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    I am 23 got a permanent job and I have saved up a fair bit (20-22k). Does anyone know any good
    Investments to make. I was thinking of buying gold or house and renting it?
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    With house prices as they are I'd go for the house.

    They are presumably bound to rise, and the rental market is huge at the moment.


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    How much deposit do I need u think
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    (Original post by ledleyking123)
    How much deposit do I need u think
    It will depend on your earnings, credit status and the type of mortgage product. There are more offers of 10% deposit on the market now than there were and even some offering 5% - there is also the government's new insurance scheme for first time buyers to look out for. Any competent mortgage broker will be able to find offers for you and give you suggestions.
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    apart from houses, i heard gold is a good idea
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    (Original post by ledleyking123)
    I am 23 got a permanent job and I have saved up a fair bit (20-22k). Does anyone know any good
    Investments to make. I was thinking of buying gold or house and renting it?
    Stock market, while it is risky it has an incredible payoff and if you invest right, the dividends will give you enough to live off in your retirement, much better than a pension

    That said property, commercial property is a good place to make an investment
    (Original post by ledleyking123)
    apart from houses, i heard gold is a good idea
    Bit late to the party with gold.
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    Come on again with the gold
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    (Original post by ledleyking123)
    I am 23 got a permanent job and I have saved up a fair bit (20-22k). Does anyone know any good
    Investments to make. I was thinking of buying gold or house and renting it?
    Gold peaked at around 1900 and has since dropped back and being stable at around the 1600 mark, given market confidence in central banks is high it is unlikely that we will see a gold rally to any significant degree soon.

    Property is not a bad investment, especially closer to the developing cities (look at London and the core 8 cities).

    If your prepared to do your research then the stock and bond markets are not bad investments however you can invest in passive funds for less risk as these can just track the FTSE or Nasdaq for example.

    If you really want to take a stupidly high risk/reward then shove it in Bitcoins, there on an almighty rally (though this is short term because you can be certain that bubble will burst big).
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    Its better to insure your money accordingly and you also need guidance of a financial expert who would guide how and on what you must invest on depending on the current and upcoming economic scenario of your country.
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    (Original post by Rakas21)
    Gold peaked at around 1900 and has since dropped back and being stable at around the 1600 mark, given market confidence in central banks is high it is unlikely that we will see a gold rally to any significant degree soon.

    Property is not a bad investment, especially closer to the developing cities (look at London and the core 8 cities).

    If your prepared to do your research then the stock and bond markets are not bad investments however you can invest in passive funds for less risk as these can just track the FTSE or Nasdaq for example.

    If you really want to take a stupidly high risk/reward then shove it in Bitcoins, there on an almighty rally (though this is short term because you can be certain that bubble will burst big).
    The question of investing in managed funds or in raw equities comes up fairly regularly on these threads and is generally bad advice, since, as in this case, the capital sum is relatively small for such an investment. Investing around £20K in managed funds, even vanilla tracker funds, will incur such large fee percentages that it will easily fail to beat inflation, even if equities do continue to increase in value in the UK, an open question.

    In fact, in terms of safety, the sad truth is that there are no really credible savings or investment schemes out there at the present time that have sufficient returns to beat inflation and offer any real growth, even assuming that our OP pays no tax on any interest.

    Therefore getting involved in house purchase would appear to be the best bet. Also please ignore the ridiculously inappropriate remark from tehFrance above about commercial property, what nonsense.
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    Tobacco, tobacco, tobacco.

    Seriously If you can go to such moral lows as supporting a company which profits from killing their customers, invest in a tobacco company (Imperial is unstable). Just take a look at BAT; bit.ly/Y2fMXZ sustainable growth for 10 years.

    If you can consider this perhaps lower? Short term loan companies and the like
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    Index tracker in an isa is about as good as the average bloke can do imo. Shop around for low fees rather than taking the one your bank pushes. If you'd started looking a few weeks ago you could have started one in fy 12-13 and 13-14.

