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  • Entrepreneurs

    Investment advice after cashing in my BTLs?

    I've now put the wheels in motion to sell one of my 3 properties, having decided to exit BTL. Another will go next year, the final one the year after. I'll have around £370K to my name when it's all done.

    I'm in my late 50's, have a low cost lifestyle, no plans to change this.

    A pension of £7.5K p.a. 10 years from now. I'm not looking for particularly high returns nor a great level of risk, although I'd be prepared to put a proportion of it into something more risky. I'd be happy to net 3-4%, to track inflation really.

    Any suggestions how I might invest this?

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    Now is not the time to be investing in stock markets. I would bide my time, find best interest rate for cash Isa, put some in PSB's ( might win something but at least you get your £'s back) Put the rest on some good interest bearing account.

    Meanwhile look at Hardgreaves Lansdown site for investment ideas.

    They have lots of info and i would good towards equity income funds. Get a feel of the funds that suite your needs and just monitor them with a view of buying some time down the road. I would slowly average into these funds over time.

    However for now if you wish to risk a small % look at gold and silver.

    My view remains a major correction on the equities markets is round the corner probably up to 70% down. Gold and silver can be brought via ETF's but only buy the ones who hold the physical not the derivatives. Also consider adding to your pension pool.

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    70% down, what is driving that much of a down turn? I agree that they cant continue to climb year on year, but to be fair the growth has been more steady than outstanding.

    I really dont see that big a drop  I can see maybe a 10% correction at most but I would be slightly surprised by that. I am expecting a stagnation.

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    Slowly working towards financial freedom

    70% is worst case, certainly 40%-50% is on the cards. 10% can be lost in a morning trading when it gets hit.

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    Hi Mark,

    I believe you work at the company you recommended?  In the interests of transparency, I think you should have disclosed that. 

    As it is, you have not passed probation and you are therefore not permitted to make recommendations or post links and, as it's a commercial entity, that would not be allowed, even when you have passed probation.  These are all part of our community safe-guarding procedures and terms and conditions.

    Thanks for your kind understanding.

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    L&G All shares tracker fund is averaging 8% per annum over the last 10 years.  Hargreaves Lansdown is a good place to start.  Each fund will have a fact sheet. Look for low management charges - this one is less than 1% per annum. Reinvest the dividends and it grows very quickly.

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    Hi Ricco,

    Sorry I am hardcore Real Estate so do not know anything about any other real estate classes so have to point out something you might have missed in the magnificent world of Property!? After all, real estate is much bigger than the resi/BTL/HMO properties  :-)

    Have you considered well let commercial properties for a long term/secure income followed by a likely handsome cash exit of the site at the end by selling it to a developer?

    By way of an example: I am looking at one (retail shop) myself in Bromley, cracking location which is let to a great (safest credit rating) tenant for 4 more years left on the lease. Tenant been there since 1973. Site is available at circa 7.5% yield (resi yields in the area around 4.25%). FRI lease on the full property so no headache whatsoever.

    Tenant likely to renew which might increase its market value due to a new lease and possible capital/rental appreciation in the area but is not definitely likely to go down as a worst case.

    But if they leave, there is a potential for 5/6 apartments (4 under permitted development): get the planning and sell it to a developer. Since the location is cracking, another quite similar site just 50 yards away sold for 1.1M recently as a vacant property bought by developers but without any planning, cash unconditional!

    High Street or commercial currently has some great opportunities and they are SSAS/SIPP investible too. I am surprised why too few people actually even look at them. Good for me maybe, fill my plate :-)

    Yes, need a bit of knowledge and experience but its all there on Google. There are some "gurus" who spot the opportunity and have started selling training which is good for an overview but at times, they just sell the shining side of this as they have no idea about the muddy side because they have no idea about since they have never done any deals or only a few. So maybe have a look at them too but carefully.

    Hope it helps. Thanks.

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    Have you looked into whether you can  get any retrospective tax relief by putting some of it in your pension?

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    Yes, consider maxing out your pension contributions (retrospectively and going forward).

    I think another avenue that is commonly suggested is enterprise investment schemes (EIS) because I think it enables you to defer capital gains that might arise on the sale of your properties, you get income tax relief, they are quite good from an IHT perspective but the downside is that you are investing in more risky businesses, but if you have a relatively well diversified portfolio you may do ok and there is capital loss relief if they do go wrong.

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