Is My Money Really Safe in UK Banks OR Should I rather gamble and buy a property

Lord_Baltimore

Spread your money around (keeping below the £75k limit in each institution) to give you more thinking time. If you really want this property, you would have bought it. Before investing in an illiquid asset, you need to be certain it is what you really want.

Riggyman

You Sir, are a clown. Where else in the world would be more secure to bank?

peter_we

sheff6107 wrote: »

The problem is getting your £700k out again. An expensive house like that won't be a quick sell.

Talk to a broker. An ultra safe portfolio should give you 3% and a riskier one about 12%. Plus there are options in between.

Try http://www1.sjp.co.uk/find-a-partner

Good advice, its will cost a lot of money putting in property, that is certain. I wouldn't be too bothered about UK banks either, but spread the money around several accounts

I dont think prices will fall, if they do I dont expect more than a 5% fall but at the same time they could rise so I wouldnt wait in the hope of getting 5% off.

Its reported that valuations fell 10% in London. Most of the scenarios point to large job losses and population falls in London. London maybe different..

kilby_007

Riggyman wrote: »

You Sir, are a clown. Where else in the world would be more secure to bank?

I can't tell whether you're being serious! Given that the recent stress tests are in serious doubt (https://next.ft.com/content/9785ba8a-150b-11e5-a587-00144feabdc0) and what happened during the last financial crisis with the likes of Northern Rock going under, I'd be seriously worried about having that amount of cash sat in a UK bank account at this moment in time!! You're only protected up to £75K... http://www.telegraph.co.uk/finance/bank-of-england/11715807/Banks-to-cut-protection-on-deposits-to-75000-from-January.html.

In my opinion, spread your risk across different assets in shares, gold, etc. If you really believe you have to adhere to the rules in an out of date story book then just give away the interest to charity.

AnotherJoe

As I said in my other thread in response to you, you are going to lose about 10% straight off if you do this merely down to costs.

So whilst you worry about the small and theoretical future risk of losing it in a bank (a tiny risk if you spread it about multiple banks) you are ignoring the very real and immediate loss from buying a house with it.

So your question is (as I said before) merely about should you speculate on house prices in the UK. High end house prices at that.

Here's another risk that I reckon is much higher to where you are buying than general house price falls as well. If the government fancies getting its hands on £55Bn all its got to do is cancel HS2. Odds of that happening to a UK bank collapsing?Much higher IMO. If it happens that will I'd have thought nuke high house prices in Birmingham.

Sell your first house.
Buy this one.
Put the money (£500k or so?) into investments in companies, gold, whatever.