage, if not paying it off - leave yourself a buffer in the bank you feel comfortable with, always reasonable to consider this.
This should create a greater degree of profit in the rental income. Let that build up - the beauty of BTL I think is more that the rent buys you the asset ( providing you haven't entirely financed it with debt ) rather than the increase in the value of the asset.

You say you will be mortgage free on your home, you could shortly be mortgage free on the BTL with a bit in savings for a rainy day. The rental income building up. Sounds comfy.

Remember if interest rates do go up, it will be the working class BTL investors who burn. The cash buyers can ride out a recession as rent must still be paid - the utilty of a property is not as an asset it is that someone lives in it do not forget.
#18
Roger Mellie
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Re: What to do with 30/40k 2017/08/13 12:00:46 (permalink)
I have much less money to invest, but when I looked into Bitcoin it seems to be an investment bubble that doesn't have real value. The ratio of transactions to the amount of bitcoins out there seems to show it just isn't worth it, even if you get the occasional story of companies willing to accept it as a currency. As for what else you should invest in I don't know.
#19
indie
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Re: What to do with 30/40k 2017/08/13 17:31:02 (permalink)
Sell the buy to let, then invest the lot in a plot of land and build.
#20
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