Debate House Prices


In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

House ownership - Selling yourself into a lifetime of servitude

Options
13637394142

Comments

  • twadge_face
    twadge_face Posts: 594 Forumite
    Kohoutek wrote: »
    If you are convinced property is such a uniquely terrible investment, what do you think people should invest in instead?
    LOL.

    Such a simple question.

    DYOR!

    Or possibly hire an IFA...
    Long live the faces of t'wunty.
  • Kohoutek
    Kohoutek Posts: 2,861 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    LOL.

    Such a simple question.

    DYOR!

    Or possibly hire an IFA...

    I wasn't trying to solicit financial advice from an anonymous person with a childish username on an internet forum....I'm interested in what asset classes debtistheft thinks are better than property, since he goes so far out of his way to warn people of the dangers of investing in property.
  • Londonsu
    Londonsu Posts: 1,391 Forumite
    Home owners waste theuir money on 10 gallon drums of magnolia paint and willow sticks in order to convince themselves that their house is worth £100k more than it is. Idiots.


    nah just put it on the market and waited for a someone to make an offer - they did - 4 days after it went on the market a FTB offered full asking. And not a willow stick in sight.
  • chucknorris
    chucknorris Posts: 10,793 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 27 May 2011 at 4:25PM
    LOL.

    Such a simple question.

    DYOR!

    Or possibly hire an IFA...


    It's a simple question but the answer isn't simple. The first thing you have to consider is what are you trying to achieve? I have made my money so I am merely trying to avoid capital depreciation rather than seek growth (and take on the associated risk).

    I wouldn't really be inclined to consult an IFA because it would inevitably end up with advice of investing into some sort of fund, might be ok for some but not my style at all. If I am going to put my cash into stocks I would rather keep it simple and go for a low fees tracker.

    I have looked at a few things:

    Freehold (ground rent) investments (still property related of course but without the day to day management):

    Advantage is that if you buy ones that are rising they will both increase in value and yield over time

    Disadvantage is that they are not very liquid and you have to be patient with leaseholders dragging their heels to pay the service charge/ground rent
    There is also the danger that there may be afuture change in legislation that seriously effects the value.

    Individual corporate bonds
    Safer ones do not pay much over 5% so not much better than savings bonds, although if they have more than 5 years to run you can put them in an ISA wrapper so that 5% can become 8.33%. So I only see these as somewhere to eventually transfer my stocks and shares Isa investments to.

    Buying a business
    Not really ideal for (true) retirement but more my style, we may buy a few holiday cottages if we retire to another area (Devon for instance). We wouldn’t buy more than a few so still leaves quite a lot to put elsewhere which after dismissing the above alternatives comes back to just having quite a bit in savings accounts and also possibly NOT selling all our investment properties, perhaps hanging onto 2 or 3.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
  • twadge_face
    twadge_face Posts: 594 Forumite
    Kohoutek wrote: »
    I wasn't trying to solicit financial advice from an anonymous person with a childish username on an internet forum....I'm interested in what asset classes debtistheft thinks are better than property, since he goes so far out of his way to warn people of the dangers of investing in property.
    And you are yet another delight, you charming thing!

    It's not really as simple as you're making out though is it?

    The fact is that as an investment, property is showing anything but a glowing outlook.

    As somewhere to live with a reasonable deposit and a mortgage you can afford (along with job security), then that's pretty awesome and you should count your blessings.

    Similarly, I would never give my investment "tips" to anonymous people with unpronouncable, meaningless and pseudointellectual usernames.

    My, such a person might just "shoot me down in flames" regardless of the merit of my viewpoints...
    Long live the faces of t'wunty.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    [
    Individual corporate bonds
    Safer ones do not pay much over 5% so not much better than savings bonds, although if they have more than 5 years to run you can put them in an ISA wrapper so that 5% can become 8.33%. So I only see these as somewhere to eventually transfer my stocks and shares Isa investments to.

    Gross yields on corporate bonds are on the whole well below 8%. Companies such as Tesco, Vodaphone, GSK trade in 5% to 6% range. This doesn't allow for the capital loss either on redemption.

    So often better to own the shares.
  • chucky
    chucky Posts: 15,170 Forumite
    10,000 Posts Combo Breaker
    Kohoutek wrote: »
    I wasn't trying to solicit financial advice from an anonymous person with a childish username on an internet forum....I'm interested in what asset classes debtistheft thinks are better than property, since he goes so far out of his way to warn people of the dangers of investing in property.
    oooooofff, great put down
  • twadge_face
    twadge_face Posts: 594 Forumite
    It's a simple question but the answer isn't simple.

    *snip*
    Good post (all of it), and thanks. Just the sort of point I was trying to make to genius astrophyscist poster Comet Kohoutek, above.

    I like your point about style. I concur that you have to do something you're comfortable with and meets your requirements. :)
    Long live the faces of t'wunty.
  • purch
    purch Posts: 9,865 Forumite
    Individual Corporate Bonds would probably be just up debtisthefts street, as the hypocrite clearly has no problems with the kind of debt he can profit from.
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • twadge_face
    twadge_face Posts: 594 Forumite
    chucky wrote: »
    oooooofff, great put down
    Thanks for your contribution. It's very helpful.

    Always. Very. Helpful.
    Long live the faces of t'wunty.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.6K Spending & Discounts
  • 244K Work, Benefits & Business
  • 599K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.