the answer to the pension crisis...

IveSeenTheLight

Thrugelmir wrote: »

If only there was a investment that guaranteed a high return. :cool:

Thrugs, already shown many times that there is a better return investing in property than in a savings bank, without HPI.

Could you show some stats that reflect house prices lower than they were 25 years previously?

In fact challange, what is the lowest HPI percentage found over any 25 year period. Intereting to see one for the uk and one for anywhere in the world.

Remember facts only please

Thrugelmir

IveSeenTheLight wrote: »

Thrugs, already shown many times that there is a better return investing in property than in a savings bank, without HPI.

Could you show some stats that reflect house prices lower than they were 25 years previously?

In fact challange, what is the lowest HPI percentage found over any 25 year period. Intereting to see one for the uk and one for anywhere in the world.

Remember facts only please

I'm looking forward not backwards. Currently I'm struggling to find real value in many sectors, equities, corporate bonds, etc, etc.

The art of successful investment is to identify something before the crowd. Not jump on the bus when its already full.

IveSeenTheLight

Thrugelmir wrote: »

I'm looking forward not backwards. Currently I'm struggling to find real value in many sectors, equities, corporate bonds, etc, etc.

The art of successful investment is to identify something before the crowd. Not jump on the bus when its already full.

You keep looking then, while others make profit from their investments

RabbitMad

IveSeenTheLight wrote: »

If marketed properly, a BTL investment should cost you nothing over the term of the mortgage.
You should be getting a tenant to pay for it.

So it's not only in the world of Hamish, but in many investors out there

Thats my plan when I can pluck up the courage / find the right property where the numbers work. My work Final salary scheme is being closed and I think that a BTL or 2 might be a good idea in additional to the DC scheme that my firm are setting up.

Have the tenants pay the mortgage (all the interest and the repayment amount), the deposit and a bit each month will be my investment element used for maintenance etc and in 25 years I'll own the property outright and the monthly rent will be an additional income, or I can sell up and have a mid life crisis, buy a porsche and start chatting up women 30 years younger than me in nightclubs

Thrugelmir

IveSeenTheLight wrote: »

You keep looking then, while others make profit from their investments

Profit is on paper.

Cash is in the bank.

Thrugelmir

RabbitMad wrote: »

Have the tenants pay the mortgage (all the interest and the repayment amount), the deposit and a bit each month will be my investment element used for maintenance etc and in 25 years I'll own the property outright and the monthly rent will be an additional income, or I can sell up and have a mid life crisis, buy a porsche and start chatting up women 30 years younger than me in nightclubs

Then budget for tax on the rental income , as capital is repaid from after tax not pre tax income.

RabbitMad

Thrugelmir wrote: »

Then budget for tax on the rental income , as capital is repaid from after tax not pre tax income.

yep I know.

Fortunately I managed to structure the financing on my previous LTB so that I made a paper loss over the 10 months I had it. I then called* the market perfectly selling in June 2007.


*Actually, my circumstances changed, my tenants gave notice and I thought I might as well sell as I would then be able to reduce my main mortgage. It was pure luck and one of my luckier decisions, unlike opting for a tracker mortgage in 2006 on the LTB, or opting for a fix on my main mortgage in May 2008

IveSeenTheLight

Thrugelmir wrote: »

Profit is on paper.

Cash is in the bank.

Who's talking about paper profit?

You may have cash in the bank, but the same amount of cash invested in property rented out will return more than the compounded interest you would get in the bank over 25 years

the_ash_and_the_oak

ukcarper wrote: »

Wouldn’t somebody owning for 20 years suffered from the early nineties crash

This is actually pretty interesting. Both my parents and grandparents owned right through the 90s crash but neither bought or sold during it. Don't think either of them noticed it.

w my parents they said they didn't really remember it happening at all but this time they've definitely noticed it because they wanted to move and its been v difficult to find a buyer. The odd thing is - although they were unaffected by the 90s crash - they've sort of ended up finding out they were affected after all (knowing what they know now if they had STR at peak and rebought in say 95 they would have cleared off the remainder of the endowment and could also be in a lot larger house to downsize/str/whatever from now)

IveSeenTheLight

the_ash_and_the_oak wrote: »

This is actually pretty interesting. Both my parents and grandparents owned right through the 90s crash but neither bought or sold during it. Don't think either of them noticed it.

w my parents they said they didn't really remember it happening at all but this time they've definitely noticed it because they wanted to move and its been v difficult to find a buyer. The odd thing is - although they were unaffected by the 90s crash - they've sort of ended up finding out they were affected after all (knowing what they know now if they had STR at peak and rebought in say 95 they would have cleared off the remainder of the endowment and could also be in a lot larger house to downsize/str/whatever from now)

Hindsight is a wonderful thing and hindsight shows that most STR's are not so fortunate to sell at the top and buy at the bottom