Jump to content
House Price Crash Forum
Sign in to follow this  
New Bear

The Tide Is Turning

Recommended Posts

Hi everyone,

I'm a new member but I've been using the website for a few months now before taking the plunge. I've got two comments and a question

First, I want to say thanks to you all for the various discussions I've read. I sold a house in Scotland in May to move south of the border. Although I was shocked at the prices I might well have bought just because like most people at that time I had not really looked into the housing market. I was relying on the sites of the various vested interests until I came across HPC. It persuaded me not to rent not buy. On top of that I've learnt a hell of a lot about how the economy works. So a big thanks.

Second, when I first started suggesting to people I know that prices were set to fall no-one believed me or were at best sceptical. Gradually that sentiment has moved. For example (just one among many), a few weeks ago a colleague told me he was about to remortage to fund the purchase of a flat in London for his daughter. I seriously tried to persuade him that it would be disasterous. He insisted that he should do it and that it was "all about location". Yesterday he told me his daughter had gone to see the flat with a friend who happnes to be an economist. His advice was exactly the same as mine and he's decided not to go ahead. He's also begun to see that the UK economy is in deep trouble. His daughter will now rent for at least another year. I noticed over the summer that confidence in the crash (however we define that) started to weaken among posters on the site. My message is to hang on because in my experience sentiment among ordinary people is rapidly changing.

My question is about how to invest the money from my sale. I'm still puzzled about how to safeguard the money I'll need to buy a house eventually but protect it from inflation and get some sort of reasonable return on it. I'm especially interested in thoughts about offshore accounts - but in what currency as the main ones that accounts seem to be offered in ($, £ and Euros) all look vulnerable at the moment.

So thanks ones again for the great work this site has done.

Share this post


Link to post
Share on other sites

Why not try a post in the general investment forum.....I'm sure there'll be many suggestions. However, I'd really reccommend doing a lot of research for yourself. Not many on here are qualified financial advisers! ;)

Share this post


Link to post
Share on other sites

No disrespect to HPC's investment forums, but try looking at the Motley Fool website and discussion boards for investment advice. Thanks to tidbits I picked up there, I've had a 32% ROI this past 18 months.

Share this post


Link to post
Share on other sites
My question is about how to invest the money from my sale. I'm still puzzled about how to safeguard the money I'll need to buy a house eventually but protect it from inflation and get some sort of reasonable return on it. I'm especially interested in thoughts about offshore accounts - but in what currency as the main ones that accounts seem to be offered in ($, £ and Euros) all look vulnerable at the moment.

ING direct account - good interest rates.

A word of caution about offshore accounts. While the headline rates can look great, the inflation within that country has to be taken into account. No point earning 29% if you lose 25% due to inflation (there are a number of countries that are similar to this).

The tax benefits of offshoring are now diminishing thanks to Gordon Brown.

Share this post


Link to post
Share on other sites

Blimey, if you are considering investing offshore for returns of 29% against 24% inflation then you have many more risks to consider than that. Currency risk is a massive issue but I don't think the newbie is really interested in such types of investments from the questions asked.

If you are looking at Sterling then you have no additional issues such as inflation or currency risk in this context.

Why not look at HSBC, I saw an advert for them offering 8% last night, although I don't know the conditions.

Share this post


Link to post
Share on other sites
Why not look at HSBC, I saw an advert for them offering 8% last night, although I don't know the conditions.

Beware.

This is not the same as putting in (say) 12K and getting 8% = 960 after a year.

You have to split up your deposit into monthly chunks so you only get 8% for a year on chunk 1=1K=80,

so chunk 2 is 11/12*8% on 1K=73

sand chunk 3 is 10/12*8% on 1K=67 and so on.

If you do the math you end up with somewhere less than 4%.

If it looks too good to be true....

Share this post


Link to post
Share on other sites
Beware.

This is not the same as putting in (say) 12K and getting 8% = 960 after a year.

You have to split up your deposit into monthly chunks so you only get 8% for a year on chunk 1=1K=80,

so chunk 2 is 11/12*8% on 1K=73

sand chunk 3 is 10/12*8% on 1K=67 and so on.

If you do the math you end up with somewhere less than 4%.

If it looks too good to be true....

