If you have £6000 currently, what is the best way to invest this?

1. Put it in the bank - could be considered the safest by some! In 5 years time, will be lucky if that is worth around £600 - not very exciting, and not going to help your retirement.
2. Invest in the stock market - lets say you beat the average and get 12% return per annum for 5 years. Your £6000 will be worth £10574 in 5 years time - not a bad return.
3. Let's say you invest in a property with a huge amount of equity already built in!

The figures could look like this:

• Current RICS Valuation - £100,000
• We secure the property for £75,000

So your £6000, which includes your buying costs, immediately gives you £25,000 of equity. Then let's say the property goes up a very conservative 2% per annum for the next 5 years so in 5 years time the property is worth £110,408 - therefore if you sell the property in 5 years time for this figure - you will have turned your £6000 into £35,408 in 5 years!

Lets assume conservatively that all costs are covered for 5 years ie rents equal mortgages plus any ongoing costs.