How to Invest £30k - The Best Ways to Invest £30k in 2023 (2024)

Here are some essential questions you should answer and some vital things to consider before investing any money.

If you want specific financial advice related to your situation, contact a financial advisor to discuss things in person. They can provide advice about your financial goals and financial situation.

What Are My Investment Goals?

Every investor, from those starting to those who have been at it for years, has their own goals and plans for what they want from their investments.

Some investors invest for long-term returns over time, giving them a consistent cash flow of additional income. Others may want one big payout, hoping to strike it big.

Understand what you want to gain from your money, which will help you decide what types of investments are best for you.

What is My Risk Tolerance?

No investment is risk-free. That is something every investor needs to understand before they put a penny into any kind of investment.

Your risk tolerance is how much risk you are willing to accept from your investment strategy. High tolerance will mean you are fine with riskier investments that could strike big but may lose money in the same breath.

You need to know and understand the risks of investing and decide how risky you want your investments to be.

With all that out of the way, let’s get into what we think are five of the best types of investments for this budget!

Here are some of the best answers for how to invest £30k in the UK.

• Cost: 4/5
• Risks: 2/5
• Returns: 5/5

Arguably the best way of investing in 2023 is to establish an investment portfolio of buy-to-let investment properties.

This method of investing allows you to earn returns through two different techniques at the same time. Collecting rental income from your tenants every month will give you a consistent cash flow of passive income.

Homelet’s Rental Index states that the average rent in the UK is £1,279 per calendar month, with many significant cities having higher average rents than the national standard.

Property rises in value over time as a physical asset, so you will also benefit from capital appreciation.

All this is in combination with a level of security that very few investment strategies can offer. The phrase ‘safe as houses’ really is true, as the housing market has a proven ability to bounce back from serious financial crises such as the COVID-19 pandemic.

For those with a low-risk tolerance, buy-to-let real estate is an excellent way of achieving high returns while being safe in the knowledge that your investment can endure tough times. Property makes for an excellent long-term investment because of its security and consistently higher returns. We have a great guide on the best places to buy to let in uk that provides an array of useful facts and figures

While you may look at the price of property nowadays and flinch if you are looking to invest £30k, there are several ways of investing in property with this lower budget, including buy-to-let mortgages.

• Cost: 5/5
• Risks: 3/5
• Returns: 5/5

If you are wondering how to invest £30k in real estate, one of the best ways is to invest in off-plan property. These are properties currently in the process of development or construction and are cheaper than traditional investment properties.

Not only can you buy off-plan properties for below-market value prices, but you can also set up payment plans to spread out the cost of investing. This way, you can use your budget of £30k to invest in property by putting down a smaller lump sum of cash to secure the investment. Some investors use payment plans as an alternative to buy-to-let mortgages.

Off-market properties can also often be found in some of the best places in the UK to invest in, such as Liverpool and Manchester. This way, you can make the most of some of the highest rental yields in the UK, earning you more returns.

With this in mind, buy-to-let off-plan property combines a potent mix of affordability, high returns, and security. This makes it one of the best ways to invest £30k in 2023.

• Cost: 4/5
• Risks: 3/5
• Returns: 4/5

Thanks to websites like Airbnb, short-term letting has become one of the most buzzed-about forms of investing.

Online sites like these allow investors to organise their letting schedule easily, so this strategy offers a level of freedom compared to other forms of investment. This means investors can benefit from more flexibility, convenience, and fewer restrictions than other investment options.

Most short-term lets target holiday-makers or those who travel for work.

While there is far more freedom than other investment options, this isn’t always a good thing. It’s possible to have long void periods while the property is empty, and additional costs and work can be involved.

Unlike long-term buy-to-let investment options, with guaranteed monthly income for years, short-term letters have to find tenants regularly. As such, short-term lets are one of the riskier property investment options.

That being said, with high risk comes high reward, and there is the potential to make some serious returns by researching thoroughly locations and seasonal trends. In some cases, short-term letting can result in much higher yields than standard buy-to-let investments because of the higher returns that can be gained in certain seasons and in-demand locations. Rental fees can be changed regularly to match rising prices in the market. Investing in areas such as Buy to let Property in the City of Westminster or a Buy to let in the Poole area of the UK is becoming quite popular.

Short-term letting is popular for a reason, as it can make you a hefty profit in a short time. However, the market is susceptible to change, so it’s worth taking the time to research this strategy thoroughly.

• Cost: 5/5
• Risks: 4/5
• Returns: 2/5

Buy-to-sell property has been a popular investment option historically in the UK.

As the name implies, this involves acquiring a property with the intention of selling it after it has grown in value.

This strategy is similar to buy-to-let, which also involves allowing a property to grow in value for eventual selling, but buy-to-sell usually involves renovating the property to accumulate value quickly.

Another benefit of buy-to-sell is that you can target more affordable properties if you are willing to put work into renovating them, making the initial financial barrier lower. This means they can be cheaper to invest in.

However, because it relies on the property market more than buy-to-let, buy-to-sell is susceptible to some risks. In times of economic uncertainty or doubt, buy-to-sell may not be the best way to invest £30k as property market values are likely unreliable.

For those interested in property investment but who want a shorter-term alternative, buy-to-sell may be the way to go.

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Take a look at our latest property investment deals in top UK locations.

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• Cost: 3/5
• Risks: 1/5
• Returns: 4/5

One of the options best suited for those who are risk-avoidant is student accommodation, which is one of the safest ways to invest £30k but is also likely to net you high returns.

Student accommodation is often a reliable and secure investment, with a consistent flow of potential tenants. You earn returns by collecting rent per person rather than charging per apartment, as in other buy-to-let investments.

However, like with any type of letting, there is always the possibility of void periods when the property is empty and there’s no rental income. This can be avoided by choosing your location carefully. It’s recommended to target student hotspots like buy to lets in Liverpool and investing in Manchester property.

Student accommodation can often offer better yields than a standard buy-to-let investment, making it one of the best investments for high returns.