Best Ways to Invest 100K In Property

The Best Way to Invest 100k For Maximum Returns

When you’re lucky enough to have a lump sum amount of money available to you, it’s definitely a smart decision to think about investing. Without thinking of ways to make your money grow, it can vanish before you know it – no matter the amount you have available. Before investing, it’s common to wonder ‘how much money do you need to invest in property in the UK?’, especially if your budget is on the lower side. The good news is, if you’re ready to make your first investment and you have a budget of 100k to invest, there are a range of options available to you that have the potential to give your funds a significant boost.

In this guide, we’ll talk about how to invest 100k, exploring some of the different strategies available for saving and investing, and offering answers to commonly asked questions on the best way to invest 100k in property specifically. If you’re wondering what to do with 100k and are ready to find out more before you start investing, scroll down to read our latest money tips content.

Determine Your Risk

Before making any type of investment, whether you’re wondering what to do with 100k, 800k or just 50k for your investment, you should always think about the level of risk you’re prepared to accept. It’s important to understand the level of risk you’re ready to take as this can help you identify the best asset to invest in.

 

Think About The Kind of Returns You Want

Along with the level of risk you’re ready for, you should also consider the type of returns you expect to recieve. This includes how quickly you’d like to generate a return on your investment, as with some asset classes, your money may need to be tied up for a long period of time before you start to see your returns. Thinking about whether you want to know the best way to invest 100k short term or long term, and knowing what kind of returns you want overall, will help you establish the best way to invest 100k.

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Assess Different Investment Types

If you’re not sure what type of investment you want to make in order to get the best return on 100k, you should explore the different asset classes available.

 

IInvest 100K

Buy to Let

Buy to let is the most popular real estate investment route, and considered one of the best ways to invest 100k in property. Compared to other property investment strategies like buy to sell, owning a buy to let property allows you to generate two types of return. The process of buy to let is simple – you purchase a property and rent it out to tenants to make a regular monthly profit. Then, when you think it’s time to resell, you can benefit from an increased profit from your property sale, provided that the market has allowed the property to grow in value.

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Risk Level

The risk level of buy to let is relatively low, which makes it a perfect investment if want to know how to invest 100k safely. The risks that come with buy to let are mainly focused on the property market itself. If the property market was to crash in the area your buy to let property is based in, or if there’s a low level of demand for rental properties, your investment could suffer. The good news is that by researching the market, you can identify the best places to invest 100k in order to feel more secure in your venture. When investing in a property opportunity that comes with assured rental yields, you’re also guaranteed to make an income in this way.

 

Potential Returns

The returns you’re able to make from buy to let will vary depending on the location of the investment. In the UK, the buy to let opportunities with the highest returns are those in property hotspot cities like Liverpool and Manchester. Here, you can generate the highest rental yields and potential for capital growth.

As a hypothetical example, let’s say you purchased a Liverpool investment property for £75,000, and charged your tenant £500 a month for rent. This would leave you with an 8% rental yield, which over twenty years, would have generated you a minimum of £120,000 in rental returns – more if the rental market was to increase in value. Then, if you were to sell your property after twenty years and it had grown in value by around 200% (in accordance with past performance of Liverpool house price growth), you could sell the property for £225,000, leaving you with a £150,000 profit. Combine both returns, and you’d be left with an overall profit of £270,000 if you had saved up your rental income.

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Stocks

Investing in the stock market is one of the most widely recognised investment methods out there. When investing in stocks, you will tie your money up in a share of a company that you think is likely to increase in value. There are two ways to invest in stocks. If you prefer a more DIY approach, you can select the stocks yourself, which would require a lot of knowledge. However, if you don’t want this responsibility, you can hire someone to manage your investment for you.

Risk level

Stocks and shares are considered the riskiest of all asset classes. The main risks include economic changes and inflation. The bad news is that with stocks, the most successful investors are usually those who take the most risk. If you’re not prepared for this, stocks may not be right for you and you may want to reconsider this as the best way to invest 100k.

