If you go down the Premium Bond route remember to cash them in and reinvest every 6 months or so ... for some reason new bonds seem to attract more prizes.

low-risk low-return, premiums bonds. instant access.

higher-risk higher-return, property in croatia. longer term but potentially good returns. 35k unfortunately wont get you anywhere though. what you need is someone who already knows the market and is looking to get more.

oh, that would be me!

it really is all about risk, thats the first thing that needs to be decided. the same product will have very different risks for different people due to age, circumstances, need to get hold of money quickly etc

LAND.

If you're not interested in investing further in bricks & mortar (and to be honest in the part of the country you live another £30k isn't going to upgrade you to a palace) then land has got to be the way to go.

You'll be astounded at the value of good land that's got access. There's little maintenance cost, it's always increasing in value and you still have the opportunity to rent it out for horse grazing etc.

Some of the land around our village has doubled in valule in the last year. It's not that people want to buy it with a view to developing property, there is just high demand for equestrian grazing.

Yep I've had mine for over 30 years and not a sausage:(

I echo Dickie's comments - it's all about risk v reward

A common misconception is that property is a low-risk investment ("safe as houses). Unless the £35k buys the property outright, your friend will have to leverage up. ie higher risk with potentially higher reward. The risk is somewhat defrayed if you have rental income that help to meet mortgage payments.

If £35k is a hard limit without wanting to have to put in money at a later date, I would recommend a basket of low-risk corporate bonds. You'll get semi-annual (or possibly even quarterly) coupon payments. The return is will be higher than on risk-free investments (gilts or premium bonds) but are still very safe bets if you plan to hold to maturity.

If in doubt, speak to a financial advisor (a real one, not someone who justs want to sell you a pension).

Put the deposit into a buy to let property. Take an interest only mortgage on the balance.

The rental income should more than cover the mortgage payment, and the property value will rise over the next 10 years (despite the gloom & doom merchants currently spouting off) giving you an excellent return on your investment.

I'd recommend not going for an interest only mortgage, but go for a repayment with as little repayment period as can be afforded, therefore getting a full return on the property at the end of the mortgage period. The property can then be sold, or the rent used as an income, without the rental payments reducing the rental to virtually a zero income - but this is taking a longer term investment view and not as suggested a way of making shorter term income.

Tim:frog: