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Investing €180k

  • 05-06-2021 9:07am
    #1
    Registered Users Posts: 9 ✭✭✭ jun0858


    I was saving for a house but decided against buying for the time being as I couldn't find anything that met my needs. I just signed a lease for another 12 months.

    I have €180k deposit.

    Currently:

    €15k ETF
    €20k Prizebonds
    €125k Cash
    €10k Shares
    €10k P2P Lending and similar.

    Obviously there is far too much cash there if I'm not buying short term.


    I'm 28, full time job but will probably quit in 6 months or so for a career change. I could see myself buying in the next 1-3 years.

    but would like to make my money work for me. I'd to hear others opinions on what they'd do.


Comments

  • Registered Users Posts: 3,688 ✭✭✭ 3DataModem


    If your horizon is 1-3 years then you need to decide what outcomes you want in 1-3 years.

    The difference between making 6% and making 0% is 10,000 per year. Are you prepared to risk some of your capital to make this relatively small amount?


  • Registered Users Posts: 7,098 ✭✭✭ Chinese whospers


    jun0858 wrote: »
    I was saving for a house but decided against buying for the time being as I couldn't find anything that met my needs. I just signed a lease for another 12 months.

    I have €180k deposit.

    Currently:

    €15k ETF
    €20k Prizebonds
    €125k Cash
    €10k Shares
    €10k P2P Lending and similar.

    Obviously there is far too much cash there if I'm not buying short term.


    I'm 28, full time job but will probably quit in 6 months or so for a career change. I could see myself buying in the next 1-3 years.

    but would like to make my money work for me. I'd to hear others opinions on what they'd do.


    The return from prize bonds has reduced significantly. The nominal value is safe though. That and the cash (as you know) won't keep pace with house inflation.


    What part of the country are you in?


    The P2P, is that official or friends and family?

    I’m in love with him and I feel fine.



  • Registered Users Posts: 9 ✭✭✭ jun0858


    The difference between making 6% and making 0% is 10,000 per year. Are you prepared to risk some of your capital to make this relatively small amount?

    Yes I am happy to risk capital.
    The return from prize bonds has reduced significantly. The nominal value is safe though. That and the cash (as you know) won't keep pace with house inflation.

    Yup, the prizebonds are basically my "cash" reserves for 6 months in case lose job etc. Will be loosing value but thats fine.


    What part of the country are you in?
    Dublin

    The P2P, is that official or friends and family?

    Official, winding it down and most loans have been restructured due to covid.


  • Registered Users Posts: 2,285 ✭✭✭ Underground


    Would move cash from prizebonds and p2p lending into equities / ETF (should add that this would just be my preference in your situation) . This would be on the proviso that you don't need this money for 5+ years.

    If you're looking to buy in 1-3 years then I wouldn't touch the cash pile, just continue to add to it.

    Also the usual tidbits, max out your pension contributions if you haven't already, seek professional financial advice before making a final decision etc.


  • Registered Users Posts: 7,098 ✭✭✭ Chinese whospers


    Have you a deposit goal in mind or just want to increase wealth?

    I think, even in Dublin, house price inflation is most keen at the 1st time buyers level up to €300k or so. Not so higher, although will still increase year on year.

    As said above capital will be at risk. Lots of people lose money on the stock market. I've a sizeable amount invested approx a year and I'm very happy so far.

    I’m in love with him and I feel fine.



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  • Registered Users Posts: 9 ✭✭✭ jun0858


    No deposit goal in mind. The apartments I've been looking at were new builds in 2017 and have gone down in value. I'd expect them to keep dropping a bit, unless the overall inflation increases everything significantly. Compared to the houses they are overpriced.

    I made a good return on the stock market over the last 7 years and was very fortunate with crypto too. Sold up everything as was sale agreed but it fell through so now looking to reinvest.


  • Registered Users Posts: 7,098 ✭✭✭ Chinese whospers


    My own one investment mantra is to avoid crypto and meme stocks like GME, and I wouldn't even consider myself Conservative. ��

    I’m in love with him and I feel fine.



  • Registered Users Posts: 17,206 ✭✭✭✭ dxhound2005


    The return from prize bonds has reduced significantly. The nominal value is safe though. That and the cash (as you know) won't keep pace with house inflation.


    What part of the country are you in?


    The P2P, is that official or friends and family?

    The return from Prize Bonds has reduced significantly if you go back 10 years. But since August 2017 the expected return with average luck on €100K was €350 a year. This reduced to €250 in February this year. Not a significant consideration for anyone with that sort of money.


  • Registered Users Posts: 2,232 ✭✭✭ massdebater


    If you plan to continue living in Ireland, pension is a good option but you won't be able to touch the money for a long time, hard to decide that at 28.

    If you're planning to use the prize bonds as a cash/emergency fund, I'd be investing the full 125k in ETFs/ITs/DeFi platforms and get it working for you - exactly what will depend on your risk tolerance.
    Normally 6 months in cash is a lot but you're already planning to quit so I think it's ok here.


  • Closed Accounts Posts: 135 ✭✭ Himnydownunder


    jun0858 wrote: »
    No deposit goal in mind. The apartments I've been looking at were new builds in 2017 and have gone down in value. I'd expect them to keep dropping a bit, unless the overall inflation increases everything significantly. Compared to the houses they are overpriced.

    I made a good return on the stock market over the last 7 years and was very fortunate with crypto too. Sold up everything as was sale agreed but it fell through so now looking to reinvest.

    I know you are here looking for advice yourself, so it’s ironic to ask you for help.;-) Would you have any advice on trading in crypto, which particular crypto currencies did you deal in?


