Where to put money

dont_look_now

sebtomato said:

Well, paying rent as opposed to repaying a mortgage is indeed "throwing money away" (paying someone else to increase their wealth instead of building your own, while having a place to live at the same time).

But take it a step further: living in your own house, when you could let it while yourself sleeping rough, is also throwing money away. Living in a home is always throwing money away: either actual rent, when you're paying it to somebody else, or rent forgone, when somebody else could be paying it to you (if only you weren't living there). Would you own shares and throw the dividends down the drain? Of course not. So why would you throw the rent down the drain, when you could live in one instead?

Notepad_Phil

dont_look_now said:

sebtomato said:

Well, paying rent as opposed to repaying a mortgage is indeed "throwing money away" (paying someone else to increase their wealth instead of building your own, while having a place to live at the same time).

But take it a step further: living in your own house, when you could let it while yourself sleeping rough, is also throwing money away. Living in a home is always throwing money away: either actual rent, when you're paying it to somebody else, or rent forgone, when somebody else could be paying it to you (if only you weren't living there). Would you own shares and throw the dividends down the drain? Of course not. So why would you throw the rent down the drain, when you could live in one instead?

Well I suppose there is also the case where you rent a house but then sublet it to someone whilst you sleep rough. But I think most people would think that having a roof over your head is one of the must-haves that they want, so in that case and provided you can afford it you can either pay rent or pay off a mortgage (unless you've enough to buy it outright) - now there are times when renting can make sense, but the money really is going out of your hands and into someone's elses whereas paying off a mortgage is not throwing money away it is essentially purchasing an asset a few bricks at a time. As an early retiree I'm exceedingly glad that I've got a mortgage free house to live in.

dont_look_now

Notepad_Phil said:

dont_look_now said:

sebtomato said:

Well, paying rent as opposed to repaying a mortgage is indeed "throwing money away" (paying someone else to increase their wealth instead of building your own, while having a place to live at the same time).

But take it a step further: living in your own house, when you could let it while yourself sleeping rough, is also throwing money away. Living in a home is always throwing money away: either actual rent, when you're paying it to somebody else, or rent forgone, when somebody else could be paying it to you (if only you weren't living there). Would you own shares and throw the dividends down the drain? Of course not. So why would you throw the rent down the drain, when you could live in one instead?

Well I suppose there is also the case where you rent a house but then sublet it to someone whilst you sleep rough. But I think most people would think that having a roof over your head is one of the must-haves that they want, so in that case and provided you can afford it you can either pay rent or pay off a mortgage (unless you've enough to buy it outright) - now there are times when renting can make sense, but the money really is going out of your hands and into someone's elses whereas paying off a mortgage is not throwing money away it is essentially purchasing an asset a few bricks at a time. As an early retiree I'm exceedingly glad that I've got a mortgage free house to live in.

The part I've highlighted neatly summarizes what I was driving at. Paying money for rent is not throwing money away: it's buying a must-have, and therefore well worth it.

Paying a mortgage is doing 2 things: giving you that must-have roof over you head (the same as rent does), and also (as you say) gradually purchasing an asset. It is very often better value than renting, when you allow that it is doing useful 2 things, and rent only does 1 of them. (Especially considering that mortgage payments may even be lower than rent on the same property.)

However, just because there is a 2-for-the-price-of-1 offer (paying a mortgage), that doesn't mean that there is anything wrong with going for the 1-for-the-price-of-1 regular price (paying rent), if you are for any reason not in a good position to take advantage of the 2-for-the-price-of-1 offer. And if you're in that situation, paying rent is not a waste at all, any more than buying food is.

Notepad_Phil

dont_look_now said:

Notepad_Phil said:

dont_look_now said:

sebtomato said:

Well, paying rent as opposed to repaying a mortgage is indeed "throwing money away" (paying someone else to increase their wealth instead of building your own, while having a place to live at the same time).

But take it a step further: living in your own house, when you could let it while yourself sleeping rough, is also throwing money away. Living in a home is always throwing money away: either actual rent, when you're paying it to somebody else, or rent forgone, when somebody else could be paying it to you (if only you weren't living there). Would you own shares and throw the dividends down the drain? Of course not. So why would you throw the rent down the drain, when you could live in one instead?

Well I suppose there is also the case where you rent a house but then sublet it to someone whilst you sleep rough. But I think most people would think that having a roof over your head is one of the must-haves that they want, so in that case and provided you can afford it you can either pay rent or pay off a mortgage (unless you've enough to buy it outright) - now there are times when renting can make sense, but the money really is going out of your hands and into someone's elses whereas paying off a mortgage is not throwing money away it is essentially purchasing an asset a few bricks at a time. As an early retiree I'm exceedingly glad that I've got a mortgage free house to live in.

The part I've highlighted neatly summarizes what I was driving at. Paying money for rent is not throwing money away: it's buying a must-have, and therefore well worth it.

Paying a mortgage is doing 2 things: giving you that must-have roof over you head (the same as rent does), and also (as you say) gradually purchasing an asset. It is very often better value than renting, when you allow that it is doing useful 2 things, and rent only does 1 of them. (Especially considering that mortgage payments may even be lower than rent on the same property.)

