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Debate House Prices
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Realising My Asset
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I would now like to get my hands on this pile of money and wondered what the best to go about it was.
1. If you are one of the 12 million or so with a mortgage, use the equity to get a better mortgage rate at renewal time. Higher prices, and thus more equity, can save you as much as 5% per year. (The difference between the highest and lowest LTV deals)
2. Move from a more expensive area to a similar house in a cheaper area, releasing the difference.
3. Wait. At some point in the future, you'll probably need to or want to downsize. The difference will nicely supplement your pension.
4. Increase the size of your residential mortgage, and use the equity withdrawal to invest in either more property or other investment types.
5. Marry an Australian, open an Australian bank account, max out your mortgage up to 75% LTV here, take the funds and develop your own little carry trade, borrowing at 2.5% here and getting 7% on deposit there. (Otherwise known as "The Generali");)
6. Use the equity in your home to guarantee a small business loan, and start your own company.
etc......“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I don't want to rent my own house!! That would be madness!!! No, I just want to 'take profits' as I believe they call it. Everyone else seems to have made a fortune, so I thought, as I was a little bit bored this evening, I thought why not take some profits and have a bit of a good time buying stuff.
But it's almost as if the extra money I have is an illusion.
Although I know your request for advice is a fiendishly clever way of making a point, a house isn't really any different from any other assetin this way is it? That is if you even see it as an 'asset', I have to say it never crosses my mind to think of mine in clinical terms like that.
But if you want to realise the profits of a share, fund, bond, bottle of wine, gold bar then you have to sell it. And you therefore don't own it anymore. I suppose you can part sell your holding of shares in a company, but you're still selling an asset.0 -
I don't want to rent my own house!! That would be madness!!! No, I just want to 'take profits' as I believe they call it. Everyone else seems to have made a fortune, so I thought, as I was a little bit bored this evening, I thought why not take some profits and have a bit of a good time buying stuff.
But it's almost as if the extra money I have is an illusion.
Have you thought of putting the house on the market? If you're the highest bidder you both get to live in the house while collecting a huge sum of money having sold it. It's simple when you think about it.0 -
Apparently, as a house owner I have made a fortune through my great intelligence and foresight to decide to buy many years ago. .
Actually, you should really have bought two.....
Now that would have been clever.:D“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
But I only have one wife?HAMISH_MCTAVISH wrote: »Actually, you should really have bought two.....
Now that would have been clever.:D
tbh I was really hoping for an easy way to put 200k in the bank and a 4 x 4 outside.0 -
i wonder if modern monoply boards now contain a 4x4 , that could be the solution0
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But I only have one wife?
tbh I was really hoping for an easy way to put 200k in the bank and a 4 x 4 outside.
Ahhh, you should have been around a while ago.
There was some guy that used to post here who must have used Mortgage Equity Withdrawal Before It Ended.
Can't remember his name..... Muesli or something like that.
I never read his stuff, but I hear he had loadsa money....“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
Thanks for the ideas - I have decided to put the place up for sale.
Here's a Rightmove link if you are interested.
http://www.rightmove.co.uk/property-for-sale/property-11545578.html0 -
Thanks for the ideas - I have decided to put the place up for sale.
Here's a Rightmove link if you are interested.
http://www.rightmove.co.uk/property-for-sale/property-11545578.html
That kitchen floor is dreadful. I'm out.0
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