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

Thrugelmir

Batchy wrote: »

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

Started buying corporate bond funds (peaked 13% yield) after the banking crash made prices attractive. Still reinvesting the income at around 5.5% currently. But holding new investment money in cash at the moment as all the markets are peaking concurrently. Something has to give......

Really2

nearlynew wrote: »

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


!!!!!!

If you used to live in a cardboard box.:)

ceridwen

mbga9pgf wrote: »

NS&I Inflation linked savings certificates at RPI +1% were where a lot oh HPC put their cash. You could have got a better mortgage rate with better savings. I am on a 2% over base tracker. What would the reduction in interest by 1.5% over the term have done to your future spending power?

...and boy do we ever need those NS&i inflation linked savings back again.

My hopes were raised by an article I read recently saying Halifax are paying 6% interest rates - went in and found that they are - but ONLY for children:mad:. Did wonder whether I could possibly manage to disguise myself as a teenager - but decided the cost of the cosmetic surgery, etc, would outweigh any benefits from getting a proper rate of interest on my savings:rotfl:

So I dont understand:
a. Why the Government temporarily shut this account down - and just how long is meant by "temporary" anyway?

b. If children can get a proper interest rate on their savings - why cant adults? <confused smilie>

dopester

nearlynew wrote: »

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

Yes; out of the box thinking..

Batchy wrote: »

Ive said this before bet against the sheeple not with them.

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

(just to clarify, my house in 1985 was worth 16k, in 25 years, it went up by over 1000%. Makes you think a little

My out-the-box thinking says the inflationary run of UK real estate (I prefer the American term tbh) has reached an incredibly high peak value, and those values are unsustainable at current levels. That a whole host of variables are pressing down reversing force on conditions that saw real estate multiply in value so many times over.

I'm not paricularly concerned what rate my savings are getting, nor about efforts to create inflation... because capital preservation is all that really matters against an increasingly deeper deflationary outcome. Keep income-to-spending to a minimum and save and preserve capital.

This is US focussed but very applicable to the UK too going forwards.

http://www.nypost.com/p/news/opinion/opedcolumnists/class_dismissed_why_middle_income_rcd27q5kphT3ZnUCH7vh4L/0

CLAPTON

Batchy wrote: »

since when, most people decided against it!

about 70% of residential property in the UK is owner occupied
so only 30% is not owner occupied

when did 30% become 'most people'

dopester

CLAPTON wrote: »

about 70% of residential property in the UK is owner occupied
so only 30% is not owner occupied

when did 30% become 'most people'

A lot of the 70% are weighed down with debt. Special debt where we should flood them with SMI and other schemes if they can't meet their mortgage repayment commitments because they are homeowners - instead of allowing competition and market forces to do its thing.

• In 2007 there was a fall of 100,000 in the number of home owners, as figures from the Department for Communities and Local Government showed that the number of homes owned in Britain fell to 14.5 million

• Home ownership is on the decline in Britain. The percentage of people who own their own home has fallen to its lowest level in a decade, dropping below the 70%.

• In 2007 there was a fall of 100,000 in the number of home owners, as figures from the Department for Communities and Local Government showed that the number of homes owned in Britain fell to 14.5 million.

• Of the 14.5 million households under dweller ownership, just over eight million have a mortgage.

And I doubt 70% of the population are homeowners, as some people like to project the case, even if you include joint-mortgages / tenants in common. Say 62 million people UK... with 25 million homes.

IveSeenTheLight

Aberdeenangarse wrote: »

Mate, so you've bought a house. In a couple of years it could have burnt you badly thinking it was long term SAFE!

Recorded history (so there's no confusion over the bubonic plague era, which incidently could not be backed up )would show that it has always been long term safe (consider the term of a mortgage)

Batchy

chris_m wrote: »

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

I tried that two years ago, and made some RASH decisions. (my fault completely)

I set up 3 trial portfolios, which all worked out perfectly. Then went with a hunch, and lost 50% on my chosen, non related portfolio. I sat it out, waiting for it all to get better, and recently cashed them in at a loss of 50%. I shouldnt have gone with a hunch, I should have stuck to fundamentals.

But youve gotta be in it to win it, the idea was to continue investing, but I lost the will to invest after such a bad start.

Good on ya for investing and achieving so much so soon!

mbga9pgf

Shorting pumped up penny stocks on AIM is a pretty easy way of making cash. Takes b@lls and lots of research though.

Batchy

CLAPTON wrote: »

about 70% of residential property in the UK is owner occupied
so only 30% is not owner occupied

when did 30% become 'most people'

My fault for being vague, my point is the 70% is the majority. They are not buying or selling (for silly prices) are they.

It doesnt necessarily take a FTB to make a chain.

You could have a BTLer (ie, already a house owner at the bottom of chain) considering BTLers are the ones not buying at the moment, destroying the housing chains that the 70% OO's want. I would say the 70% is the group that is not buying any more, not the 30%, as FTB's ie the 30% are the group of individuals that are returning to the market.

BTLers - choosing not to buy at the moment, capital preservation.
FTBers - are returning to the market , ie, growing in numbers less competition due to above

Just to clarify, BTLers are the ones who replace FTBs at the bottom of the chains over the last 6 years and the ones who have deserted the market since 2008.