What to do with 100k

There isn’t a bias against property on AAM.

There’s an acknowledgment that most people have more than enough exposure to property already by virtue of owning their own home, and in some cases also owning an investment property.

It’s foolish to invest in a single asset class in a single geography.

If all of my wealth was tied-up in Diageo shares, and I inherited €250k, would it be prudent or sensible to use it to buy more Diageo shares? Of course it wouldn’t. Yet it’s a great company that has pretty much gone-up in value over time, just like property.
 
Is that trust bought like a normal share on degiro etc ?
 
But owning your own home isn't an investment
 
Sarenco said:
Yes.

It is, in my opinion, very much an investment.
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I agree.

Yes, there’s personal utility in there by virtue of living there, but it has almost all of the characteristics of a long-term investment.

Money tied-up, leverage, volatility, history of positive returns over the longer term, the fact that it’s an asset class in its own right etc. Arguably the personal use utility is just the dividend.
 
The personal use dividend is not having to pay rent. This has a monetary value.
 
coolaboola12 said:
Is that bought like a normal share via the likes of degiro ?
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FCIT
F&C investment trust
Go to your Degiro app and click on the magnifying glass symbol top right.
Enter FCIT and you will see it there. It can be bought and sold as a normal share.
It’s well worth looking back at old threads on here regarding the difference between ETFs and investment trusts.
 
Advantages of property as an investment
I'm not saying property is perfect however
  • Leveraged, borrow to buy more asset
  • interest paid is tax deductible
  • Appreciation of the full value of the property
  • Erosion of the loan due to inflation
  • Rental income
  • Bricks and mortar: you can see your investment
  • Ability to pull out equity by top up loan and buy more property
 
Advantages of property as an investment
I'm not saying property is perfect however
  • Leveraged, borrow to buy more asset
  • interest paid is tax deductible
  • Appreciation of the full value of the property
  • Erosion of the loan due to inflation
  • Rental income
  • Bricks and mortar: you can see your investment
  • Ability to pull out equity by top up loan and buy more property
 
Advantages of property as an investment
I'm not saying property is perfect however
  • Leveraged, borrow to buy more asset
  • interest paid is tax deductible
  • Appreciation of the full value of the property
  • Erosion of the loan due to inflation
  • Rental income
  • Bricks and mortar: you can see your investment
  • Ability to pull out equity by top up loan and buy more property
 
At last.A perfect summery of advantages of property as an investment in my humble opinion.!Especially erosion of the loan due to inflation and appreciation of the full value of the property.
 
Sarenco said:
In your shoes, I think I would invest the bulk of the €100k in a global equity investment trust like FCIT.
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I agree with this.

But if the OP has a longer investment horizon it should go into the pension fund. Yes there is no tax relief but gains are CGT free and up to 25% can be drawn down tax free on retirement.


coolaboola12 said:
Is a buy to let the best place for my 100k?
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Others have opined in the diversification issue. All I’ll add is that a rental is basically running a small business and totally different to the passive investment options being discussed.
 
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