Where do i invest €125000

Webmonkey

Hi There,

First of all no, this isn't my money its my parents.
They asked me if i could research the internet for places in which one could invest.
I havn't a clue where to go or don't know anything about banks etc.
Where should i start looking? They don't want to do risky stuff like the stock market, more just throw it into an account with a high interest return.

Just wondering if anyone got any advice or places to start looking?

Thanks.

Passport

rabobank will give them 4.75%a year on a standard current accout, rate is calculated daily, and you can take money out whenever you want, (it would return over 5000 a year in interest.
They could also invest a small bit into their managed equity funds which usually make a good return without any hassle.

is_that_so

Shares are an option but with managed accounts, which is usually a lower risk. This is Davy Stockbrokers and Goodbody.

Webmonkey

Thanks guys. I'll look into them options.

democrates

Have a gander at http://www.ifsra.ie/data/cr_pub_files/Savings%20and%20investments%20guide.pdf

eclectichoney

actually passport, you'll only get 4.75% on the first 10k and a lower rate thereafter, so the return would be less that 5k.

Kinetic^

eclectichoney wrote:

actually passport, you'll only get 4.75% on the first 10k and a lower rate thereafter, so the return would be less that 5k.

Aye it drops to under 4% after the first 10k. I thought AIB brought out a new deposit a/c last week where you get something like 8.5% over 2 years, can only withdraw up to 10% of it during that time though.

dogball

rabo investments accounts are good
i am averaging 25% pa with various funds

otherwise take a loan and buy property up north

Invest it in an overseas property! A place that has a good brand, with low prices. Somewhere that is not oversupplied and that there is a steady demand.
It is low risk, with potentially very high returns, and you can also get the benefits of usage from it

hmmm

Webmonkey wrote:

Just wondering if anyone got any advice or places to start looking?

Don't rush this, park the money into a high interest deposit account while you think it through. Don't put it into "low risk" property, no such thing. Don't listen to message board posters :P

First understand how much risk your parents can take with the money and what they need it for - is it for their retirement, is it "spare" cash, is it a rainy day fund?

If the 125k is money they really can't afford to lose part of, you should get professional advice (you should probably do this anyway). A consultation will cost, but you don't want to mess this up.

Webmonkey

True, This money is kinda of money they can't afford. I was thinking professional advice way to go alright.

Thanks

democrates

Webmonkey wrote:

True, This money is kinda of money they can't afford. I was thinking professional advice way to go alright.

Thanks

Tax advice is key, and take those selling particular investments with due caution.

bbbbb

Deleted User wrote:

Invest it in an overseas property! A place that has a good brand, with low prices. Somewhere that is not oversupplied and that there is a steady demand.
It is low risk, with potentially very high returns, and you can also get the benefits of usage from it

Like "Brancaleone" for example?

of course where else? ! Id love to plug it but heres some other markets i think are good

-if you can find a developer in Trnava outside Bratislava, a load of companies have just relocated there and the builders usually tie up long term rental contracts with Volkswagon, Kia, Peugheot etc for the top management, so you get a guaranteed rent thats not actually a con! Very attractive tax laws there as well, only about 1.5% closing costs, flat 20% rate no cap gains after a short time, and its a hub in the centre of vienna, prague and budapest

It might be a little late to get into morocco, but if you look you can still find some good stuff.

Another place is Malta, been excellent capital appreciation there over the last couple of years, not a great rental market but prices have been going nuts in the last 2 years

markets i would stay away from are bulgaria = massively over supplied
romania = will be massively over supplied shortly with a big development going on at the moment

cape verde = Africa!! water, sewage, water table problems

hmmm

Deleted User wrote:

no cap gains after a short time, and its a hub in the centre of vienna, prague and budapest

Let's have a quiz on taxation 101 - how does an Irish citizen avoid paying CGT?

Kinetic^

You just don't pay it!!! It's a self assessment system, you don't have to pay it if you don't want to.....it's illegal but it's up to you really.

