Preparedness for when

jk0

nuatha wrote: »

Building societies used to count the whole value of every property they had a mortgage on as an asset, so all those £1 mortgages added up to a substantial property portfolio - they used to be limited in how much they could lend in relation to their assets.

That's a bit foolhardy, isn't it? Surely that's as risky as big banks taking derivative bets? I'm amazed regulators let them get away with that little fiddle.

fuddle

You are missing my point Frugalsod... many vulnerable people don't have high risk investments or have any savings at all.

Excellent that you are in such a good position but many aren't no matter how hard they try. I am just asking that you be mindful of that when you post in a manner that appears so matter of fact.

Karmacat

Frugalsod wrote: »

It makes more sense especially if your money is in a big bank to remove as much as possible and either keep at home or move it to a small bank which does not have any investment banking interests, which is where the real risks are.

I like that! I hadn't put the two together before thanks.

mardatha wrote: »

Meanwhile back at the peasant hovel, it's been steady horrible nonstop sleety ran all night and has now turned to snow. And WE ARE LOW ON PORRIDGE

Apocalypse Now :eek: PORRIDGE ALERT!

I feel quite guilty about our blue sky, Mar

jk0 wrote: »

That's a bit foolhardy, isn't it? Surely that's as risky as big banks taking derivative bets? I'm amazed regulators let them get away with that little fiddle.

Yep, yep, and yep .... the banking crisis really hasn't gone away I still think there's time for newcomers to get things straight, though.

Karmacat

culpepper wrote: »

here is the link if you want to sign up for property alerts with land registry
https://propertyalert.landregistry.gov.uk/

Culpepper, this was great :jIts free, and you can do 10 properties, so I've done me, my mum, my sister and my brother (two for him, because he bought a little chunk of land to round out his back garden :rotfl: and it shows up on there!).

Very good

calicocat

fuddle wrote: »

I just think we need to be mindful that this prepping thread is on OS. I would like to suggest that, going from my own experience, people come to OS in dire circumstances hoping to learn OS ways in order to get through really tough times.

Yes this thread is full of very astute OSers who have learned the importance of preparing but, again going by my own experience, there will probably be very vulnerable people lurking here too.

I just would l Iike for us all to be mindful of that when posting about ifs and coulds without the back up of a reference of where that information comes from. Sometimes fact is clouded with opinion and that in itself can be worrisome.

If this means me not referencing house theft..?...for some reason I can't post things like that sorry. I don't know if it is because I do this on a phone mainly, or because my phone isn't a mod-con one so doesn't support that feature.........or that i'm just not savvy enough to know how to fix that...:o.



I didn't know you could leave such a small mortgage as mentioned earlier, interesting. This could be something to look at when my fix ends then if in a position to do so.

However, being mortgage free doesn't stop the prepping does it, as it means there is no landlord to fix everything. All anyone can do is try to prepare for the things that will immediately effect us, or that we think will.

I hope I haven't offended anyone (bit confused here to be honest, or not sure if I have got the wrong end of the stick as usual) , as it Is very OS to be mortgage free where possible.

My parents /grandparents would and did do this Asap, it is the younger generations that think they can have everything now, shove it all on credit, and hope for the best.


Still waiting for plumber (flipping heating has worked the last few houss,typical,but it does need looking at).

He who doesn't know best..(:D) is probably going to some football thing tonight, so I will not suggest coming here....which gives me hours to sort my secret stores. :rotfl:

Frugalsod

fuddle wrote: »

You are missing my point Frugalsod... many vulnerable people don't have high risk investments or have any savings at all.

Excellent that you are in such a good position but many aren't no matter how hard they try. I am just asking that you be mindful of that when you post in a manner that appears so matter of fact.

I do not have high risk investments or even a separate savings account. I only have a current account pays interest and that is enough for me. The fact that it is with a big bank that has an investment banking arm is the real risk. Even my current account is not that high in balance, so well below the £75000 limit. In fact if I net off my last debt I am still not solvent now, but I am getting there. Yet I am still making the changes to avoid any nasties which I am expecting this year or next.

In fact several years ago I worked out that deflation was coming (against all the prevailing advice and commentary) and I was then also living paycheque to paycheque. So in just the position that you are referring to. I made the big changes to my lifestyle. I started with OS food and gradually expanding outwards to other areas of my life. The savings in preparing food went into other OS solutions and these also cut my cost of living. I concentrated on things that had a high rate of return, and would so lower my future costs of living. Things like LED bulbs, a food mixer, both of which had pay back rates of about 18 months but are now helping to keep my living costs lower permanently. Then gradually this boosted my bank balance and allowed me make a couple of extra payments to clear a big loan, which reduced its term by 4 months. OS techniques were how I did it. You do not need a lot of money to make it happen. It just takes a lot longer. As you make savings you plough them back into other OS solutions and gradually the savings accumulate. Which is what I did and why I am not debt free yet.

Most of the information is out there if you just look and then filter out the propaganda. I read the same zero hedge posts as everyone else here but am able to work out where they are wrong. For example some will claim that QE is deflationary because it slashes the income of those living off their investments. Which is wrong because that is a very small segment of the economy so would be insignificant. Where it does impact more people is that it went into speculation in food and oil, and that does impact far more people than a drop in interest income. With people only having enough for food there is nothing left for other discretionary spending. That is where the deflation is coming from, plus it is clear that there is now considerable global over capacity for manufactured goods and this where the main pressure for deflation is coming from.