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  • Registered Users Posts: 9 ✭✭✭ jun0858


    I know you are here looking for advice yourself, so it’s ironic to ask you for help.;-) Would you have any advice on trading in crypto, which particular crypto currencies did you deal in?

    I had Bitcoin and Ethereum but was lucky to buy it back in 2013 and held until last month. Thats where the vast majority of the 180k came from.

    Not sure I'm going to get back into crypto tbh


  • Registered Users Posts: 451 ✭✭ Oscar Madison


    Buy the house!


  • Registered Users Posts: 32,122 ✭✭✭✭ BorneTobyWilde


    So that's where the 190k came from, Cool/
    I didn't think it came from work lol.

    Fair play.


  • Closed Accounts Posts: 135 ✭✭ Himnydownunder


    jun0858 wrote: »
    I had Bitcoin and Ethereum but was lucky to buy it back in 2013 and held until last month. Thats where the vast majority of the 180k came from.

    Not sure I'm going to get back into crypto tbh

    Fair play, that’s amazing going.


  • Closed Accounts Posts: 204 ✭✭ Chuckie_Egg


    jun0858 wrote: »
    I was saving for a house but decided against buying for the time being as I couldn't find anything that met my needs. I just signed a lease for another 12 months.

    I have €180k deposit.

    Currently:

    €15k ETF
    €20k Prizebonds
    €125k Cash
    €10k Shares
    €10k P2P Lending and similar.

    Obviously there is far too much cash there if I'm not buying short term.


    I'm 28, full time job but will probably quit in 6 months or so for a career change. I could see myself buying in the next 1-3 years.

    but would like to make my money work for me. I'd to hear others opinions on what they'd do.
    I think you are making a mistake by not buying a property. With 180k plus a low interest mortgage you have a lot of buying power now. In 12 months property prices will be making major rises again. We are in the middle of massive inflation which is only accelerating.


  • Registered Users Posts: 9 ✭✭✭ jun0858


    I think you are making a mistake by not buying a property. With 180k plus a low interest mortgage you have a lot of buying power now. In 12 months property prices will be making major rises again. We are in the middle of massive inflation which is only accelerating.

    The apartments I am looking to live in are currently going down in price while I understand the market is going up overall.

    I've viewed plenty of apartments over the last while but none that I would be happy to live in for the next 5-10 years so it doesn't make sense for me to buy now.


  • Registered Users Posts: 5,887 ✭✭✭ handlemaster


    jun0858 wrote: »
    The apartments I am looking to live in are currently going down in price while I understand the market is going up overall.

    I've viewed plenty of apartments over the last while but none that I would be happy to live in for the next 5-10 years so it doesn't make sense for me to buy now.

    What part of thr country is that ? All property is currently going up .


  • Registered Users Posts: 9 ✭✭✭ jun0858


    What part of thr country is that ? All property is currently going up .

    Dublin, we're built in 2017 but the apartments were seriously overpriced at the time. Asking dropped 20k since 2017 but still not selling and since it's a sellers market there is only one reason.


  • Registered Users Posts: 207 ✭✭ Doublebusy




  • Registered Users Posts: 5,887 ✭✭✭ handlemaster


    jun0858 wrote: »
    Dublin, we're built in 2017 but the apartments were seriously overpriced at the time. Asking dropped 20k since 2017 but still not selling and since it's a sellers market there is only one reason.

    Whats the reason?


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  • Registered Users Posts: 9 ✭✭✭ jun0858


    Whats the reason?

    Overpriced.


  • Registered Users Posts: 5,207 ✭✭✭ Flinty997


    I think you are making a mistake by not buying a property. With 180k plus a low interest mortgage you have a lot of buying power now. In 12 months property prices will be making major rises again. We are in the middle of massive inflation which is only accelerating.

    Massive inflation. Any links to long term forecasts?


  • Registered Users Posts: 5,207 ✭✭✭ Flinty997


    jun0858 wrote: »
    I had Bitcoin and Ethereum but was lucky to buy it back in 2013 and held until last month. Thats where the vast majority of the 180k came from.

    Not sure I'm going to get back into crypto tbh

    Why not leave some funds in it. Why zero. I mean now if you are not buying property.


  • Registered Users Posts: 9 ✭✭✭ jun0858


    Flinty997 wrote: »
    Why not leave some funds in it. Why zero. I mean now if you are not buying property.

    Want to see how things settle for a month or so. Wouldn't be surprised if an exchange or two have liquidity issues soon which could cause another drop.


  • Registered Users Posts: 105 ✭✭ HillCloudHop


    Check out uranium related equities. Most of my portfolio is in this sector which has a laughably small market cap, yet supplies 10% of the world's electricity.

    Sprott Physical Uranium Trust is likely to be listed on NYSE in the latter half of this year. This will bring a lot of liquidity to the area. U price is currently too low for mining to be profitable, so the price will have to increase substantially and likely overshoot in the next few years to avoid power plants shutting down. Look at the 2007 U bull market to see what kind of returns are possible.

    An asymmetric investment in an unjustly hated sector which is desperately needed to combat climate change.


  • Registered Users Posts: 1,226 ✭✭✭ Valhallapt


    jun0858 wrote: »
    I had Bitcoin and Ethereum but was lucky to buy it back in 2013 and held until last month. Thats where the vast majority of the 180k came from.

    Not sure I'm going to get back into crypto tbh

    Don’t forget you’ll probably have a CGT bill


  • Registered Users Posts: 9 ✭✭✭ jun0858


    Valhallapt wrote: »
    Don’t forget you’ll probably have a CGT bill

    Have already deducted the CGT from the gains.


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