The Masked Tulip Posted August 28, 2010 Share Posted August 28, 2010 Cherie Blair has paid almost £1million in cash for a house for her daughter. The three-bedroom maisonette in a Georgian townhouse in central London becomes the eighth home in the Blairs' seemingly ever-expanding portfolio. It was bought mortgage-free in the names of Mrs Blair and her 22-year-old daughter Kathryn, Land Registry documents show. Read more: http://www.dailymail.co.uk/news/article-1306879/Blairs-buy-1m-London-townhouse-cash-daughter-22.html#ixzz0xrWs7Tsd Quote Link to comment Share on other sites More sharing options...
MrPin Posted August 28, 2010 Share Posted August 28, 2010 I guess I will never understand why anyone would pay cash for a house. It just doesn't makes sense. Cash looks just the same, no matter how bent it is! Quote Link to comment Share on other sites More sharing options...
MrPin Posted August 28, 2010 Share Posted August 28, 2010 Still its beter to keep it for other things and let the banks do the house buying bit without the need for cash changing hands. I'm pretty sure Ton'y's wallet is fatter than mine. Quote Link to comment Share on other sites More sharing options...
MrPin Posted August 28, 2010 Share Posted August 28, 2010 Yes but it is still a gross waste putting cash on a house absolute madness. Maybe God told him to do it? Quote Link to comment Share on other sites More sharing options...
Kyoto Posted August 28, 2010 Share Posted August 28, 2010 Still its beter to keep it for other things and let the banks do the house buying bit without the need for cash changing hands. It doesn't mean they walked in with a suitcase of physical money. Just that they bought it without a mortgage. (Unless you know that and I missed the joke!) Quote Link to comment Share on other sites More sharing options...
GloomMonger Posted August 28, 2010 Share Posted August 28, 2010 Still its beter to keep it for other things and let the banks do the house buying bit without the need for cash changing hands. Maybe they know asset inflation is coming! Quote Link to comment Share on other sites More sharing options...
TylerDurden Posted August 28, 2010 Share Posted August 28, 2010 all the more reason to do it with debt then Am i missing something? I borrowed 47k to buy my house and will pay back around 90k. If i'd had the 47k extra I would have payed 47 not 90. can you give an example of when its not a good idea to buy with your own money. Quote Link to comment Share on other sites More sharing options...
Realistbear Posted August 28, 2010 Share Posted August 28, 2010 (edited) Good move IMO. Time is coming where a roof over t' head is better than a gamble on stocks, metals, bonds or any other investment that can drop in value on the slightest sign of panic. IMO, we are moving into a few months of financial hell with another round of sell-offs in anything* that has risen substantially in price over the course of the last 2 years. __________________ *Including you-know-what. Edited August 28, 2010 by Realistbear Quote Link to comment Share on other sites More sharing options...
TylerDurden Posted August 28, 2010 Share Posted August 28, 2010 The only time that you should buy a house with money is if you are at the end of your earning life cycle. Otherwise it is bets that you minimise the deposit and get a house on a mortgage that way you are combating inflation. Your cash is always better kept for better things than a hose paying a house down is not a wealth building strategy. Better kept for what exactly? Im earning a wage so have money coming in. If i have payed down for my house then all my wages are mine. If i have a mortgage then i have the money in the bank but i have to pay the mortgage out of my wages. In my mind things are always better paid for. Always. If for no other reason than peace of mind. Someone who has a mortgage must worry more about sickness/injury than someone with no debt? Quote Link to comment Share on other sites More sharing options...
righttoleech Posted August 28, 2010 Share Posted August 28, 2010 Just a hard working family doing the right thing. We are all in this together. Quote Link to comment Share on other sites More sharing options...
rxe Posted August 28, 2010 Share Posted August 28, 2010 (edited) You need to look at it in terms of return on cash invested against return on that investment which is known an\a a cash on cash (COC) return. When you do this with housing the less you pit into the deal the higher your COC. Depends on the size of your portfolio, and indeed, whether your objective is wealth generation, or peace of mind. I bought with no debt. I could have taken out a whopping loan and bought with that, but I would have to be certain that the yield I was getting on my invested stash was greater than the 4% the loan would cost me, + the risk premium of my investments going tits up. I couldn't make this stack up, so I plonked the cash down. Increasing exposure to risk was not in my interests - I have plenty of exposure to this already. So I am completely debt free, if I was fired tomorrow, I could last probably 5 years, and I'm happy! If you look at it from the Blair's POV, then assuming they survive 7 years, they've also avoided 40% IHT - no brainer really. Edited August 28, 2010 by rxe Quote Link to comment Share on other sites More sharing options...
Minos Posted August 28, 2010 Share Posted August 28, 2010 Good move IMO. Time is coming where a roof over t' head is better than a gamble on stocks, metals, bonds or any other investment that can drop in value on the slightest sign of panic. IMO, we are moving into a few months of financial hell with another round of sell-offs in anything* that has risen substantially in price over the course of the last 2 years. __________________ *Including you-know-what. Cash is no longer king? Quote Link to comment Share on other sites More sharing options...
xiox Posted August 28, 2010 Share Posted August 28, 2010 You need to look at it in terms of return on cash invested against return on that investment which is known an\a a cash on cash (COC) return. When you do this with housing the less you pit into the deal the higher your COC. I'm pretty puzzled by this. Can you explain it a bit further? Say I can afford to pay for my house in cash. This means I won't have to pay interest and will save (while I earn from my employment) roughly the value of the house over the lifetime of the mortgage.If I borrowed the money and invested my cash, I'd need a return on that cash of around 100% over the lifetime of the mortgage. If there is no asset price inflation, how is this return on the invested cash achievable? Low interest rates means it's useless in a bank and the stock market returns aren't exactly secure. Maybe if inflation is rocketing and my wages are increasing, the mortgage would be sensible, otherwise I can't see the logic. Furthermore, the lack of cash means that I can always get unemployment benefit if I become unemployed. Quote Link to comment Share on other sites More sharing options...
