lowrentyieldmakessense(honest!)
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Posts posted by lowrentyieldmakessense(honest!)
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Can we go back talking about the demise of milkmen - my ex is now seeing a milkman (Mr. Perfect, Mr. Gulliable morelike), and I would love (bitter and angry mode) for them to be the major casualties of the coming global financial crisis... perhaps not!
demise of milkmen
is this why the uk birth rate is falling
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Local small businesses starting to go bust - have you noticed any around your area ?
Local plastic window and conservatory business that has been trading for over 25 years has gone into liquidation this week. Owner offered to re-mortgage his house in order to ride the slow market. The bank manager refused to accept and stated " if you have been unable to make a profit the the last 12 months you certainly will not be able to in the next 12 months - call it a day now and keep your house "
Local Koi fish pond shop also gone bust - Poor sales last 12 months and bank calls it a day. Owner tells me many garden centre related businees will be going bust big time very soon.
FOUR local lorry business that deliver aggregates to the construction industry have gone bust due to reduced work load and high fuel prices - All have been running a less than cost for over a year ?
When you think of how many business are linked to debt boom we have just had - how many more are going to go to the wall ?
Its's interesting that the aggregate delivery business have gone under - there still seems to be a lot of construction work going on though so i am surprised at this and I haven't noticed a dowturn for local tradesman yet - they still seem to be able to charge a fortune - make a mess and not turn up on time or not at all.
architect client noticed a drop off in work about 12 months ago and he thinks his industry gets to notice the start of a recession at an early stage
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Meanwhile, the Office of Fair Trading announced today that it has forced two Countrywide directors to improve their conduct and be more transparent in their dealings with consumers.
Mairi Eckford, Managing Director, Michael Miller, Sales Director, and Stuart Black, ex-Area Manager had breached the law surrounding estate agents' practice by failing to disclose their personal interest in new-build properties that they had bought and were selling via Countrywide.
why oh why have they allowed these people to carry on as directors!
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That is a morally reprehensible opinion as far as I'm concerned.
p.s. by their very nature parasites must consume less than their hosts. There is only so much room for parasites in an economy before they kill their host or compete each other into oblivion. I suspect there are many more intelligent and capable parasites than you, so your chances are not good in the long run.
it was sarcasm
i think you need some love in your life
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Bought some gold recently, or did you short the FTSE just be before it wobbled and then rocketed over 5500?
If we are all to be bloody speculators, who is going to do some real work?
wrong on both counts
if i was going to invest in anything dr bubb had suggested i would do my own research and come to my own conclussions first
real work - who wants to do that when we can outsource it and get rich by thinking
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"You essentially don't really give a damn about other people, other than advising them not to buy property and to buy gold instead. "
THAT IS unfair.
My point is this: Government is NOT the answer.
Once you have lived in three different countries, you will begin to see that
Doing things for people you know, you can see, or can interact with (even on the web)
is a much more effective way to make a difference,
than to vote for a politician who promises things he cannot deliver
yes i think it was very unfair.
I for one know that you sharing some of your knowledge has helped me.
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i can get you £4 a piece for those pallets.
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I am really not telling anybody to do anything, just listing my personal experiences.
just an observation
but two months investment experience and your into gold and commodities.
you are either a very fast learner or your telling fibs about your level of experience
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No, I haven't got any hot tips nor do I think any tips are hot.
There have been a few posts asking how to buy shares. I received the odd PM on the subject as well. I have the grand total of 2 months experience and it has been a sharp learning curve. I have made a profit so far which is very satisfying. For anybody else planning to do the same - this is what I have learnt.
1) You will lose money on some deals, maybe even a painful amount - grin and bear it.
LESSON - on each individual deal ask yourself what is the most you are prepared to lose and do not commit any more than that.
2) It is not worth investing a couple of hundred quid unless you plan to hold the investment for a long time. The spreads (difference between buying and selling price) together with the dealing charges will erode any profit you might make. For example I bought £500 of a share for 584 pence and sold it at its peak for 680 pence. Looks good. But when you knock off the charges for the buying and selling it was hardly worth it.
LESSON - my policy is now to invest only a grand at a time - if I have 5,000 to invest that would mean five different shares or funds.
3) At no point have ALL my investments been up, there has always been at least one in the red.
LESSON - Spread your investments and dont put all your eggs in one basket
4) Mutual funds are very stable and do not move down or up a lot, some have high charges, but it seems that they outperform money in the bank.
