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sleepwello'nights

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Everything posted by sleepwello'nights

  1. Perhaps you could be the first to post a comment on this Reddit thread https://www.reddit.com/r/ShittySayings/comments/2x9dcx/underestimating_your_enemy_is_the_quickest_way_to/
  2. Thank you so much, I'm so flattered that you allude to me in the same vein as one of the most illustrious scientists of the world. You may have to explain to your compradres, I'm sure they still think the world revolves around their wishes. Your change of tack is welcome, I fear I may have missed the sub text and that you may not have intended to flatter me. But hey, no matter, thank you I'm flattered. The certainty of mathematics is not something that has appealed to my logic. I tend to focus more on the adaptability of people and the nuances of their behaviour that circumstances dictate; although intuitively rather than empirically. It's strange that your rancour towards me started when I complimented you on your analysis of the unfairness the tax advantages gave to landlords. In answer to your direct questions I couldn't see how house prices could continue their upward trajectory so I decided to exit before the trend turns. Probably because I spend too much time on this forum. I was most surprised when a neighbour sold his house, identical to the one I had sold a few months later for over 30% more, less than a year. I'm obviously disappointed to have made the chinese loss, but that's life. However his gross yield is sub 5%, and it is subject to a mortgage. I don't know what interest rate he is paying but at best it must be higher than 3%. I wouldn't advise a leveraged purchase to achieve that yield to a prospective landlord; and the tax landscape has changed to the detriment of leveraged landlords. However the tone of some, most, of your adherents is so antagonistic that I feel compelled to respond. The picture is not as black and white as they seem to think. Landlords are not evil scum, their prime motive, as for most of us is to make the most of the opportunities around them. Tenants are not the altruistic victims your adherents like to paint. There are as many horror stories about how badly tenants behave, if not more, than there are about how greedy and uncaring landlords are. In part this must be down to the inadequacies of our education system. Who was it, nowhere, somewhere, anywhere?, who asserts that there were the same proportion of students in higher education in the 1960s as there are now. Even a cursory glance at HESA shows "Overall participation in higher education increased from 3.4% in 1950, to 8.4% in 1970, 19.3% in 1990 and 33% in 2000". In 2014 its what, 60% or more. I doubt the difference in the statistical methodologies make a difference to the truth of his assertion. The simple fact is there is a greater percentage of school leavers in higher education now.
  3. Seems I'm not alone in my opinion that the BOI acted unfairly. http://www.mindfulmoney.co.uk/uncategorized/ombudsman-rules-bank-of-ireland-tracker-rate-hike-unfair/
  4. The generations after mine have had a much easier ride than mine all their lives. The only problem they seem to be experiencing is house prices being higher than they would like. You have all had the benefit of access to higher education that we did not. Sure now you have to take a loan to pay for it, but it is available to you. When I left school university places were available for IIRC approx 10% of the school leavers. You have much more equality of opportunity. And there's much more but this will lead the thread of at a tangent that I don't feel appropriate to take. So yes I find it distasteful that you should have a go at me for having what you call an easy ride, when the only easy ride we had was that house prices were not as high in relation to average salaries than now. Home ownership was something my parents aspired to but could never afford. Did they have an easy ride. Your riding on the coat tails of earlier generations and all you can do is complain about how high house prices have become. Did you have to cope with inflation at 10 - 20% per annum. I can remember having to decide between petrol to get to work or food. Did you? Yes we had an easy ride. What you seem to disregard is that the discretionary spending we had in my younger days was far lower than now. House prices may be higher, in part that is because subsequent generations choose to use more of their income to house themselves. There are also lots of complaints about the size and poor quality of houses built from, the 80s and onwards but en-suites are commonplace. I guess I'll be accused of being an angry dinosaur, but guys we had it easier than our parents, you've got it easier than we did. We're really privileged to live with our freedoms and quality of life. Go to many other places in the world and you'll be lucky if the only thing you have to complain about is how high house prices are. Get real.
