£5k pcm income from £250k

[Cobblersandhogwash]

Is this possible? To generate £5k income pcm from a £250k investment?

[JontyDoggle37]

Not unless you’re doing something quite active like spread betting. Rental income Ona £250k house is about £1200 a month. In a savings account paying 4% you’d only get about 10k per year.

[wafflyversatile]

No.

[zsazsajuju]

I would say no! But it depends on the investment I suppose- some businesses or rental properties portfolio might generate that. But it sounds too good to be true to me.

[cathyandclare]

That's a 24% pa return on the investment. If you find out how to do it, let me know!

[SwimmingJustKeepSwimming]

Is 10k a year normal from 250k? That would be really tempting!

[Sarahandduck18]

You wouldn’t buy one £250k house you’d get 80% LTV interest only mortgages on as many buy to let flats as possible.

[AutumnCrow]

No, it's not possible.

Where's that 4% account hiding, Jonty??

[Cobblersandhogwash]

@Sarahandduck18 that's what I'm thinking.

[Gaballout]

If you're renting out a house that isn't pure profit, voids, mantaince, gas checks, all add up to a fortune!

[notapizzaeater]

60k a year from £250k only if you eating the capital as well ....

[Gaballout]

And no op. You would be lucky to get a tenth of that!

[Cobblersandhogwash]

So what would be the best way to get that sum working and generating an income?

[Sarahandduck18]

Micro loans to poor people on sky high aprs

[Want2bSupermum]

You will get the return from being a pay day lender before costs. After costs including taxes you are looking at 10-12% return as the risk of no payment is very high.

[Want2bSupermum]

It also factoring. Interest rates tend to be 18-30%.

[SwimmingJustKeepSwimming]

There's kind of ethical issues with that...

[budgetneeded]

Possibly 5K per year

[Want2bSupermum]

swim the op asked if it was possible, not if it's ethical.

[Cobblersandhogwash]

Yeah I'm not doing money lending like that!

[OnceUponAGiraffe]

What’s it for? It sounds similar to the sums involved in financing a care home, when a house has been sold. A v good financial advisor is probably best placed to advise on how to lock away/use funds.

[MaverickSnoopy]

I work for a start up and the business owner was telling me about angel investments www.angelinvestmentnetwork.co.uk might be worth looking at? Can't vouch for it as an investor so you'd need to do your research and take advice.

[Singerleon]

I generally only buy with a minimum 10% yield. Depends on prices in the area you want to invest. Small Commercial units can work out well. Have managed to get 20k per annum on an 120k investment in a row of small shops in a good commuter town.

So not quite the 5k a month you are after but still a very good return and decent income.

[Adversecamber22]

No unfortunately, I had a 25% return on an investment once but it was a long time ago.

[ErrolTheDragon]

What’s it for? It sounds similar to the sums involved in financing a care home, when a house has been sold

Pretty sure in those cases you don't expect the capital back.

[littlebillie]

£12.5k pa more realistic