LESSON - Merrill Lynch Gold and General and other mutual funds in gold or commodities are really worth it at the moment. Max out an ISA in one of them if you can.
5) At the moment, gold is hotter than Meg Ryan / Will Young / Kate Burley / Graham Norton *
LESSON - look at Goldmoney - it seems to be the cheapest and most reliable way of buying REAL gold. (as opposed to vouchers for gold or some other fake gold related type thingy)
* Delete as appropriate, the options have been chosen to suit all ages and sexual orientations
paradox
two months investing experience and you are telling people to buy gold - be carefull
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Soft closing i.e. no commission payable from 1 March 2006.
stand corrected
but they told me that they didnt want the fund to get any bigger (new money) as they would be struggling with their investment style
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Invoice for the penny in the post!
I buy the active asset allocation (AAA) philosophy of investing along with absolute returns. I think I'm a bit of an early mover, after the next property, bond and equity crash others will follow.
Ruffer and MitonOptimal are the best at this (based on my limited knowledge)
Henry Maxey is only the manager, they have a whole team considering what is happening.
When he thinks its time to get out of equities he'll do it - this is AAA.
E&G will rise further than Total return but with greater (and still moderate) risk. Read their and MOs monthly commentaries -on their sites, click on the monthly factsheets.
thanks for sharing your knowledge.
active asset allocation - a good slogan.
ps ruffer will be closing their total return fund early next year
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BTL is taxed - the same as any other income/investment.
only the ones that make a profit or taxed though - the majority of the more recent btl purchases are making losses - the losses can be carried forward to be offset against future profits though
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Er, excuse me but when did an accountant ever give advice?
They do the books, work out tax and suggest paying more divvies than schedule E which frankly is not complex
Accts do not give advice. They are not trained to. They understand Companies Acts or the Partnership Act but really. Advice?
They simply do a simple job.
Advice is actually saving tax, planning, investing, protecting etc
Someone correct me if I'm off base but I've never seen acct actually give advice whatever THEY may call it.
your off base
up until n2 a lot of accountants were authorised by their own regulatory body to do mainstream investment advice.
http://www.accountancyage.com/accountancya...ock-small-firms
accountants should be saving tax, helping people plan both in their business and personal investments - obviously if it is something they are not trained or authorised in they should refer it.
if someones accountant isn't helping them plan with their business and save tax then they should change their accountant.
me thinks your making a bit of a generalisation here - a bit like saying all financial advisers haven't got a clue about the economy are only interested in obtaining the highest commission rate, churning policies to earn more commission and aren't much better than car salesman.
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This all comes back to the 'denial' situation that we find ourselves in. For years it made more sense for people to buy than to rent and this thought has just stuck with so many people for so long. It is going to be difficult to get people to think differently and even I, after all I have read, still have that element of doubt in my mind about it.
The issue of the accountants is worrying though - surely, at the very least, they read magazines like The Economist, Moneyweek or financial articles in various newspapers? At the VERY least surely they have an understanding of the current situation and could at least put forward an argument to back up their position on buying versus renting... obviously not.
yes it is worrying to find myself in the minority - the average age of the others was probably 50ish - i'm 36 - they ought to have a better understaning especially as they will be advising people on both their business and possibly personal finances.
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Got chatting to a friend last night that's looking to relocate from Swindon to Reading, Of the people I know this sort of thing is probably common. Here goes:
He buys a flat two years ago, 130K, 5% deposit, interest only mortgage without even a thought about any savings to pay off the capital.
One year ago has the flat valued at 145K, takes out a 15K loan secured against the property to pay off credit cards etc.
He's now looking to sell up and move, a quick look on nethouseprices shows an identical flat in the road recently sold for 130K. So from the look on his face I think it dawned on him that he's in negative equity.
At this point I was expecting him to say he'll put it on the market for 145K as he has to sell for that amount to cover the loan secured on it however he seemed quite realistic about what it would sell for (actually to my surprise) and decided he'll convert the secured debt to unsecured debt instead!
