investing in markets for income

[SE_123]

If you're willing to do research then I'd say blockchain/crypto (not talking about bitcoin/eth but other Layer 1 chains) based on personal success but it certainly isn't guaranteed. Some liquidity pools and staking opportunities are rewarding you 50-60+ APY. Find some which are new, be involved in the community and purchase at investor rate, if the token has a good ICO you could sell the moment it launches at 20x where you came in.

Of course rug pulls are a thing as well as the market being super bear-like as it waa at the beginning of the year and plenty of other considerations which make it something most would shy away from. The other thing to consider, if its being broadcast on the news and "common" trading platforms means the bubble has already burst and isn't likely to keep going up.

Of course it is worth remembering, value of assets could go up or down - standard disclaimer: this isn't financial advice.

To the OP - Don't do this with your £60k ^^

 

[schell70]

I have a small portfolio of BTL and have been doing it for 25yrs+, currently my advice would be against BTL. If you are unlucky enough to need to get a tenant out at the moment then you are looking at 1yr average to do it (even if they are not paying their rent) unless they agree to go - everything is stacked against the landlord and its getting worse. Licensing schemes are being introduced everywhere and can be extremely costly not just in fees but in remedial works & councils refusing a licence because they say you are not compliant even if you are within the law (also councils are exempt from having to licence their own properties!). Plus tenants are a complete PIA!

I was actually making 6% pa from peer to peer lending via Zopa in an ISA wrapper rather than buying more property. Unfortunatley Zopa have stopped this side of the business a few months ago. Not too sure on the other P2P lenders - obviously its capital at risk.

I've never met a rich financial advisor?! Says a lot doesn't it!

 

[Motorsport3]

Holiday property in the South of Europe and when not busy can be used by you!

 

[AKCH01]

To the OP - Don't do this with your £60k ^^

Exactly, DYOR! (Do your own research). Nothing is guaranteed but if you know what to look for, great investments can be made!

 

[Scaf]

I have a small portfolio of BTL and have been doing it for 25yrs+, currently my advice would be against BTL. If you are unlucky enough to need to get a tenant out at the moment then you are looking at 1yr average to do it (even if they are not paying their rent) unless they agree to go - everything is stacked against the landlord.

I insure against none payment of rent and a managing agent deals with this ****** stuff.
With the right property in the right area you can do very well, I chase the capital gain rather than yield so buy where prices are rising.
But of course nothing is ever guaranteed.

 

[midlifecrisis]

If you have mortgage, pay that off first. Think of it as investing at your mortgage rate...

 

[doodlebug]

Premium bonds. Modest secure income, no capital risk, chance of a windfall.

£50k per person is the maximum investment allowed in premium bonds. I had £50k in there for a couple of years before I retired. Most months I got nothing, some months I got £25 and a couple of times I got £100, so probably £400 return over 2 years. Not great for me (0.4%) and a lot worse than it used to be before the poxy government reduced the returns on them in December 2020.

 

[lifes2short]

I insure against none payment of rent and a managing agent deals with this ** stuff.
With the right property in the right area you can do very well, I chase the capital gain rather than yield so buy where prices are rising.
But of course nothing is ever guaranteed.

nail on head, capital growth, a lot of amateur BTL landlords have got in to problems with lack of due diligence in referencing potential tenants and loss in profits with the tax relief changes, still huge demand for homes and rental market is ultra busy with rental figures rising in the south east

 

[lifes2short]

If you have mortgage, pay that off first. Think of it as investing at your mortgage rate...

with interest rates still ultra low with some great fixed rates still out there I would be inclined to make that sort of dosh work for me and plough it in to an investment that you can touch and see, anything else scares the **** out of me

 

[lifes2short]

 

[midlifecrisis]

Can you, with a 100% guarantee and certainty, pick out an investment strategy that will exceed the interest rate of your mortgage?

If so, let everyone else know and we'll all put our mortgages on it.

The only winners are the banks. They make money out of lending you money, for you to have money in their banks.

 

[Hawk13]

I have buy to lets. I have overpaid my mortgage. I have shares but at the moment my focus is on my retirement income.

If you have bandwidth, you will benefit from your marginal rate of tax relief on contributions and you also have access to multiple funds that should increase in value. Can generate either a lump sum or an income.

Especially relevant if you are in the unfortunate (or fortunate) position that you earn enough to no longer receive tax relief on pension contributions - which means that you essentially get taxed twice (money in and money out). On that basis, tax efficient wrappers (such as ISAs) are worth considering.

But (as I mentioned earlier) you need to decide how much (if any) of this 60k you are prepaerd to risk (i.e. lose)

 

[lifes2short]

Can you, with a 100% guarantee and certainty, pick out an investment strategy that will exceed the interest rate of your mortgage?

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

 

[Gooner]

Can you, with a 100% guarantee and certainty, pick out an investment strategy that will exceed the interest rate of your mortgage?

Over what time period?

For instance, if residential house prices didn’t outperform mortgage interest rates on average over the life of the mortgage, everyone would rent.

 

[williamsmix]

say i had 60k to invest and i wanted to make income from it what would be the best way?? i see a vanguard thing shouted about on reddit alot. or would i be better off doing doing property BTL?

I have a similar dilemma myself! The gross yield on property lets seems quite poor to me; often under 5%. In theory there’s a capital gain to be had on sale of a property too, but that’s useless to you if you’re looking for income. In any case, you’d surely be buying property at peak price now. The stock market also looks to be at peak value now. With interest rates rising money will start to go back into bonds and reduce the demand for stocks, which will impact values. There aren’t any easy answers … Just pick an investment strategy that you understand and feel safe with and are prepared to stick with.

 

[oldwaterman]

The fact that you put a simplistic question like that in a forum suggests a level of ignorance that you need to rectify (pls forgive). I was in that position couple of decades ago, I didn't have the £60k to splash but had a reasonably healthy company pension pot and had just paid off my mortgage, so suddenly I had some disposable income. I made it my business to become more savvy, not relying entirely on the financial advisers who were hovering around but not ignoring them either, just gradually gaining that understanding and building up a diversified portfolio of cash and S&S ISAs, precious metals and a bit of property. It worked for me. So I'd put it somewhere safe for a while until you educate yourself. Have a look at Money Week articles and perhaps consider taking out a subscription https://moneyweek.com/

 

[midlifecrisis]

Over what time period?

For instance, if residential house prices didn’t outperform mortgage interest rates on average over the life of the mortgage, everyone would rent.

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?

 

[Hawk13]

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?

This depends very much on your earnings and tax status. For example, if you earn over 300k, it makes much more sense to look at pensions and saving tax (which will far exceed 2% mortgage rates).

But (generally speaking) I'd agree with paying off the mortgage.

 

[lifes2short]

other option is the george best quote which would be very tempting

"I spent a lot of money on booze, birds and fast cars. The rest I just squandered."

 

[Zep]

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?

It depends on your circumstances and risk profile, as it is currently really cheap to borrow. When I moved house, I could have taken the profit from my old house and had a smaller mortgage. Instead I had a bigger mortgage and rented it out. Overall, I owed more, but in the time since I have ended up significantly better off.

It’s not for everyone though, as others have said, it can be challenging.

There are plenty of funds which will outperform a 2% mortgage. Fundsmith for example has has annualised returns of 15% plus for years and years. This is a lot better than paying the mortgage and will, overall, reduce your mortgage term by a chunk, but with more potential risk.