    Wrt houses, buying a house isn't the same as buying the housing market - e.g. the council could build a waste transfer station at the end of the road which would knock 1000s off the value and make it more difficult to sell.
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    id avoid gold for a bit personally its on a downward trend and its generally best to invest in things when theyre around the bottom of the cycle, that being said its rather hard to figure that our so who knows
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    (Original post by Fullofsurprises)
    Please ignore the ridiculously inappropriate remark from tehFrance above about commercial property, what nonsense.
    What was inappropriate and nonsense about commercial property? :holmes:
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    (Original post by tehFrance)
    What was inappropriate and nonsense about commercial property? :holmes:
    For a first time young investor with no other assets and £20K available? Are you making serious points or just joking? It's always hard to tell with your posts. :rolleyes:
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    (Original post by Fullofsurprises)
    For a first time young investor with no other assets and £20K available? Are you making serious points or just joking? It's always hard to tell with your posts. :rolleyes:
    He can always bump up the minimum he has or go for a smaller commercial property investment (£20,000 is possible), I see people suggesting private property so I don't see any issue with suggesting an alternative.
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    I was going to make a quick, typically glib comment or two but then I got to thinking, and thought I’d formalise my thoughts - more for my own benefit/the benefit of those I am presently advising than yours but here you go, some food for thought (largely unqualified conjecture but hopefully some of it will prove useful)..


    LSE (UK Stock Market)

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    I'm uneasy about the stock market, can see it becoming bearish very quickly in the current economic climate (domestic, European and world). The 'recovery' of both the stock market and hard assets like property in the UK appears to have been largely off the back of relatively thin transaction volumes, and sponsored in large part by QE - hence ‘bubble’ with the prospect of another correction fairly imminent. That said, defensive stocks look to be doing well so you might consider those in the short term e.g. National Grid, so long as you keep your finger on the trigger

    Spoiler:
    Show
    In fact, I'm uneasy about prospects for growth in general, short of a major new technological breakthrough I think we may be heading for more than just the stagflation I foresaw in 2008, we could yet suffer the same fate as Japan given our levels of public & private indebtedness, the (related) austerity drives just starting to bite, little sign of investment (corporate cash mountains etc), and limited avenues for growth



    Property

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    Forget commercial property unless you really know your **** (can spot individual opportunities in markets you have good knowledge of), it’s far more sensitive to the actual state of the economy and growth has been relatively flat since ’09. Alternately, housing (above) may be worth considering but, off the top of my head, in weighing return/risk you'd need to consider:

    • Interest rate rises ~ a 1% increase in the cost of capital has historically lead to a 5% decrease in real house prices but you can expect this relation to be markedly enhanced as the market is seriously stretched (affordability remains a major issue even at the current base rate). Central banks may raise rates if inflation becomes a concern and the market does its own thing anyway these days, particularly post crunch where mortgage rates are concerned

    • Increase in supply ~ it’s unlikely there will be a sudden surge in new house building but many existing property owners have 'held on' post crunch (hence low volumes), preferring to sit on their housing stock than to sell on the way down, or before prices have pushed back beyond '07 peaks (only started to happen in the past 12 months in London and yet to happen in much of the rest of the country). It's not hard to imagine it becoming a buyer's market again (even in greater London), particularly if, combined with the above, property owners who've chosen to 'wait it out' till now face (mounting) concerns about (a 2nd) downside slip (into negative equity)

    • The particular characteristics of the sub-market in question ~ e.g. local rental, and real estate, market conditions and relations. Take London for example, funds flooded in during the Eurozone crisis/rise of socialism in France, and what’s happened in Cyprus can only have enhanced this, but equally a lot of capital is likely to have flown out of Europe altogether and may continue to should conditions/confidence (continue to) worsen. Also, what happens if/when confidence is restored in European financial institutions and assets and these funds flood back out?..

    • Recapitalisation and/or the prospect of another financial crisis ~ the banks aren’t out of the woods by a long shot in Europe and just recently UK banks were ordered to further bump up their balance sheets – this makes it harder for them to lend, even with the deposit guarantee scheme coming into force

    • Timing and lags ~ property is a highly illiquid asset, even in a buoyant market it can take months to get a property sold, and if something puts a scare on the market it can take years even to sell at a loss/below a reasonable asking price (particularly outside of London)

    • Transaction costs ~ e.g. stamp duty, agents' fees, legal fees etc


    Gold

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    Peaked a couple of years back but assuming market manipulation/phony ‘growth’/bullish exuberance don’t continue forever, you wouldn’t bet against another rally – particularly as market confidence in central banks is anything but high in reality!

    There again, I’m not sure how easy it is to buy and store physical gold safely (real gold vs. tungsten plated) and securely, and ETFs (exchange traded funds) may not be worth the paper they’re printed on if the markets you’re betting against by buying gold in the first place take a serious tumble..


