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How to Invest 100k: The Best Way to Invest 100k for Maximum Returns

Do you have £100,000 available to invest? Congratulations! £100k is a huge amount of money, and in this guide, you’ll learn about the best way to invest £100k of your money. Sound helpful? Then be sure to keep reading our guide to how to invest £100k.

Best Way to Invest 100k

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?’, or ‘what’s the best investment for £100,000?’.  

The good news is if you’re ready to make your first investment and you have a budget of £100,000 to invest, there are a range of amazing 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. 

If you’re drawn to property as the best investment for £100,000, we’ll also offer answers to commonly asked questions on the best way to invest 100k in property which you should find helpful.  

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. 

 

What you’ll find in our guide to the best way to invest 100k: 

  • Information on the best way to invest £100k safely and effectively. 
  • Details on the best place to invest £100,000 if you’re interested in spending £100k on a property investment venture.  
  • Information on the best investment for £100k according to your goals and risk level. 

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The Best Way to Invest 100k - 4 Key Steps

The Best Way to Invest 100k - 4 Key Steps The Best Way to Invest 100k - 4 Key Steps

1. Determine your risk level. Are you prepared to accept a high level of risk, or would you prefer investing 100k in a low-risk investment? 

2. Think about your investment goals. What kind of returns do you hope to receive from your £100k investment? And how long do you want to wait before you generate returns?

3. Consider whether you want a hands-on or hands-off venture. Do you want to manage the investment yourself or have someone else do this for you?

4. Assess different investment types. Figure out the best way to invest 100k by exploring different assets like property or stocks and shares. 

Contents

1. Determine Your Risk Level

Determine Your Risk Level Determine Your Risk Level

Before making any type of investment, whether you’re wondering what to do with 100k, 800k or even just how to invest 50k of your money, 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. This can help you identify the best asset to invest in and ensure you know how to invest £100,000 safely and effectively. 

You may be familiar with a famous quote from entrepreneur and investment expert Robert Arnott: 

“In investing, what is comfortable is rarely profitable.” 

This quote draws attention to the reality that every worthwhile investment comes with a level of risk. Without taking risks, you limit the potential profits you could make from your venture. Certain assets, however, naturally come with more risk than others.  

Shaw Street - exterior on a sunny day Shaw Street - exterior on a sunny day

Since those that invest £100,000 may wish to use their money more wisely, especially if the 100k they’re investing has been acquired through savings or inheritance, many people wondering how to invest 100k are likely to seek out less high-risk investment strategies 

If this is the case for you, make sure to avoid any of the riskier investments and explore investment options more suited to you. 

If you’re not sure about your risk level, you could take a risk assessment questionnaire online. These risk assessments are carried out to help investors gain clarity on the level of risk they’re willing to accept. Some of these tools are free, while others cost money. 

You could also speak to a financial advisor to get objective, expert advice that could help you gain a better understanding of your finances. 

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2. Think About Your Investment Goals

Think About Your Investment Goals Think About Your Investment Goals

Along with the level of risk, you should also consider your investment goals. Whether you’re looking to invest 100k or figure out how to invest 500k, investment goals are essential for every investor to plan out.  

Even investment experts who have acquired large investment portfolios still spend time thinking about precisely what they hope to gain from each investment.  

Your investment goals should outline what you hope to achieve through your investment, and in this case, the type of returns you expect to receive from investing £100,000. 

Before investing, ask yourself the following questions: 

  • How quickly would you like to generate a return on your investment?  
  • Are you looking to save for retirement, or are you simply looking for a way to build some extra income each month? 
  • When do you plan to exit your investment? How long do you expect to hold onto your asset before selling it? 

With some asset classes, your money may need to be tied up for an extended period of time before you start to see your returns.  

Shaw Street Investment Property Interior Shaw Street Investment Property Interior

This type of investment strategy would be classed as a growth-based investment, which is popular with those focused on investing for retirement as a way to secure their financial future. 

With a growth-based investment, the investor is interested in knowing how to get maximum return on investment over a longer period of time, and therefore, chooses an investment strategy that generates the best possible rate of long-term growth. 

On the other hand, some investors may prefer a strategy that is more income-focused. To find this, they’ll seek out information on the best way to invest 100k for quicker returns.  

Before you invest £100,000, ask yourself whether you’re investing your money for income or growth. Or, are you investing as a way to generate both these things?  

