London Has Peaked

Bubble_and_Squeak

wotsthat wrote: »

Which is ultimately what you're about judging by the number of times you mention it.

The arguments about houses are just a smokescreen - you just have a deep fear of debt and responsibility. I think you'd crap yourself if prices fell 50% because you'd be faced with having to spend some of your cash which provides such a crutch. I don't think you want the responsibility of a place you need to maintain or be committed to for more than 6 months. Let's face it, you're nearly fifty - if you wanted to be an owner occupier you already would be.

You'll never buy.

classic estate agent bullying tactics

Bubble_and_Squeak

lisyloo wrote: »

Me too, only I have a house I can live in for the rest of my life too......................................nah nah nah nah nah :-)

That's the bit you don't seem to get.
Once it's paid off then you have it................forever.

ini kamoze

chucknorris

Bubble_and_Squeak wrote: »

ukcarper wrote: »

my cash is earning about 2-2.5% on average.

So after deducting tax and inflation it is earning nothing, and actually negative if you are a higher rate taxpayer.


EDIT: The ftse 100 is currently paying about 3.4% in dividend income, because the tax rate is only 25% for a higher rate tax payer, that is equivalent to 4.25% gross, and you also have the chance of capital growth.

Bubble_and_Squeak

MFW_ASAP wrote: »

Keeping money in cash is a very poor investment strategy as it gets eroded by inflation. You're not in debt if the asset you bought is worth more than the debt. A mortgage for £100k on a £500k house doesn't mean you're in debt to the tune of £100k, it means you have net wealth of £400k.

its the only investment not depreciating at the moment

chucknorris

Bubble_and_Squeak wrote: »

its the only investment not depreciating at the moment

You can't judge/analyse investments by 'the moment' you have to judge them over a reasonable time span.

Jack_Johnson_the_acorn

Bubble_and_Squeak wrote: »

is the bull turning bear?

Seriously, you're an idiot.

From now on I'm just going to reply by ridiculing you. It doesn't seem possible for you to comprehend anyone's position other than your own..... God knows how long you've been renting, I know you spent 10yrs renting in London, but you seriously need to learn how to listen to opinions that aren't the same as yours and actually work out whether the viewpoint is correct and whether it would be beneficial to you to maybe change your mind...... As it stands you'll be renting for the next 40yrs telling us all how stupid we are living rent and mortgage free, demonstrating are stupidity by posting links to a house on rightmove because the asking price has been reduced by £5k.

Bubble_and_Squeak

chucknorris wrote: »

Bubble_and_Squeak wrote: »

So after deducting tax and inflation it is earning nothing, and actually negative if you are a higher rate taxpayer.


EDIT: The ftse 100 is currently paying about 3.4% in dividend income, because the tax rate is only 25% for a higher rate tax payer, that is equivalent to 4.25% gross, and you also have the chance of capital growth.

na, most of it is ISA
just shy of £20k in one of those current accounts that you pay a few quid a month to get a good interest rate
the rest is in a normal savings account which i think pays 2%.

dividends on ftse investments will fall in the medium term as we move to low inflation/deflation. there is very little chance of capital growth in such an environment.
you might get a short term boost from QE, which will enable you to cut your losses.

Bubble_and_Squeak

chucknorris wrote: »

You can't judge/analyse investments by 'the moment' you have to judge them over a reasonable time span.

looking at the long term prospects
EU deflation. this is our biggest trading partner.
demographics. declining working age population. we are currently plugging the gap by importing labour but voters want to stop this.
overpriced assets. these are now declining.

ukcarper

Bubble_and_Squeak wrote: »

ukcarper wrote: »

my cash is earning about 2-2.5% on average.

It's possible to get about 3% at the moment but that is taxed.


My house has increased in value by about £70k since 2007 about 25%, on top off that I'm saving rent of £1300 a month which is a return of 5.5% on value in 2007. if I had invested the value of the house in 2007 at 2.25% it would now be worth about 7% less than house assuming no tax and of course I would have had to pay to live some where.


Without tying up your money best cash ISA according this site is 1.5%.

Bubble_and_Squeak

Jack_Johnson_the_acorn wrote: »

Seriously, you're an idiot.

From now on I'm just going to reply by ridiculing you. It doesn't seem possible for you to comprehend anyone's position other than your own..... God knows how long you've been renting, I know you spent 10yrs renting in London, but you seriously need to learn how to listen to opinions that aren't the same as yours and actually work out whether the viewpoint is correct and whether it would be beneficial to you to maybe change your mind...... As it stands you'll be renting for the next 40yrs telling us all how stupid we are living rent and mortgage free, demonstrating are stupidity by posting links to a house on rightmove because the asking price has been reduced by £5k.

do what you want
btw, the reductions are more like £50-100k, not £5k