The information is out there on Zero hedge and elsewhere if you are able to make sense of it, and from what I see very few are, some see bits of the puzzle but not much more. Which is why so few saw the crisis in 2008 coming and many do not see it now.

jk0

Karmacat wrote: »

I
Yep, yep, and yep .... the banking crisis really hasn't gone away I still think there's time for newcomers to get things straight, though.

By the way, if I follow Greenbee's story about Irish property correctly, isn't leaving money owing on your mortgage the last thing you should contemplate?

Frugalsod

jk0 wrote: »

By the way, if I follow Frugalsod's story about Irish property correctly, isn't leaving money owing on your mortgage the last thing you should contemplate?

It is a matter of how much. The property fraud can be mitigated by only having a £1 mortgage outstanding. Not enough to be unable to repay if threatened with foreclosure. How many have a pound coin in their pockets for shopping trolleys?

If your mortgage is £10000 and you only have £1000 in the bank it is harder to repay if the banks start calling in mortgages. In theory you could still transfer your mortgage to another lender but if there is another credit crunch will that be likely?

The Irish also have very different bankruptcy laws which knocks people off the property ladder for more than 12 years, which is why many try and pay the mortgage if possible. It has also been helped by a mini property bubble which now means many are no longer in negative equity any longer, so have more motivation to keep repaying.

nuatha

calicocat wrote: »

If this means me not referencing house theft..?...for some reason I can't post things like that sorry. I don't know if it is because I do this on a phone mainly, or because my phone isn't a mod-con one so doesn't support that feature.........or that i'm just not savvy enough to know how to fix that...:o.

I don't know who it was aimed at.
I rarely post references, since I'm very aware that those references will just be opinions, possibly well informed opinions possibly scare-mongering disguised as informed opinion. I do suggest people do their own research, learn whose opinions they value.
Personally there are posters (on this thread and others) whose opinion carries a higher weight with me than that of others, not because they necessarily agree with my point of view but because they are consistent in sounding like they walk their walk. But I read this thread because I enjoy most of the contributions to it, often they make me think and then go off and do my own research (where appropriate).
Prepping gives me flexibility, due to various issues I've seriously cut back on my earnings, store cupboards and a flexible approach to life have allowed me to do this. If various family health problems hadn't occurred I would have cleared the outstanding mortgage this week - it may drag on for the next ten years (it may get cleared sooner) clearing the mortgage isn't a major concern of ours prepping wise. (There's a whole host of reasons, among them our mortgage is cheaper than rent would be, we don't have dependants, some more personal). There's no single answer that applies to everyone.

I didn't know you could leave such a small mortgage as mentioned earlier, interesting. This could be something to look at when my fix ends then if in a position to do so.

However, being mortgage free doesn't stop the prepping does it, as it means there is no landlord to fix everything. All anyone can do is try to prepare for the things that will immediately effect us, or that we think will.

Buying a house, with or without a mortgage means no landlord to fix everything - but I've rented property where the landlord refused to maintain the property (and one where the landlord agreed the property wasn't in fit condition for human habitation, long story)
I've never seen prepping as all doom and gloom, actually the opposite, prepping ensures I have a reasonable quality of life no matter what comes up and gives me options that wouldn't exist otherwise.

jk0 wrote: »

That's a bit foolhardy, isn't it? Surely that's as risky as big banks taking derivative bets? I'm amazed regulators let them get away with that little fiddle.

I suspect there were sound reasons behind it. Prior to deregulation few building societies failed and those assets generally led to rescues of those that got into trouble. Prior to deregulation we actually regulators with teeth and a banking industry that was generally honest and sound.

fuddle

Those are your circumstances and what you have been able to achieve. I applaud you for your efforts frugalsod, I really do.

My circumstances are different, however. In comparison I am an OS stalwart and have been learning and living OS for the past 6 years. I came here from bankruptcy and repossesion in 2008. I know all too well every post you talk about and how that effects family and how it effects individual wellbeing.

Circumstance is different. Circumstance crops up and scuppers any drive, any intention and any physical attempts at making in roads in trying to prevent past mistakes and failings.

It is difficult to try to get ahead for some people because a standard family has to pay out a great deal without gaining much in the way of surplus income.

I am very OS and have absolutely no debt. My husband is now frugal and has no debt. I'm sorry to keep going on but please accept that it is difficult to get ahead... I am finding it difficult to get ahead ehen on paper we should be walking all thecway to the realms of comfy prepperdom. I've hardly any food in my cupboards frugalsod.

All I'm asking for is a little understanding that the audience of this thread isn't exclusively made up of hard core preppers and be sensitiven to the fact that some of us find life hard sometimes, no matter how hard we try.

Yes I'm sensitive but when I read late last night I was a bit upset to read that someone who has worked hard to pay off their mortgage, are nearly there with only a small mortgage left, are told that they are at higher risk of repossesion because of that situation and even told to up their payments as a priority to make them safe... I just feel that it isn't in the spirit of what I, personally, come to OS for.