£7.5-£8k, what can I invest it in?
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Original post by wannabeaca
It's not really slavery to the banks though. It's widely known that monthly mortgage repayments are lower than rent. Furthermore you actually own something - you have an asset.
I don't think the bubble will burst to the extent you expect, yes there will be a dip but like all things in a market economy, prices will continue to rise. Add this to growing population and the lack of housing supply and you get even bigger increases.
I don't think the bubble will burst to the extent you expect, yes there will be a dip but like all things in a market economy, prices will continue to rise. Add this to growing population and the lack of housing supply and you get even bigger increases.
Yes it is slavery, I won't thank my rapist for using lube.
Original post by wannabeaca
It's not really slavery to the banks though. It's widely known that monthly mortgage repayments are lower than rent. Furthermore you actually own something - you have an asset.
I don't think the bubble will burst to the extent you expect, yes there will be a dip but like all things in a market economy, prices will continue to rise. Add this to growing population and the lack of housing supply and you get even bigger increases.
I don't think the bubble will burst to the extent you expect, yes there will be a dip but like all things in a market economy, prices will continue to rise. Add this to growing population and the lack of housing supply and you get even bigger increases.
They are (if you have a 20% deposit) but you are ignoring buildings insurance, Service charges if you get something on leasehold, repairs to the building and bed/white goods. You also ignore the interest you are losing from the deposit no longer being on deposit.
'Actually owning something' happens when the mortgage is paid off, until then you own a mortgage, the deed sits with the bank.
Leverage has the lovely effect of amplifying losses as well as rises.
Original post by Viva Emptiness
How about 'investing' in a financial advisor, instead of appealing to know-it-all upstarts on the internet?
Since commission back scratching has been outlawed, they actually cost money. The OP would lose 10% and probably just no better advise.
Original post by Namige
bitcoins.
Highly unstable, worth a £100 punt but not any real amount.
Original post by wannabeaca
So I have £2.5k atm and with the bulk of my bursary and student loan to come next year, together with my plan to get a summer job/internship (if lucky enough) in the summer of 2014, I'll have around £8k by September 2014.
Is it best to stick it in an ISA? Small returns, safe and inflation is falling? Or risk some in a fund of some kind?
I'm saving for a deposit or if I get some help with that, just for the sake of it rather than flunking all this disposable income.
Cheers
Is it best to stick it in an ISA? Small returns, safe and inflation is falling? Or risk some in a fund of some kind?
I'm saving for a deposit or if I get some help with that, just for the sake of it rather than flunking all this disposable income.
Cheers
If i were you i'd probably fill my stocks and shares ISA allowance first, preferably one tracking the FTSE 100. Whether that's instant access or upto 2 years fixed rate (i'd not go longer than that with interest rates only going up in the longer term) is upto you.
A deposit is not a bad idea but i'd wait until the deficit is completely gone and business investment has returned before buying as we are right now still on shaky ground.
Bear market, there's little to indicate upward pressure anytime soon.
Original post by wannabeaca
It's not really slavery to the banks though. It's widely known that monthly mortgage repayments are lower than rent. Furthermore you actually own something - you have an asset.
I don't think the bubble will burst to the extent you expect, yes there will be a dip but like all things in a market economy, prices will continue to rise. Add this to growing population and the lack of housing supply and you get even bigger increases.
I don't think the bubble will burst to the extent you expect, yes there will be a dip but like all things in a market economy, prices will continue to rise. Add this to growing population and the lack of housing supply and you get even bigger increases.
Agreed however over the lifetime of your mortgage the mean interest rate charged is likely to be above 0.5% and rising house prices mean higher mortgage payments anyway each year because you need a larger mortgage, already in 2013 rents rose less than house prices. Don't be fooled by the bubble mentality of the average person, they are sheep who follow the crowd so while they may be right that one should own property to assume it's a long run better monthly option than rent is probably not the case. Yes and that's the big plus if you can ride the rapids for 20 years.
Credit provision is still lower than pre-recession so i'd agree especially given the factors you mention. There's a bubble developing in London again but not really anywhere else.
For low amounts which need to be easily accessed, Premium Bonds may be a way to go. They're made by the government under NS&I and works a bit like a lottery (although you don't lose money "buying" tickets, each bond you have is worth a ticket and there is a monthly draw).
Essentially you set up an account and invest money in them. Instead of just your money gaining interest, it is put in a pot with all the other bonds and that money makes interest. The interest earned is then shared back to all the investors through the monthly draw. You can win £25 up to £1M (and there are millions of prizes each month), even if you only have a bare minimum investment (although obviously putting more in gives you more odds of winning).
