How should I invest £30k?

TNGL · 9 Aug 2017 at 18:59

Dis86 said:
42k fresh from uni with no more than a bachelors degree and a guaranteed 20% raise next year - what job is that and why aren't we all doing it?

Ayahuasca said:
It's not unusual for a data scientist position which I'm sure I seen OP post about in another thread.

The Craig said:
You'll generally be able to mortgage 4 up to 5 times your salary (ie 160 to 200k) plus your 30k deposit this means a 190 k to 230k house price (rough maximum.. Obviously you can buy less).
That's a good salary straight out of uni (I'm quite jealous!!). What industry is that in?

Yep, data science for a very large and well-known consultancy. Promotion at the firm from the level I will be entering at is 16 months at most (edit:corrected), so it could be earlier but I'd like to assume the worst case. From what I could tell, the role is usually only filled by those with masters and PhDs based on what I saw at the assessment centre, however, apparently, that is not all it comes down to.

I will definitely consider the mortgage route but as I asked above as well, do you think this would get me the best return on investment for my money?

Trifid said:
Are you living with your parents? I'd save hard for a year and start searching for a house of your own. You should be able to get a £200k mortgage easily then and you will have a nice deposit and a little bit of money left over for stamp duty, legal fees and to buy yourself something to sit on and sleep in. I.e. I wouldn't rush out and buy the first place you see that you can afford.

Yep, living with parents at the moment. The reason I'm somewhat averse to moving out is that I do have a pretty good deal at home - very small rent payment in exchange for everything.

TriedandTested said:
Why ask here? GD? A ridiculous starting point - and you know it. If you are genuinely seeking advice, ask a professional.

Amongst the awful banter there is usually some very good and well-thought out responses in GD. What is your problem?

TriedandTested · 9 Aug 2017 at 19:01

No problem. Don't be so sensitive. Good luck getting the advice you actually need on here.

wordy · 9 Aug 2017 at 19:03

15 on red, 15 on black.

Sorted.

HoneyBadger · 9 Aug 2017 at 19:08

If I was you, I'd do one of two things:

1) Sensible option: Look at a house to either BTL or live in. Typically a house is an appreciating asset, with a 15-20 year mortgage and use that as a starter for ten to buy additional properties down the line.

2) https://www.overclockers.co.uk/8pac...-6950x-and-intel-core-i7-7700k-fs-006-8p.html

Aedus · 9 Aug 2017 at 19:10

I'd go for a mortgage personally. You can easily get one for a 2 bed house with 30k + 42k salary.

Do you need to get into London? There's some good places to get a place on the train line which is only a short commute into St Pancras. If you don't need to get into London consider looking at some of the help to buy schemes and you'll be able to get a 3 bed house, there's lots of plots around Bedfordshire, some near-ish Bedford.

muon · 9 Aug 2017 at 19:15

Scotteh said:

For generic advice that is actually surprisingly good. I bet half of all IFAs would give worse advice (I actually have zero experience in making this claim, soumds right though).

Malevolence · 9 Aug 2017 at 19:20

wordy said:
15 on red, 15 on black.

Sorted.

Vonhelmet · 9 Aug 2017 at 19:26

muon said:
For generic advice that is actually surprisingly good. I bet half of all IFAs would give worse advice (I actually have zero experience in making this claim, soumds right though).

The latest freakonomics podcast was about how to manage your money and it said that there had been studies done on the quality of advice given by financial advisers, and a worrying number will give wacky advice. Admittedly this was in America and was looking at advisers who might be trying to sell you investments rather than advising independently, but even so...

TNGL · 9 Aug 2017 at 19:27

HoneyBadger said:
If I was you, I'd do one of two things:

1) Sensible option: Look at a house to either BTL or live in. Typically a house is an appreciating asset, with a 15-20 year mortgage and use that as a starter for ten to buy additional properties down the line.

2) https://www.overclockers.co.uk/8pac...-6950x-and-intel-core-i7-7700k-fs-006-8p.html

10 years sounds roughly right, I was hoping to move out slightly before that though... As for 2), Bloody hell!

Aedus said:
I'd go for a mortgage personally. You can easily get one for a 2 bed house with 30k + 42k salary.

Do you need to get into London? There's some good places to get a place on the train line which is only a short commute into St Pancras. If you don't need to get into London consider looking at some of the help to buy schemes and you'll be able to get a 3 bed house, there's lots of plots around Bedfordshire, some near-ish Bedford.

Yep, I'll need to get into City Thameslink. You're on the same half of the line as me (i.e. before Harpenden/St Albans) and it is something I have thought of... Maybe even something like a 2 bed and renting the other room out, at least I'm saving on train fare and commuting time as well then.

Efour · 9 Aug 2017 at 19:36

Blow and enjoy your life.

21 and 45k... Just be young for four more years.

muon · 9 Aug 2017 at 19:58

Vonhelmet said:
The latest freakonomics podcast was about how to manage your money and it said that there had been studies done on the quality of advice given by financial advisers, and a worrying number will give wacky advice. Admittedly this was in America and was looking at advisers who might be trying to sell you investments rather than advising independently, but even so...

