investing in markets for income

[HenrysDad]

I agree with not paying the mortgage with some reservations. I currently pay 1.6%(fixed) interest mortgage vs my investment portfolio which has made approx 8% average pa for the past 7 years. However that is growth rather than income. If OP requires income then first reduce expenditure ie loans/mortgage pay off all cards etc. Best advice is to go and spend some time and money with a good IFA. It has paid off well for me.

 

[GeoffCapes]

plenty of properties going through the auction houses that if bought wisely will be worth more in a very short period of time, especially ones that require refurbing, here's one coming up soon, very low guide will clearly go well over that guide as its been set far too low for obvious reasons, once refurbed either a good profit margin if turned or a very good rental return and yes i'm going to have a pop at it

LOT 44

Auction Lot Listing | McHugh & Co

mchughandco.com

There are some clear 'bargains' on that list, based on the guide prices. Obviously they often go over them, but if you know the areas, then you should know the property prices.
Ironically there's a flat on that list that has a guide price of £160k, that 13 years ago I was looking at when they were selling them at 180k+

I imagine the flat, once done up should be worth 250-275k in the current market (unless there is something significantly wrong with the building).

 

[MaserMike]

If you are after an ‘Income’ off £60k that won’t get you far these days, unless you are lucky to have nailed some cheap Bitcoin early on or invest in a startup business etc. But extremely high risk and personally I would not for Bitcoin…

I too haven’t bothered with NS&I as the returns have been poor such a premium bonds.

Agreed on paying off your mortgage first unless you have a cracking guaranteed rate of interest elsewhere, also future proofs you from stress if you are to lose your job etc. Buying a holiday home in the right area is also a potential option and can offer a high return over time…

Woodland and Farmland are also highly tax efficient, potential income available from grants + rewilding/tree planting + land rental. Also if you are lucky to get planning permission on a plot, that is a winner. Also the capital will grow for land….

Buying classic cars is also a good bet if you get the right one(s), more modern Maseratis I have lost a ton on but these were never an investment.

Using your maximum allowance each year for pension contributions is also a good option too (currently £40k or up to 100% of your income), at least you get tax relief which is far higher than the low bank interest rates currently offered….

 

[bigbob]

I’d be very wary at this point in the economic cycle.
Central banks are now trying to unwind their decade of free money by tapering,stopping it/ implementing interest rate rises to combat the fake high inflation figures they are prepared to admit to.
It’s highly unlikely that markets ( housing too) will not crash if they proceed with their outlined plans.

I’d be thinking “capital preservation” is the most important objective as bankers try to bluff their way out of the situation they have created.

Did you slip him some under the counter dense, yellow ish material to get this thread started? I think preserving (real) capital is a good outcome as you imply.

 

[lifes2short]

There are some clear 'bargains' on that list, based on the guide prices. Obviously they often go over them, but if you know the areas, then you should know the property prices.
Ironically there's a flat on that list that has a guide price of £160k, that 13 years ago I was looking at when they were selling them at 180k+

I imagine the flat, once done up should be worth 250-275k in the current market (unless there is something significantly wrong with the building).

exactly, if you know the market then there are still an awful lot of great buys at auctions, unless you're up against an owner occupier bidder

 

[Gooner]

The OP has 60K and probably a mortgage, my suggestion is to pay off the mortage (within redemption charge limits) and enjoy the extra disposable income or reduced term. If he has other loans pay them off too.

Sorry am I being too sensible?

Paying off debt is never going to be a bad decision, financially and emotionally, but like everything it depends on your circumstances as Hawk said.

There’s a reason why IFAs are licensed to give Financial Advice and other financial institutions take great pains to point out they are not giving financial advice when they try to sell you a product. The advice carries consequences and none of us know the OPs circumstances.

Hence why some of us are saying spend some time learning the basics and then make your own decision. If you need help from an IFA then maybe worth paying for it, but even then it’s worth trying to understand what you are doing.

 

[midlifecrisis]

Paying off debt is never going to be a bad decision, financially and emotionally, but like everything it depends on your circumstances as Hawk said.

There’s a reason why IFAs are licensed to give Financial Advice and other financial institutions take great pains to point out they are not giving financial advice when they try to sell you a product. The advice carries consequences and none of us know the OPs circumstances.

Hence why some of us are saying spend some time learning the basics and then make your own decision. If you need help from an IFA then maybe worth paying for it, but even then it’s worth trying to understand what you are doing.

Wait a minute, we're all being too wise and sagey with our financial advice.

He has 60k?

He's on Sports Maserati?

The obvious answer is...

A Stradale.

 

[williamsmix]

Paying off debt is never going to be a bad decision, financially and emotionally, but like everything it depends on your circumstances as Hawk said.

There’s a reason why IFAs are licensed to give Financial Advice and other financial institutions take great pains to point out they are not giving financial advice when they try to sell you a product. The advice carries consequences and none of us know the OPs circumstances.

