We put our house on the market last week and so sold it within afew hours. We bought it of a friend off a friend to help them out and we have made a tidy profit.

We have moved back to our original house now but have been pondering what to do with our profit investment wise.

What have people done in this situation on here with the likes of a large cash sum wether it be inheritance

Trying to get real world advice instead of my mate did this scenario

Have you got to pay tax on the profit?

Surely it depends on what size proffit you are talking about?

If you have enough capital I would be looking at buying another property on the cheap as a project and either do it up and sell or rent it out for a guaranteed income....


Or send it to me and I will willingly convert it into hookers and coke

Well you'll probably have to pay Capital Gains Tax. The government will want their fat bite of your profits. BAS£$%^DS

ULTIMA TWIN TURBO LS7 BUILD :-)

Capital Gains depends on whether the house you have sold was your main home and have lived there a reasonable amount of time (1 year+ I would guess) - have a google on MP home flipping ! but as others have said - buy to let and build an empire.

(caveat - this is personal non-professional opinion and you should take professional advice before taking any action)

We only had one house in our name at the time. And the tax issue has been sorted its one of my wifes skills in the department of tax.

After everything is sorted we are still well into the 6 figure mark.

Property is an interest to us again but looking into other options. As it seams the best route is rental property but just curious to other ideas.

Aprantly the Lamborghini Ferrari options I mentioned didn't seam as appealing to the wife.

When I did that I just piled it all into the next project, bigger and better....

We are thinking if that again just a waiting game to find them at the right price plus it's getting harder for us as our assets are growing and harder to keep the tax down or at 0%

quote:

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Originally posted by coozer
When I did that I just piled it all into the next project, bigger and better....

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quote:

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Originally posted by mk85
Aprantly the Lamborghini Ferrari options I mentioned didn't seam as appealing to the wife.

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As I understand it, if you only own one property at a time and live there for a reasonable amount of time (1 year +) then you are not classed as a developer and free of capital gains tax when you come to move.

So as Coozer says, if you enjoy the renovation/extending etc. experience (and can live in the house at the same time I guess) why not keep investing in the next property, take a couple of years to complete and then sell on/buy another moving up the ladder each time. Similar process to the two scottish guys on the tele who started with a one bed flat in birmingham and "developed" their way up to a town house in kensington (although that was their job and prices were going up at silly rates, right time, right place, they would have probably made half the money by just sitting on the properties for a couple of months and re-selling without any alterations, pretty boring TV show though !).

6 figures is a nice amount.

I watched a money program the other day (hosted by the guy who runs money supermarket) and it covered this sort of thing. All be it with 5 figure amounts. The below is a list (from memory) that is in priority and chronilogical order. Keep going until you run out of cash!

1) Create a high interest long term savings account that covers minimum 3 months of your total household income. This creates stability and confidence.
2) pay off your current mortage completly.
3) Split investments into various high interest accounts. ISA is max 15K PA but you can add another 15K each year. Some ISA are linked to S+S so you may be able to blend a portfolio of varing risk.
4) Consider other higher risk investiments in stock shares property.

I have been investing for a few years now and am currently hitting approx 12% PA returns, tax free. I am not dealing with 6 figures yet but aiming hard to! We are also hoping to get our first B2L this year which blows my mind.

I dont know how old you are or what time scale you are investing to but this makes a big difference in where you put your money.

Relative of mine just sold all his property and is moving to Morocco. Quite a distant relative sadly! But he sold his property assets for well over 5 million. He told me that in all his investments over years spanning many different types of investments the only type that nearly always makes money is property. Bricks and Mortar.......thats what I'd do.

Our new home will be our last as I can't really see us needing anything more than what we have there.

It's the isa`s am Intrested in.

But we may wait out for some cheap rental flats.

I ended up with a decent amount of money after my parents died - ended up having a conversation with an independent financial adviser (IFA) recommended by a friend. Split off a chunk of money and invested that through the IFA - getting decent returns that at a minimum match inflation, and sometime exceed it, without exposing me to too much risk (but there is always a risk, of course). My money is split across a broad prtfolio, some at low risk/low returns and some at higher risk/higher returns. Invested about half of my money this way, and put the rest in a long-term bank account that gives me an abysmal rate of return - but is covered by the government back-up if the bank should fail (of course, we always trust the government to do what they promise, don't we). I do plan to move some of this money to the investment account though, as I hate to see my money losing value as the years go by.

If its ISA saving then i recommend taking out a SS ISA and put it on S&P500 NASDAQ split.

I will be amazed if you lost money with the rate that the US is recovering.

i made over 25% returns tax free here. Last year alone. I just wish i could invest more than my measly 4 figures.

Use morning star and bloomsberg to choose and DONT USE LEVERAGED FUNDS.

[Edited on 19/2/15 by bi22le]

How about investing in some air cooled 911 or any 911 with an RS tag?

Obviously tongue in cheek but it does sum up the air cooled market at the moment.
http://sniffpetrol.com/2014/10/21/air-cooled-911s-now-worth-more-than-gold/

Talk to an independant advisor, IMO its well worth the outlay.

How about a canal boat, or fleet of canal boats? They cost new ~£1000/ft (up to 72' and to rent bloody well, and they hold their value if you decide to move on.

build a house with the money then sell it, I built a new 6 bed house for just £86k which ended up worth £430k

that's £344k profit

Couple of people at work have put £40K into premium bonds. Says he has made more than he would have in a ISA over the past year.