RPI 4.5%, so what rate on your savings are you getting after tax?

N1AK

Batchy wrote: »

Probably...

Does it matter if its not being sold anytime soon. Its a house, not an investment.

It evidently matters to you as you started a thread talking about savings and went straight into talking about your house.

I have £17k earning 4% in two first home saver accounts (5% gross)
The rest is in a combination of ISAs, Zopa and regular savers and best guess is ~3.5% net (post tax).

I know based on current inflation I'm losing out. I'm not convinced that a house makes a good investment if inflation stays moderate (<8%) as house prices are falling in cash terms (and thus even harder in real terms).

Batchy

Old_Slaphead wrote: »

So basically you're saying, in your opinion, buy property & be a contrarian.

Yes, because in this situation, it could actually work out quite well.

Think for yourself!

Just because someone who brought at the peak in 2007, at 30% more than what you can buy at now, on a 8 x multiple salary, at 7.99% interest rate is getting their home repossessed and the press feels sorry for them. It doesnt mean thats what normally happens, so dont be scared.
(this is a minority)

There are plenty of people currently who brought at 3 x multiples at pre 2007, are still employed and are only paying 1.25% on their mortgage interest. And are quite simply loving it and life. (the majority out their)

The press spin things to sell papers.

The government would not want to !!!! off 70% of the voting public, by destroying them financially and their good positive feeling of well being and wealth.

We have bailed out the banks which has consequences.

BUT, Banks are still providing mortgages to anyone who goes to them, with normal fundamentals, 3-4 times multiples, solid employment, good credit history, reasonably priced house. Its not that hard, people are scaremongering, the government doesnt want assets to positvely spin out of control in another bubble, hence creating fear, while rates are low.

Batchy

nearlynew wrote: »

Since when has deciding to buy a house been "thinking outside the box" ?
(god, I hate that expression)


!!!!!!

since when, most people decided against it!

Batchy

amcluesent wrote: »

>I was only achieving 1.1% gross...<

Zopa is giving me 8%+ gross

And thats risk free? or your personal expectations remain high?

Batchy

N1AK wrote: »

It evidently matters to you as you started a thread talking about savings and went straight into talking about your house.

I have £17k earning 4% in two first home saver accounts (5% gross)
The rest is in a combination of ISAs, Zopa and regular savers and best guess is ~3.5% net (post tax).

I know based on current inflation I'm losing out. I'm not convinced that a house makes a good investment if inflation stays moderate (<8%) as house prices are falling in cash terms (and thus even harder in real terms).

It matters to me to get a message out their of how happy I am. To show its not all bad. Its a massive weight off my shoulders. It was positively starting to get me down. I needed to lay down foundations. The time was right!

Its not all bad.

I agree, things are getting no better, could be getting worse too, and it could in the future be a better time to buy, but there is no guarantee, everyone makes a choice. Its your right as a western citizen.

I just dont think it will be a good time to buy, when everyone else realises its a good time to buy too!

Batchy

Old_Slaphead wrote: »

So basically you're saying, in your opinion, buy property & be a contrarian - hardly rocket science is it (apart from the fact that, by definition, everyone can't be contrarians)

lol... youve hit the nail on the head, on both points!

chris_m

Batchy wrote: »

I decided to pile my savings into a house, as the inflation effect was scaring me.

I was only achieving 1.1% gross on the bulk of my savings which was 0.7% Net

At the end of the day, think outside the box! Think for yourself!

I don't have enough yet to buy a house (and retire) so I've gone for the stock market for now. My target is 4% for the year to beat what I was getting from the bank - I'm currently at 100.47% since May, oh how I wish I'd had more to start with

Procrastinator333

Batchy wrote: »

I was only achieving 1.1% gross on the bulk of my savings which was 0.7% Net

A fair chunk of mine is in NSI RPI + 1%, so 5.5% at the moment.
Another portion in Halifax Isa at 2.8%.
Then a smaller speculative piece in funding circle, currently generating almost 9% (before tax).

So after tax, around 4.5% on average I think.

And as I'm going to use it to buy a house and house prices are falling, that is even better news.

PasturesNew

I tried to get an NS&I account and failed, and wasn't sure why and tried to get it sorted out, but didn't get anywhere - and was completely confused about it all, so I now ignore the fact that somewhere I was refused and it all got confusing. I do hate savings accounts, I really struggle to open/manage them at all. I now have 19 dotted here and there, a bunch of which are at the halfway stage when I struggled to complete their requirements, so pretended it never happened.

My savings are earning me peanuts

I have no job. I am unmortgageable.

And I think the OP is some kind of loony for starting a self-congratulatory thread such as this.

FATBALLZ

Some at RPI+1%, some at 3%ish, some at 6.4% net, probably keeping up with inflation overall just about.