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house-down

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  1. It is scary to think that a 1MM flat costs you 52K a year in lost interest a year even if you buy in cash Also worth remembering that even in 2012 people were calling the top of the house market and we know whats happened since (+50% or thereabouts) Im saying that a house to live in is never a bad idea to buy and trying to time it is a suckers game Me : I borrowed as much as I could and did ok - If the market had been flat or fallen a bit I would have been ok as well
  2. FTSe 100 gone nowhere in ten years S&P has I admit and pound weakening will help but I do not believe ten times Do you admit that stocks are more volatiles (as measure by variance and standard deviation) than property in London?
  3. Wow - I have a 630K mortgage left on a house in London and I dont feel that bad - Its also 12 years into a repayment mortgage when I bought in 2012 Payments are 3K a month which seems ok to me - Im single no kids with net income of 5.5K a month so its manageable I got a 75)K mortgage in 2012 as an IT contractor earning 750 a day - Ive gone perm now and feel much poorer but its still manageable
  4. Decades of rising prices have solidified a belief in housing. For many, property is their pension. Yet when assessing returns we often forget about inflation. The reality is that “real” house prices have been falling since 2015, and for longer in some regions. There are also worrying comparisons to be drawn with the 1970s. Andrew Oxlade explains the numbers and compares property’s progress with the stock market. https://www.fidelity.co.uk/markets-insights/personal-finance/personal-finance/house-prices-did-you-miss-the-16-year-crash/?utm_term=pi_citywire&utm_campaign=pi_newsletter_11.11.23&utm_medium=email&utm_source=marketo&utm_content=lead_story__SippN_ISAN_B. 35-44&mkt_tok=MTQzLUpSTS0wMzIAAAGPXOppjCsGgt0c6XEY36xfLQbP4Ij6CsO2CbTfDYL96oDFTOnFphH2kmNVFaLbOsQnbvmfdKU5npx5SovNkDqBYVAC33A86_kGg5qTh86LYyIwwAw
  5. Withdrawn prior because no one registered to bid some marked as sold prior but had been withdrawn due to lack of viewers and registered bids the online auction house now allows auction house to collect stats on how many bidders interested before tje day. This was never the case before when the room was the market
  6. Have you ever bought from Auctionhouselondon? I found them to be deceptive and not honest
  7. In one word - Shocking - Out of 70 only 3 were sold - This is the beginning of the crash https://www.eigpropertyauctions.co.uk/live-stream/auction/strettons
  8. Yes and it shows you that the banks and govermenet are not in charge - It is the markets who are Do you think Bailey really wants to increase rates or prefer to call it transitory? Of course he wants it transitory but it go so bad that the pound was going to tank and civilisation stopping with strikes everywehre. So the bank has to act Things are going to get really nasty for a lot of people who spent their savings and forgot to have a cash buffer
  9. If I am going to lock my money away for five years at 6% what is the point rather then just pay back mortgage? The idea of havig cash is liquidity today so you can buy something when the price is right including a house or shares Thats the worst option Offset would be nice but Halifax dont do it and I cant move mortagge providers so not an option
  10. You are amortising the mortgage balance so you cant compare the two - You have to compare the APR pre post tax
  11. The problem is that tax on dividends and CGT on share sales are often ignored - In my example you would need to to able to get 7% from gilt investments (risk free) to match 3.83 % personal mortgage and a similar figure for share portfolio. If you adjusted for risk premium (Sharpe ration) the share portfolio likely requires a 10% risk adjusted return. My point is that the pre tax net gain is often overlooked.... One reason I dont want to pay down the mortgage is I think the government will allow and indeed encourage inflation so you are better being a borrower in those circumstances
  12. Thanks all - I wanted to double check my breakeven pre tax savings rate that I needed to match the mortgage rate - Am I correct that it is 7%? I already do pay pension and ISA will only help with 20K so not much in the grands schemes of things Either I put it in ETF or I pay the mortgage - Mu analysis shows the ETF will need to return 7% (not adjusted for risk) to match the mortgage rate
  13. Seems a shame to pay off the mortgage given money now costs 5.5% for five years and I have a mortgage at 3.83% - On the other hand I cannot think of many areas which would give me a 7% risk free rate of return so I am guessing this is the best thing to do I am seeing a few things appear on auctions as well including Savills which start to show the pain thresholds of some builders but I reckon there is a long way to go before it washes through I expect a glut of flats from landlords but not many houses to come up in distressed asles
  14. That site does not allow you to compare the equivalent rate that would need to bea earnt to compare paying off a mortgage. I make it as 7% required rate pre tax equal to 3.83% post tax for a haddiotnal rate (45%) tax payer. How do provate landlords turn a profit when these figures present themselves is a mystery
  15. Pay off mortgage Or Invest Money I am sure a lot of people are facing the same question but for a 45% tax payer (ie earning over 125K a year) and with a 650K mortgage which now needs to re reset at 3.83% for five years I am seriously thinking of paying it off. I do have the money available in a savings account earning 4% and had thought of putting it in the SandP500 or heaven forbid a buy to let. Is my maths wrong that despite me paying 3.83% on my mortgage and earning 4% on the savings the effective tax rate that I need to earn is in fact 7% to just break even? Put differently I need to earn 7% before tax to match paying 3.83% mortgage. i realize that these are large numbers and I am very lucky that I have returned from working abroad after many years and able to use my pension money - The loan to value is 60% and I have another 25 years on the mortgage but able to repay the mortgage if I drain all my savings
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