maxdiver Posted August 28, 2010 Share Posted August 28, 2010 it makes a lot of sense to buy a house with a mortgage. buying it with credit cards is lunacy (but I know someone who got their £40k deposit this way ) Maybe, with a portfolio of 8 properties, the Blair's MEW'd on a mortgage charging +/- BOE base rate and ploughed it into this million pound place. The current best variable rates are around 2%+base rate - making a saving of maybe £20k a year on 1 million pounds invested in property. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 28, 2010 Share Posted August 28, 2010 You need to look at it in terms of return on cash invested against return on that investment which is known an\a a cash on cash (COC) return. When you do this with housing the less you pit into the deal the higher your COC. I was brought up similar to you with respect to debt, with all the good intentions, but that was wrong I have broke the mould and thankfully have not perpetuated it with with my children. A friend of mine shares your attitude. He alternates between being a multimillionaire (many tens of millions) and being bankrupt. Haven't seen him for a couple of years so I don't know which he is currently. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 28, 2010 Share Posted August 28, 2010 I ruin on a COC of 25%. Freudian slip Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 28, 2010 Share Posted August 28, 2010 Jeez your idea of a friend and mine are orders of magnitude divided. There is no way I would be guessing on the welfare of a friend afte rsuch a length of time. I guess the term friend is not definable around here. I have many friends that I don't see for ages. You don't have to see someone every day to remain a friend. He's either my rich friend or my poor friend, makes no difference to me. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted August 28, 2010 Share Posted August 28, 2010 (edited) The only time that you should buy a house with money is if you are at the end of your earning life cycle. Otherwise it is bets that you minimise the deposit and get a house on a mortgage that way you are combating inflation. Your cash is always better kept for better things than a hose paying a house down is not a wealth building strategy. Maybe slick Tone is sub prime and can't get a mortgage. Anyway the "elites" are still buying houses. Should tell us something I suppose. Edited August 28, 2010 by Sir John Steed Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 28, 2010 Share Posted August 28, 2010 Okay then to conclude your point can you give him a buzz if he still has phone and tell us whether he is a multi or a bankrupt, I will accept what you report in this regard. Why, do you want to borrow some money off him? I detect some scepticism in your reply. What I've said is absolutely accurate, if you don't want to believe it, that's up to you. However, when I next see him, the first thing I will ask is whether he's a millionaire or bust, it's a standing joke. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted August 28, 2010 Share Posted August 28, 2010 Well if he is in the lending way I would away like to discuss terms. Far from me to doubt your sincerity with this muti. I guess that the ones that I knew I am are far closer to. Either way I eagerly hope your colleague confirms his continued multi status with you when you next speak to him and you take the time to post this fact. Quote Link to comment Share on other sites More sharing options...
tim123 Posted August 28, 2010 Share Posted August 28, 2010 I guess I will never understand why anyone would pay cash for a house. It just doesn't makes sense. The reason why some "anyones" pay cash is because they are cash rich but have zero income (apart from that generated by the cash). Getting a mortgage in those circumstances can be impossible. tim Quote Link to comment Share on other sites More sharing options...
VeryMeanReversion Posted August 28, 2010 Share Posted August 28, 2010 It was bought mortgage-free in the names of Mrs Blair and her 22-year-old daughter Kathryn, Land Registry documents show. I wonder if the soilicitors managed to do the paperwork in less than 45 minutes. Quote Link to comment Share on other sites More sharing options...
Guest spp Posted August 28, 2010 Share Posted August 28, 2010 (edited) Good move IMO. Time is coming where a roof over t' head is better than a gamble on stocks, metals, bonds or any other investment that can drop in value on the slightest sign of panic. IMO, we are moving into a few months of financial hell with another round of sell-offs in anything* that has risen substantially in price over the course of the last 2 years. __________________ *Including you-know-what. A gamble on metals?? You really don't get it RB! Edited August 28, 2010 by spp Quote Link to comment Share on other sites More sharing options...
lulu Posted August 28, 2010 Share Posted August 28, 2010 You need to look at it in terms of return on cash invested against return on that investment which is known an\a a cash on cash (COC) return. When you do this with housing the less you pit into the deal the higher your COC. I was brought up similar to you with respect to debt, with all the good intentions, but that was wrong I have broke the mould and thankfully have not perpetuated it with with my children. Regardless of that, if I won the Euromillions last night (not checked the ticket yet so who knows) I would pay cash for a house (I would not need to spend a million though) and stop worrying about it. Quote Link to comment Share on other sites More sharing options...
Lucifer Posted August 28, 2010 Share Posted August 28, 2010 Shouldn't the strapline be: "War Criminal Buys Another House with Blood Money?" I take the opportunity to repost an earlier comment about this repugnant lizard of a man: "...a genuinely unpleasant person, selfish and borderline psychotic, a murderer, a conman, spiritually rotten, a soulless modern day vampire gorging off the blood of the innocent...utterly lacking in conscience and compassion, an empty void filled only with greed, self interest and ambition. A creature of the devil, a reincarnation of evil." Quote Link to comment Share on other sites More sharing options...
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