investment /savings advice

[Lou_smorals]

Hi
My lad wants to put £250 a month away from his salary, doesnt mind it being no access for 2-3 years or perhaps more, what are his best options please.
he is 20 yr old just finished his apprenticeship.
cheers
LS

[CzarJunkie]

Try p2p lending for something a little different with decent returns.

[Lou_smorals]

Hi
thanks m8, we just looked at that but he doesnt have lump sum, he wants to pledge so much per month.
LS

[CzarJunkie]

Hi
thanks m8, we just looked at that but he doesnt have lump sum, he wants to pledge so much per month.
LS

You don't need a lump sum.

http://uk.zopa.com/lending/how-lending-money-works

[evilsatan]

Cash ISA is safe, tax free interest but low yield given current rates. Stocks and shares ISA is still tax free but you can lose money if you pick a poorly performing share.

[blacksheep]

Pension? Can't draw on it but there's tax benefits.

[{{909}}]

Buy 250 quid worth of crack and work your way up, it's the only way to make decent returns at the moment.

Or, go into a bank and ask them, although with anything, he's not going to see anything significant really, I have a fair bit in a share ISA which may end up being profitable but i bought em when the market was more in the shit than it is now.

[Rick Sanchez]

I'm interested to know as well, my thoughts are buy to let studio flats for students

[hoponbaby]

BTL's for students can be good if in the right location, as can other houses of multiple occupation such as bedsits but there is a lot more regulation to comply with.

[Rick Sanchez]

I was thinking of starting with studio flats, theres a student tower block 5mins from the University and I can buy them at 50k each and I already have students that I know requesting them for next September. 5k income per flat per 48 week cycle on average

[hoponbaby]

Decent yield on face value but you need to factor in the annual student refurb costs

[Rick Sanchez]

True. What type of repairs were you thinking?

Sent from my Nexus 4

[koola2]

Anything you think a drunken student can do to a property (and more)

New Carpets/Redecorating/Replace Applicances etc.

[Rick Sanchez]

Hence the deposit

[Zippeyrude]

factor in the tax on the rent, unless you go with interest only and offset that against tax (i thing thats still possible)

50k per flat with a 5k return, lets say thats 3k after tax. that will take 17 years to pay the 50k at todays money, let alone interest if applicable. of course there may be capital appreciation.

am i missing something in assuming that the property rental market isnt a golden egg anymore unless someone has cash and doesnt know what to do with it and isnt particularly interested in burying it for years to see a return?

[Rick Sanchez]

It's not, after weighing up the sums, it didn't make sense, so looking for something else now