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. If you’re ready to make your first investment and you have an available budget of £100,000, 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 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. Knowing what kind of returns you want 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.

 

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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 your best bet. By putting your funds into an ISA, you don’t have to commit to a property or stocks investment and can rest assured that you’re able to 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 to find the best area to invest 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 to 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 pay for your investment 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% over the next five years, giving you confidence that 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.

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 to find the best area to invest 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 to 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 pay for your investment 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?

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% over the next five years, giving you confidence that 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.

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.