Not entirely true. The main catch is that you need their current account (if it's the same scheme I looked at months ago) where your cash will earn less than 0.1%. You do get 8% on all your cash in the savings account for the amount of time it is in there but the amount you can save is limited to £250 pcm. Just keep the rest of it in an account giving ~5% and make the monthly transfers to the HSBC direct account and you end up with ~6.5% interest on the final sum in the HSBC savings.

Edited by europbaron

Share this post


Link to post
Share on other sites
Not entirely true. The main catch is that you need their current account (if it's the same scheme I looked at months ago) where your cash will earn less than 0.1%. You do get 8% on all your cash in the savings account for the amount of time it is in there but the amount you can save is limited to £250 pcm. Just keep the rest of it in an account giving ~5% and make the monthly transfers to the HSBC direct account and you end up with ~6.5% interest on the final sum in the HSBC savings.

BTW I'm not sure if these are still available, but Halifax and Abbey do similar accounts at 7% interest with no current account tie-in. I use both to tuck away £750 pcm from my regular savings account at ~4.8% which will earn me an extra £100 in interest per year over leaving it in said savings account. Not much but enough for the trouble of filling in a few forms.

Share this post


Link to post
Share on other sites

Had a similar issue with Halifax. I was saving into an account on a monthly basis to achieve their best return actually I was just moving the money across, and I forgot to do it once. They never reminded me and then when I asked 6 months later they said I had contravened the contract so they gave me nothing. :angry:

I was overseas so I couldn't check it.

Then I took 300 quid out of an account overseas and they logged it as 3000, then after 2 months of being overdrawn, they were still claiming it was not their fault but the overseas ATM (Barclays Africa).

I finally had to sign something to say I took full repsonsibility if it was fraud. Then they did the reverse entries and instead deducted another 3000 in error.

They blamed the error on their central African office in Kenya, who then tried to reverse both and got it wrong and took another 2 x 3000 from my halifax account in the UK.

So I was 12 grand overdrawn and it finally got sorted after 5 months when they gave me the money back.

I will be removing my money from Halifax and wouldn't touch Barclays with a Nile barge pole!

:angry: :huh:

Share this post


Link to post
Share on other sites
Had a similar issue with Halifax. I was saving into an account on a monthly basis to achieve their best return actually I was just moving the money across, and I forgot to do it once. They never reminded me and then when I asked 6 months later they said I had contravened the contract so they gave me nothing. :angry:

I was overseas so I couldn't check it.

Then I took 300 quid out of an account overseas and they logged it as 3000, then after 2 months of being overdrawn, they were still claiming it was not their fault but the overseas ATM (Barclays Africa).

I finally had to sign something to say I took full repsonsibility if it was fraud. Then they did the reverse entries and instead deducted another 3000 in error.

They blamed the error on their central African office in Kenya, who then tried to reverse both and got it wrong and took another 2 x 3000 from my halifax account in the UK.

So I was 12 grand overdrawn and it finally got sorted after 5 months when they gave me the money back.

I will be removing my money from Halifax and wouldn't touch Barclays with a Nile barge pole!

:angry: :huh:

Thanks for the various suggestions and warnings. I will certainly be more careful about offshore now.

Share this post


Link to post
Share on other sites

open 2 savings bank accounts in 2 different banks or use premium bonds. stash your cash.

wait till prices drop.

the market will be looking to eat your funds since theres no housing left to eat. they will find a way to get your cash by stocks, tax, metals or daft investments.

hey teacher.!! leave that cash alone..>!!

Share this post


Link to post
Share on other sites
open 2 savings bank accounts in 2 different banks or use premium bonds. stash your cash.

wait till prices drop.

the market will be looking to eat your funds since theres no housing left to eat. they will find a way to get your cash by stocks, tax, metals or daft investments.

hey teacher.!! leave that cash alone..>!!

Hey preacher... leave that crash alone...

Oh yes, and welcome to the nut house New Bear. B)

Share this post


Link to post
Share on other sites

It totally depends on your attitude to risk, expected return, timescale, and frankly how much effort and legwork you are willing to put in. You could get 5% in a nice high interest account guaranteed for the next 3 years and sleep soundly at night with no worries at all, or you could stick it all on the 3:30 at Newmarket.

Personally although most of my money is in what I consider "safer" investments, I do also have a spreadbetting account with a small amount of funds, because the urge to speculate is a a completely natural human emotion and shouldn't be totally repressed.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.