However, just because there is a 2-for-the-price-of-1 offer (paying a mortgage), that doesn't mean that there is anything wrong with going for the 1-for-the-price-of-1 regular price (paying rent), if you are for any reason not in a good position to take advantage of the 2-for-the-price-of-1 offer. And if you're in that situation, paying rent is not a waste at all, any more than buying food is.

Okay I can agree with that - I thought your comment to sebtomato was you saying there was really little difference between paying rent or paying a mortgage, not that sometimes paying rent is the only way that someone can get a roof over their head.

83705628

pioruns said:

Hi,

If I've been in your shoes, I'd consider Bitcoin for, at least, 1% of your wealth. Just put 1% of your money there:  If it's bust - then you lost one percent. But if Bitcoin goes to 100k or to a million - you have won. Bitcoin is a great altenative to standard financial system and can't be ignored. Hopefully you can get some return from it.
If you want to buy it easily and cheaply, I recommend Binance Jersey exchange:
https://www.binance.je/register.html?ref=35081521
They charge 0.10% per transaction, no brainer when compared to Coinbase with their 1.49% fee (lol).
Wish you luck.

/
May as well start online gambling.

Albermarle

pioruns said:

Hi,

If I've been in your shoes, I'd consider Bitcoin for, at least, 1% of your wealth. Just put 1% of your money there:  If it's bust - then you lost one percent. But if Bitcoin goes to 100k or to a million - you have won. Bitcoin is a great altenative to standard financial system and can't be ignored. Hopefully you can get some return from it.
If you want to buy it easily and cheaply, I recommend Binance Jersey exchange:
https://www.binance.je/register.html?ref=35081521
They charge 0.10% per transaction, no brainer when compared to Coinbase with their 1.49% fee (lol).
Wish you luck.

Or you could try a yankee at Haydock this afternoon instead ( at least more fun that bitcoin ) 

steampowered

sebtomato said:

Well, paying rent as opposed to repaying a mortgage is indeed "throwing money away" (paying someone else to increase their wealth instead of building your own, while having a place to live at the same time).

That's a bit like saying buying lunch from McDonalds is "throwing money away" (paying the shareholders of McDonalds to build their wealth instead of building your own).

Buying anything is "throwing money away" under your definition. The point is that you are getting something - whether it be a place to live or lunch.

The Op would certainly be throwing away a lot more money if he/she bought a house for just one year. It's not hard to see how mortgage interest, conveyancing fees, estate agent fees, lender fees and so on will add up to more than a year's rent.  

lhsecons

pioruns said:

Hi,

If I've been in your shoes, I'd consider Bitcoin for, at least, 1% of your wealth. Just put 1% of your money there:  If it's bust - then you lost one percent. But if Bitcoin goes to 100k or to a million - you have won. Bitcoin is a great altenative to standard financial system and can't be ignored. Hopefully you can get some return from it.
If you want to buy it easily and cheaply, I recommend Binance Jersey exchange:
https://www.binance.je/register.html?ref=35081521
They charge 0.10% per transaction, no brainer when compared to Coinbase with their 1.49% fee (lol).
Wish you luck.

Is this serious financial advice?
If bitcoin goes to a million, your next problem is finding a way of converting it back. Paper gains are one thing. Real money is another. Play with your own money, not that of others.

83705628

pioruns said:

Hi,

If I've been in your shoes, I'd consider Bitcoin for, at least, 1% of your wealth. Just put 1% of your money there:  If it's bust - then you lost one percent. But if Bitcoin goes to 100k or to a million - you have won. Bitcoin is a great altenative to standard financial system and can't be ignored. Hopefully you can get some return from it.
If you want to buy it easily and cheaply, I recommend Binance Jersey exchange:
https://www.binance.je/register.html?ref=35081521
They charge 0.10% per transaction, no brainer when compared to Coinbase with their 1.49% fee (lol).
Wish you luck.

/
Ignore this nonsense obviously.

[Deleted User]

lhsecons said:

pioruns said:

Hi,

If I've been in your shoes, I'd consider Bitcoin for, at least, 1% of your wealth. Just put 1% of your money there:  If it's bust - then you lost one percent. But if Bitcoin goes to 100k or to a million - you have won. Bitcoin is a great altenative to standard financial system and can't be ignored. Hopefully you can get some return from it.
If you want to buy it easily and cheaply, I recommend Binance Jersey exchange:
https://www.binance.je/register.html?ref=35081521
They charge 0.10% per transaction, no brainer when compared to Coinbase with their 1.49% fee (lol).
Wish you luck.

Is this serious financial advice?
If bitcoin goes to a million, your next problem is finding a way of converting it back. Paper gains are one thing. Real money is another. Play with your own money, not that of others.

Read my post again - I said what I would do if I'd been in OPs shoes. I did similar thing many years ago, risked a bit and gains have outperformed remaining majority of portfolio many times over.

Finding a way of converting it back - it's literally in my post.. Follow the link, I posted link to a reputable exchange - Binance Jersey where you can sell any amount. if you don't trust me, go to the likes of Coinbase or Binance (Asian parent company) etc etc, who process billions of pounds of cryptocurrency every day, with or without your approval.