10k to invest. Ideas? Watch

That'sGreat
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Got about 20/25ish k saved up, looking to invest maybe 5/10k initially, wondering if anyone has some sensible ideas? My parents suggested some ISAs but at 1.6% interest for 20k, £300 a year isn't exactly making my mouth water. I'm already sticking 4k in for the ISAs that the gvt. matches for you in order to help with a deposit on a house, but they don't match anything above that so its pointless.

Ideas? Not too risky as not looking to lose all my money, but obviously some risk is needed for reward
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mattymoo432
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Live Company Group (LVCG) - see my thread on it
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Acsel
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What sort of period are you looking to invest over? How hands on (or hands off) are you looking to be? Are you looking to just invest 5K/10K and leave it alone, or will you be constantly adding to it?
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SchmuckOff
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Cryptocurrency (HIGH RISK)
Forex Trading and CBD'S (MEDIUM RISK)
National Insurance bonds / Gold / Precious earth metals (Low Risk)
That's about all I can suggest due to the volatility of the market. Plus I suggest you trade in your £ for a more stable currency such as the Dollar.
(Original post by That'sGreat)
Got about 20/25ish k saved up, looking to invest maybe 5/10k initially, wondering if anyone has some sensible ideas? My parents suggested some ISAs but at 1.6% interest for 20k, £300 a year isn't exactly making my mouth water. I'm already sticking 4k in for the ISAs that the gvt. matches for you in order to help with a deposit on a house, but they don't match anything above that so its pointless.

Ideas? Not too risky as not looking to lose all my money, but obviously some risk is needed for reward
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That'sGreat
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(Original post by Acsel)
What sort of period are you looking to invest over? How hands on (or hands off) are you looking to be? Are you looking to just invest 5K/10K and leave it alone, or will you be constantly adding to it?
Either or, not too fussy. I'm into politics and news on the economy anyway so I'd be happy to have a hands on approach, it would make me feel safer about the investment if i did as well
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Snufkin
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(Original post by That'sGreat)
'm already sticking 4k in for the ISAs that the gvt. matches for you in order to help with a deposit on a house, but they don't match anything above that so its pointless.
I'm not sure what you mean by this? For every £4,000 that you put into a LISA, the government gives you £1,000. I suggest you do that, and keep feeding in another £4K every year. Nothing else will give you that kind of return, it's unbeatable - and there's no risk.

Any spare cash, stick it in a high-interest current account until you need it. I would steer clear of cryptos, precious metals or any kind of financial product if I were you.
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Acsel
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(Original post by Snufkin)
I'm not sure what you mean by this? For every £4,000 that you put into a LISA, the government gives you £1,000. I suggest you do that, and keep feeding in another £4K every year. Nothing else will give you that kind of return, it's unbeatable - and there's no risk.

Any spare cash, stick it in a high-interest current account until you need it. I would steer clear of cryptos, precious metals or any kind of financial product if I were you.
This, with an emphasis on steering well clear of cryptocurrency.
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mnot
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(Original post by That'sGreat)
Got about 20/25ish k saved up, looking to invest maybe 5/10k initially, wondering if anyone has some sensible ideas? My parents suggested some ISAs but at 1.6% interest for 20k, £300 a year isn't exactly making my mouth water. I'm already sticking 4k in for the ISAs that the gvt. matches for you in order to help with a deposit on a house, but they don't match anything above that so its pointless.

Ideas? Not too risky as not looking to lose all my money, but obviously some risk is needed for reward
marcus (from GS)
https://www.moneysupermarket.com/savings/marcus/
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That'sGreat
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(Original post by Acsel)
This, with an emphasis on steering well clear of cryptocurrency.
(Original post by Snufkin)
I'm not sure what you mean by this? For every £4,000 that you put into a LISA, the government gives you £1,000. I suggest you do that, and keep feeding in another £4K every year. Nothing else will give you that kind of return, it's unbeatable - and there's no risk.

Any spare cash, stick it in a high-interest current account until you need it. I would steer clear of cryptos, precious metals or any kind of financial product if I were you.
Yeah, but the LISA only kicks in if you buy a house < £200k, and living in London this won't be feasible. Meaning I would only be able to take out money when I reach 60, and giving up 16k or so (over 4 years) for 40 years for a return of 4k seems ridiculous.
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Quady
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(Original post by SchmuckOff)
Forex Trading and CBD'S (MEDIUM RISK)
CBD?
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salimyasin10
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Invest in bitcoin, its definetly going to get big.
(Original post by That'sGreat)
Got about 20/25ish k saved up, looking to invest maybe 5/10k initially, wondering if anyone has some sensible ideas? My parents suggested some ISAs but at 1.6% interest for 20k, £300 a year isn't exactly making my mouth water. I'm already sticking 4k in for the ISAs that the gvt. matches for you in order to help with a deposit on a house, but they don't match anything above that so its pointless.