I don't condone that sort of behaviour though.

markk06

Deleted User wrote:

of course where else? ! Id love to plug it but heres some other markets i think are good

-if you can find a developer in Trnava outside Bratislava, a load of companies have just relocated there and the builders usually tie up long term rental contracts with Volkswagon, Kia, Peugheot etc for the top management, so you get a guaranteed rent thats not actually a con! Very attractive tax laws there as well, only about 1.5% closing costs, flat 20% rate no cap gains after a short time, and its a hub in the centre of vienna, prague and budapest

It might be a little late to get into morocco, but if you look you can still find some good stuff.

Another place is Malta, been excellent capital appreciation there over the last couple of years, not a great rental market but prices have been going nuts in the last 2 years

markets i would stay away from are bulgaria = massively over supplied
romania = will be massively over supplied shortly with a big development going on at the moment

cape verde = Africa!! water, sewage, water table problems

I got the impressions from your posts on this thread that you had some sort of vested interest in overseas property. Then i saw that you have another thread about overseas property.

What you neglect to explain in your threads is that there is no solid evidence that property prices in any of the emerging accession states will grow at a similar rate to ireland.

Also in many of these developments the people you are bidding against are not locals, they are also Irish. The result of this is that the price is an artificial market price, one which local investors cannot afford. Therefore if a slump comes, you will be selling on to a local who can not afford the artificial market price created by investors. Which in theory may see you facing losses in the long term.

In closing it is also essential to note that someone earlier sugggested borrowing to finance these properties, but in many cases a default on this loan will not see the bank looking to seize your house in an abanoned building site in Bratislava but more likely go for equity you possess in Ireland... so be warned, shrewd investment can result in gains in these markets but they are not the goldmines being promised by developers in exhibitions in thh RDS

markk06

Yes I work in overseas property and I have a vested interest in it, but not in any of these markets that I have reccomended.

Of course there are certain risks with any property development, in any country, but it is risk and return, and those markets are what I beleive to be the lowest risk highest return at the moment. I would consider myself an expert in this industry. Irish investors have made an absolute killing in overseas property, and property in general is a much lower risk with potential higher returns then any other investment i can think of.
Of course there are potential pitfalls, but there are with every investment, but im a firm beleiver that in the right markets these pitfalls are reduced.

As far as avoiding the CGT, with a dual taxation agreement declare your money in slovakia for example and keep your euro in a slovakian bank account, and withdraw it from there.

markk06 wrote:

I got the impressions from your posts on this thread that you had some sort of vested interest in overseas property. Then i saw that you have another thread about overseas property.

What you neglect to explain in your threads is that there is no solid evidence that property prices in any of the emerging accession states will grow at a similar rate to ireland.

Also in many of these developments the people you are bidding against are not locals, they are also Irish. The result of this is that the price is an artificial market price, one which local investors cannot afford. Therefore if a slump comes, you will be selling on to a local who can not afford the artificial market price created by investors. Which in theory may see you facing losses in the long term.

In closing it is also essential to note that someone earlier sugggested borrowing to finance these properties, but in many cases a default on this loan will not see the bank looking to seize your house in an abanoned building site in Bratislava but more likely go for equity you possess in Ireland... so be warned, shrewd investment can result in gains in these markets but they are not the goldmines being promised by developers in exhibitions in thh RDS

hmmm

Deleted User wrote:

As far as avoiding the CGT, with a dual taxation agreement declare your money in slovakia for example and keep your euro in a slovakian bank account, and withdraw it from there.

Do you realise you would then be advising your Irish clients to engage in tax evasion? An Irish resident investor has to pay Irish CGT on a capital gain anywhere in the world, but double taxation agreements may allow them to reduce their liability - not eliminate it. It doesn't matter where they leave the money, and in the event of a revenue audit they could face serious fines and even jail.

Is this the quality of most of your investment advice?

luckat

You could rest it in my account

I'd wait just a little in case the Government suddenly springs another pre-election SSIA type thing, in which case it might be possible to put it into a high-earning savings account and feed it into the SSIA.

I don't know where you can get *unaligned* investment advice.