It does fall slightly behind inflation and you can go for a few months without winning anything, but it does give the possibility of making a larger return, albeit by luck, compared to other investment opportunities. If you're done with it, you can just access your funds and take them all out again with no questions asked. It's low risk, but that means that the rewards may be lower too. If it's a student loan, which you need to live off, then safe investments are clearly going to be a good idea.
Essentially you set up an account and invest money in them. Instead of just your money gaining interest, it is put in a pot with all the other bonds and that money makes interest. The interest earned is then shared back to all the investors through the monthly draw. You can win £25 up to £1M (and there are millions of prizes each month), even if you only have a bare minimum investment (although obviously putting more in gives you more odds of winning).
It does fall slightly behind inflation and you can go for a few months without winning anything, but it does give the possibility of making a larger return, albeit by luck, compared to other investment opportunities. If you're done with it, you can just access your funds and take them all out again with no questions asked. It's low risk, but that means that the rewards may be lower too. If it's a student loan, which you need to live off, then safe investments are clearly going to be a good idea.
Original post by Gillybop
You need to be keeping 3x your monthly outgoings on instantly accessible funds before considering investments, as Sod's law says, you fire it all away in an investment, pay the set up fees, buying costs etc, then your washing machine explodes and your having to dip into it.
So work out what that is, then decide if it's still worthwhile investing, and if it us, wrap it in an ISA whatever you do with it.
So work out what that is, then decide if it's still worthwhile investing, and if it us, wrap it in an ISA whatever you do with it.
Solid advice
Original post by SillyEddy
For low amounts which need to be easily accessed, Premium Bonds may be a way to go. They're made by the government under NS&I and works a bit like a lottery (although you don't lose money "buying" tickets, each bond you have is worth a ticket and there is a monthly draw).
Essentially you set up an account and invest money in them. Instead of just your money gaining interest, it is put in a pot with all the other bonds and that money makes interest. The interest earned is then shared back to all the investors through the monthly draw. You can win £25 up to £1M (and there are millions of prizes each month), even if you only have a bare minimum investment (although obviously putting more in gives you more odds of winning).
It does fall slightly behind inflation and you can go for a few months without winning anything, but it does give the possibility of making a larger return, albeit by luck, compared to other investment opportunities. If you're done with it, you can just access your funds and take them all out again with no questions asked. It's low risk, but that means that the rewards may be lower too. If it's a student loan, which you need to live off, then safe investments are clearly going to be a good idea.
Essentially you set up an account and invest money in them. Instead of just your money gaining interest, it is put in a pot with all the other bonds and that money makes interest. The interest earned is then shared back to all the investors through the monthly draw. You can win £25 up to £1M (and there are millions of prizes each month), even if you only have a bare minimum investment (although obviously putting more in gives you more odds of winning).
It does fall slightly behind inflation and you can go for a few months without winning anything, but it does give the possibility of making a larger return, albeit by luck, compared to other investment opportunities. If you're done with it, you can just access your funds and take them all out again with no questions asked. It's low risk, but that means that the rewards may be lower too. If it's a student loan, which you need to live off, then safe investments are clearly going to be a good idea.
I'd be sceptical with this. I had nearly 2k in Premium Bonds for a couple of years - never won anything. You need serious amounts of money in there to have a solid chance at winning. My Uncle has well over 15k and seems to win almost all the time (albeit only like 25-50 pounds).
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Original post by will2348
I'd be sceptical with this. I had nearly 2k in Premium Bonds for a couple of years - never won anything. You need serious amounts of money in there to have a solid chance at winning. My Uncle has well over 15k and seems to win almost all the time (albeit only like 25-50 pounds).
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£2k isn't a lot though. From my experience, £6k or more puts you in a reasonable position to get some small winnings every month or so. Less than that is reducing the odds towards zero, but obviously even those with £30k could still win nothing and those with £100 could win a million.
It is a lottery, but I haven't found any major downsides to it. If anything, I find it a convenient place to store money where it could raise some extra funds but is also easy to access and keep an eye on. That's always good as a student.
http://monevator.com/passive-investing-model-portfolio/
Something to consider.
Something to consider.
Original post by wannabeaca
So I have £2.5k atm and with the bulk of my bursary and student loan to come next year, together with my plan to get a summer job/internship (if lucky enough) in the summer of 2014, I'll have around £8k by September 2014.
Is it best to stick it in an ISA? Small returns, safe and inflation is falling? Or risk some in a fund of some kind?
I'm saving for a deposit or if I get some help with that, just for the sake of it rather than flunking all this disposable income.
Cheers
Is it best to stick it in an ISA? Small returns, safe and inflation is falling? Or risk some in a fund of some kind?
I'm saving for a deposit or if I get some help with that, just for the sake of it rather than flunking all this disposable income.
Cheers
5% interest on 4k if you open 2 TSB classic + accounts
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