My husband and I are not happy in our current property (no mortgage). If we sold it, together with our current savings, we would have around £100K to invest. My husband retires in 3 years and we are thinking of selling the property and moving to a 2 bed apartment in the interim (expected rental around £500 per month). We are trying to work out how much interest the investment would pay monthly, towards the rent for the next 3 years.
Update:@Steven .... things aren't always about the money ... we are very unhappy in our current property as a lot of houses are selling around our way and being bought up by 'buy to rent' owners, who frankly, are renting these houses to 'dross'. We have to consider that if this continues to escalate, our property will de-value anyway !
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It depends on the amount of risk you are willing to take. Bonds or CDs you could earn about 3% annual so (3K per year is 250 per month). If you don't mind seeing fluctuations you could put it into stocks and get a 2-4% yield which would be as good as a bond in the long run, with the exception that stock prices tend to go up each year. Just using the S&P500 index you should expect and 8% increase in principle plus a 3% yield. Of course stocks can always go back down, even down from purchase price.
But compare this to .25% interest from the bank and anything above looks good.
Well, first think of this, you probably have had the same job for 2 years and assuming you might have made the identical amount of pay in these 2 years---you continue to have $10,000 in debt that you have not been equipped to pay on your earnings, and no money saved. What makes you believe that some thing will exchange now that you'll be married ? You'll simply accumulate extra debt and expenses. Either purchase a less expensive house and repay your debt and begin saving, or preserve renting for awhile whilst you each store. Don't rush into debt so quickly!