How To Invest £200k in 2023

Enter your details to discover our best investment opportunities, with properties available for less than £200k

By submitting your details you agree to allow RWinvest to store and process the information submitted and receive product information and other communication, as stated in the privacy policy.

John Brady

John Brady

John is a property writer here at RWinvest. With a close eye on property market news and updates, John writes detailed and informative articles on a range of topics that are helpful for anybody looking to invest in UK property.

If you are lucky enough to be in a position to invest £200k, ensuring your investment will bring positive returns is important. A large amount of money like that could bring you even more back in profit, but it could also be lost if the investment is a failure.

Therefore doing your research when preparing to invest £200k is vital. If you would like to learn more about how to invest £200k and several options you should consider, then you are in the right place.

In this guide, we will go through some key information on what to consider before investing your money and rank several investment options you should look at when choosing what to do with £200k.

This guidance is aimed to be general information that could help you when investing, and is simply here to help identify potential options for you. If you are looking for specific advice to your financial situation, talk to a financial advisor.

What You Need To Do Before Investing £200k

There are several things you should do with £200k before you consider investing any money, as even safe investing options come with some level of risk.

  • Pay off any high-interest debts: Debts like credit cards should be paid off as soon as possible. They generate the highest form of interest, compound interest, which will eat away at your potential earnings. Mortgages and loans with lower rates of interest do not need to be paid off straight away.


  • Create an emergency fund: Estimate how much money you would need for six months of expenses. Should the worst happen, you will not want to have to rely on your investment portfolio to secure your finances. Therefore, squirrelling some money away in a savings account is a smart idea.

You should also consider what kind of investment you want to make. Think about what financial goals you want to achieve, and this will decide what kind of investment you want to make.

    • Do you want regular income or a lump sum? This will play a key role in what kind of investment you should make. A regular income is preferable in most cases as it allows for a larger return on your investment, but a lump sum can be useful as well.


  • What is your appetite for risk? Any form of investment comes with risk, but some investment opportunities are safer than others. Some forms of investment can have massive returns but are also subject to fluctuating market trends.

6 Ways to Invest £200k

Having £200k as a starting point for investment is a great place to begin a portfolio. Here are six of the most popular methods of investing £200k that our research has found:

Property Investment

Potential Reward: 5/5

Potential Risk: 2/5

Property investment is one of the strongest options for investing £200k in the current market climate. Across the UK, we are seeing record growth in the property market that is expected to continue for years to come.

Rent from tenants is earned every month so you will have a consistent form of income. Current statistics show tenants pay an average of £1,199 per month in the UK.

A property’s value goes up with time, so you may choose to sell your property in the future for a profit.

Property is not a liquid asset, so you cannot immediately sell to see a profit quickly such as with cryptocurrency or stocks. Property investment could also come with a higher initial cost, as the average house price in the UK is currently £285,009 according to the latest from the House Price Index.

However, there are several ways of making it more affordable such as mortgages and investing in areas like Manchester and Liverpool where properties are below the average price.

So if you are considering investing £200k in 2023, property investment is a safe bet.


Potential Reward: 5/5

Potential Risk: 5/5

An option that has quickly picked up steam over the last few years, cryptocurrency is an exciting (and risky) option for investors. This sees you buy units (or fractions of units) of online currency and hold them as they rise in value like stocks.

There are many different kinds of cryptocurrency currently available, with the most popular including Bitcoin and Etherium (which is due to get an update which has many excited).

Cryptocurrency has seen investors receive massive returns on their investment, with a single Bitcoin being worth $69,000 in November 2021.

However, investing in cryptocurrency also comes with massive risks. They can fall in value just as quickly as they can rise, and Forbes has warned of ‘a nightmare’ that is approaching for crypto investors due to wildly fluctuating markets.

Bitcoin alone has fallen to being worth under $19,000 per unit in June 2022, followed by rising back to almost $25,000, before again crashing due to Elon Musk selling almost $1 billion worth of Bitcoin that his company Tesla had invested in.

If you are unafraid of the potential risks that come with cryptocurrency, then there is a possibility of significant returns on your £200k if investing in crypto is your choice.

Don't Miss Our Latest Deals

Units in these opportunities are selling fast. Enquire now for more details.