Ideas? Not too risky as not looking to lose all my money, but obviously some risk is needed for reward
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Snufkin
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(Original post by That'sGreat)
Yeah, but the LISA only kicks in if you buy a house < £200k, and living in London this won't be feasible. Meaning I would only be able to take out money when I reach 60, and giving up 16k or so (over 4 years) for 40 years for a return of 4k seems ridiculous.
No, that's wrong. To use your LISA the property you buy has to cost £450,000 or less. How much research have you actually done into this? :erm:

I have to be honest, the fact you're asking for financial advice on a student website tells me you shouldn't be making any kind of financial decision where risk is involved. Stick with bank accounts and the cash LISA.
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mattymoo432
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Cash erodes the value of your money. It takes the average first time buyer 9 years to save for a house. Inflation is around 3%. Put the money in the stock market
(Original post by Snufkin)
No, that's wrong. To use your LISA the property you buy has to cost £450,000 or less. How much research have you actually done into this? :erm:

I have to be honest, the fact you're asking for financial advice on a student website tells me you shouldn't be making any kind of financial decision where risk is involved. Stick with bank accounts and the cash LISA.
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Quady
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(Original post by mattymoo432)
Cash erodes the value of your money. It takes the average first time buyer 9 years to save for a house. Inflation is around 3%. Put the money in the stock market
Inflation erodes the value of your investment returns whether that be cash or whisky.

General inflation is 3%. The OP has mentioned London housing, which currently has an inflation rate of -3.8%...

So their cash has increased in value in real terms by over 4% against the thing they want to use it for.
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DarthRoar
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Unless you have a long term goal, £10k isn't going to yield any meaningful gains. You might get 3% per year over 5 years if you're lucky, that's still only £300 per year. To get significant gains ~5-7% you need to go long term, 15-20 years at least. Do you really want to lock away 10k for 5 years for only 1.5k extra? I certainly wouldn't.

If you'd wanted a house in the future, £4k per year in LISA would be the best return you could get. However, you don't seem to. However, you're almost certainly going to want to in the future. Putting 4k this year and 4k next year gets you £12k of a deposit already, and then that investment can be grown at an adequate rate.

