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

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  1. #11

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    Jul 2018
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    Just in case you had plans with that TVC money, it can only be withdrawn when you reach 65.


  2. #12

    There are dividend growth stocks that yield 5%... if that is your cup of tea, of course.


  3. #13
    Quote Originally Posted by PetravanderVegt:
    There are dividend growth stocks that yield 5%... if that is your cup of tea, of course.
    I think OP said he wasn't comfortable with stocks but I agree there are plenty of shares which offer decent yields – might be worth starting a separate thread on that.

  4. #14

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    I did mention some months back my shares in HMLP which pays dividends of 11%+. But that is a MLP and i'll be interested to learn the ups/downs of such an arrangement as per the IRS (coming soon).


  5. #15

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    I've yet to learn the WHT. Will advise.


  6. #16

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    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.

  7. #17

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    Jan 2020
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    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.

  8. #18

    Join Date
    Mar 2010
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    6,744
    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

  9. #19
    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!