100 thousand euros to invest - what would you do?

kraggy

niallu wrote: »

A safe blue chip like Apple?

Apple share price has fallen about 25% in the last 6 weeks hasn't it?

Don't put all your eggs in one basket if investing in the stock market.

As mentioned before, pick an ETF, easy to get in and out, and low costs.

There are many different types of ETF's to suit your investing style, personally i'd go for a latin american ETF or on the Brazilian Bovespa ( slightly higher risk but more returns).

If you want something safe and go for the EuroStoxx, CAC40, FTSE 100 etc ( should be less volatile).

A house isn't the worst idea either, but it might not grow in value for a long time, you have to think where you will be in 5/6 years or if you'll want an upgrade when you want a family etc.

Apple are ANYTHING BUT blue chip.

As soon as analysts get a whiff of Apple not having any new ideas, the share price will plummet.

PowerChild3000

Anthony O Brien wrote: »

Whats your income like?
The reason why I ask is because what I would do is use €25,000 as a deposit on a €100k three bed house in a city center location or near a collage, galway, limerick, cork etc and rent the three rooms out separately and you'll have a positive cash flow investment
Then take another €24,000 and use it to by three more similar properties putting down 8% deposits, leveraging the second purchase off the first and so on

The with the other €50,000 I would buy €35,000 in silver and €15,000 in gold, both in physical form

And of course €1,000 left over for coke and whores

Heya Anthony, cheers for that but all of the above means borrowing from the bank which then means been in debt.

I dont want to be in debt to anyone

PowerChild3000

bunny_colvin wrote: »

op , you could buy a small farm of land and rent it out , land prices are very strong and expected to remain so

Yes, because nothing has ever gone wrong with the value of land in Ireland

swiftman

PrettyBoy wrote: »

Invest it all in pumpkins, there was a huge spike in demand last month, small dip this month but I predict that they'll peak right around February/March. Act fast.

i agree. so much demand that they cant keep them topped up on the shelfs. just back from dunnes and they were still none arrived. invest fast.

PowerChild3000

swiftman wrote: »

i agree. so much demand that they cant keep them topped up on the shelfs. just back from dunnes and they were still none arrived. invest fast.

So far pumpkins are winning this thread.

teatreeshamble

Ive been lucky to have been left a large sum of money recently and combined with my own savings its left me with just over 100 thousand euros to invest in something.

So, 100,000 euro and the button you had in your pocket...

wp_rathead

if for serious answer-

if you'v time put some the money in Post Office Bonds. A 10 year bond sounds tasty:

50% Gross return over 10 years, AER 4.14%, made up of an annual interest payment of 1% p.a., subject to DIRT, and a final tax free lump sum bonus payment of 40%

I havn't gone through the thread since reading first page and Iv feeling OP is talking bs

Anthony O Brien

PowerChild3000 wrote: »

Heya Anthony, cheers for that but all of the above means borrowing from the bank which then means been in debt.

I dont want to be in debt to anyone

You've to understand that there are two types of debt, good debt and bad debt
A good debt is one where somebody else is making the payments for you like a tenant in a property, a bad debt is one that takes money out of you pocket, like a family home, alot people like to think that the house that theyve bought to live in is an asset when in reality its not because it costs you money rather than making you money

Take the example I gave above of buying four three bedroom houses each costing ~€100,000 and say we pick near ucc in Cork
You put €25,000 down on the first one and the repayments will be around €310 per month at the moment (I'll get back to this)
You rent out each room for €280 per month (standard rate at the moment) for the 9 months of the college year which brings in a total of €7560 in rent

Total Rent €7560 (not including summer months)
Less Mortgage (€3720) (not taking into account TRS which ends this year)
Less Expenses (€1200) (insurance, letting agent, repairs and maintenance)
____________________
€2640 positive cashflow


Your repayments will be higher on the other 3 mortgages because your only putting down an 8% deposit but your expenses will be less you should still come out with €7500 per year positive cashflow

The only variable to worry about at the moment is interest rates and thats why you invest the other €50,000 in precious metals to hedge

PowerChild3000

teatreeshamble wrote: »

So, 100,000 euro and the button you had in your pocket...

