Investments and don't buy house

kinger101

Rocksolid said:

fiisch said:

Rocksolid said:

fiisch said:

Read the site Mr Money Mustache if you haven't already, and other "FIRE" (Financial Independence Retire Early) sites.

It seems from your post that you're wanting to follow a similar ethos (albeit without the retire early bit).

I also work in IT.  I am fortunate in that I am a contractor and had a good run of contracts, so income is high at the moment, but with all the Covid/IR35 stuff going on at the moment, I would not recommend a move into contracting if you are not doing this already.

Personally, I invest a set amount via monthly DD in the Vanguard Life Strategy 100 via their own platform.  Low fees, easy to use, and a good starting place to get my eye in.  Once my pot exceeds £25-30k, I'll move to Hargreaves Lansdown platform or similar and likely add other funds to VLS100.  (I also use my wife's ISA to play in some stocks (very low value, no expectation of a return, anything is a bonus)).

However, I do own a house.  Buying a 2-bed flat in an area I didn't want to buy in in 2012 allowed us to buy a 4-bed in 2015, and then to move up again in 2019.   OK, our timeline perhaps accelerated because 2012 was a good time in hindsight to get on the property ladder. cycle, but I do think you're missing the point about the property lifecycle and how property no.1 may not be everything you want, but it'll get you well on your way to no.2/no.3 which may be a lot closer.

If you're happy renting and want to get on investment ladder, advice would be to read, read, read, and learn as much as you can about investing, including the benefit of using different tax wrappers (ISA vs pension/SIPP for example).  From your comments, it seems ISA is preferable due to timeframes.  

Thanks for the message.

I didn't get the investment ladder in house, you mean shared ownership?

In that case, I'm not gonna do it.

No - as in property lifecycle.  It is said, on average, property prices double every 8 years.

Therefore, if you buy a not-so-nice property for £200k with a deposit of £40k and mortgage of £160k, you have a modest 80% loan-to-value.  If after 4 years the house price increases to say £300k, you still have the same mortgage (a little smaller from making your monthly payments), but you now have around 50% loan to value and £140k worth of equity.  This gives you a bigger deposit and makes moving up the ladder easier.

I also work in London, but my wife absolutely would not live there.  I've commuted from South, West and North, and it is not so bad, although hoping remote working arrangements are here to stay...

I think your mind is made up, but I think you're missing a critical piece in your planning - investing is a great move, but it comes after property.

I'll see, eventually I'll stick with properties around Manchester or Birmingham, the problem is to go to see them, I'm at least 70k miles away (one way).

Careful you don't burn up when you re-enter Earth's atmosphere.

Rocksolid

kinger101 said:

Rocksolid said:

fiisch said:

Rocksolid said:

fiisch said:

Read the site Mr Money Mustache if you haven't already, and other "FIRE" (Financial Independence Retire Early) sites.

It seems from your post that you're wanting to follow a similar ethos (albeit without the retire early bit).

I also work in IT.  I am fortunate in that I am a contractor and had a good run of contracts, so income is high at the moment, but with all the Covid/IR35 stuff going on at the moment, I would not recommend a move into contracting if you are not doing this already.

Personally, I invest a set amount via monthly DD in the Vanguard Life Strategy 100 via their own platform.  Low fees, easy to use, and a good starting place to get my eye in.  Once my pot exceeds £25-30k, I'll move to Hargreaves Lansdown platform or similar and likely add other funds to VLS100.  (I also use my wife's ISA to play in some stocks (very low value, no expectation of a return, anything is a bonus)).

However, I do own a house.  Buying a 2-bed flat in an area I didn't want to buy in in 2012 allowed us to buy a 4-bed in 2015, and then to move up again in 2019.   OK, our timeline perhaps accelerated because 2012 was a good time in hindsight to get on the property ladder. cycle, but I do think you're missing the point about the property lifecycle and how property no.1 may not be everything you want, but it'll get you well on your way to no.2/no.3 which may be a lot closer.

If you're happy renting and want to get on investment ladder, advice would be to read, read, read, and learn as much as you can about investing, including the benefit of using different tax wrappers (ISA vs pension/SIPP for example).  From your comments, it seems ISA is preferable due to timeframes.  

Thanks for the message.

I didn't get the investment ladder in house, you mean shared ownership?

In that case, I'm not gonna do it.

No - as in property lifecycle.  It is said, on average, property prices double every 8 years.

