Investing large sum for income

[ian]

Property is a smart play if you are looking to make money, but if you are looking to just live off the interest it creates, then that much money tied up in property would prevent this from a capital growth point of view. I'd say 2mil could be utilised via safe interest led options, and 1mil for more risky investments; safe either way.

 

[signature]

The only problem with this, is you need experience. I wouldn't be sure which properties to buy, who you can trust to refurbish the property, how you go about letting it out and managing it would be very time consuming. I have thought about buying just one property to let out in the past, but it isn't just straightforward. I suppose it's a learning curve though, and you would start out small.

You are right it, you need to understand the industry, it won't take long if you speak with experienced property investors, there are people that do a lot of talking, some setup property investment course just because they have 10 properties, you can't learn from these the real knowledge of property investment.
Also with this kind of portfolio you won't be managing it, there is enough income to employ professionals. ..

 

[bonusmedia]

Are there websites out there where you can invest in start ups and actually own a share of the company, rather than the usual peer to peer lending sites where you do not own a share of the company.

Seedrs.com, Crowdcube.com, SyndicateRoom.com

Best in my opinion is Seedrs by far, but I do have shares in them

For lending secured against property, consider LandBay - again I have shares - which I bought through Seedrs in the first round - and based on the last round valuation have gone up about 20X.

You have to remember that the vast majority of tech startups will fail but the few that make it will do very very well

 

[markb]

Just had a look at landbay on seedrs, its £85 a share if you want to invest now. That could be quite risky.

Seedrs.com, Crowdcube.com, SyndicateRoom.com

Best in my opinion is Seedrs by far, but I do have shares in them

For lending secured against property, consider LandBay - again I have shares - which I bought through Seedrs in the first round - and based on the last round valuation have gone up about 20X.

You have to remember that the vast majority of tech startups will fail but the few that make it will do very very well

 

[bonusmedia]

Just had a look at landbay on seedrs, its £85 a share if you want to invest now. That could be quite risky.

I was more saying that if you're doing peer-to-peer lending Landbay is worth a look as the risk is lower than most, rather than actually investing in Landbay themselves which is certainly much more risky.

However they are doing very well indeed and plenty of institutional investors are happy with the valuation, I certainly am

 

[ian]

Bringing this thread back to life, interested in more views on p2p lending via companies like Landbay for decent returns; as well as hit and miss stories when investing in start up companies via platforms like Seedrs.

 

[doma1n]

3% stamp duty now on second properties, and you can't offset interest against income so not quite as attractive as it used to be.

I don't think this applies if you have over 15 properties, but don't quote me!

But with three million! I think, well I know! I'd remember the day being told I had 3 mill and I'd remember the day being told i'd spent 3 million. As for the days in the middle!!! Proberbly not!

So i'm better off without the money!

 

[spiderspider]

as well as hit and miss stories when investing in start up companies via platforms like Seedrs.

I've been on Seedrs since the early days, but have never invested in any of the companies on there. Something about their entire setup (and similar companies) that I just don't like, so tend to avoid. You're only going by what's written on a screen, and not the people / product themselves.

Miss story - just look at Zano Drone. Claimed it could do this and that, and looked really spectacular. However, it crashed after they couldn't do half of what they claimed it would do.
http://www.bbc.co.uk/news/technology-35356147

 

[ian]

I've been on Seedrs since the early days, but have never invested in any of the companies on there. Something about their entire setup (and similar companies) that I just don't like, so tend to avoid. You're only going by what's written on a screen, and not the people / product themselves.

Miss story - just look at Zano Drone. Claimed it could do this and that, and looked really spectacular. However, it crashed after they couldn't do half of what they claimed it would do.
http://www.bbc.co.uk/news/technology-35356147

It does make you wonder how many of these campaigns are nothing more than fraud. I'd imagine quite a few are pop-up companies created overnight, put a nice glossy presentation and video together, then reap the rewards of pledges never to be delivered upon. Not saying that of the drone company you linked to, but I wonder how much thought it actually put in to it versus just an easy fund raising exercise.

 

[pberry4032]

I don't think this applies if you have over 15 properties, but don't quote me!

But with three million! I think, well I know! I'd remember the day being told I had 3 mill and I'd remember the day being told i'd spent 3 million. As for the days in the middle!!! Proberbly not!

So i'm better off without the money!

It includes all portfolios, the Government changed their minds. Fancy that!!

 

[martin-s]

Crowdfunding tends to be pretty high risk - and paid for at a pretty high premium.

I had my terminology wrong really - I was thinking P2P lending. Though I might go for a small bank for crowdfunding amusing and interesting projects just for fun.

 

[signature]

Like Pberry4032 said, it does include all type of second homes, if you structure as a limited company, you can still claim all your expenses back including interest rate.

Remember that the 3% extra stamp duty becomes part of your outlay, so its tax deductible.

To reduce or avoid the 3% you could build, a bit more work, but worth it.

If you want to do little or no work at all, the best property to invest in is Ground rents, you received your income on a yearly basis or twice a year, most income is around 7%, they tend to double every 10 years or increase every 10 years in line with RPI. &5 return could be 14% in 10 years time, these are already written into the leases, no need for arguments. The only time a leaseholder comes to you for negotiation is when they want to extend the lease, this you will also charge for, there are companies that handle this for the freeholder.

You let the leaseholders appoint a management company or you appoint one for them, that's all, if you invest £2M on Ground rents, you could be looking at around £150,000 a year without doing anything other than invoices you will sent out once a year or you can let the management company collect it for you.

Its also the best to leave in a trust because its less work, the value do grow over a longer period of time and the income do grow periodically as well, the good thing is the income is binding and if the leaseholder choose not to pay, they could loose their flat/lease.

Sorry I cant advice on shares/stocks, don't know enough about it.

 

[Avano Ltd]

I don't think house prices will be climbing much more, it should plateau out shortly.

 

[signature]

I don't think house prices will be climbing much more, it should plateau out shortly.

That's the advantage of ground rents, changes in property prices have very little effect on it.