  5. Firstly my anecdote is factually based, therefore it is not simply an anecdote, it is "dah, dah" facts. The original mortgage would have reverted to the SVR but the borrower transferred the loan to a base rate tracker in 2006 when taking out the additional loan. I'm still considering the options to put forward to my client. The current LTV is 62.5% so it will take a pretty large fall in house prices to make the lender call in the loan. In any case my client has the resources to repay if necessary. Most changes to lending regulations tend to be for new loans and don't affect existing loans. So I'm not putting a heavy weighting on that risk, although I will point it out. The main factor I'm concentrating on is a comparison of the interest rates available on the capital released with the yield from continuing to rent the properties. If both properties are sold £480k released, at 1.5% = £7200. Rental profit currently £16000 ish. Think about it £16k per annum for no outlay, risk of £300k loan to repay, or £180k capital gain which is 10 years rent up front. Despite your hostility you can see how the numbers stack up. I really don't care whether you, or any other anonymous poster on the internet believes me or not, these numbers are real. What does strike me about Bland's and Venger's boasts about their educational attainments and their professional careers is that perhaps all their lives things have gone their way, sailing through education into university and on to well paid careers. Except for the assessment they made on the UK housing market, when despite their reading of the economic position the market didn't crash and although they could have bought didn't. And then they found they had lost out as house prices increased. Maybe their pride is hurt so they resort to deriding those less clever folks who benefitted financially. I have no bitterness about their easy ride, that's simply how they played the hand they were dealt.
  6. Oh dear; is that because the facts don't support your prejudice?
  7. I caught a few minutes of HUTH this morning, I can't be sure of the year of filming, but there was an end terrace somewhere in the North East that sold for £33,000 I think. It needed tidying up but was reasonably presentable. Laminate floors were badly laid, bathroom downstairs needed the tiling properly finished but it was still usable, the sanitary ware was OK. The end gable needed to be repaired. Otherwise no other structural work seemed necessary. The buyer was a builder with an existing property portfolio. He expected to get £400 - £500 per month rent. Nice yield. Given that I don't know what employment is like in the region someone with a job earning, what £14 - £15k a year, should be able to afford that without stretching themselves too much. Is that an outlier or is everyone concentrating on London and the South East?
  8. Still sleeping very well thank you. I did look at your response to the post I made a week or so ago, you're so wrong on so many levels, but hey. I know the aca exams are difficult, what with the secret ticks and use of colour pens. I'm curious why such a numerate high flying qualified accountant would leave the lucrative world of financial services. I did consider berating you for being elitist and boastful but you know that already. What soul searching made you leave? I've been having a good laugh at the puerile jibes your gang have been making, the posts give a good insight into your characters. Carry on. You might all grow up one day in the distant future maybe. Despite your derision I still stand by the results of my investment decision. It has been one, not the only one, or the best one, but one of my most successful. If you want some numbers to reflect on, let me give you a brief outline of the decision one of my clients is pondering. I'll use Venger's semi literate style so the example I'm advising on isn't to verbose. Two new builds purchased 2005 Each £150k, 20% deposit, £120k loan. Let immediately, self managed, rental income £750 per month, tracker mortgage BOE base + 0.25 initially. Minimal maintenance costs, mortgage installments £500 per month. Second mortgage (MEW) of £30k taken on each property in 2006. Effectively they have cost the buyer nothing. Although to be fair there is the capital risk of £150k loan on each, which can be repaid from their other resources if necessary. Financial crisis hits and BOE base rate plummets taking installments down to £200 per month. Rental income increased to current level of £900. Still self managed, over period of ownership void periods total 2 months. Maintenance still minimal. Current market price £240k. Properties in retired wife's name, she is a standard rate taxpayer with only income small occupational pension £3000 per annum and state pension. Letting income has been declared and any income tax due paid on time. Decision is whether to sell now and release £180k gain less 18% CGT, which can be legitimately avoided but I won't tell you how (I only give that tax avoidance advice to paying clients) or continue letting. This was a similar decision to mine last year, I sold and lost out on the HPI this year. Nevertheless it was still a successful investment.
  9. So sad someone has to be so angry. i purchased some lovely UK gold coins back in 2011, I think. I could look up the receipts but its not that important. Proof sets, so some numismatic value regardless of how gold as a currency or commodity, depending on your point of view, performs. Not a large amount, some silver UK coins as well. The value increased quite steadily in the initial months. Shame I didn't take on board RK's comments at the time. In investment terms they haven't performed well. Nevertheless I do enjoy looking at them occasionally.
  10. Well gave me a much better return. Positive rather than the negative return from my gold purchases. Still the coins are so, so pretty to look at. And they glisten and glitter.
  11. A Kitco commentator, Peter Hug, voiced an opinion that the price of physical coins from the US mint was because they were unprepared for the increased demand and the resultant shortage has pushed prices higher. Seems to think that the supply shortage is temporary and will not last long. When supply and demand regain balance he concludes price will fall.