Therefore, if you buy a not-so-nice property for £200k with a deposit of £40k and mortgage of £160k, you have a modest 80% loan-to-value.  If after 4 years the house price increases to say £300k, you still have the same mortgage (a little smaller from making your monthly payments), but you now have around 50% loan to value and £140k worth of equity.  This gives you a bigger deposit and makes moving up the ladder easier.

I also work in London, but my wife absolutely would not live there.  I've commuted from South, West and North, and it is not so bad, although hoping remote working arrangements are here to stay...

I think your mind is made up, but I think you're missing a critical piece in your planning - investing is a great move, but it comes after property.

I'll see, eventually I'll stick with properties around Manchester or Birmingham, the problem is to go to see them, I'm at least 70k miles away (one way).

Careful you don't burn up when you re-enter Earth's atmosphere.

I didn't get your irony, but it's fine

I still keep the house on top of things to take care as investment, but I can also invest in stocks in the meantime, probably I didn't make it clear before.

Furthermore, if finding an house was that easy

Rocksolid

barnstar2077 said:

eToro?  Now you are just trolling,

Explain yourself better.

kinger101

Rocksolid said:

kinger101 said:

Rocksolid said:

fiisch said:

Rocksolid said:

fiisch said:

Read the site Mr Money Mustache if you haven't already, and other "FIRE" (Financial Independence Retire Early) sites.

It seems from your post that you're wanting to follow a similar ethos (albeit without the retire early bit).

I also work in IT.  I am fortunate in that I am a contractor and had a good run of contracts, so income is high at the moment, but with all the Covid/IR35 stuff going on at the moment, I would not recommend a move into contracting if you are not doing this already.

Personally, I invest a set amount via monthly DD in the Vanguard Life Strategy 100 via their own platform.  Low fees, easy to use, and a good starting place to get my eye in.  Once my pot exceeds £25-30k, I'll move to Hargreaves Lansdown platform or similar and likely add other funds to VLS100.  (I also use my wife's ISA to play in some stocks (very low value, no expectation of a return, anything is a bonus)).

However, I do own a house.  Buying a 2-bed flat in an area I didn't want to buy in in 2012 allowed us to buy a 4-bed in 2015, and then to move up again in 2019.   OK, our timeline perhaps accelerated because 2012 was a good time in hindsight to get on the property ladder. cycle, but I do think you're missing the point about the property lifecycle and how property no.1 may not be everything you want, but it'll get you well on your way to no.2/no.3 which may be a lot closer.

If you're happy renting and want to get on investment ladder, advice would be to read, read, read, and learn as much as you can about investing, including the benefit of using different tax wrappers (ISA vs pension/SIPP for example).  From your comments, it seems ISA is preferable due to timeframes.  

Thanks for the message.

I didn't get the investment ladder in house, you mean shared ownership?

In that case, I'm not gonna do it.

No - as in property lifecycle.  It is said, on average, property prices double every 8 years.

Therefore, if you buy a not-so-nice property for £200k with a deposit of £40k and mortgage of £160k, you have a modest 80% loan-to-value.  If after 4 years the house price increases to say £300k, you still have the same mortgage (a little smaller from making your monthly payments), but you now have around 50% loan to value and £140k worth of equity.  This gives you a bigger deposit and makes moving up the ladder easier.

I also work in London, but my wife absolutely would not live there.  I've commuted from South, West and North, and it is not so bad, although hoping remote working arrangements are here to stay...

I think your mind is made up, but I think you're missing a critical piece in your planning - investing is a great move, but it comes after property.

I'll see, eventually I'll stick with properties around Manchester or Birmingham, the problem is to go to see them, I'm at least 70k miles away (one way).

Careful you don't burn up when you re-enter Earth's atmosphere.

I didn't get your irony, but it's fine

I still keep the house on top of things to take care as investment, but I can also invest in stocks in the meantime, probably I didn't make it clear before.

Furthermore, if finding an house was that easy

You stated you were 70k miles away from Birmingham.  That's 70,000 miles.

julicorn

I'm just kind of curious what rent you pay on your amazing Central London 3-bed detached house with large garden...

phillw

Rocksolid said:

I know the point to have an house, but I don't care of my life after 60, even after 50 if I have to be honest, the life is now.

That is a very costly mistake.

barnstar2077

Rocksolid said:

barnstar2077 said:

eToro?  Now you are just trolling,

Explain yourself better.