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Potential Returns

Stocks and shares have the potential to bring some high returns, but this is completely dependent on the amount you invest and the stocks you choose. You may have heard tales of people investing in stocks and more than tripling their income. Unfortunately, there are also a lot of stories where people lose all of their savings by investing in the wrong stock. To succeed, you need to accept the fact that you could either make some large returns or lose everything. If your money is important to you, you might want to think again when it comes to where to invest 100k.

 

Cash ISAs

If you want to know how to invest 100k safely without any risk, cash ISAs are a good option. By putting your funds into an ISA, you don’t have to commit to a property or stocks investment (although these offer higher returns), and can still make some return on your money.

Risk Level

Since most cash ISAs, apart from stocks and shares ISAs, are basically a savings account, you’re not at risk of losing your money. Of course, this has an impact on the returns you will see as a level of risk is often necessary to make larger amounts of money. With certain ISAs such as a Lifetime ISA, you’re also only able to access the money in your accounts when you buy your first home or retire, so you couldn’t use the funds from this as an emergency fund as you would end up losing money.

Potential returns

One of the biggest advantages of cash ISAs is that the money you make is completely tax-free. The amount you’ll be left with depends on the type of cash ISAs you select. The maximum you can invest in cash ISAs is £20,000 a year, which would normally be spread across different accounts. If you want to know how to invest 100k inheritance without risking losing your money, ISAs can be a good option. However, you won’t make as much as you would if you were investing in an asset like buy to let.

Frequently Asked Questions About the Best Way to Invest 100k in Property

There are certain tips you should keep in mind if you want to know how to invest 100k in buy to let. Firstly, you should do your property market research and look at different areas to find the best place to invest 100k in. Look for areas with high yields, strong rental demand, and promising capital growth predictions, as these will all help you generate a higher monthly income for 100k budgets. If you want to invest in buy to let, choosing to work with a property investment company is a good option on how to invest 100k wisely. This way, you have access to the best opportunities on the market and can be offered assured rental yields for your investment.

If you want to know how to start a property portfolio with 100k, the best advice would be to split your investment across multiple properties. When it comes to investing, building a diverse portfolio is the key to high returns, and with a budget of 100k, this can be easily achieved. This can be done by either using a buy to let mortgage on multiple investments or investing in two starter properties worth no more than £50,000 each. The former can be tricky, however, as most quality investments will cost more than this. Certain investment companies will also allow you to invest 100k by paying in separate instalments. This way, you could put a down payment of around 35% of the purchase price onto multiple investments, and then pay the rest at a later date.

If you want to know how to invest 100k in 2020, the best advice is to purchase property in the UK’s North West region. Liverpool offers some of the highest rental yields in the country, reaching up to 10%. This is thanks to the fact that properties in this city are affordable, while rental demand is high. According to research by Savills, the North West region also has the highest predicted growth rate of 24.1% over the next five years, giving you confidence that by investing 100k in this area, your buy to let investment could significantly grow in value over time. By investing in the best buy to let areas like Liverpool where property prices are more affordable, you give yourself a better chance of making the best investment for 100k budgets.

For the best return on 100k investments, explore our current property investment opportunities at RWinvest. We have buy to let properties in the best locations and can offer advice on how and where to invest 100k to get the most out of your money. Contact us today to begin your investment journey.

If you can’t decide what asset type you wish to invest 100k in, it’s possible to split your money across different assets. Depending on the cost of the investments, you could purchase a buy to let property alongside stocks and shares or a cash ISA if you want to combine different investment types and spread your risk across multiple assets.

The best strategy when considering how to invest 100k in the UK is to make an accurate financial plan of how much each separate asset may cost to invest in. While it is possible to use a buy to let mortgage to pay for a buy to let investment, keep in mind that you’ll need to put down a deposit of at least 25% if you get a mortgage deal agreed. If investing in a property worth £180,000, this would mean that you should put down a deposit of around £45,000. Then, the rest of your £100k budget could be spent on an investment in stocks and shares, as long as you seek expert advice and are prepared to accept the higher risks that come from this investment.

