I have about 70k saved up. I would like to invest 50k of this. Is buy to let the best option?

[LawyerMoney]

I would like to invest 50k. Can you suggest ways of doing this.

[maggot4life]

my account number is 123areyoufeelingok123
sortcode letsbefriends999
bank : bank of makemerich

[parkesquay]

Firstly you need to decide what type of risk you are willing to take i.e.big risk can get big gains but can equally end in disaster. Can you afford to lose it?? Is this a long term project or short term? Would you prefer to be safe. If this is the case then ISA.s etc is a way to invest small amounts.
You could put all of it,(or a portion) for example, in Premium Bonds say for one year. The worst that can happen is that your money could stand still i.e. no interest for that year but you will still have the capital. On the other hand you may just win one million pounds.
Perhaps the best way is to do a bit of everything and in that way you shouldn't make losses but you might not make large sums either.
Beware though, there will be plenty of people out there just dying to get you to invest with them.

[parkesquay]

I know I didn't directly answer your question. Buy to let is OK but by the time you pay legal and purchase fees the money you have left over won't buy you much(no disrespect intended). In any case it will depend on how old you are, your marital status etc. What area you buy in is also important. Why not go and ask an estate/letting agency for their advice.

[ali_alic]

Hi ya LawyerMoney. if you are interested in Buy to Let (I have 3 buy to let properties) you have a couple of options. You must however bear in mind that buy to let is for long term. You rarely make money on the actual rental - its the increase in equity that is the profit part (but you prob know that already). We have 2 UK b2L that are covering their mortgages with a little left over that invariabley goes on repairs, redecorating etc. We also have one in Orlando (ie Disney) and that is a holiday rental property. We are expecting to make money on that rental-wise (1K per month in the high season) and also in the increase in property value. If we had our time over again we would buy UK b2ls at the cheap end of the market (students, DHSS etc) as the initial cost of furnishings is less and the upkeep is less, at the mo are 2 UK properities are to appeal to the professional market so therefore they expect more. One of our B2Ls was a run down house that we did up and then let out. If sold we would have made 90-100K on the sale, so thats another option - depends on how good at DIY you are!!

[WendyS]

Everybody thinks Buy-to-Let is a receipe for making money quickly but there are a lot of downsides, especially if you are an inexperienced landlord. For a start, you will have your mortgage payments every month and possibly periods when you have no tenants either. And when you do have tenants, they may cause damage or not pay their rent. You will also have hassles if equipment breaks down, the plumbing leaks or the place needs redecorating. Are you prepared for all this? As well as having to keep accurate accounts of all your expenditure?
Do you have an adequate pension? That perhaps should be a priority.
Possibly a good mix of unit trust funds would cause you less hassle, rolling over your maximum �7,000 ISA allowance every year for as long as they last. Then just reinvest the dividends. If you are a taxpayer, any long term capital gains in ISAs are tax free. Profits on Buy to let properties, if you are lucky enough to make any, are taxable.