10k to invest

TheLedge · 15-02-2005 10:29am #1

Hey guys,

just wondering about a short to medium term investment.

I have 10k that I won't need for 2, maybe 5 years. What would be the best possible way to invest this, giving maximum ROI?

I'm totally new to investing, the only previous investment was the SSIA!

TIA.

lomb · 15-02-2005 10:39am

give it to me

seriously, the economy is set up that u are either 1. better off spending it as otherwise your money will erode by inflation being much greater than interest rates-tax. this is as much as 4% a year compounded so your money will be valueless soon anyway.
1. little risky-to avoid the above buy 5000euro in aib shares and the balance in bank of ireland shares.
2. very risky- put your money in untrustworthy hands and buy smart telecom shares. these may go to the moon or go to the core of the earth and still keep falling
3. buy a car and enjoy it
4. deposit the money with northern rock and accept the loss of 3%of it per year.
5 best of all probably pay your debts and reduce your mortgage.

magpie · 15-02-2005 10:47am

5 best of all probably pay your debts and reduce your mortgage.

Or, if you have a mortgage with EBS you can deposit the money with them and they will deduct it from your principal as far as calculating payments are concerned, and you can get it back if you need it (I think you need to give 1 month's notice).

Not sure if the other lenders do this.

TheLedge · 15-02-2005 11:43am

cool!

Although i don;t have any debts at the moment, but seriously thinking of getting into 200k worth of it in order to buy a 2 bed flat(!!??).

I keep thinking the arse has GOT to fall out of the property market in the next 2-3 yrs, so i'm waiting in hope. First time buyer here, not especially looking forward to the thought of negative equity. I'm gonna travel for a couple of years!

Have C&C floated yet? I know they were gonna do it about 2 yrs ago then decided to postpone it.

Any other share tips? The half AIB half BOI was interesting!

Property Shmoperty!

daveg · 15-02-2005 11:47am

I mentioned this last week on another post. Invest it in a First Active Elevator account (http://www.firstactive.ie/sav_inv_acc_elevator_work.asp).

Year *Gross Annual
Interest Rate Gross Cumulative
Interest Rate CAR *Gross
Return
Year 1 2.50% 2.50% 2.50% EUR10,250
Year 2 3.00% 5.50% 2.71% EUR10,550
Year 3 3.25% 8.75% 2.84% EUR10,875
Year 4 3.50% 12.25% 2.93% EUR11,225
Year 5 4.00% 16.25% 3.06% EUR11,625

magpie · 15-02-2005 11:47am

Although i don;t have any debts at the moment, but seriously thinking of getting into 200k worth of it in order to buy a 2 bed flat(!!??).

Where are you going to buy a 2 bed flat for that? The Isle of Man?

I keep thinking the arse has GOT to fall out of the property market in the next 2-3 yrs

Yeah, good luck with that.

First Active Elevator account

You make €1600 in 5 years? Spend the money, you could get hit by a bus.

pollyantic · 15-02-2005 11:49am

TheLedge wrote:

I keep thinking the arse has GOT to fall out of the property market in the next 2-3 yrs, so i'm waiting in hope.

There are so many people that thought that 2-3 and more years ago too.
They could have bought a house then with their 10K now look at the difference in the price of houses.

My advise. Buy the house the minuite you can afford it.
Forget what anyone says about booms or crashes. Nobody and i mean nobody knows what will happen.

Or you could try this logic. As soon as expert economists start predicting a housing boom then be sure there will be a crash.

Another option for your money is. Go to the likes of Thailand and live like a king for a while with it. Go to Vegas and bet the lot on black.

lomb · 15-02-2005 11:51am

TheLedge wrote:

I keep thinking the arse has GOT to fall out of the property market in the next 2-3 yrs, so i'm waiting in hope.

this will NEVER happen. a demographic shift to 2 people working in each family has added 70% to property values, low interest rates, and net immigration, have combined to ensure property values will not come done EVER in the greater dublin area. the increase WILL halt but will never reverse. even if it did it would be by 5% or so which is less than a years growth. just buy now. that is my advice.

lomb · 15-02-2005 11:53am

daveg wrote:

I mentioned this last week on another post. Invest it in a First Active Elevator account (http://www.firstactive.ie/sav_inv_acc_elevator_work.asp).

Year *Gross Annual
Interest Rate Gross Cumulative
Interest Rate CAR *Gross
Return
Year 1 2.50% 2.50% 2.50% EUR10,250
Year 2 3.00% 5.50% 2.71% EUR10,550
Year 3 3.25% 8.75% 2.84% EUR10,875
Year 4 3.50% 12.25% 2.93% EUR11,225
Year 5 4.00% 16.25% 3.06% EUR11,625

unfortunately inflation is 4%+pa compounded. if one pays high rate tax the 1600 euro will be 900 euro after 5 years and inflation will be 23-27& hence a loss of circa 2 grand.

TheLedge · 15-02-2005 12:10pm

I love the housing debate. its great fun.

That First Active thingy would be a total waste of my time. I'd rather put it all on Chelsea winning the league this year at 1/9. DAVEG, the G doesnt stand for Gleeson by any chance does it??

Imposter · 15-02-2005 12:35pm

Take up poker. It'll cost you about 1-2k when learning and then if you get the hang of it you can use the rest of your money as a pretty nice bankroll. Of course this form of investment also requires time on your part.

And before anyone starts, it's no worse than any of the other suggestions

10k to invest

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