Would you invest in the stock market or property?

[bulletv1]

If you had 100k would you invest in the stock market or property?

I put my money in ISAs and Bonds for about before taking 90% of it out to buy my first house which i am currently renovating.

 

[dowie]

There's nothing complex to think about here, I'd imagine you just want to preserve (and hopefully grow) the money, aiming to beat inflation?

Max out your ISA, probably best in some kind of tracker vehicle.
Put some in to P2P lending.
You should have a decent amount left which you can put in to a property but consider the new stamp duty rules.

Make sure you leave some cash for a rainy day (6 months expenses should be OK - leave in Santander 123 @ 3% or something).

I don't think he's looking for general financial advice - he's just asking a hypothetical question: stocks vs property

 

[EddScott]

This and then this if I wanted some extra property specific allocation.

Nice choice. The Lifestrategy funds are excellent and good value.

Would have gone with Standard's Global REIT but it's not looking well right now Will keep an eye on the Blackrock fund.


To the OP - if your serious about Buy To Let get on with it. After April stamp duty is going up.

If it were my £100K.
£50K deposit on a BTL mortgage and £50K invested - it's called diversification

 

[George Hincapie]

But a financial advisor is your best bet, rather than randoms from the internet, all with different ideas and opinions.

Given some of the IFAs we have arrested and investigated, I'd say that isn't a universal truth.

Also, you seem to have a pretty low view of your fellow forum users; there are probably plenty of people here who could advise appropriately.

 

[Orch]

Given some of the IFAs we have arrested and investigated, I'd say that isn't a universal truth.

Also, you seem to have a pretty low view of your fellow forum users; there are probably plenty of people here who could advise appropriately.

Indeed, even some IFAs

Quite right though, just because someone is an IFA doesn't mean they're any good. The industry is in much better shape than it once was, but it's always worth while finding one that can be recommended by a friend/colleague/relative.

 

[Glaucus]

Given some of the IFAs we have arrested and investigated, I'd say that isn't a universal truth.

Also, you seem to have a pretty low view of your fellow forum users; there are probably plenty of people here who could advise appropriately.

for a start you don't know who is who online. you could think they know their stuff and they don't.
if they are fully qualified to advise then its against the law to do so.

so yeah its still better to get proper advice with such a large quantity of money, than trust someone you have no idea who they are on a random forum.
has absolutely nothing to do with respect or low opinion.

 

[Rroff]

If it were my £100K.
£50K deposit on a BTL mortgage and £50K invested - it's called diversification

Not a bad plan IMO.

Assuming I was investing with minor risk personally I'd probably spend about 50K on property and whatever else on stock options (probably tracker funds) - a lot of that can be wrapped in an ISA.

Though my dividend payouts of late have been **** the last couple have worked out at like 1p per share :S

 

[dowie]

Though my dividend payouts of late have been **** the last couple have worked out at like 1p per share :S

average dividend yield for the FTSE 100 is just below 4%

average rental yield in London can be rather similar:

http://www.londonpropertywatch.co.uk/average_rental_yield.html

 

[On Holiday]

Property. Safe as houses.

 

[dowie]

Property. Safe as houses.

 

[Rroff]

average dividend yield for the FTSE 100 is just below 4%

average rental yield in London can be rather similar:

http://www.londonpropertywatch.co.uk/average_rental_yield.html

I really should take a look at it - I've a bunch of shares in various random things (startups where I've taken shares in lieu of pay etc.) and just leave YBS managing it - a lot of them haven't been paying out dividends in awhile or dropped to like 100th of what they used to pay out.

 

[Scam]

The problem with people making a decision on stocks or property is that everybody assumes a capital gain. If you get 4% yield on both stocks or property, property is a no-brainer because you'll be left with the capital at the end of it as well.

BTL, it has to be. I dare ya: http://www.spectator.co.uk/2016/02/buy-to-let-investing-just-became-a-very-very-bad-idea/

You can say what you like about the Tories but at least Osborne has the balls to actually take some direct action against BTL. Pity they undo all that good work with nonsense like HTB, Right-To-Buy etc.

 

[dowie]

The problem with people making a decision on stocks or property is that everybody assumes a capital gain. If you get 4% yield on both stocks or property, property is a no-brainer because you'll be left with the capital at the end of it as well.

does your capital suddenly vanish with stocks?

 

[Jim99]

well your premise is flawed to begin with - you can have a leveraged investment in the stock market too

so your 100k could be used to buy a 350k property or 350k in shares

I've seen this argument a ton of times on here before, but I'm incredibly sceptical.

Is there any bank out there that would seriously lend £250k to the same person for either property or shares?

 

[dowie]

Is there any bank out there that would seriously lend £250k to the same person for either property or shares?

yes and plenty of brokerages too

in fact you'll tend to be able to get more leverage for shares than you can for property

 

[MaX_PoWah]

Even as part of a share portfolio you should have some property? There are investment trusts you can invest in which contain different types of property exposure.

I would invest in the following things (Funds or shares depending on your age, risk profile and investment horizon) via an ISA and Trading Account

UK Equities (Preferably Quarterly Dividend Payers of which there are 5)
US Equities
European Investment trusts
Asian Investment Trusts
Gold - Physical or via the stock market
Property
Bonds
Cash or Premium Bonds or both

Depending on your age I would also put some into a SIPP monthly once the new flat rate comes in - Supposedly going to be between 25% - 33%

The above plus some replication in a SIPP is what I do

I fancy a 40-50k BTL but the current uncertainty over the market is putting me off and I like the liquidity of the stock market.

The disadvantage I find with the stock market is it is too easy to get drawn into "gambling" with AIM shares, Speculative oil / Mining Companies and dodgy IPO's and some would say sitting on lots of blue chips is "boring".

 

[Slam62]

Neither , wait ...

 

[nightwish]

yes and plenty of brokerages too

in fact you'll tend to be able to get more leverage for shares than you can for property

But note that this isn't necessarily a good idea. The same leverage that can make you rich, can also make you bankrupt. Newbies and those with poor financial discipline should steer clear.

 

[D.P.]

The problem with people making a decision on stocks or property is that everybody assumes a capital gain. If you get 4% yield on both stocks or property, property is a no-brainer because you'll be left with the capital at the end of it as well.

BTL, it has to be. I dare ya: http://www.spectator.co.uk/2016/02/buy-to-let-investing-just-became-a-very-very-bad-idea/

You can say what you like about the Tories but at least Osborne has the balls to actually take some direct action against BTL. Pity they undo all that good work with nonsense like HTB, Right-To-Buy etc.

Why would you loose your capital with stocks?

 

[Jim99]

yes and plenty of brokerages too

in fact you'll tend to be able to get more leverage for shares than you can for property

So if I suddenly decide that I'm the next Warren Buffett, I can get >20 times my capital to hurl at whichever stocks I like?