DON'T do active trading. Even experts and professionals (which you are not) consistently fail to beat index tracker funds (look them up). The VAST majority of day traders lose money. Also, don't do cryptocurrency, you'd be better off in a casino.
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AndreaBligh1998
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I would strongly recommend buying a 2-3 bedroom house in Cumbria or County Durham. They can often be bought for £8-£10 thousand and then rent it to the county council who will do the social/council housing with it. I get £275 per month rent for a house that I own the freehold to that I bought in December 2017 for £9250 when I was 19. It is very difficult to loose money in freehold property and I know that if I wanted to, I could sell it tomorrow for at least £9000 and keep the money I earned in rent. It is almost entirely hands off, the council handle all maintenance but if you wanted higher rent £300-£350 I could rent privately but then maintenance would be my responsibility. I dont have to worry about tenants not paying rent/leaving as the rent is paid every month by the council regardless of the presence of tenants. If you buy a house that is structurally sound it will not loose value. I pay direct line landlords insurance for added peace of mind if it is trashed by tenants so that I can facilitate its repair. It is almost entirely risk free if you have a good solicitor. The fees are usually quite small and I only paid £800 in solicitors/legal fees and I now have better credit also because of the freehold being owned outright. It is much less risky than hard currency, cryptocurrency or metals as the property market is very stable and the house increases in value gradually but by more than what you would gain from an isa plus I have the rental income. All-in-all it is a win win situation for me. I would recommend this completely. I am now in my fourth year at university and I plan to buy another when I graduate soon.
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mnot
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(Original post by AndreaBligh1998)
I would strongly recommend buying a 2-3 bedroom house in Cumbria or County Durham. They can often be bought for £8-£10 thousand and then rent it to the county council who will do the social/council housing with it. I get £275 per month rent for a house that I own the freehold to that I bought in December 2017 for £9250 when I was 19. It is very difficult to loose money in freehold property and I know that if I wanted to, I could sell it tomorrow for at least £9000 and keep the money I earned in rent. It is almost entirely hands off, the council handle all maintenance but if you wanted higher rent £300-£350 I could rent privately but then maintenance would be my responsibility. I dont have to worry about tenants not paying rent/leaving as the rent is paid every month by the council regardless of the presence of tenants. If you buy a house that is structurally sound it will not loose value. I pay direct line landlords insurance for added peace of mind if it is trashed by tenants so that I can facilitate its repair. It is almost entirely risk free if you have a good solicitor. The fees are usually quite small and I only paid £800 in solicitors/legal fees and I now have better credit also because of the freehold being owned outright. It is much less risky than hard currency, cryptocurrency or metals as the property market is very stable and the house increases in value gradually but by more than what you would gain from an isa plus I have the rental income. All-in-all it is a win win situation for me. I would recommend this completely. I am now in my fourth year at university and I plan to buy another when I graduate soon.
just done a quick rightmove search, and property is crazy low in County Durham as u mentioned.
-what is a freehold property?
-Can you explain a bit more about renting your property to the council, ie what do they give you guarantee wise, length of contract, how confident are you they will manage the property well?
-Are you worried that given its social housing, the tenants won't be ideal?
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AndreaBligh1998
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(Original post by mnot)
just done a quick rightmove search, and property is crazy low in County Durham as u mentioned?
-what is a freehold property?
-Can you explain a bit more about renting your property to the council, ie what do they give you guarantee wise, length of contract, how confident are you they will manage the property well?
-Are you worried that given its social housing, the tenants won't be ideal?
1) A freehold is when you own the property and land FOREVER. As opposed to a leasehold when you only have rights to it for a set number of years. If land is freehold you do not need to seek anyone's approval* to do any work to it, such as decorating the house, renting/subletting, taking down walls, rewiring/plumbing work...etc. *One would still need to gain planning approval to build, demolish or extend the dwellings but that is a somewhat simple process if you own the freehold unlike for leasehold where one would have to be gaining the freehold owners approval and bouncing around with plans.
2) It means that the council pay rent to me every month, in my case by standing order to my bank, and in exchange they source tenants, look after maintenance and pay me regardless of whether or not it is rented out. My contract is for five years but I will have the option to renew after it has lapsed. The property has had some remedial work done by the council I think that the water heater was changed about 3 months ago, I was told that it was going to take place and they told me when the work would take place in case I wanted to supervise its installation (I didn't, I am currently a 4th year studying undergraduate mathematics in NI so it made no sense to me to travel to Durham to supervise the minor work) but I didn't have to pay so so-far so-good. I just decided to rent to the council because I knew scarse little about managing a property and I was and still am studying at Ulster University, an hour flight or an 8 hour ferry to the mainland UK, so it was recommended by some family members to rent to the council to save my hassle.
3) I don't really worry about that, if anything goes wrong because of the tenants my insurance will pay to repair the damages if the council don't and handle any legal fees but thankfully I have been very lucky so far, there is currently a family of 4 living there now and I have never had any issues with them. I have had pay-as-you-go utility meters installed before I rented it out so it will not be possible to rack up any debt on the utilities if they cannot keep up with the DD.
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mnot
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(Original post by AndreaBligh1998)
1) A freehold is when you own the property and land FOREVER. As opposed to a leasehold when you only have rights to it for a set number of years. If land is freehold you do not need to seek anyone's approval* to do any work to it, such as decorating the house, renting/subletting, taking down walls, rewiring/plumbing work...etc. *One would still need to gain planning approval to build, demolish or extend the dwellings but that is a somewhat simple process if you own the freehold unlike for leasehold where one would have to be gaining the freehold owners approval and bouncing around with plans.
2) It means that the council pay rent to me every month, in my case by standing order to my bank, and in exchange they source tenants, look after maintenance and pay me regardless of whether or not it is rented out. My contract is for five years but I will have the option to renew after it has lapsed. The property has had some remedial work done by the council I think that the water heater was changed about 3 months ago, I was told that it was going to take place and they told me when the work would take place in case I wanted to supervise its installation (I didn't, I am currently a 4th year studying undergraduate mathematics in NI so it made no sense to me to travel to Durham to supervise the minor work) but I didn't have to pay so so-far so-good. I just decided to rent to the council because I knew scarse little about managing a property and I was and still am studying at Ulster University, an hour flight or an 8 hour ferry to the mainland UK, so it was recommended by some family members to rent to the council to save my hassle.
3) I don't really worry about that, if anything goes wrong because of the tenants my insurance will pay to repair the damages if the council don't and handle any legal fees but thankfully I have been very lucky so far, there is currently a family of 4 living there now and I have never had any issues with them. I have had pay-as-you-go utility meters installed before I rented it out so it will not be possible to rack up any debt on the utilities if they cannot keep up with the DD.
thanks for sharing this, gonna have a much deeper look at it. £275/month also a very healthy dividend considering you got in there for £9.25K
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Serbian_2000
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How old are you???
(Original post by That'sGreat)
Either or, not too fussy. I'm into politics and news on the economy anyway so I'd be happy to have a hands on approach, it would make me feel safer about the investment if i did as well
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