    Bit Coins

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    Don’t know enough about them or how easily realisable they are to be able to assess them properly but if you’re a gambling man and willing/able to keep an eye on things this is probably a good way to make a fast buck. I wouldn’t be surprised if central banks did something (possibly underhand) about these soon, mind, they don’t tend to mess around when it comes to dealing with alternative currencies


    Bank/Building Society Savings

    You are unlikely to beat inflation, although there are still regular saver accounts e.g. this one that can in principal, and if you have sizable deposits there’s always the threat of depositor haircuts becoming la mode du jour, or broader financial melt down e.g. if real estate should falter again (bank balance sheets are still highly exposed, which is why some view Osbourne’s deposit guarantee scheme as little more than an attempt to prop up the banks) ~ "Dude. I owe you big time! Come over one day after work and I'm opening a bottle of Bollinger."


    National Savings & Investments

    This won’t come close to beating inflation but at least it’s guaranteed to give you a bit of a return and a relatively safe place to stash your cash if, like me, you see a rocky road ahead in the markets/for private financial institutions. Their cash ISA was 2.25% (tax free) the last time I looked and Premium Bonds wins are also tax free
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    (Original post by Foo.mp3)
    LSE (UK Stock Market)

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Views: 320
Size:  26.5 KB

    I'm uneasy about the stock market, can see it becoming bearish very quickly in the current economic climate (domestic, European and world). The 'recovery' of both the stock market and hard assets like property in the UK appears to have been largely off the back of relatively thin transaction volumes, and sponsored in large part by QE - hence ‘bubble’ with the prospect of another correction fairly imminent

    Spoiler:
    Show
    In fact, I'm uneasy about prospects for growth in general, short of a major new technological breakthrough I think we may be heading for more than just the stagflation I foresaw in 2008, we could yet suffer the same fate as Japan given our levels of public & private indebtedness, the (related) austerity drives just starting to bite, little sign of investment (corporate cash mountains etc), and limited avenues for growth


    Bank/Building Society Savings

    You are unlikely to beat inflation and if you have sizable deposits there’s always the threat of depositor haircuts becoming la mode du jour, or broader financial melt down e.g. if real estate should falter again (bank balance sheets are still highly exposed, which is why some view Osbourne’s deposit guarantee scheme as little more than an attempt to prop up the banks) ~ "Dude. I owe you big time! Come over one day after work and I'm opening a bottle of Bollinger."
    I would agree that the UK looks shaky but to be honest if one is looking for long term investments and not in need of a return straight away but over time, the emerging economies/markets are a good option, personally I am very much into building up Brazilian, Israeli, Russian and South African share holdings as although dividends are next to nothing (I mean they are cents or in the case of some Russian dividends, less than cents :lol:), I have complete faith that if you follow the markets and make regular trades to reflect the market trends you can make money and one day perhaps the dividends will be something to start to build up wealth to reinvest.

    I would say the best way to get in emerging economies/markets would be by 'ETFs' (Exchange-traded Fund) although I doubt the return you can get for the amount you put in, some are offering extremely low returns for the high amount of money.

    If you want good returns in terms of dividends, Swiss companies give great returns, some were as high as 50CHF per share (although I believe the company has cut that right down to 15-20CHF and the purchase price per share was in the thousands). £20,000 would give anyone a good starting place in British, German, Scandinavian and Swiss markets, French markets are also good to look at although I personally would concentrate on stronger economies rather than France which is going down the pan rapidly (the country is basically broke and I believe there has been a 60€billion capital flight although it could be a lot higher now).

    As for savings accounts, from what I remember you'd actually lose money in this country if you put your money into a savings account, I was told during the Cyprus crisis that since the recession hit the UK in 2008 you would have lost £2 for £10 in savings whereas in Cyprus you actually made 2€ for every 10€ in savings (although in Cyprus the interest rates have been so high for so long, many people have made a lot more than that). So yes with saving rates being low I wouldn't chance losing money by putting it in the bank, invest on the stock markets in funds or do it yourself via TD Direct Investing (formerly TD Waterhouse) or SwissQuote for example although there are many out there so research and pick the best service for your needs.
    (Original post by ledleyking123)
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    Real estate, gold/other precious metals.


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    (Original post by tehFrance)
    He can always bump up the minimum he has or go for a smaller commercial property investment (£20,000 is possible), I see people suggesting private property so I don't see any issue with suggesting an alternative.
    Will he be using consultants, or going out shopping in the commercial property sector on his teenage ownesomes? :rolleyes:
 
 
 
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