A Pensioncraft etoro video from a year ago:

https://www.youtube.com/watch?v=46H_mLuzIYQ

A look at etoros website says that the percentage of people losing money on CFDs has risen to 75% since the above video was produced.  He talks about other things as well of course, so it is still worth a watch.  Obviously you may not use that part of etoro, but just the fact that they knowingly allow people to gamble away their money instead of encouraging investing is a good enough reason not to touch them with a barge pole in my opinion!

Rocksolid

kinger101 said:

Rocksolid said:

kinger101 said:

Rocksolid said:

fiisch said:

Rocksolid said:

fiisch said:

Read the site Mr Money Mustache if you haven't already, and other "FIRE" (Financial Independence Retire Early) sites.

It seems from your post that you're wanting to follow a similar ethos (albeit without the retire early bit).

I also work in IT.  I am fortunate in that I am a contractor and had a good run of contracts, so income is high at the moment, but with all the Covid/IR35 stuff going on at the moment, I would not recommend a move into contracting if you are not doing this already.

Personally, I invest a set amount via monthly DD in the Vanguard Life Strategy 100 via their own platform.  Low fees, easy to use, and a good starting place to get my eye in.  Once my pot exceeds £25-30k, I'll move to Hargreaves Lansdown platform or similar and likely add other funds to VLS100.  (I also use my wife's ISA to play in some stocks (very low value, no expectation of a return, anything is a bonus)).

However, I do own a house.  Buying a 2-bed flat in an area I didn't want to buy in in 2012 allowed us to buy a 4-bed in 2015, and then to move up again in 2019.   OK, our timeline perhaps accelerated because 2012 was a good time in hindsight to get on the property ladder. cycle, but I do think you're missing the point about the property lifecycle and how property no.1 may not be everything you want, but it'll get you well on your way to no.2/no.3 which may be a lot closer.

If you're happy renting and want to get on investment ladder, advice would be to read, read, read, and learn as much as you can about investing, including the benefit of using different tax wrappers (ISA vs pension/SIPP for example).  From your comments, it seems ISA is preferable due to timeframes.  

Thanks for the message.

I didn't get the investment ladder in house, you mean shared ownership?

In that case, I'm not gonna do it.

No - as in property lifecycle.  It is said, on average, property prices double every 8 years.

Therefore, if you buy a not-so-nice property for £200k with a deposit of £40k and mortgage of £160k, you have a modest 80% loan-to-value.  If after 4 years the house price increases to say £300k, you still have the same mortgage (a little smaller from making your monthly payments), but you now have around 50% loan to value and £140k worth of equity.  This gives you a bigger deposit and makes moving up the ladder easier.

I also work in London, but my wife absolutely would not live there.  I've commuted from South, West and North, and it is not so bad, although hoping remote working arrangements are here to stay...

I think your mind is made up, but I think you're missing a critical piece in your planning - investing is a great move, but it comes after property.

I'll see, eventually I'll stick with properties around Manchester or Birmingham, the problem is to go to see them, I'm at least 70k miles away (one way).

Careful you don't burn up when you re-enter Earth's atmosphere.

I didn't get your irony, but it's fine

I still keep the house on top of things to take care as investment, but I can also invest in stocks in the meantime, probably I didn't make it clear before.

Furthermore, if finding an house was that easy

You stated you were 70k miles away from Birmingham.  That's 70,000 miles.

ok, wasn't that clear as mistake?

julicorn said:

I'm just kind of curious what rent you pay on your amazing Central London 3-bed detached house with large garden...

Who said I rent it?

barnstar2077 said:

Rocksolid said:

barnstar2077 said:

eToro?  Now you are just trolling,

Explain yourself better.

A Pensioncraft etoro video from a year ago:

https://www.youtube.com/watch?v=46H_mLuzIYQ

A look at etoros website says that the percentage of people losing money on CFDs has risen to 75% since the above video was produced.  He talks about other things as well of course, so it is still worth a watch.  Obviously you may not use that part of etoro, but just the fact that they knowingly allow people to gamble away their money instead of encouraging investing is a good enough reason not to touch them with a barge pole in my opinion!

I'll watch it, but... I'm not planning to invest there anytime soon, as high risk investments out there, I'll make sure to know what I'm risking before to try, and it will be a budget that I can lose, with the intention do not lose, I hope that was obvious .