  12. Fair enough for you on a limited scale. If we all did it how would all the services we take for granted continue? I object to high rates of taxation and it started me on a chain of thought. What if every employee entered into a salary sacrifice scheme to take them out of the higher rate tax bracket. There will be disadvantages that haven't occurred to me, basically the tax take would fall dramatically, amongst other things the redistribution of tax income from government to local authorities would fall. Local authorities would have less to spend. What services would be cut back and how would it affect our daily lives. Sure there could be immediate savings on repairs to roads that wouldn't be noticed for a time, other cut backs would be noticeable sooner. Isn't this what has happened in Greece? The individual makes a small increase in his personal income but the wider society suffers. Much as I agree with the arguments that Greece has been unfairly treated i can't follow it through for there not to be drastic changes and stronger fiscal policies regarding the enforcement of tax collection.
  13. I was intrigued and disappointed that you've run out of banter and could only point to my profile. I was looking forward to continue mimicking your posts in your acerbic style. <Yawn/> bored now, never liked bullies or ridicule as way to try and make a point. Carry on, and on, and on, and on.
  14. i suppose you must be right. I was so spivvy and stupid to fall for the taxation incentives and propaganda to buy some houses to rent. To get a return higher than leaving my cash on deposit and to make a capital gain as well. Mea culpa, mea culpa (that's Latin by the way).
  15. Unsurprising when you see how well some have done from the increase in house prices. There was a programme on Channel 4, I think, last week that gave a few examples of how tenants benefited from the right to buy legislation. The most extreme example I viewed was the council tenant who purchases his Georgian town house for £1 in the mid 80s. The agent valuing it suggested it should sell for around £1,350,000. That's more than enough to purchase a substantial house elsewhere and fund his retirement. With a windfall like that he can pick and choose where he wants to live. I find London enjoyable on my infrequent visits, not somewhere I would like to live permanently.
  16. That's the one. Must have been a Freudian slip, me thinking Bland Unsight is a bunny boiler.
  17. It is correct english usage. Perhaps you ought to look at my comment again. I said using fora as opposed to forums was pretentious. Maybe comprehension is not a strong suit of yours. Perversely Agenda is the latin plural form now used as singular in English. The plural form in English is formed by adding an "s". So no it's not fora as in Agenda.
  18. I don't like the way banks break their word whenever it suits them. I can't say the West Brom decision frustrated me, it had no effect on my position then or now. Santander reconsidered their attempt to go back on their word, remember no charges ever for their basic business account. As far as taxation rules changing, well that's just something we have to live with. Governments use taxation as a way to influence economic behaviour so we have to accept that what is encouraged may well be discouraged in the future. By its nature fiscal policy will change with economic results as well as public opinion. The private rental sector is, in my opinion, a necessary option that should be available. There are times when renting a property may be more suitable for some than owning. I think I've always treated my tenants with respect and kept my side of the bargain with them. As far as my foray into BTL went it surpassed my investment objectives, there was no other investment I would have risked such high leverage with, nor would I have achieved such high returns. This isn't a boast simply a statement of fact. I've not ever mentioned the return I made in terms of rate or quantum in any post. Apart from obvious jibes I've maintained that being a landlord doesn't make me evil, incompetent, greedy or whatever other insult you hurl at me. You clearly disagree with the choice I made and in your opinion I am wrong. Whatever, it exceeded my investment objectives within the law. A tongue in cheek remark about considering buying some more properties to rent, but then most zealots lose whatever sense of humour they may have very quickly when someone has the temerity to disagree with them. If I do decide to purchase property to rent in the future then it will be an investment decision, as despite your opinion it is legal, ethical and in demand. The taxation changes mean that I wouldn't take as highly leveraged position as I did previously. Also I do find your stance somewhat hypocritical. You make a big point of telling us that you could have afforded to purchase some time ago. You assert that you didn't think buying represented good value, it seems to me that your issue is that the conclusion you drew from your analysis was incorrect, prices didn't fall as you hoped and you became frustrated that house prices continued to increase confounding the conclusion of your analysis. In short you weren't as clever as you think you are.
  19. There you go again. I guess you just can't help yourself, a lot of my teachers had odd senses of humour. It's a shame you're not an english teacher. Your buddy Venger could do with being taught how to write grammatically correct sentences. For the "high flying" professional that he boasts he is, his standard of written english is quite simply appalling. Writing this has taken my thoughts back to the delectable english teacher whose class we looked forward to. Sitting on her desk facing the class, think Sharon Stone in Fatal Attraction. I wonder, no I wouldn't think so, you spend so much time on forums, or as you pretentiously say "fora", you're probably quite geeky. I see another of your cheerleaders, S1, has also now taken to using "fora". I must confess that the posts he made with <BR> <BR> were his most sensible.
  20. Rent is a legitimate business expense. http://www.hmrc.gov.uk/manuals/bimmanual/BIM46801.htm
  21. I for one am thankful that the pioneers of the building society movement never had your outlook. http://blog.abundancegeneration.com/2013/05/history-of-building-societies/
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