What to do with 100k

[Gordon Gekko]

There isn’t a bias against property on AAM.

There’s an acknowledgment that most people have more than enough exposure to property already by virtue of owning their own home, and in some cases also owning an investment property.

It’s foolish to invest in a single asset class in a single geography.

If all of my wealth was tied-up in Diageo shares, and I inherited €250k, would it be prudent or sensible to use it to buy more Diageo shares? Of course it wouldn’t. Yet it’s a great company that has pretty much gone-up in value over time, just like property.

 

[coolaboola12]

Logically that’s no different to receiving dividends on an investment trust that has had a downturn in its capital value.

But if you can’t stomach the fluctuations that come with any risk asset, then maybe you should just stick with bank deposits.

Is that trust bought like a normal share on degiro etc ?

 

[coolaboola12]

There isn’t a bias against property on AAM.

There’s an acknowledgment that most people have more than enough exposure to property already by virtue of owning their own home, and in some cases also owning an investment property.

It’s foolish to invest in a single asset class in a single geography.

If all of my wealth was tied-up in Diageo shares, and I inherited €250k, would it be prudent or sensible to use it to buy more Diageo shares? Of course it wouldn’t. Yet it’s a great company that has pretty much gone-up in value over time, just like property.

But owning your own home isn't an investment

 

[Gordon Gekko]

But owning your own home isn't an investment

One could debate that point until the cows come home, but it’s an exposure to a single asset class, and it typically represents a high proportion of someone’s overall wealth.

 

[Sarenco]

Is that trust bought like a normal share on degiro etc ?

Yes.

But owning your own home isn't an investment

It is, in my opinion, very much an investment.

 

[Gordon Gekko]

Yes.

It is, in my opinion, very much an investment.

I agree.

Yes, there’s personal utility in there by virtue of living there, but it has almost all of the characteristics of a long-term investment.

Money tied-up, leverage, volatility, history of positive returns over the longer term, the fact that it’s an asset class in its own right etc. Arguably the personal use utility is just the dividend.

 

[Fortune]

I agree.

Yes, there’s personal utility in there by virtue of living there, but it has almost all of the characteristics of a long-term investment.

Money tied-up, leverage, volatility, history of positive returns over the longer term, the fact that it’s an asset class in its own right etc. Arguably the personal use utility is just the dividend.

The personal use dividend is not having to pay rent. This has a monetary value.

 

[landlord]

Is that bought like a normal share via the likes of degiro ?

FCIT
F&C investment trust
Go to your Degiro app and click on the magnifying glass symbol top right.
Enter FCIT and you will see it there. It can be bought and sold as a normal share.
It’s well worth looking back at old threads on here regarding the difference between ETFs and investment trusts.

 

[moneymakeover]

Advantages of property as an investment
I'm not saying property is perfect however

• Leveraged, borrow to buy more asset
• interest paid is tax deductible
• Appreciation of the full value of the property
• Erosion of the loan due to inflation
• Rental income
• Bricks and mortar: you can see your investment
• Ability to pull out equity by top up loan and buy more property

 

[moneymakeover]

Advantages of property as an investment
I'm not saying property is perfect however

• Leveraged, borrow to buy more asset
• interest paid is tax deductible
• Appreciation of the full value of the property
• Erosion of the loan due to inflation
• Rental income
• Bricks and mortar: you can see your investment
• Ability to pull out equity by top up loan and buy more property

 

[moneymakeover]

Advantages of property as an investment
I'm not saying property is perfect however

• Leveraged, borrow to buy more asset
• interest paid is tax deductible
• Appreciation of the full value of the property
• Erosion of the loan due to inflation
• Rental income
• Bricks and mortar: you can see your investment
• Ability to pull out equity by top up loan and buy more property

 

[DK123]

At last.A perfect summery of advantages of property as an investment in my humble opinion.!Especially erosion of the loan due to inflation and appreciation of the full value of the property.

 

[Dr Strangelove]

In your shoes, I think I would invest the bulk of the €100k in a global equity investment trust like FCIT.

I agree with this.

But if the OP has a longer investment horizon it should go into the pension fund. Yes there is no tax relief but gains are CGT free and up to 25% can be drawn down tax free on retirement.

Is a buy to let the best place for my 100k?

Others have opined in the diversification issue. All I’ll add is that a rental is basically running a small business and totally different to the passive investment options being discussed.