My key point here is despite the facts:
Two years of paying an interest only mortgage
Mortgage payments greater than rent for a similar place
No capital appreciation
Fees stamp duty and all the other costs involved with buying and selling property
Renting was not mentioned once and he's already got his heart set on a new flat in Reading (viewing it on the weekend). I know if I mentioned renting the reply would have been, "well that's wasted money paying someone elses mortgage"
Certainly in my group of friends this attitude is ingrained in them all, even when they end up in a bit of a financial mess. With rents as low as they are even compared to an interest only mortgage this amazes me. He attitude might change when he gets low offers on his flat, but we'll wait and see. I'll post an update when it's on the market.
renting is dead money
currently doing up a house and needs a lot doing to it - rented another one because its not currently liveable anyway we moved into rented before the purchase went through and i was recently with a group of accountants telling them about this and one of them said renting is just dead money and most of the others nodded. I explained to them the current cost of the rented house if i had an interest only mortgage (much higher than the rent charged) and they just looked stunned - and these are people who should be some of the most financially literate.
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Just remembered the article in The Argus (local paper) said they'd been in business for 50 years - thats a lot of booms & busts they've survived previously.. Does that say anything to anyone..
yes
it says (probably) in recent years it has been managed by people who can't plan - manage business finances for bad times as well as good.
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For no risk:
Put 3K in a mini-cash ISA - shop around for a good deal. Mini-cash ISAs are tax free.
You will be able to put another 3K into it beginning of April (new tax year).
The rest would do ok in a high interest savings account. Cahoot are currently
doing a rate of 5.25% for 6 months!
Premium bonds - you can put a max of 30K (as poster above stated) - with 30K you are
likely to get a win on average 1 per month (though not guaranteed). Any wins are tax
free. Your investment is safe (just like a bank)
not safe from inflation though - unless your numbers come up
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Maybe what we really need is a govt of HPC regulars instead!
yep i'd be up for that
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I agree with every word you wrote.
Unscientific as it might seem, taoism has opened my eyes to the cyclicality of everything, and everyone's denial of the same (mine too).
thanks for the link
interesting - can you recommend a good book?
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Josey for sure, if I could just get spitting on that dog's head right.
I'm a twisted uber-bear who thinks that over the next decade we are going to see a Kondratieff Winter (click).
But fear not. Stay in cash (that's gold for me but Swiss or Singapore (or maybe Japanese) short term treasuries for goldaphobics) and experience the bull run of a lifetime.
Read Prechter (click) and make up your own mind. (I don't agree with it all.)
And I'm open to being proved wrong. And I think it will be followed by the greatest burst of economic growth the world has ever seen as nanotechnology, nascent ai, robotics and the true potential of the internet to cut travel and spread information really kicks in.
EDIT: If you have a few hundred thousand to invest you could try these people as well: http://www.safewealthgroup.com/
prechter - yep read conquer the crash - i think it was you that mentioned it - thought that the stock market would be worse by now though and the dollar hasn't started falling.
Kondratieff Winter i need to read more.
Just ordered the empire of debt by those guys at the daily reckoning (I think their emails make sense).
Josey should have got an oscar
cash - if we get inflation this could be eroded.
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And fully lined curtains, 15 tog duvets, draught excluders, dried pulses/lentils etc, slowcookers and for the UK pensioners; .moon boots
pensioners
the only person i can remember wearing moon boots was the PE Teacher at school when it had been snowing - he was also driving his gold mg midget at the time.
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I've said before: They were twice overvalued at the peak; they'll be twice undervalued at the bottom (and the odd one will slip through, for a few desperate weeks, at an "island bottom" of 90% off).
BUT all in real terms. (Cue horace on my "get-out" clause.)
The way the statistics are being managed and the pound is drooping, it might seem far less dramatic in nominal terms.
90%
come on surely you dont think it will get as low as that - even for the odd one
40-50% in real terms is my guess.
josey wales or good bad and the ugly?
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Scooter and Only me, with respect your missing the point.
Mr average will drool at the prospect of being able to put his future and existing ISA money into property funds. Property funds for the masses will be as popular as sh1t is to Dung Beetles. People understand property they dont understand gold or equities.
Therefore, more money into property market.
so more money into tech funds stopped the market going down did it.
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Im possibly starting a new job with a salary of about 30k. I need to earn over 31400 to be a 40% rate tax payer, so obviously my pension contributions will only have 22% tax relief BUT....
Im likely to have other income so my annual earnings will total 35k+ putting me into the higher tax band.
But will my pensions contributions for my main job get 40% tax relief or 22%?
help!!
you wont hit the 40% band until your income is over 37295 not 31400. This is assuming you just get the standard tax free personal allowance of 4895.
Boe Worried About Lax Lending
in House prices and the economy
Posted
yep does anyone know who is buying them