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What the best way to invest £20 -£25k?


Hector-8
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A few questions just to start with...........

Do you require growth or income?

How much risk are you willing to take?

What term are you looking at?

Would you need access to any of the money short/medium term?

Would you be will ing to accept a loss for the chance of greater returns?

What is your Income Tax position?

If you are married - whats your wifes Income Tax position?

Any Capital Gains Tax issues?

Have you used your allowances for ISAs etc?

Whats your pension position?

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Sponge, You'd pay off the higher interest loan- More likely the car loan.

The exception being that if the car loan is fully budgeted and your covering the debt correctly, then it might be wiser to kill the longer term debt- the mortgage.

£25k, I'd buy blue chips

25% Tesco

25% BT / Voda or Colt

25% ICI or BP

25% Astra Zeneca or Galaxo

About 3.5% divi and work on 8-15% growth as a constant for next 5 years.

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Sponge, You'd pay off the higher interest loan- More likely the car loan.

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That's what I told my dad. But he wants to clear (if not all, a large %) of what remains of his mortgage. He's concerned about interest rates rising. Even if they do, it'll still be lower than the car loan APR.

Furthermore, if he pays off the car loan, he'll immediately be £500 pm month better off, which he can use to overpay his mortgage.

He's also said he wants to invest some of it. But I told him it wasn't worth investing if the interest on what he owes is higher than the interest on any investment.

Well, that's how I see it anyway.

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[ QUOTE ]

[ QUOTE ]

Sponge, You'd pay off the higher interest loan- More likely the car loan.

[/ QUOTE ]

That's what I told my dad. But he wants to clear (if not all, a large %) of what remains of his mortgage. He's concerned about interest rates rising. Even if they do, it'll still be lower than the car loan APR.

Furthermore, if he pays off the car loan, he'll immediately be £500 pm month better off, which he can use to overpay his mortgage.

He's also said he wants to invest some of it. But I told him it wasn't worth investing if the interest on what he owes is higher than the interest on any investment.

Well, that's how I see it anyway.

[/ QUOTE ]

I'd say that was spot on. 169144-ok.gif

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Hector, with the property market going at the rate it is just now in Northern Ireland, get a friend in and invest with yoy in a new build property, to turn.

Buy a new build, pay your 20% deposit and just before you complete get it on the market. You may have to draw down your mortgage, but if you have any contacts in a bank they may offer you an interest roll up.

Easy money.

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yeah,iv decided to invest in a little house.using it as deposit.will go for a little cheap one then fix her up and rent.thats the plan. S3 and RS4 were so tempting!

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It's always tempting to spend house money on a car. I keep them completely seperate, hard as it is to do sometimes. grin.gif

As for buying, fixing and renting, no need to tie yourself in like that. Turn it as quickly as possible and move on, the market is so hot you need to move your money around a bit and it will work more for you like that, rather than tied up in a wee place that will just about pay for itself.

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If you can get it at the right price, buying to rent can be a cracking investment. Mum and dad started off with 11k, and now have more properties than I can count. They were poor as poor could be - but have just been clever (and sensible) and made a mint. Trick is to find something that really does need a lot of work - one that's not desirable, so you can get it dirt cheap. Then just clean it up and rent it. Be prepared for not being paid rent on regular occasions though. You can lose a lot of money.

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without risk of loss,good intrest etc......,any ideas?

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Cavendish is the company I use. They have done very well. from what I can remember over the last 3 yrs they have trebled most peoples funds.

I have only been with them for a couple of years, but my little piggy bank has done very well. 169144-ok.gif

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They're a kitchen company up this way. grin.gif

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