What would you do with 70K

[pbryd]

You have 70k to invest.

Do you,

Buy a property and rent out, or

Buy shares in companies that pay dividends?

If my sums are correct

If you buy a property for 70k and rent out for £4200 per year (£350 per month) that will bring in 6% of your investment per year.

Or you can buy shares and grab dividend yield of 5.4% - 8.3% (source)

Any property guys and stock investors have an opinion on this?

All theoretical of course.

 

[dta]

You have 70k to invest.

Do you,

Buy a property and rent out, or

Buy shares in companies that pay dividends?

If my sums are correct

If you buy a property for 70k and rent out for £4200 per year (£350 per month) that will bring in 6% of your investment per year.

Or you can buy shares and grab dividend yield of 5.4% - 8.3% (source)

Any property guys and stock investors have an opinion on this?

All theoretical of course.

you can't take a dividend yield based calculation and attempt to compare directly. Whenever a dividend is made the valuation of a company drops slightly as you are releasing effectively some money from the larger pot. Plus there's the added risk a dividend may be cancelled and/or the stock value may drop.

For properties you need to see them as long term investments - especially in this current climate.

The right answer in my view is the old saying - diversify... property, stocks and domains of course

 

[accelerator]

I'm not into property, but re property yield, don't forget you will have all your costs, plus the hassle of letting.

On balance, I would say it's easier to lose money on shares than property. With shares, then I think a high dividend strategy has a lot going for it. You have to keep a very careful eye on your portfolio though.

Rgds

 

[boxfish]

I looked into BTL and apparently it's better to get a BTL mortgage rather than pay cash as the income is taxable but can be offset against the interest on the mortgage.

I'd go for property, just because it interests me more

 

[dta]

one more option i forgot to add for the brave is spread 'trading' where the gains are tax free as it's technically classified as 'gambling'.....

I wouldn't advise any newbies to go into this as you can lose as much (or more) then you make rather quickly. But if done right can be a fantastic way to grow that 70k and is fun for the balsy (feel free to replace that with mad, crazy, dumb or something else!) ones amongst us

 

[bensd]

If you buy a property for 70k and rent out for £4200 per year (£350 per month) that will bring in 6% of your investment per year.

Don't forget you would have to pay tax on your rental income if you buy the house outright.

 

[Sussexite]

With the property you will need to take into account:

1. Costs, including maintenance and insurance
2. Void periods
3. Commission paid to agents who help you find a new tenant, inventory clerks etc
4. Hassle
5. The cost of your time
6. Illiquidity if you need to sell up
7. Transaction costs when you sell (stamp duty, lawyers and agents fees)

However, your investment is unlikely to turn to dust which can sometimes happen with equities.

Hope this helps

PS FWIW I run a property investment company.

 

[max_rk]

I say diversify. Don’t forget about tax, so use your ISA allowance if you buy equities or bonds. If would have put any money in NS&I inflation linked bonds you would be getting about 6% tax free with 0 risk. If you want to invest now, you would have to wait for next bond issue by NS&I.

Short maturity corporate bonds are paying up to 7% with some risk.

As the property goes, lots of time you have to put in to it. Repairs and maintenance can be expensive, that would eat in to your returns.

 

[BREWSTERS]

Domains. Buy several very nice .coms either direct or on the drop. Sell. Repeat, and stop thinking of single figure returns.

 

[BREWSTERS]

You have 70k to invest.

Do you,

Buy a property and rent out, or

Buy shares in companies that pay dividends?

If my sums are correct

If you buy a property for 70k and rent out for £4200 per year (£350 per month) that will bring in 6% of your investment per year.

How about any capital outlay in bringing it upto spec for renting?

Upkeep?

Insurance and other costs?

What about depreciation?

What if it's empty for 4 months a year?

I think you'd need at least 6% per annum income just to stop losing money.

 

[Pred]

Domains. Buy several very nice .coms either direct or on the drop. Sell. Repeat, and stop thinking of single figure returns.

This

1000% and 10,000% returns

btw, this comment goes very well with my trader rating. snap, lol

 

[JMOT]

Develop a domain. Build it into something you can sell. You could spend £70k and after 12 months have something making 15/20k a month... at least. Thats conservative.

Its not guaranteed of course but with returns like this why the hell would you consider doing anything else.

Its not easy either

 

[stender]

Buy some signed Banksy prints, put them on your wall to look at whilst they go up in value.

 

[dragon]

It's mad how quickly money goes, even that much! Thought this might be a good read - http://finchsells.com/2012/01/25/affiliate-marketing-as-an-investment-strategy/

 

[viceroy]

I'm with JMot, there are still some very exciting opportunities around and 70k could set up a decent web-based business...

 

[BREWSTERS]

Develop a domain. Build it into something you can sell. You could spend £70k and after 12 months have something making 15/20k a month... at least. Thats conservative.

Its not guaranteed of course but with returns like this why the hell would you consider doing anything else.

Its not easy either

If this is replicable, I'd be very interested to see how - if it turns out it is, I'd be happy to pay on a split rev basis.

 

[JMOT]

If this is replicable, I'd be very interested to see how - if it turns out it is, I'd be happy to pay on a split rev basis.

LOL I'm not sure how to reply to this. Either heavy sarcasm or just an open mouthed "are you serious" look?

The recipe is simple, the workings and reality are not so simple:

Pick a niche.
Build a proper website.
Do proper effective SEO (you might need a seo consultant/firm if you cant do it yourself or just want to be handheld to ensure what you thought was the right way to do seo actually is...or not)

You can throw money at it like a lune and get there faster or less & slower if you have the patience .

Many people here have several successful ventures on the go. Its replicable... you just have to find your own way

 

[philiporchard]

In my experience letting property is a lot easier than building a successful web business! I'm not saying it's not possible - it's just a lot of hard graft!

 

[jimm]

I would probably take on 2 BTL properties with some credit too.
But thats because its something I know and can make a decent return without much hassle.

 

[jwm]

Develop a domain. Build it into something you can sell. You could spend £70k and after 12 months have something making 15/20k a month... at least. Thats conservative.

Its not guaranteed of course but with returns like this why the hell would you consider doing anything else.

Its not easy either

Bit of a different model though. The equity investment is completely passive, the BTL could be either completely passive (via agents) or relatively passive. The website option would be a full time commitment