No. Ive always tried to save at least 20% of my earnings.

swiftman

Anthony O Brien wrote: »

You've to understand that there are two types of debt, good debt and bad debt
A good debt is one where somebody else is making the payments for you like a tenant in a property, a bad debt is one that takes money out of you pocket, like a family home, alot people like to think that the house that theyve bought to live in is an asset when in reality its not because it costs you money rather than making you money

Take the example I gave above of buying four three bedroom houses each costing ~€100,000 and say we pick near ucc in Cork
You put €25,000 down on the first one and the repayments will be around €310 per month at the moment (I'll get back to this)
You rent out each room for €280 per month (standard rate at the moment) for the 9 months of the college year which brings in a total of €7560 in rent

Total Rent €7560 (not including summer months)
Less Mortgage (€3720) (not taking into account TRS which ends this year)
Less Expenses (€1200) (insurance, letting agent, repairs and maintenance)
____________________
€2640 positive cashflow


Your repayments will be higher on the other 3 mortgages because your only putting down an 8% deposit but your expenses will be less you should still come out with €7500 per year positive cashflow

The only variable to worry about at the moment is interest rates and thats why you invest the other €50,000 in precious metals to hedge

totally agree, i posted a comment like this a page or two ago if you want to take a look.

i looked up houses near ucc, found the perfect house around 130k, 3 bedroom a sitting room and family room (another bedroom), i been in one of the houses in the essate and know it can be done easily.

that gives you 12k for the 9months of college, summer months will pay of insurance repair etc.
its like a very safe investment, pay up 130k and after 11years you will be getting 12k each year afterwards, as stated by anthony, its a good debt

PowerChild3000

Anthony O Brien wrote: »

You've to understand that there are two types of debt, good debt and bad debt
A good debt is one where somebody else is making the payments for you like a tenant in a property, a bad debt is one that takes money out of you pocket, like a family home, alot people like to think that the house that theyve bought to live in is an asset when in reality its not because it costs you money rather than making you money

Take the example I gave above of buying four three bedroom houses each costing ~€100,000 and say we pick near ucc in Cork
You put €25,000 down on the first one and the repayments will be around €310 per month at the moment (I'll get back to this)
You rent out each room for €280 per month (standard rate at the moment) for the 9 months of the college year which brings in a total of €7560 in rent

Total Rent €7560 (not including summer months)
Less Mortgage (€3720) (not taking into account TRS which ends this year)
Less Expenses (€1200) (insurance, letting agent, repairs and maintenance)
____________________
€2640 positive cashflow


Your repayments will be higher on the other 3 mortgages because your only putting down an 8% deposit but your expenses will be less you should still come out with €7500 per year positive cashflow

The only variable to worry about at the moment is interest rates and thats why you invest the other €50,000 in precious metals to hedge

Thanks again Anthony, it still leaves 4 mortgages hanging over my head which Im not crazy about but on the upside rent rates dont seem to be dropping.

A couple of other points:

• Im Dublin based, could the above scenario work here given the difference in property prices between Dublin and Cork?
• Im currently in a circa 25k a year job that Im not too fond of, is there any scenario that this 100k a year could be turned into 25k a year positive cashflow? Id consider travelling for a year if this was possible

Cheers.

Anthony O Brien

Im not very familiar with property prices outside Dublin city center but from what I do know is that with house prices being more expensive in Dublin you'd need a bigger deposit to purchase so you will be able to buy less with the €50,000 I set out for deposits

The scenario I wrote about Cork can work anywhere and it doesn't have to be in property, all you have to understand are the basics which are the cost of the asset must be less than the income that it is bring in. If at the end of each repayment period - week, month, year or whatever terms agreed, if the cost of owning is higher than the income it is no longer an asset, it has now turned into a liability, this was one of the contributing factors to the inflating and bursting of the property bubble, people actually believed that they were buying an asset when the property that they bought was to be used as they're home

As regards having a positive cash flow of €25,000 p.a. starting off with cash in hand, is it possible, maybe, but if you are a bit hesitant with having 4 mortgages its not possible because you would have to use the full €100,000 as deposits with a lot of leverage off of the properties you are buying as you go along and the scenario now becomes risky as you cannot sell off some of the precious metals if the variables change, i.e interest rates or rent generated

You could aim for capital gains of €25,000 which is completely different from cash flow. You could invest in stock and shares and their options, property for c.g. and commodities but this is high risk, its like playing roulette and telling yourself that that feeling you have that red is going to come up next is the one to go with - nobody has a crystal ball

Neewbie_noob

PowerChild3000 wrote: »

Hi all AH'ers, a serious question for a sec

Ive been lucky to have been left a large sum of money recently and combined with my own savings its left me with just over 100 thousand euros to invest in something.

Some things Ive mulled over;

• The interest rates in the bank are sh*te so there's no return on investment there. Are there banks offering closer to 20% for long term saver on large lump sums?
• Im still living at home so maybe get a house and bargain hard with the seller as its a buyer's market, get a 3 bedroom and rent a room or two to get some money in
• Buy 2 one bed room apartments and rent one
• Invest in solid and safe shares in a blue chip like Apple
• Invest in a couple of online businesses in an emerging sector

Im open to all (serious) suggestions

By a 100,000 grams of coke and hookers

IsThisIt???

m4r10 wrote: »

The OP would've lost all his money if he had taken your advice.

Ah well. Win some, lose some. There'll always be another 100k