Problem is that even in jobs where people have qualifications, the standard from one end to the other is massive. I'd bet that flowchart was written by someone who if they are an adviser is at the good end or would be if they chose to be one.

Just think about how many relatively rubbish doctors and surgeons there must be. There just has to be.

cainer · 9 Aug 2017 at 19:59

give it to the UK gov to help towards the brexit bill

wordy · 9 Aug 2017 at 20:24

Malevolence said:

FINE!!!

10 on red, 10 on black n 10 on the 0!

Azza · 9 Aug 2017 at 20:29

Scotteh said:

Follow that then end up here - https://www.vanguardinvestor.co.uk/what-we-offer/life-strategy-products

Aedus · 9 Aug 2017 at 20:38

Tingle said:
Yep, I'll need to get into City Thameslink. You're on the same half of the line as me (i.e. before Harpenden/St Albans) and it is something I have thought of... Maybe even something like a 2 bed and renting the other room out, at least I'm saving on train fare and commuting time as well then.

Check out Flitwick and Harlington, both decent places to live if you don't mind being out of the bustle. Harlington is in high demand due to M1 access, the upper school which is one of the better ones in the area and the train, so I suspect prices will only keep rising there. Flitwick has easy access to a big-ish Tesco and the train. Flitwick is cheaper, probably around £240,000 for a 2 bed house there, then you can walk to the station and save on petrol, they also have some nice 2 bed flats there. That's where I've been looking to buy, but my salary isn't as high as yours so finding it more problematic.

jon86 · 9 Aug 2017 at 20:50

Tingle said:
... I'm 21, graduated this year, ... salary is alright (£42k rising to £50k next year, before tax that is)...

It's interesting that you think that a salary of £42k at the age of 21 is "alright". I'd say that for the vast majority of industries, that's a really good salary, especially at the age of 21. When I was 21, I was earning less than half of that. I think that this might be why someone said, "Some modesty!"

flea.rider · 9 Aug 2017 at 20:57

to be honest .. put 10k in silver or gold ..better than a bank ..
what did you do at uni ? can you not use the money to help you get better at what your doing ?
the only way to make money is to buy assets .. things that make you money ... a house will never make you that much ..

TNGL · 9 Aug 2017 at 21:10

jon86 said:
It's interesting that you think that a salary of £42k at the age of 21 is "alright". I'd say that for the vast majority of industries, that's a really good salary, especially at the age of 21. When I was 21, I was earning less than half of that. I think that this might be why someone said, "Some modesty!"

What else am I supposed to call it? A smashing sum of money? Of course I am very grateful to be in such a position and by the same token I've worked very hard to get here, it isn't as though the salary came by luck and I am therefore not in a lucky position. Hence, I don't see the problem in calling the salary 'alright' given the extreme amount of effort I have put in over the past 5 years to attain it.

Aedus said:
Check out Flitwick and Harlington, both decent places to live if you don't mind being out of the bustle. Harlington is in high demand due to M1 access, the upper school which is one of the better ones in the area and the train, so I suspect prices will only keep rising there. Flitwick has easy access to a big-ish Tesco and the train. Flitwick is cheaper, probably around £240,000 for a 2 bed house there, then you can walk to the station and save on petrol, they also have some nice 2 bed flats there. That's where I've been looking to buy, but my salary isn't as high as yours so finding it more problematic.

They would be quite ideal locations to buy given my current location actually, however, would there not be more growth in Luton given the town, airport, easy M1 access and East Midlands train service?

flea.rider said:
to be honest .. put 10k in silver or gold ..better than a bank ..
what did you do at uni ? can you not use the money to help you get better at what your doing ?
the only way to make money is to buy assets .. things that make you money ... a house will never make you that much ..

I have considered a masters but I'm willing to put it off for a bit and try to gain sponsorship for a part time one at some point.... This is all in an ideal world though.

Aedus · 9 Aug 2017 at 21:17

Tingle said:
They would be quite ideal locations to buy given my current location actually, however, would there not be more growth in Luton given the town, airport and East Midlands train service?

I very much doubt it, people don't generally want to live in Luton, they just do it because it's cheaper than getting houses outside of it. Harlington is in high demand due to the school, M1 access and train line. Flitwick has some regeneration thing which is planned, which I imagine will drive prices up there in the future.

http://www.centralbedfordshire.gov.uk/news/april/flitwick-regeneration.aspx

TNGL · 9 Aug 2017 at 21:20

Aedus said:
I very much doubt it, people don't generally want to live in Luton, they just do it because it's cheaper than getting houses outside of it. Harlington is in high demand due to the school, M1 access and train line. Flitwick has some regeneration thing which is planned, which I imagine will drive prices up there in the future.

http://www.centralbedfordshire.gov.uk/news/april/flitwick-regeneration.aspx

That's very interesting actually, I had no idea they had that planned. Do you reckon growth in Harlington or Flitwick could outstrip that of Luton then? I have family in Luton and I've never found it to be too bad, I am just thinking of asset growth really.