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sleepwello'nights

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Everything posted by sleepwello'nights

  1. I think you're being unduly pessimistic. A quick look on Rightmove shows 93 two bedroom properties for sale in Basingstoke. Ranging from shared ownership houses at £80k to a bungalow on a large plot at £330k. There are some reasonable looking houses at £200-£220k in respectable areas as well as two bedroom apartments around £180-£200k. Granted prices ticked up over the last 12 months, particularly at the lower end of the market. Presumably Buy to Lets. New builds are definitely more expensive, you could also consider looking further west, prices are lower as you go down the M3 towards the South Coast, except for an uptick in prices around Winchester.
  2. I see I'm already on the list. I have a vague understanding of Capital Asset Risk Management, no deep understanding of the various formulas used to determine the risk premium that would be applied. I found MBA Bull Sh1t ******** on youtube an interesting (gettit ) refresher with various topics on finance. However this does not detract from my application of marginal costing principles to the assertion that a BOE base rate tracker becomes unprofitable when Central Bank base rates fell to historically low levels. Provided the loan generates a higher rate of interest than the tranche of funds used to provide the loan it must generate a contribution. Really the argument then comes down to which tranche of funds is used to provide which strata of the loan book and what provisions are set against them. This must generate interesting (see done it again ) discussions between the actuaries and auditors, to the delight of the regulators. The problem as I understand it is the clever bankers matched long term loans with short term funding and investors took fright at the risks the banks were taking and curtailed investing in the banks. Even so from a quick view of interest rates available from major banks and building societies there are a significant number of savings accounts with very low interest rates.
  3. I've had a quick skim at the post you've linked to. I'll read it more thoroughly over the next day or so to see if it answers my seemingly naïve questions. However, I'm still puzzled why a loan made at a time when interest rates were generally higher, 7 years or so ago, is now regarded as an unprofitable loan when interest rates are generally far lower. In marginal costing terms provided the loan made a contribution then overheads could be disregarded provided there is sufficient other volume to cover the overheads of the organisation. Just so you know I have never worked in a bank so have no insight in understanding how they rationalise their operations. I'm sure they try as hard as they can to obfuscate clarity in their accounting processes as most of the financial services industry. Partly I suspect to justify how clever they must be to warrant awarding such extravagant rewards to some of their employees.
  4. Banks also have lots of other business to cover their other costs. If you apply marginal costing principles then the small volume of Base Rate Tracker mortgages wouldn't necessarily cause a significant increase in banks overhead expenses.
  5. Sure, but what about retail deposits at lower interest rates than BOE base rate? Also the margin above base rate for a large percentage of loans is not the 0.38% that as far as I recall was about the lowest, there were far larger margins in the region of 1-2% above BOE.
  6. Please explain how a lifetime tracker at a margin over BOE base rate will be unprofitable when the banks can use money borrowed at interest rates less than BOE base rate?
  7. Tell me, have you worked out how to use cut and paste in IE 11 in Windows 8 or are you using a different browser?
  8. Actually I had a quick peep at this thread mid afternoon and didn't log out when I moved on to other things. Like terrorising innocent tenants, whipping a few slaves, sneering at some downtrodden unfortunates and so on. Because I'm an evil landlord as your "Clouseau" like investigative skills have discovered . I'm surprised you have work to do, trawling through the posts of anyone that disagrees with your view must be almost a full time job. In any case even if there is an HPC, my housing investments gave me a great return.
  9. Well it looks as if BTL could be a good solution. Provided rents don't fall; and even better if they keep pace with average wages, whether that be an increase or decrease; then even though your nominal capital may be at risk they will still generate an income. Just make sure you have enough properties so their income covers your care home fees. Its fairly common in France i understand for a property owner to sell their property and continue to live in it until their death or move into a care home. Google "Viager Occupe". Getting money out of your savings in such a way that it won't be noticeable to the authorities in the eventuality of an investigation is easy enough. A few pints a day, expensive car, trips to the theatre, and so on and on. The problem is what to do with the amounts you've "spent". You can't put it into a bank account, cash/precious metals under the mattress carries a risk. Problems, problems. Best to spend it and enjoy yourselves.
