Where are your savings and/or investments going?

chucknorris

Thrugelmir wrote: »

Excluding employer \ defined benefit pension schemes and my home (my only property)


Equities 60%

Spread across private equity, commercial property and shares internationally.

Fixed Interest 15%

Direct Holdings ( Some equity funds also hold some Corporate bonds)

Cash 15%

Premium Bonds 1%

Held investments trust shares such as Foreign & Colonial for approaching 40 years.

What about the other 9%? or should premuim bonds be 10%?

Thrugelmir

chucknorris wrote: »

What about the other 9%? or should premuim bonds be 10%?

Door bell rang.

I have holdings in various private companies that I've been involved in and invested in over the years.

kabayiri

chewmylegoff wrote: »

You can't really live in gold either. Well you could but it would be pretty expensive and people might steal your walls.

If gold were really commonplace and used to build most houses with, then there would be less temptation to steal your walls.

I suspect in this scenario, there would be a counter argument from the "brick bugs" , those who bought bricks as an investment

Thrugelmir

[QUOTE=chucknorris;59705163 Current yields are about 5.3% on 3 bed victorian houses which is what we would go for.

[/QUOTE]

Gross or net?

Does this allow for refurbishment work in the future?

kabayiri

chucknorris wrote: »

...
We are looking at Totenham Hale, not the most splendid of areas I agree, but with the regeneration going on we think that it has good 10-15 years prospects. Current yields are about 5.3% on 3 bed victorian houses which is what we would go for.
...

If it suited you could always look further afield. Parts of Canada looked mighty cheap compared to Blighty in the past.

Alas, the pound buys you less dollars now and property in places like Calgary have become a lot more expensive.

People are looking to minimise risk in all sorts of ways.

chucknorris

Thrugelmir wrote: »

Gross or net?

Does this allow for refurbishment work in the future?

No it doesn't! It is merely the initial gross yield that I would only use as a basis of comparison between alternative investment properties, not assessing a particular property's profitability over time. I have a spreadsheet for that.

The actual calculation that you need to do to measure profitability (or rather what I want to measure) is carried out over 10 years with:

All capital invested (ie deposit, stamp duty, fees, any initial work, furniture etc).

Rental income

Costs (mortgage interest, maintenance, redecoration, repalcement white goods, etc)

I express the profitability as a function of the capital invested not the price of the house.

However the initial gross yield is a quick way to compare properties, but it doesn't really tell you anything else.

chucknorris

kabayiri wrote: »

If it suited you could always look further afield. Parts of Canada looked mighty cheap compared to Blighty in the past.

Alas, the pound buys you less dollars now and property in places like Calgary have become a lot more expensive.

People are looking to minimise risk in all sorts of ways.

No thanks I like hands on management.

sheffield_lad

My savings are in AIM listed miners currently (eek!!). I was lucky enough to put a little ££ in 2010 but... left it there lol so highs and lows but that's what you get with risk shares. I also have 2 share-saves (mine and a mates), maxed out. There is of course the house where current equity is 50% and should be an asset for my retirement when I downsize.

Osbourne should look at the share save schemes as the £250 limit has been around for ages and really needs to be raised to today's standards (£400 per month min).

Thrugelmir

howee wrote: »

Osbourne should look at the share save schemes as the £250 limit has been around for ages and really needs to be raised to today's standards (£400 per month min).

EIS is the way to invest in start ups.

chucknorris

Thrugelmir wrote: »

EIS is the way to invest in start ups.

Aren't these very risky?