The Best Way to Invest 100k For Maximum Returns

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.

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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.