The Mill

Embankment Exchange

One Park Lane


Potential Reward: 5/5

Potential Risk: 5/5

Similar to cryptocurrency, investing your £200k in stocks is a risky option that could see you achieve extremely profitable returns.

Investing in stocks is when you purchase a small part of a company through the stock market. If the company achieves success, your stocks become more valuable but if the company goes through financial trouble then you may find your stocks lose value.

This allows you to spread your £200k investment across several companies in a variety of sectors, so if one goes under then your investment is not as badly damaged.

Big businesses like Google and Apple have stocks that are relatively stable but are also expensive, whereas smaller businesses’ stocks can be bought cheaper in the hopes that they will rise in the future.

However, the stock market rises and falls very fast, so it requires either a wealth manager or yourself to keep a close eye on the market to ensure you can pull your investments out fast to avoid losing money.

So if you have the stomach for potentially losing part of your investment, the stock market offers a lot of potential if you want to invest £200k.

Want to Discover the Best Places to Invest in the UK?

Click Below to Read Our Detailed Guide

Savings Accounts

Potential Reward: 2/5

Potential Risk: 1/5

Possibly the safest method of investing currently available is simply using savings accounts to hold your £200k. If you are unsure of what to do with £200k, then this is a simple way of earning interest whilst you decide what kind of investment you want to make.

There are multiple ways of placing money into a savings account to get a return on your investment. An instant saver account lets you put money into and draw money out of it whenever you want.

Regular saver accounts require a certain amount of money to be deposited each month, whereas notice accounts mean you must inform the bank ahead of time when you want to withdraw money.

ISAs can also be used to protect investment money from being taxed to a certain limit, and up to £85,000 of your money would be protected by the Financial Services Compensation Scheme.

However, you would likely not see returns as high as with other investment methods. This is a safe way of investing £200k, but not the most profitable.

Working With a Smaller Investment Budget?

Read our guide on how to invest £100k via the button below!

Peer-to-Peer Lending

Potential Reward: 3/5

Potential Risk: 4/5

One method of investing that is gaining traction in 2023 is peer-to-peer lending. This is where you use your £200k investment to act as a lender to other people, cutting banks out of the transaction.

This can be profitable as you earn off the interest accrued from the loan, with a larger cut as banks do not take any of the money.

However, this is a risky investment, as peer-to-peer lending is not currently covered by the Financial Services Compensation Scheme.

This means if the people you lend your money to do not pay it back, you lose your money with no way of getting it back.

For this reason, it is probably best not to invest all of your £200k in this method.

Gold and Silver

Potential Reward: 2/5

Potential Risk: 2/5

In periods of uncertainty, investing in gold and silver is often seen as a safe haven. Historically, this has been a very safe method of investment as the value of rare metals does not fluctuate that much.

There are multiple ways of doing this, from buying physical gold or silver bars to investing in funds that are spread across several gold mining companies.

Unlike other investment assets, gold tends to rally during stock market crashes, which can make it very useful to diversify a portfolio or securing your £200k investment for the long term.

However, you do not earn interest or dividends from holding rare metals, as the way you earn income from investing in them is to hope it will provide you with long-term capital returns. There is no guarantee this will happen.

It is also expensive to invest in, especially if you’re holding physical rare metals, as you need to take into account storage and security, aspects you do not need to do for other investment opportunities.

What Is The Best Way To Invest £200k

There is no right or wrong way to invest £200k, as each investor has their own goals, needs, and risk appetites to consider when investing. All of the investment methods listed here have pros and cons attached to them.

We at RWInvest believe that property investment offers the best balance between its strengths and weaknesses. With an investment of £200k, there are several exciting opportunities for investment across the UK.

Our most recent development, Central Park, has investment opportunities available from £159,950, and we also have developments in Liverpool and Manchester with very attractive rental yields available for investment.

Working with a slightly smaller budget? Read our guide on how to invest £150k for more insight on how to best invest your funds.

Contact us today to find out more about our current opportunities.

Disclaimer: This content is not to be taken as investment advice, and is offered as an informational guide to the different UK investment options. We recommend speaking to a financial advisor if you’re seeking advice on your investment decisions.

RWinvest - Disclaimer
RWinvest - Disclaimer

Receive Exclusive Investment Deals Straight to Your Inbox

By submitting your details you agree to allow RWinvest to store and process the information submitted and receive product information and other communication, as stated in the privacy policy.

Welcome, visitor!