Where to Invest 50k

[Radiowriter]

Hi,

I have 50k to invest but not sure where to invest. We have a mortgage but no other debt.

The options I was looking at are shares or investing in a second property and taking on a small second mortgage. I don't have any experience of share dealing so would probably have to take the advice of the broker.

Any advice appreciated!

Thanks.

 

[CCOVICH]

Have you thought about reducing your mortgage?
Do you (and your spouse/partner) have a pension?

 

[Robo]

If you decide to invest while still having your mortgage, the investment has to make more than the interest repayments on the mortgage, otherwise your are actually losing money. In general, the less risky investment options will not earn more than you will save by paying off the mortgage early.

It seams to me that unless you are willing to invest in the riskier investments (with the higher potential gain) then it makes more sense to clear the mortgage, before beginning to invest.

 

[krille]

Same comment here....If you are thinking of investments in bonds, etc...(the extra safe ones) I would simply pay off the mortgage.

However if you want to keep the mortgage and use the money for more rewarding Returns (which of course come with a degree of risk), then you are better off keeping the mortgage and use that money to invest with.

Here my experiences (that only reflects my experience and is no guidance for everyone of course).

During the dotcom bubble I made and lost some money but ended up placing trading orders at least once a week, and checking the stock quotes about 10 times a day. I ended up disliking my own attitude and sold off most of my portfolio (except the ones which had lost so much that I preffered to hang onto till the value would recover). I reinvested in property.

Property made perfect sence then, but now prices have become so high and there is the eternal debate about prices levelling off or crashing. As such I now invest in property development instead of property itself.

The returns on investment are much higher, the risk is lower and generally the returns are controllable and predictable.

To get even better returns we focus on emerging markets (better specific areas in an emerging market, you never assess a country as a whole, you focus on specific areas).

We are currently looking for like minded people to co-invest /partner with us in a property development project.

If this kind of investment sounds like something for you please contact us on: [email protected] or visit us at: [broken link removed]

Regards,
Krille