80k to invest

[Opara]

Hello, I recently came into some money and have around £80000 and I want to make it work for me.I have no debts and also own no property.As I am currently renting a flat the obvious solution seemed to be to buy a place and saving £6000 a year on rent, this seems a far better return than any savings account would offer.

I am at university at the moment which I think rules me out of getting a mortgage so the properties are limited unless I went for a shared ownership scheme.Do you think this would offer the best return on my investment?

Thanks

[dandam]

Buy a 911 and drink the rest ??

[Newc]

I'd get your spell check looked at. You were auto corrected to "I'd like some safe low yield investment", when of course you originally typed "I'm still at college and have 80k. As my whole life is still in front of me, should I be spending it all on a porsche, going round the world, coke and hookers, or should I keep 10k back just for wasting away on indulgences?"


Edit: Dandam, on the same wavelength and typing faster.

[Twin2]

There's potentially no point buying a place as you'd have to pay all the moving costs etc and also remember that when you leave uni you might be moving for a job.

What I'd do if i got 80k right now is use 5-10k doing something fun, maybe go a huge holiday/trip and get the rest somewhere safe for a house deposit when you need it.

[Opara]

I'm actually a mature student at 30 so i'm done with the coke and hookers and smack seems a little moreish. Most of the money is from savings but I received 20k this week which kind of tipped it into the potential house bracket.

It seemed like a good time to be honest as i'll be spending a minimum of 3 years in Leeds, it would potentially save me £15k but I am open to ideas.

[pacoryan]

What do you do for income? If you really want to make it "work" use it as a deposit on a bigger BTL and gear up. You could get a £300k BTL, it would only have to go up by 2% a year to return you more in growth than you spend in rent, plus you would have the surplus rental income.

I am not recommending this course of action, it is speculative and thus carries substantial risk. You will also struggle to meet criteria for the lender!

Back in reality a £6k p.a. saving on rent is not to be sniffed at.

[Du1point8]

if in Leeds for 3 years I would look at LS6:

http://www.rightmove.co.uk/property-for-sale/find....

Or Chapel Allerton if you want the more grown up area of leeds

Go and get a place and rent it to your friends for 3 years and then decide then what to do with it.

[Grumfutock]

Give it to me. I promise to double your money in 2 years, honest Gov'nor!

[jeff m2]

BTL in what will probably be a rising rate environment for a person with no other assets or income could be somewhat risky.

Diversified investment, forget it and complete your studies.

Global Equity
Global Real Estate (REITs)
FTSE Index
and maybe 10% in Emerging Markets.

[Paul O]

I'd invest it if I were you. You are still at Uni, so your future uncertain (where you might live, what area, even which country).

I wouldn't go into the complexities of property rental right now - focus on getting through Uni and doing well and then you've got your 80k banked and making more money for the time you come to buy a place.

[Esseesse]

I hope you used your ISA allowance last tax year...

[smckeown]

My advice is buy a house in leeds and rent the spare rooms to student friends. Then they pay the mortgage for you. So no rent,no mortgage and owning an appreciating asset.