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 overall.  

This will give you a better idea of where to invest 100k for your personal goals and needs. 

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Liverpool Prices from £139,950

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ELEMENT - The Quarter

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Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

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Manchester Prices from £219,112

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3. Consider a Hands-on Vs Hands-Off Investment

Do you plan to manage your investment yourself, or do you want to find the best way to invest 100k with minimal effort and the freedom to get on with your usual day-to-day commitments? 

Thinking about whether you want a hands-on or a hands-off venture when investing £100,000 is important. By considering what strategy best suits you, you can determine which type of asset you should invest in.  

Suppose you’re looking for a way to invest £100k of your money and earn extra income and build wealth alongside your career or usual business ventures. In that case, a hands-off strategy is what you should focus on. 

Alternatively, if you want to really get stuck in with your venture and learn more about the industry, a hands-on strategy may be better suited to you. 

Of course, you can also invest in an asset that offers a mixture of both these strategies.  

Many people who invest in buy to let property will seek out their investment themselves by researching the market and learning more information.  

However, when it comes to managing their rental property, they’ll hire a property management company to do this, which leaves them with more free time.  

Property investment can also be totally hands-off if the investor decides to let the property investment agent find a deal best suited to their needs and budget.  

This works similarly to working with a stockbroker who invests in stocks and shares on behalf of clients.  

The good news is if you’re ready to make your first investment and you have a budget of £100,000 to invest, there are a range of amazing options available to you that have the potential to give your funds a significant boost.

Amy Jackson, RWinvest

4. Assess Different Investment Types

Assess Different Investment Types Assess Different Investment Types

If you’re unsure what type of investment you want to make to get the best return on 100k, you should explore the different asset classes available.  

Here are some of the most popular £100,000 investment ideas for you to consider, with information on each investment’s risk level and potential returns.  

If you want to know the best way to invest £100k for income and wealth, make sure you learn about these investments. 

The Best Way to Invest £100k - Property Investment 

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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 2021 is the most lucrative and attractive option out there.

Amy Jackson, RWinvest

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

Still have questions about the best way to invest £100k? Learn more about the best investment for £100,000 with these commonly asked questions and answers.  

Based on the fact that it’s a low-risk strategy that offers returns through both rental income and capital appreciation, buy to let property investment is the best way to invest 100k for high returns. 

By purchasing a buy to let property in a top-performing area, you can make a regular cash flow of income without worrying about losing your money.  

By investing in a property with assured rental yields, you can also guarantee rental income for a set period. In some cases, this assured rental yield can be as high as 8% if you invest in a top buy to let city.

Again, if your investment goal is investing £100k for income, buy to let property is the best option for those wondering how best to invest £100k. 

Buy to let investors benefit from regular rental income, normally paid to them monthly.  

The average rental value in the UK right now stands at a huge £996, according to HomeLet. With ongoing high demand for rental properties throughout the country, rental returns are expected to grow even further in the coming years.  

Investors can then do what they wish with their regular rental income, whether this means adding it to a savings account or simply adding it to your usual monthly income.  

If you’re looking for the best investment of 100k and you’re interested in property investment, choosing a buy to let strategy is the best way to invest 100k in property.  

This is because by investing £100,000 in buy to let, you can get the maximum return on investment through two types of return – rental income and capital appreciation. 

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 2021, 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 house prices 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 28.8% by 2025. This should give 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. 

As most financial advisors will tell you, diversification is key. 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. 

When considering how to invest 100k in the UK, the best strategy is to make an accurate financial plan of how much each separate asset may cost to invest.  

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. You can do this with either a buy to let mortgage, cash, or by using a structured payment plan and then using leftover money to invest in a cash ISA or some premium bonds.  

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 by investing 100k in these two assets, you can consider growing your portfolio with further investments. 

In 2021, 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. It has proven stable throughout the last several months despite the uncertainty that the economy 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 2021 is the most lucrative and attractive option out there. 

While it’s challenging to say the exact amount that your property will be worth in 20 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 average UK property has increased in value by around 175% over the last 20 years.

From March 2001 to March 2021, House Price Index data shows that the average property price has grown from £93,136 to £256,405, an added value of £163,269. 

With high capital growth expected across the UK, with a 21.1% rise predicted for the country as a whole by 2025, and higher growth of 28.8% in the North West region, those who invest 100k in 2021 can expect to see a significant increase in property value over the next 20 years and beyond. 

