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profitofdoom

A Safe Haven For Cash

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OK I have a problem.A year ago I sold my house and took a 3 bed semi in P/ex.I now have a cash buyer for the semi which means that in about a month I will be sitting on the full sale price of my own house.Now I understand the bank guarantee scheme extends to £100k on joint accounts,but how safe is it in view of the Greece crisis?

I am wondering whether to shop around and buy a cheapish house to put maybe £100k into bricks and mortar but what to do with the balance. Safe havens? Ideas?

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There's no such thing as safety.

If you stay in cash - even spread across banks - you'll get hammered by the inflation and tax combo. Same applies for bonds, really[1]. It's not so much a risk of loss as a guaranteed loss in real terms.

If you plunge into assets, then you have to accept risk. At least there's an upside risk to match in this case.

[1] The £15k index certs are probably genuinely risk-free, though.

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OK I have a problem.A year ago I sold my house and took a 3 bed semi in P/ex.I now have a cash buyer for the semi which means that in about a month I will be sitting on the full sale price of my own house.Now I understand the bank guarantee scheme extends to £100k on joint accounts,but how safe is it in view of the Greece crisis?

I am wondering whether to shop around and buy a cheapish house to put maybe £100k into bricks and mortar but what to do with the balance. Safe havens? Ideas?

Is that bit a joke?

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OK I have a problem.A year ago I sold my house and took a 3 bed semi in P/ex.I now have a cash buyer for the semi which means that in about a month I will be sitting on the full sale price of my own house.Now I understand the bank guarantee scheme extends to £100k on joint accounts,but how safe is it in view of the Greece crisis?

I am wondering whether to shop around and buy a cheapish house to put maybe £100k into bricks and mortar but what to do with the balance. Safe havens? Ideas?

Joint accounts will be £160k surely. Its 80k per person now, not 50k.

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OK I have a problem.A year ago I sold my house and took a 3 bed semi in P/ex.I now have a cash buyer for the semi which means that in about a month I will be sitting on the full sale price of my own house.Now I understand the bank guarantee scheme extends to £100k on joint accounts,but how safe is it in view of the Greece crisis?

I am wondering whether to shop around and buy a cheapish house to put maybe £100k into bricks and mortar but what to do with the balance. Safe havens? Ideas?

Buy a house and let it out.....

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IIRC GERALD CELENTE was on MAX KEISER the other day saying the only currency that wont devalue is THE SWISS FRANC.

Surely if they all devalue then none actually devalue apart from the Swiss Franc?? :blink:

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Surely if they all devalue then none actually devalue apart from the Swiss Franc?? :blink:

They dont necessarily devalue against each other, but certainly against hard assets/commodities.

Some say the SWISS Franc is least likely to do so.

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They dont necessarily devalue against each other, but certainly against hard assets/commodities.

Some say the SWISS Franc is least likely to do so.

Why is it least likely? Because apparently the Swiss have substantial gold reserves (allegedly) to back their currency up.

So, Profitofdoom, why not cut out the risk and expense of the middle man and buy some gold yourself. The transaction itself is as easy as shopping for anything else. And to be frank, your name is most befitting for a gold investor :lol:

Need more info? Look in the gold and precious metal section on this website. I've covered everything you need to know many times over, as have others.

I had the same dilemma as you. I did my own research and made a decision to put my most of my property proceeds into gold and silver in the first quarter of 2009. It dipped until September 2009, but I held my nerve. Now, two years later I am up about 44% on gold and 100% on silver (that's AFTER its recent correction from $50/Oz to around $35/Oz). Happy Days. B)

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3% interest in an online saver exposes you to less risk (following the £85K limits however!). Choose the right account and you can get instant access and unlimited penalty-free withdrawals. The best it will get this year is treading water against inflation though.

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I'm in the same position with 200+k in my STR fund. If you want to work out the risk of your investments I think you have to take a Bayseian approach and start with an hypothesis. Mine is 1) we're in a stagflationary environment 2) there is little to no chance of UK interest rates rises in the near future and 3) there's a slight to moderate chance of another round of QE. Of course putting a value to the prior, conditional and marginal probability is kind of a Fermi problem, but for me I think beyond all the eurozone crisis fiddle there'll be a buying opportunity in stocks and property which I'd want to be in a liquid position to take advantage of that. So gold and CHuFs are looking good to me.

Edited by kenzdawg

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Why is it least likely? Because apparently the Swiss have substantial gold reserves (allegedly) to back their currency up.

What about the Norwegian Kroner? Its held up very well, and they have large amounts of Oil reserves.

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Thanks for all those views folks.I think the £85k limit pretty much decides it.I will certainly want to go back into property at some point but really want to see what the next year brings.

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I really don't think anyone knows but you can be sure that in a few years time someone will be saying "in the early teens I stuck all my money in ******" while puffing on an improbably large cigar.

The Yen has worked for me (so far!) but I wouldn't advise anyone else to try it but how about some Asian stock/currencies? All I can see is that North America/Europe is on the down and most of Asia is on the way up. The world is rebalancing. $, euro and Gbp will be like an ugly sisters beauty contest.

Anyway, 5% here and 5% there of course....

Can't believe you mentioned property!

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I really don't think anyone knows but you can be sure that in a few years time someone will be saying "in the early teens I stuck all my money in ******" while puffing on an improbably large cigar.

The Yen has worked for me (so far!) but I wouldn't advise anyone else to try it but how about some Asian stock/currencies? All I can see is that North America/Europe is on the down and most of Asia is on the way up. The world is rebalancing. $, euro and Gbp will be like an ugly sisters beauty contest.

Anyway, 5% here and 5% there of course....

Can't believe you mentioned property!

I'm a realist.I will need somewhjere to live and a cheap dump will save me £600 a month on rent.So if a 100k shack loses 5% I am no worse off.What I really don't want to do is have my money waltz off with one of Dave's crooked Eton pals.

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I'm a realist.I will need somewhjere to live and a cheap dump will save me £600 a month on rent.

Less the interest that you were receiving whilst you had the money in the bank. In my case, I receive more interest on the money I'd have to draw out of the bank to buy the house I'm renting than I pay in rent.

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Surely if they all devalue then none actually devalue apart from the Swiss Franc?? :blink:

They can all go down at the same time, all losing purchasing power at the same time, in relation to goods/commodities/services/assets. Many currencies can suffer from inflation at the same time.

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  • 284 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%



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