If you’re more risk averse, but still want to spread your money across different investments, you might consider buying a buy to let property, either with a buy to let mortgage, cash, or by using a structured payment plan, and then using leftover money to invest in a cash ISA. This way, you’re still able to diversify your portfolio, but with lower risk investments than stocks and shares. Then, once you begin generating a return on your investment through investing 100k in these two assets, you can think about growing your portfolio with further investments.

In 2020, the best way to invest 100k of your money is into the buy to let market. Following the Covid-19 pandemic, the stock market saw one of the largest falls which led many investors to sell their stocks and shares, and instead invest in property. Property is known as a more secure asset, and throughout the last several months, has proven stable despite the uncertainty the economy and property market has faced. Property prices are now rising at record levels, the rental market is booming, and deals and discounts offered by property developers mean that investing 100k in buy to let in 2020 is the most lucrative and attractive option out there.

While it’s difficult to say the exact amount that your property will be worth in twenty years, by looking at past market trends and future predictions, we can estimate how much your property may have grown in value after investing 100k. According to past house price growth trends, the UK average UK property has increased in value by around 174% over the last twenty years. From January 2000 to January 2020, House Price Index data shows that the average property price has grown from £84,620 to £231,857, which is an added value of £147,237.

With high capital growth expected across the UK, with a 15.1% rise predicted for the country as a whole by 2024, and higher growth of 24.1% in the North West region, those who invest 100k in 2020 can expect to see a significant increase in property value over the next twenty years and beyond.

I Think Buy to Let is the Best Choice For Me - What’s the Best Way to Invest 100k in Property?

There are certain tips you should keep in mind if you want to know how to invest 100k in buy to let. Firstly, you should do your property market research and look at different areas to find the best place to invest 100k in. Look for areas with high yields, strong rental demand, and promising capital growth predictions, as these will all help you generate a higher monthly income for 100k budgets. If you want to invest in buy to let, choosing to work with a property investment company is a good option on how to invest 100k wisely. This way, you have access to the best opportunities on the market and can be offered assured rental yields for your investment.

What Advice Can You Offer on How to Start a Property Portfolio With 100k?

If you want to know how to start a property portfolio with 100k, the best advice would be to split your investment across multiple properties. When it comes to investing, building a diverse portfolio is the key to high returns, and with a budget of 100k, this can be easily achieved. This can be done by either using a buy to let mortgage on multiple investments or investing in two starter properties worth no more than £50,000 each. The former can be tricky, however, as most quality investments will cost more than this. Certain investment companies will also allow you to invest 100k by paying in separate instalments. This way, you could put a down payment of around 35% of the purchase price onto multiple investments, and then pay the rest at a later date.

What's the Best Place to Invest 100k in Buy to Let in the UK?

If you want to know how to invest 100k in 2020, the best advice is to purchase property in the UK’s North West region. Liverpool offers some of the highest rental yields in the country, reaching up to 10%. This is thanks to the fact that properties in this city are affordable, while rental demand is high. According to research by Savills, the North West region also has the highest predicted growth rate of 24.1% over the next five years, giving you confidence that by investing 100k in this area, your buy to let investment could significantly grow in value over time. By investing in the best buy to let areas like Liverpool where property prices are more affordable, you give yourself a better chance of making the best investment for 100k budgets.

Ready to Make the Best Return on 100k Investment?

For the best return on 100k investments, explore our current property investment opportunities at RWinvest. We have buy to let properties in the best locations and can offer advice on how and where to invest 100k to get the most out of your money. Contact us today to begin your investment journey.

I Want to Invest in Different Assets at Once - What’s the Best Way to Invest 100k in a Diverse Portfolio?

