Good investment ideas. What should I invest my money in?
Investment ideas for the new year
The new year can be a busy time, but it’s the perfect time to start better habits for the year ahead. As people wind up their Christmas and New Year’s spending, it’s also a great time to think about saving money. Really, it’s always a good time to think about investing and saving your money.
Last year, The House Crowd conducted a study of how people in the UK were – and weren’t – saving their money. Unfortunately, 67% of respondents didn’t feel that they were saving enough for retirement, while one in five weren’t saving anything at all. In part, this may be because people are unaware of how straightforward investment is in the modern world. Online platforms offer modern ways to invest with strong returns, and it’s never been easier to pick an investment opportunity that suits you. You can even find small investment ideas starting from as little as £10. Source: The House Crowd study into retirement.
Here are some investment ideas that you can get started with right away if you’re still asking yourself ‘what should I invest my money in?’
Peer to Peer lending
Peer to peer lending, or P2P, involves individuals lending other individuals or businesses money directly, as opposed to through a bank or other financial institution. The benefits for the lender are that it can offer more significant returns than other, more traditional investments. The benefit for the borrower is that they don’t have to go through the banks and can get access to the money faster and with less red tape.
Some P2P websites allow lenders to lend all of their money to a single borrower, while others allow lenders to spread their investment across multiple borrowers. In general, the higher the interest rate that someone is offering on a loan, the riskier that loan is likely to be.
Involving property adds some measure of security to these loans, and that is part of the reason that property-backed P2P loans are frequently considered potential investment ideas. At The House Crowd, our peer to peer loans enable investors like you to start building a diverse portfolio secured against property. Investors only need £1000 to get started and will see an average interest rate of 9.2% per annum. (The average return paid to investors in our peer to peer loans was 9.2% p.a. (2016-2018). Average returns by year: 2016 = 8.8% p.a., 2017 = 9.7% p.a., 2018 = 8.9% p.a. Remember, past performance is not a guide to future performance.)
Property is perennially an in-demand investment. Until recently, however, property development funding was viewed as the sole preserve of banks and high net worth investors. Buy-to-let was really the only property investment option open to retail investors. However, the introduction of tougher tax and lending regulations has diminished its appeal – in just 24 months, the buy to let mortgage market has dropped by 80%.
Since the invention of investment avenues like peer to peer and crowdfunding, property investment has been democratised, and multiple investors with relatively small sums of money can come together to access the type of investments that were previously out of reach.
At The House Crowd, we offer property development investments which offer returns of up to 10% per annum. Our investors are always paid first from property sales revenue, and all our plots have full planning permission.
Innovate Finance ISAs
An Innovative Finance ISA, or IFISA, allows you to invest your ISA with a trusted partner.
At The House Crowd, our secured peer to peer and lending and property development backed IFISAs are secured against property and allows investment anywhere from £1,000 to £20,000, while earning up to 7% interest per annum. IFISAs are unique among other potential investment ideas as the contents and returns are not subject to tax.
Self-Invested Personal Pension (SIPP)
A Self-Invested Personal Pension, or SIPP, allows investors to access their pension funds to self-invest them in a range of HMRC-approved sources. These features make the SIPP a potential option if you aren’t planning to withdraw very often.
The House Crowd’s SIPP offers tax advantages and no minimum investment, placing it alongside other potential investment ideas.
Want to find out more about any of our property-backed investment ideas? Get in touch with our member-support team today or register for an account.
Capital is at risk and rates are not guaranteed. Withdrawals may be restricted due to illiquidity. Investments are not covered by the Financial Services Compensation Scheme (FSCS). Please read our full risk warning.