Base rates held (what's new?)

MFW_ASAP

Bantex wrote: »

True, but I have finally come to the conclusion that the powers that be are determined to wipe out my savings. wouldn't have done it if could have got a half decent above inflation return.

There are more than just two savings vehicles, cash and BTL. Of course, you know that are are simply trying to justify going against your principles. At least you had the honesty to own up to it, I could imagine some of the other 'Bears' being in the same position as you but keeping quiet about it.

You do know though that you have chosen a really risky investment vehicle?

Bantex_2

MFW_ASAP wrote: »

There are more than just two savings vehicles, cash and BTL. Of course, you know that are are simply trying to justify going against your principles. At least you had the honesty to own up to it, I could imagine some of the other 'Bears' being in the same position as you but keeping quiet about it.

You do know though that you have chosen a really risky investment vehicle?

s

I cannot see much of a risk.
£110,000 for the flat.
SE London borders
25mins from london Bridge.
Service charge £600.00 pa
Ground rent £60.00 pa
Current tenant of two years on rolling AST paying £600.00 pm

Where would you see the high risk?

Generali

Bantex wrote: »

s

I cannot see much of a risk.
£110,000 for the flat.
SE London borders
25mins from london Bridge.
Service charge £600.00 pa
Ground rent £60.00 pa
Current tenant of two years on rolling AST paying £600.00 pm

Where would you see the high risk?

I'd see it as you having all your eggs in one basket.

If you bought into an equity portfolio then if, for example, oil prices fell then perhaps the oil producers would fall in value whilst the companies relying on oil to produce what they sell might increase in value.

If someone builds a night club next to your BTL or mortgage rates increase dramatically or a by-pass is built at the end of the road or whatever then you have no balancing item to mitigate your risk.

On a personal level I think you're a small minded fool and I hope you lose all your money so I encourage you to get into BTL. I hope my post serves as a warning to others and you ignore it.:j

Bantex_2

Generali wrote: »

I'd see it as you having all your eggs in one basket.

If you bought into an equity portfolio then if, for example, oil prices fell then perhaps the oil producers would fall in value whilst the companies relying on oil to produce what they sell might increase in value.

If someone builds a night club next to your BTL or mortgage rates increase dramatically or a by-pass is built at the end of the road or whatever then you have no balancing item to mitigate your risk.

On a personal level I think you're a small minded fool and I hope you lose all your money so I encourage you to get into BTL. I hope my post serves as a warning to others and you ignore it.:j

it is on a private new build estate (10 years old) with no room for further development. There is already a motorway 500 yards away, and iRs are not an issue for me. I would susoect if they go up, so will rents.

The main risk would be if a future government decide to control immigration.

I truly feel depressed at going into what I consider an immoral market.

Generali

Bantex wrote: »

iRs are not an issue for me. I would susoect if they go up, so will rents.

Did rents fall as interest rates fell? I believe the answer is no.

If that is true, why would rents rise with interest rates? If interest rates rose and my LL wanted to put up my rent as a result I'd tell her to f off

HAMISH_MCTAVISH

Generali wrote: »

On a personal level I think ......

:rotfl::rotfl::rotfl:

Ouch....

I felt that one from up here mate.:D

Thrugelmir

Bantex wrote: »

Where would you see the high risk?

BTL is like investing in equities. What determines the outcome is the state of the economy. I'm cautious about equities in general terms currently. So select my individual investments after some considerable thought.

wotsthat

Bantex wrote: »

I cannot see much of a risk.

Then either £110k is chump change or you don't really understand risk.

Higher yields are usually associated with higher risk. Maybe you've found a free lunch though.

Thrugelmir

Bantex wrote: »

The main risk would be if a future government decide to control immigration.

Not that the BOE forces lenders to hold more capital thereby forcing up the cost of money to borrowers? Removing the main plank of the BTL boom.

Bantex_2

Thrugelmir wrote: »

Not that the BOE forces lenders to hold more capital thereby forcing up the cost of money to borrowers? Removing the main plank of the BTL boom.

I am not borrowing any money though. I have decided to go bottom end as I feel more comfortable at that level.

No plans for a "portfolio" just something which seems to offer sigificantly better returns than cash with a bit of inflation proofing built in.

Could be wrong though, but cannot see losing much if it does not work out.

If I could get say 4% above inflation guaranteed any other way would probably go for that, just seems that government, BoE etc have decided that saving is for idiots that need to be punished.