If you can’t decide what asset type you wish to invest 100k in, it’s possible to split your money across different assets. Depending on the cost of the investments, you could purchase a buy to let property alongside stocks and shares or a cash ISA if you want to combine different investment types and spread your risk across multiple assets.

The best strategy when considering how to invest 100k in the UK is to make an accurate financial plan of how much each separate asset may cost to invest in. While it is possible to use a buy to let mortgage to pay for a buy to let investment, keep in mind that you’ll need to put down a deposit of at least 25% if you get a mortgage deal agreed. If investing in a property worth £180,000, this would mean that you should put down a deposit of around £45,000. Then, the rest of your £100k budget could be spent on an investment in stocks and shares, as long as you seek expert advice and are prepared to accept the higher risks that come from this investment.

If you’re more risk averse, but still want to spread your money across different investments, you might consider buying a buy to let property, either with a buy to let mortgage, cash, or by using a structured payment plan, and then using leftover money to invest in a cash ISA. This way, you’re still able to diversify your portfolio, but with lower risk investments than stocks and shares. Then, once you begin generating a return on your investment through investing 100k in these two assets, you can think about growing your portfolio with further investments.

I Have £100,000 to invest: What Should I Invest 100k in in 2020?

In 2020, the best way to invest 100k of your money is into the buy to let market. Following the Covid-19 pandemic, the stock market saw one of the largest falls which led many investors to sell their stocks and shares, and instead invest in property. Property is known as a more secure asset, and throughout the last several months, has proven stable despite the uncertainty the economy and property market has faced. Property prices are now rising at record levels, the rental market is booming, and deals and discounts offered by property developers mean that investing 100k in buy to let in 2020 is the most lucrative and attractive option out there.

If I Invest £100,000 in UK Property, What Will it Be Worth in 20 Years?

While it’s difficult to say the exact amount that your property will be worth in twenty years, by looking at past market trends and future predictions, we can estimate how much your property may have grown in value after investing 100k. According to past house price growth trends, the UK average UK property has increased in value by around 174% over the last twenty years. From January 2000 to January 2020, House Price Index data shows that the average property price has grown from £84,620 to £231,857, which is an added value of £147,237.

With high capital growth expected across the UK, with a 15.1% rise predicted for the country as a whole by 2024, and higher growth of 24.1% in the North West region, those who invest 100k in 2020 can expect to see a significant increase in property value over the next twenty years and beyond.

How Can I Invest 100k in UK?

If you’re still wondering ‘how can I invest 100k in the UK?’, here’s a summary of top tips taken from the points covered in our guide to the best way to invest £100,000.

 

1. Think about how much risk you’re willing to accept. The lowest risk investment with the highest potential is buy to let property, which offers an attractive rate of return on investment through both rental income and capital growth.

 

2. Think about how you’ll pay for the investment. If investing in buy to let, will you spend the full amount on a property worth £100k or less, or use a buy to let mortgage or payment plan to put a smaller deposit down?

 

3. Consider whether you’ll use the full amount to invest 100k into one investment, or spread your risk across different assets. Investing 100k into multiple properties at once with the help of a buy to let mortgage is a good idea, especially if you focus on different high-performing areas. If you wish to invest in different assets, the lowest risk strategy is likely to invest 100k into a buy to let property by putting down a smaller deposit, while also using a portion of your funds to invest in a cash ISA.

 

 

Ready to Make the Best Return on 100k Investment?

For the best return on 100k investments, explore our current property investment opportunities at RWinvest. If you have 100k to invest in property, our fantastic choice of buy to let investment opportunities is not to be missed,

We have buy to let properties in the best locations and can offer advice on what to do with £100,000 and how and where to invest 100k to get the most out of your money. Contact us today to begin your investment journey.

DISCLAIMER

The content in this article is merely a guide to the available investment options out there, and should not be taken as financial advice. If you’re looking for personal finance tips and information, it may be beneficial to seek the help of a financial advisor.

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