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How to spend £50k?


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You've got £50,000 - what do you do with it?

It's a question Rob & Rob get asked a lot (we're not quite sure why it's always £50k though ;))

There's a few ways you can use £50k to start your property investment journey or grow your portfolio.

So if you're interested in finding out how Rob & Rob would use £50k to invest in property, give this a watch.

 

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"you've got £50,000 - what do you do with it?"

OP in that video example of buying a £100k property, 25% DP, add in closing costs & refurb, an increased value (what are the chances of that), remortgage, take out £43k equity ... if it was only that easy to do, you'd have everyone doing it.

maybe a Maserati Levante would be another way to "spend" £50k

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I once heard car prices depreciate as soon as you drive them off the forecourt - and by around 40% within the first year.

As an example, Manchester house prices have gone up 4.5% over the last 12 months (Hometrack) - I think I'd take my chances on property ;) 

 

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@TJ ... lol, but think of the fun over bricks & mortar.

many years ago a chap I worked with leased a new BMW every 3-years. I mentioned that property investing with cash flow that he could lease his vehicle for free.

point taken on the OP plus the fact 'never purchase anything the depreciates over time'

make your money work for you - not the other way round.

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Obviously the stock answer would be it depends on your goals. Personally, I'd be buying 2 x £75,000 buy to lets at 80% LTV. With stamp duty and legals that would probably part with around £37,000. Other £13,000 I'd invest across a few property backed P2P lending platforms for a year, then use that plus the interest plus some of the rental income from the 2 properties to buy a 3rd property of similar calibre :)

Nice juicy cash flow of approx £750pm to play with from there all being well! 

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@matt, if that is 'exactly' what you would do, then those are nice returns.

if you wouldn't mind sharing, where exactly would you park the £13,000, in what, for what return?

as you said "with cash flow of approx £750pm to play with", what would you do with it .... would you look at other property investments such as a R2R, LOA or maybe pay down the mortgage on one of the two properties?

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RE,

You dont have to get a Levanti, Maserati do a lovely Ghibli, a top spec pre registered car can be had for £50k

Personally I'd use the £50k to pay of my companies tax bill. The rest I'd bank in case my current development over ran in budget or time....or both!

Not a stock answer, just a truthful one

Conrad Paton

Conrad Paton

+44 7957 959851

conradpaton@yahoo.co.uk

https://www.linkedin.com/in/conrad-paton-424446110

 

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@ conrad, a good response, for the reason that there are folks that would envy you that you are paying tax, which simply equates to 'that you made money with your property investing' that not many can boast truthfully about.

on vehicles ... that's another discussion.

 

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RE,

It's a topic that is all too often overlooked.

If you produce earnings from your investments but these are swallowed up by expenses and 'good accountancy' how do you make yourself look appealing to lenders when you have 'given up the day job'.

You can't drive your Ghibli to the benefits office and expect handouts from the local authority.

The reverse principal applies to get the best lending products...you must show success on your balance sheets, or have a job that meets the lenders criteria, to gain these products...without which some investors...me included...would struggle.

It's the old mortgage broker wants one thing......... and an accountant suggests another strategy, scenario.

You cannot have your cake, eat it and still squeeze into your MC12.

 

Conrad Paton

+44 7957 959851

conradpaton@yahoo.co.uk

https://www.linkedin.com/in/conrad-paton-424446110

 

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11 hours ago, REinvestor said:

@matt, if that is 'exactly' what you would do, then those are nice returns.

if you wouldn't mind sharing, where exactly would you park the £13,000, in what, for what return?

as you said "with cash flow of approx £750pm to play with", what would you do with it .... would you look at other property investments such as a R2R, LOA or maybe pay down the mortgage on one of the two properties?

I'd split the 13k across 3 of the funds I'm already invested in, returns in the region of 5-7%. With the cashflow id be saving that monthly to be in a position to buy the next property soon after. Wouldn't look to pay down the mortgages unless the house prices weren't rising, if they weren't if look to pay down to 75% by the time the mortgages are up for renewal. 

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On ‎10‎/‎27‎/‎2019 at 8:24 PM, matt hall said:

Obviously the stock answer would be it depends on your goals. Personally, I'd be buying 2 x £75,000 buy to lets at 80% LTV. With stamp duty and legals that would probably part with around £37,000. Other £13,000 I'd invest across a few property backed P2P lending platforms for a year, then use that plus the interest plus some of the rental income from the 2 properties to buy a 3rd property of similar calibre :)

Nice juicy cash flow of approx £750pm to play with from there all being well! 

Haha then you could use the £750 to lease your Maserati!  Everyone's a winner! :) 

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On 10/27/2019 at 8:24 PM, matt hall said:

.... Other £13,000 I'd invest across a few property backed P2P lending platforms for a year, ....

This is something I've been considering for a similar situation, for when I have a smaller amount lying about, instead of having it in the bank - waiting, I'd plan to tie it up in a P2P platform - are there any you could point me towards that would be worth closer inspection?

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