It's a funny amount. Not enough that you could buy an apartment outright, for instance (even if the property market here wasn't looking a bit iffy). But you could always put it towards an apartment that seemed guaranteed value, and hope that the rent would pay off the mortgage, so you'd have an appreciating asset. Hard to know...

Maybe what your parents need to work out is what's their plan for this money. Do they want to use it towards a pension? Towards old age care? To blow on one glorious holiday one day? To pay for something pointless like a fancy wedding? If they know what they're planning for, it might direct them towards an investment.

Meanwhile, you might try opening up the Golden Pages and phoning around all the banks and building societies to see what interest they're able to offer. When I was insuring my car I did this, and the cheapest offer (which I took) was *nine times* cheaper than the dearest.

i71jskz5xu42pb

Webmonkey wrote:

Just wondering if anyone got any advice or places to start looking?

Not here! Given that it's a reasonably large sum of money and you've admitted it's not your area (fair enough) get some professional advice. I'm with hmmm on this.
As you can see some of the advice below is questionable (from both a financial and tax perspective) as best. If revenue do a sweep in 10 years, do you really want your parents getting pulled for tax evasion based on advice you got on the internet? Do you want you parents waiting around for the property market in Kazakhstan to take off?

Not that professional advice is foolproof. Have a look here for a start - a balanced view on some options. That said if I was new to all this I'd look for professional advice over random punters on the internet.

krille

Hi forum,

Not an investent for everyone but did you ever look into investment in property development in emerging markets?

Have a look at : www.prolan-invest.com

Regards,
Krille

dogball

krille

looks good
do you trust them not to do a runner

dog

krille

dogball wrote:

krille

looks good
do you trust them not to do a runner

dog

Hi Dogball,

Apologies, message did probably not come accross correctly: Prola-invest.com is us.

As such yes I can say we won't do a runner: it is one of the questions that rightfully pops up.

Here a few points:

As explained in the "RISKS" section on our website: most of the funds held by the company will either be in the form of: cash in deposit accounts, land or buildings.
The land and buildings on the land will belong to the company and cannot be sold by the board of directors without prior approval from the shareholders. I am currently looking at steps we can take to ensure the board of directors cannot be able to help themselves to funds held in the company deposit accounts. One idea would be to get the shareholders to nominate a co-signatory to release funds above a certain amount.

Also remember that we will be personally investing our funds in this venture as well. Moreover we will be project managing the entire project (for a period of approximately 3 year) under an agreement with the development company without salary. Our remuneration will be taken at project completion. As you can see we will be shareholder and creditor of the new company and as such have no interest whatsoever to get the company insolvent / bankrupt.

The Companies Law gives to the shareholders of a company the power to determine certain fundamental matters relating to the company – for example, alterations to the capital or to the memorandum and Articles of Association, the placing of the Company in voluntary liquidation, and so on - whilst the Articles generally give to the shareholders the power to appoint and remove directors and auditors.

The stigma attached to bankruptcy: directors will find it virtually impossible to raise credit in the future. And we cannot afford that.

Even in a limited company, the directors can be held personally responsible and liable for losses resulting from some acts or omissions.


Hope this helps.

For more questions contact us at: info@prolan-invest.com

Kind regards,
Krille

SteadyEddie

This is not the place to be posting about your own ventures, and you can rest assured that your post will be removed. And tbh, I would not send a penny of my money your way.

krille

Hi SteadyEddie,

Was just adding a new idea here....I have so far not come accross anything like it on here.

Nobody is forced to look into it.

As for not investing a penny in it....I accept that but to me it sounds very negative and unfounded. Have you had some bad experiences as co-investor / partner in a business venture? Maybe I can learn from that.

If the post is removed so be it....it wasn't meant to offend anyone.

Regards,
Krille

hmmm

SteadyEddie wrote:

This is not the place to be posting about your own ventures, and you can rest assured that your post will be removed. And tbh, I would not send a penny of my money your way.

Why is it that every time I hear one of these property investment types post I feel an urge to check to make sure my wallet is still in my pocket?