Hence why some of us are saying spend some time learning the basics and then make your own decision. If you need help from an IFA then maybe worth paying for it, but even then it’s worth trying to understand what you are doing.

Yes, definitely make sure you understand what you are doing. Someone I know bought BTL property in Poland many years ago on a Swiss Franc mortgage (which was all that was on offer at the time) with rental income in Polish zloty. I said don't do it, but they didn't understand what they were doing, perceived me to be pessimistic and went ahead! ... And it's been a disaster for them. So yes, make sure you really do understand what you're doing and have your ******** detectors switched on.

 

[MaserMike]

Wait a minute, we're all being too wise and sagey with our financial advice.

He has 60k?

He's on Sports Maserati?

The obvious answer is...

A Stradale.

Bang on! And could have cash left in the bank too…

 

[lifes2short]

Yes, definitely make sure you understand what you are doing. Someone I know bought BTL property in Poland many years ago on a Swiss Franc mortgage (which was all that was on offer at the time) with rental income in Polish zloty. I said don't do it, but they didn't understand what they were doing, perceived me to be pessimistic and went ahead! ... And it's been a disaster for them. So yes, make sure you really do understand what you're doing and have your **** detectors switched on.

and the moral of that story is buy in the uk and in your local area if you really want to be a landlord, especially if green

 

[stindig]

and the moral of that story is buy in the uk and in your local area if you really want to be a landlord, especially if green

My suggestion:

Download Crypto.com
Add them as a payee in your bank account
Transfer funds to the FIAT wallet (test with £5 first)
Buy USDC stablecoin
Stake your coins into the ‘Earn’ feature
Earn 12% pa, paid weekly, so you can compound

Risk free and easy

 

[lifes2short]

My suggestion:

Download Crypto.com
Add them as a payee in your bank account
Transfer funds to the FIAT wallet (test with £5 first)
Buy USDC stablecoin
Stake your coins into the ‘Earn’ feature
Earn 12% pa, paid weekly, so you can compound

Risk free and easy

let me have several sherberts and i'll have another read of that later

 

[midlifecrisis]

Bang on! And could have cash left in the bank too…

For maintenance...and fuel.

 

[MaserMike]

For maintenance...and fuel.

And beer

 

[midlifecrisis]

And beer

I'll drink to that!

 

[stindig]

Also, paying off mortgage debt is a very conservative idea. Borrow MORE against your domestic mortgage at 1.4%, buy a nice modern flat and earn 10%+ pa, plus capital growth

 

[Wattie]

Did you slip him some under the counter dense, yellow ish material to get this thread started? I think preserving (real) capital is a good outcome as you imply.

Inflation at 40 year highs.
Central banks trapped.....raising rates to 1-2-3% isn’t gonna deal with inflation at 7%.
(Last time CPI printed this high interest rates were at 11.5% in the US)
Beware.

(If you don’t think there’s a problem how many of you could afford a mortgage rate of 4-5%)

https://www.sportsmaserati.com/index.php?threads/closed-brexit-poll.20026/post-495552

Gold GBP 1/1/2016 £23,200kg
Gold GBP 1/6/2016 £29,156 kg

Gold GBP 10/2/2022 £43,338 kg.

 

[midlifecrisis]

Also, paying off mortgage debt is a very conservative idea. Borrow MORE against your domestic mortgage at 1.4%, buy a nice modern flat and earn 10%+ pa, plus capital growth

Double stamp duty, empty property, cladding, costs of being a landlord, defaulting, nightmare tennants. Just saying.

 

[stindig]

Double stamp duty, empty property, cladding, costs of being a landlord, defaulting, nightmare tennants. Just saying.

I’ve been a landlord for 15 years and currently have 13 flats. Loads of lessons learned - don’t but budget property, NEVER rent to students, only rent to professional people, always do credit checks. Currently I may get one call per year from each flat and it will be the batteries have run out in the thermostat, a dripping tap or washing machine not draining, all of which can be fixed for virtually nothing. My properties rent to the first people to look round them, and I have not had a single rent default (since the student days).

My buddy buys budget property, doesn’t present them well and has had loads of defaults.

 

[gb-gta]

I’ve been a landlord for 15 years and currently have 13 flats. Loads of lessons learned - don’t but budget property, NEVER rent to students, only rent to professional people, always do credit checks. Currently I may get one call per year from each flat and it will be the batteries have run out in the thermostat, a dripping tap or washing machine not draining, all of which can be fixed for virtually nothing. My properties rent to the first people to look round them, and I have not had a single rent default (since the student days).

My buddy buys budget property, doesn’t present them well and has had loads of defaults.

This.

However, political direction is not moving favourably for private landlords. Rules being applied to the sector in coming years (if they aren’t forced to push back) makes the push for EV’s seem very tame. Not only are they using the ‘green’ agenda, but also labelling ALL landlords, across the whole of the uk, as the devil. They believe landlord bashing is a vote winner with the young. Just because there are some bad ones in London, which is all they see as usual.