  10. This type of arrangement is becoming more common. The local authority do not want the responsibility and expense of maintaining the landscaping that their planning departments insist on so the responsibility and expense has to be met by someone. It is immaterial whether the properties responsible for meeting the cost are freehold or leasehold. On the development I live in there is a similar arrangement. There is a major advantage in that the communal landscaped areas of the development are maintained to a much higher standard by the management company than they would be if maintained by the local authority. The grassed areas are mowed regularly, the trees and shrubs are pruned, pavements are kept clear of moss and algae. There is also a play area for young children with swings and play equipment, this was paid for by the developer as part of the S106 contribution. However the play area is maintained by the local authority, not the management company.
  11. Anyone had any experience with United Trust Bank? 5 year fixed rate ISA 2.75%, transfers in only.
  12. Isn't it the same model with two facets. If you consider the idiom "carrot or stick", both approaches work, it isn't necessary to use one or the other. At different times we need different motivations. The citizens income concept that I've seen works on the principle that every citizen receives a minimum level of income, if an individual chooses to put in additional effort they will receive a higher income. I don't subscribe to the notion that we are all intrinsically lazy and that if we have enough to satisfy our basic needs that we will sit back and do nothing nor do I subscribe to the notion that the more wealthy are simply more greedy than the less wealthy. Isn't it because you need a different level of motivation as your needs are satisified.
  13. So what you're really saying is you didn't bother to claim it when you were first entitled to, and they wouldn't change the regulations to suit you. Not the same as your original assertion that you weren't entitled to JSA because you had more than £16k in savings is it.
  14. I must have missed the bit where it is forbidden to rent someone a home. Is it in the Old Testament that you bang on about?
  15. Hypothetically, if I hadn't sold they would be: House purchased for £150k in 2004. 95% LTV, BOE base rate + 0.99% interest only. Current rent £1000 pcm. House purchased for £ 95k in 2000. 95% LTV, BOE base rate + 0.99% interest only. Current rent £1000 pcm. You do the maths. Personally I prefer not to be bitter and resentful. But if it makes you happy.
  16. I bet you were a tricoteuse in a previous life. Why not change your name to Madame Defarge. Anyway if I was affected by West Bromwich Building Society's increased interest rate I would still be getting a better return on BTL properties than most other investments. That's the obstacle you have to overcome before the housing market becomes more palatable to you. Until then you'll have to endure your bitter and resentful attitude to anyone who you think has adapted to present conditions better than you have been able.
  17. How vitriolic. I haven't claimed that anyone has wilfully misrepresented the judgment. All I've done is comment on the interpretation that other posters have made. Nor have I implied that the judgment was unpredictable, or that banks are always in the wrong. My opinion is that bankers are untrustworthy, they use other peoples money to control and direct. That gives them power, and as was famously said "power tends to corrupt". By the way the asterisks between the B and S removed the letters that make the word slang for testicles. Anyway time for a good nights sleep. Night, night all.
  18. From the snippets of the judgment posted previously the judge commented that his decision was based on the terms of the loan there seemed an implication that he did not consider West Bromwich Building Society's change to the base rate to be fair. Still a small concession is that the base rate is not being increased by 1.99% but 1.49%, if the post I saw is correct. In a similar vein Santander tried to impose charges on their "free for life" business bank account. They backed down. As for the unsophisticated and simplisitic (sic) gibe, yes I was fully aware of the terms and conditions of the mortgages I had with West Bromwich Building Society, even down to the clause allowing them to demand repayment at any time during the term. Which by the way is contained in most lenders mortgage T&Cs. Not sure that my posts are gibberish though Kondratiev, perhaps you should sit down quietly and concentrate when you read.
  19. Isn't the point of a currency union that money flows are not always consistent and even. The article on the BBC website this morning "Eurozone needs to share risks warns bank governor" makes the point. Apply the same circumstances to the UK, should we be concerned about the profligacy of Wales, or Northampton, Stoke, or any other large town or area? Should Londoners be concerned that their taxes are being spent to support other regions of the country?
  20. Wow, how interesting to see such a load of ******** sprouted about the law by you guys. Your analyses of the judgment are clearly coloured by Schadenfreude. West Bromwich building society have won their case, but the results of court action are never certain. There are many cases where banks have been taken to task by the courts. Do you recall the recent Scottish case about the loan for the purchase of a laptop from PC World, not sure most of you supported the bank in that case. The underlying lesson here, as always is never trust a banker.
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