Return on investment...Any good?

[JLF Marketing]

I just have a quick question for you. If you invested £20,000 for 25 years and got £7,000 back would that be a good investment?

Secondly if you invested £20,000 and got 5% back per year would that be worth it?

Please respond honestly, its something i have been asked to invest in and the project interests me but i dont know if the return is good? Its the £20,000 with a return of 5% each year that interests me, but i would like advise on both.

Thanks

[vvaannmmaann]

A very big question! If they are financial products,think very carefully before doing anything.After all,what is a "guaranteed investment" at the moment?
What is 5% of nothing?
Good luck.

[JLF Marketing]

Its rent.
The houses that are being rented are all tenanted and are in a desirable area and have not been vacant in thelast 8 years.

What do you think to that?

[Burden]

If so, and nothing is too good to be true from all your recommendations. Surely either would be a nice little boost all going well :)

[AaronPollock]

5% per year sounds low to me but if you're buying a share in property at the moment and can hold onto it for a prolonged period of time, you'll make money as the value goes up too no doubt?

[Morgy]

Personally I wouldn't bother.
I would make my £20k work harder than that!
25 years is a long time to wait for £7k and what's £1k a year these days?

However, if you are happy with it go for it!

[scribe]

£7,000.00 return for 20 /25 years doesn't seem a good return to me .The £20,000 /5% return per year is ok but when interest rates where high you would get that return from a bank .I take it your getting the money you put in back at the end .

[JLF Marketing]

sorry the working out was wrong.

1st option would be invest 20k and get 50k back over 25 years
2nd option would be 20k with 5% return per year paid yearly.

The first option sounds better now. What do you think?

[scribe]

Here's a deal i did some years ago i invested 25k over five years and got 50k back . Now if you think 20k investment with 50k back over 25 yrs is ok go for it, but having thought about your deal i wouldn't, it's a long time to wait for a return like that.

[andymayhem]

5% is above the BOE target inflation rate so it might be good, although interest rates might rocket again and you could lose out there. hummm 100% over 25 years seem good although personally if i was in it for the long term i would stick that into oil for 25 years, we would have basically run out by then.

[JLF Marketing]

Where could i find other people who would be willing to do the same? Basically it is to get a group of say 10 people to buy a property and rent it. Its not just a house and chance...its in a prime area where young professionals rent rooms in a house. The houses that have been bought like this in the past have had people contunuously renting for 8 years.

Where else could i find people to come in on this with me. They would need £20k.

[Moneyman]

5% for having your money tied down for 25 years is fairly poor. life moves on and you could do better. if inflation rears its head again which it might you would lose out big time. Also there is a risk. noobody should tie down cash for that long.

[JLF Marketing]

Would you tie it down for 10 years or is that still too long?

[scribe]

At this moment in time i would rather buy 20ks worth of premium bonds, i might get lucky and win a million without loesing my shirt .