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What to invest in nowadays for a conservative 5% return?

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  1. #21

    Join Date
    Oct 2018
    Posts
    169
    Quote Originally Posted by periphery831
    I'm putting away around 5K (HKD) a month now and have a long term plan to invest in property. I have other funds tied up in the UK but the 5K i'm saving is just doing nothing at the moment.
    HKD 5,000 isn't much. The only thing you can do is a monthly stock saving plan. Chose 5 stocks you like and pay a high dividend, and put 1,000 each every month.

    https://www.bochk.com/en/investment/...s/monthly.html
    Paxbritannia likes this.

  2. #22

    Join Date
    Jan 2020
    Posts
    5
    Quote Originally Posted by periphery831
    I'm putting away around 5K (HKD) a month now and have a long term plan to invest in property. I have other funds tied up in the UK but the 5K i'm saving is just doing nothing at the moment.

    B
    Out of interest, where are you intending to invest in property? I assume it would be to then rent out?

    If the UK, I would be particularly wary given the ongoing toxic sentiment towards landlords.

    It is no longer possible to offset mortgage interest costs against tax (so unlike a normal business, you costs of finance is considered part of your profit).
    The government has committed as part of its manifesto to add an additional 3% stamp duty to overseas buyers of property (on top of an existing additional 3% for any second properties).
    Also, I fully expect that at some point the government will get rid of the tax free allowance for any overseas residents this currently gives you £12500 of tax free income, assuming you don't have any income already coming from the UK.

    These are just a number of the key headlines, but there are several other changes which have also been made which makes investment property in the UK much less attractive than used to be the case.

    Cdub1985.
    periphery831 likes this.

  3. #23

    Join Date
    Mar 2010
    Posts
    5,476
    Quote Originally Posted by jobin
    I've yet to learn the WHT. Will advise.
    That takes five minutes, meaning for months you have done nothing

    Deloitte provides country specific tax info, for free online

  4. #24

    Join Date
    Feb 2011
    Posts
    340
    Quote Originally Posted by cdub1985
    Out of interest, where are you intending to invest in property? I assume it would be to then rent out?

    If the UK, I would be particularly wary given the ongoing toxic sentiment towards landlords.

    It is no longer possible to offset mortgage interest costs against tax (so unlike a normal business, you costs of finance is considered part of your profit).
    The government has committed as part of its manifesto to add an additional 3% stamp duty to overseas buyers of property (on top of an existing additional 3% for any second properties).
    Also, I fully expect that at some point the government will get rid of the tax free allowance for any overseas residents this currently gives you £12500 of tax free income, assuming you don't have any income already coming from the UK.

    These are just a number of the key headlines, but there are several other changes which have also been made which makes investment property in the UK much less attractive than used to be the case.

    Cdub1985.
    Thanks for the heads up!

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