What Is the Best Way to Invest £100k For High Returns?

Based on the fact that it’s a low-risk strategy that offers returns through both rental income and capital appreciation, buy to let property investment is the best way to invest 100k for high returns. 

By purchasing a buy to let property in a top-performing area, you can make a regular cash flow of income without worrying about losing your money.  

By investing in a property with assured rental yields, you can also guarantee rental income for a set period. In some cases, this assured rental yield can be as high as 8% if you invest in a top buy to let city.

What Is the Best Way to Invest £100k For Regular Income?

Again, if your investment goal is investing £100k for income, buy to let property is the best option for those wondering how best to invest £100k. 

Buy to let investors benefit from regular rental income, normally paid to them monthly.  

The average rental value in the UK right now stands at a huge £996, according to HomeLet. With ongoing high demand for rental properties throughout the country, rental returns are expected to grow even further in the coming years.  

Investors can then do what they wish with their regular rental income, whether this means adding it to a savings account or simply adding it to your usual monthly income.  

I Think Property Investment Is the Best Choice For Me - What’s the Best Way to Invest £100k in Property?

If you’re looking for the best investment of 100k and you’re interested in property investment, choosing a buy to let strategy is the best way to invest 100k in property.  

This is because by investing £100,000 in buy to let, you can get the maximum return on investment through two types of return – rental income and capital appreciation. 

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 2021, 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 house prices 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 28.8% by 2025. This should give 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. 

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

As most financial advisors will tell you, diversification is key. 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. 

When considering how to invest 100k in the UK, the best strategy is to make an accurate financial plan of how much each separate asset may cost to invest.  

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. You can do this with either a buy to let mortgage, cash, or by using a structured payment plan and then using leftover money to invest in a cash ISA or some premium bonds.  

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 by investing 100k in these two assets, you can consider growing your portfolio with further investments. 

I Have £100,000 to Invest Right Now: What Should I Invest 100k in 2021?

In 2021, 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. It has proven stable throughout the last several months despite the uncertainty that the economy 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 2021 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 challenging to say the exact amount that your property will be worth in 20 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 average UK property has increased in value by around 175% over the last 20 years.

From March 2001 to March 2021, House Price Index data shows that the average property price has grown from £93,136 to £256,405, an added value of £163,269. 

With high capital growth expected across the UK, with a 21.1% rise predicted for the country as a whole by 2025, and higher growth of 28.8% in the North West region, those who invest 100k in 2021 can expect to see a significant increase in property value over the next 20 years and beyond. 

How Can I Invest 100k in UK? Here’s What to do With 100k

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 and make money from property investment. 

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. Consider your investment goals and whether you want a hands-on or hands-off venture. Want to generate both rental returns and capital growth returns while having someone else manage your investment for you? A hands-off buy to let property investment is one of the best ways to invest £100k of your money.

Shaw Street - Completed and Tenanted Student Property - Kitchen Interior Shaw Street - Completed and Tenanted Student Property - Kitchen Interior

3. 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? 

4. 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. 

5. Make sure you know how to make your chosen investment a success. Research how to invest 100k by learning about the best buy to let areas, explore different types of investments in your chosen asset class, and look for investment opportunities with the strongest potential returns. 

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How to Invest 100k With RWinvest

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 portfolio 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 advise you on how and where to invest 100k to get the most out of your money.  

Our current opportunities start at just £69,995, which is ideal for an investor with a £100k budget looking to make a cash payment.  

We also have payment plans for many of our properties, such as our amazing Manchester property, Merchant’s Wharf, which allows investors to gradually pay for their purchases in smaller amounts. This is great for those wondering how to invest 100k or less at a time. 

If you’re ready to make the best return on 100k investment with RWinvest, contact us today for a helpful chat with a member of our experienced consultancy team or send us a message via our website’s live chat tool for a speedy response! 

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. 

This guide to the best way to invest 100k was last updated in June 2021.  

3 Units Remaining

The Summit

Stylish Baltic Triangle Living

Liverpool Prices from £139,950

Assured 7% NET Rental Yields

15-20% Below Market Value

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

10% Deposit

Off Market Manchester Apartments

Premium Residential Investment

Manchester Prices from £219,112

5.5% NET Rental Return

10% Deposit Required