Carld Posted September 5, 2010 Share Posted September 5, 2010 i have a friend who is thinking to str permanantly and i have told them to sell asap as i think it is becoming more and more difficult but i was wondering where they will get a good return on their savings which will probably be around the £50,000 amount they would like to use the return to ease pressure on renting as his work can be unstable thanks carl Quote Link to comment Share on other sites More sharing options...
petrodollar Posted September 5, 2010 Share Posted September 5, 2010 i have a friend who is thinking to str permanantly and i have told them to sell asap as i think it is becoming more and more difficult but i was wondering where they will get a good return on their savings which will probably be around the £50,000 amount they would like to use the return to ease pressure on renting as his work can be unstable thanks carl Carl. Real returns above inflation are just about non existant, this means for example if rents rise the return on the cash wont keep up. Also if the cash is not placed in isa which would take years to allocate at 3600/-1 and with no other tax free places other than Premium bonds any Interest will be taxed making return even worse. The ugly truth is if you need a roof over your head you should be looking to buy a house or a tent. Offers at asking - 20% should be safe enough. Long term renting is a mugs game lost money your friend needs to look to the long term 20+ years. Quote Link to comment Share on other sites More sharing options...
General Congreve Posted September 5, 2010 Share Posted September 5, 2010 i have a friend who is thinking to str permanantly and i have told them to sell asap as i think it is becoming more and more difficult but i was wondering where they will get a good return on their savings which will probably be around the £50,000 amount they would like to use the return to ease pressure on renting as his work can be unstable thanks carl Tough times. Personally I've made 20% on gold bullion in the last 20 months. Can't recommend it to everyone though. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted September 6, 2010 Share Posted September 6, 2010 Carl. Real returns above inflation are just about non existant, this means for example if rents rise the return on the cash wont keep up. Also if the cash is not placed in isa which would take years to allocate at 3600/-1 and with no other tax free places other than Premium bonds any Interest will be taxed making return even worse. The ugly truth is if you need a roof over your head you should be looking to buy a house or a tent. Offers at asking - 20% should be safe enough. Long term renting is a mugs game lost money your friend needs to look to the long term 20+ years. Buy now, in a falling market? You must be joking. You'd be better off putting your money in a current account at zero interest than buying a house and losing 30% to 40% of your capital over the next few years. Quote Link to comment Share on other sites More sharing options...
petrodollar Posted September 6, 2010 Share Posted September 6, 2010 Buy now, in a falling market? You must be joking. You'd be better off putting your money in a current account at zero interest than buying a house and losing 30% to 40% of your capital over the next few years. I did say with -20% offer. Prices for small homes in my area have recovered +15% from last year...+15%. would expect they will drop again perhaps -20%, over the next 18 months but thats it endoff, the gov will then prop and print and print and prop and wont allow it to crash as some on here are hoping. IMO after a about 36 months inflation will then let rip to double figures and house prices will go with it. Point is this with a -20% offer now might be the best it gets. Indeed I am looking to buy a property to rent terraced inner city at -20% of asking as a better return for my cash currently inflating away in the banks. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted September 6, 2010 Share Posted September 6, 2010 I did say with -20% offer. Prices for small homes in my area have recovered +15% from last year...+15%. would expect they will drop again perhaps -20%, over the next 18 months but thats it endoff, the gov will then prop and print and print and prop and wont allow it to crash as some on here are hoping. IMO after a about 36 months inflation will then let rip to double figures and house prices will go with it. Point is this with a -20% offer now might be the best it gets. Indeed I am looking to buy a property to rent terraced inner city at -20% of asking as a better return for my cash currently inflating away in the banks. It's your money, but don't say I didn't warn you . See my sig , which I wrote in January 2009. Quote Link to comment Share on other sites More sharing options...
petrodollar Posted September 6, 2010 Share Posted September 6, 2010 It's your money, but don't say I didn't warn you . See my sig , which I wrote in January 2009. Absolutly I know the situation is dire, I ve been here a long while now and saw this whole crash roll out since 2006. If i do decide to pitch in to property it will be at the right price as I see it. But frankly what else can be done no savings product is available to protect from inflation and precious metals are in bubble state. Quote Link to comment Share on other sites More sharing options...
twatmangle Posted September 6, 2010 Share Posted September 6, 2010 It's a shame that everyone only ever thinks about the financial side of buying a house. I know people who are buying right now, who are aware that prices are falling.... they just want somewhere to live, and they accept the consequences. I wouldn't call them stupid, or even foolish, it's just that the financial aspect is secondary. They are quite wealthy and have well paid jobs and don't want to wait 5 years for a correction that might never come. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted September 6, 2010 Share Posted September 6, 2010 Absolutly I know the situation is dire, I ve been here a long while now and saw this whole crash roll out since 2006. If i do decide to pitch in to property it will be at the right price as I see it. But frankly what else can be done no savings product is available to protect from inflation and precious metals are in bubble state. My money is staying in the bank (NS&I) at just under 4%. But, as I said above, I'd rather put it into a current account at zero interest and accept inflation losses for a year or two than buy a house in the present market conditions and risk losing 40% of it on a depreciating asset. It's not ideal, but I can live with losing a few percent to inflation for a couple of years whilst waiting for rates to rise. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted September 6, 2010 Share Posted September 6, 2010 It's a shame that everyone only ever thinks about the financial side of buying a house. I know people who are buying right now, who are aware that prices are falling.... they just want somewhere to live, and they accept the consequences. I wouldn't call them stupid, or even foolish, it's just that the financial aspect is secondary. They are quite wealthy and have well paid jobs and don't want to wait 5 years for a correction that might never come. But you don't need to buy, I'm renting a really nice house at much less than the cost of buying it. Quote Link to comment Share on other sites More sharing options...
scrappycocco Posted September 7, 2010 Share Posted September 7, 2010 Completed sale of my house and now renting but starting to question my course of action. If they print more (or steal more from us) won't they be shooting themselves in the foot when a lot of the debt is index linked? Quote Link to comment Share on other sites More sharing options...
twatmangle Posted September 8, 2010 Share Posted September 8, 2010 But you don't need to buy, I'm renting a really nice house at much less than the cost of buying it. As you keep saying. And nobody cares. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted September 8, 2010 Share Posted September 8, 2010 As you keep saying. And nobody cares. It's obvious that you hate it, but I shall continue to point out the obvious alternative to buying whenever you jokers try to ramp the market on this forum. Quote Link to comment Share on other sites More sharing options...
twatmangle Posted September 8, 2010 Share Posted September 8, 2010 It's obvious that you hate it, but I shall continue to point out the obvious alternative to buying whenever you jokers try to ramp the market on this forum. Why would I ramp? It's not in my interests for prices to go up. Silly old man. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted September 8, 2010 Share Posted September 8, 2010 (edited) Why would I ramp? How would I know why you do it, but you do! http://www.housepricecrash.co.uk/forum/index.php?showtopic=150746&view=findpost&p=2703374 . Edited September 8, 2010 by Bruce Banner Quote Link to comment Share on other sites More sharing options...
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