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iamnumerate

Converstaions with BTLs

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I tried to persuade a friend who has a flat she lets out (No mortgage) to sell it, her attitude was "But what would I do with the money?"

She is still a landlord, anyone else have similar conversations?

Ā 

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If own it or almost own it, keep it if it pays more than costs to run, taking into consideration the hassle and inconvenience of owning, when the advantages well outweigh the disadvantages........ don't bet with money you can't afford to lose.šŸ˜‰

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It doesn't surprise me. In their world there are only bank accounts and houses. The stock market is witchcraft.

Is she a teacher?

Edited by Si1

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Have a friend who isĀ  a BTL, spoke for last 2 years about the tax chages....he still has no idea what they mean or the full implications.......they are all businessmen and women of course

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1 minute ago, happyguy said:

if she is getting say Ā£1000 a month and has no mortgage the costs will not be anywhere near that so itĀ makes sense to keep it and keep an income coming inĀ 

Non sequitur

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2 minutes ago, happyguy said:

if she is getting say Ā£1000 a month and has no mortgage the costs will not be anywhere near that so itĀ makes sense to keep it and keep an income coming inĀ 

Only if nothing else gives a better return (no idea if that is true or not).

Ā 

23 minutes ago, Si1 said:

It doesn't surprise me. In their world there are only bank accounts and houses. The stock market is witchcraft.

Is she a teacher?

No

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48 minutes ago, iamnumerate said:

I tried to persuade a friend who has a flat she lets out (No mortgage) to sell it, her attitude was "But what would I do with the money?"

She is still a landlord, anyone else have similar conversations?

Ā 

Even if the big property crash never happens, at the very least property has hit top and is unlikely to rise in the next decade, maybe longer. She has done OK, so maybe it's time to be prepared for the next big thing, I have a few ideasĀ šŸ™‚

But she could end up being one of many who end up boring everyone with their tale of their property was once worth Ā£300,000 and now it is back to Ā£150,000, which I personallly will take great joy in

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1 minute ago, iamnumerate said:

Only if nothing else gives a better return (no idea if that is true or not).

Ā 

No

1) not forgetting income tax implications. Does she declare the income to HMRC?

2) oh :)

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2 minutes ago, iamnumerate said:

Only if nothing else gives a better return (no idea if that is true or not).

Sadly you do not get much in an isa or BS account these days !

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25 minutes ago, Si1 said:

The stock market is witchcraft.

Well, it basically is. Strategies which result in good gains will also get you seriously burned in the events of last few (and upcoming) days

Ā 

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3 minutes ago, Locke said:

Well, it basically is. Strategies which result in good gains will also get you seriously burned in the events of last few (and upcoming) days

Ā 

Except for plain old fashioned balanced portfolios, low costs and buy and hold.

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One of the purported benefitsĀ of capitalism is that it allocatesĀ resources efficiently by rewarding those people best able to allocate resources with more resources to allocate.Ā 

The entire BTL debacle has been based upon allocating resources to those least able to invest them effectively. Ā 

Itā€™s no surprise that these people donā€™t know anything about investment, the surprise is that they got the capital in the first place.Ā 

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1 minute ago, BorrowToLeech said:

One of the purported benefitsĀ of capitalism is that it allocatesĀ resources efficiently by rewarding those people best able to allocate resources with more resources to allocate.

It does. The problem is, we do not have capitalism.

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4 minutes ago, longgone said:

many won`t go near it. including me.Ā Ā 

lots of riskĀ for not much return.Ā 

The trouble is that doesn't bear quantitative analysis. Long term stock market returns have been excellent, and have the advantage of being more liquid then houses.

The difficult bit is of course to actually get your fair share of those returns.

Edited by Si1

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1 minute ago, longgone said:

many won`t go near it. including me.Ā Ā 

lots of riskĀ for not much return.Ā 

It isnā€™t supposed to be that way. Thatā€™s the casino, winner takes all, economy in action. It shouldnā€™t be a gamble to invest in sound companies producing solid products. When the market is responding mostly to political and central bank intervention, and rent seeking makes business a zero-sum game, everything becomes risky. Setting up home is a huge financial risk, starting a burger stand is a huge financial risk, going to university...and so on.Ā 

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3 minutes ago, Locke said:

It does. The problem is, we do not have capitalism.

We do. ThisĀ isĀ capitalism, everything else is a fantasy.Ā 

You canā€™t say, oh I love the films of Adam Sandler, not the actualĀ films of Adam Sandler, but the films I want Adam Sandler to make. Those are epic.Ā 

Edited by BorrowToLeech

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1 minute ago, BorrowToLeech said:

It isnā€™t supposed to be that way. Thatā€™s the casino, winner takes all, economy in action. It shouldnā€™t be a gamble to invest in sound companies producing solid products. When the market is responding mostly to political and central bank intervention, and rent seeking makes business a zero-sum game, everything becomes risky. Setting up home is a huge financial risk, starting a burger stand is a huge financial risk, going to university...and so on.Ā 

for who ?Ā  to me the stock market is just an instrument that the idle rich use to make money constantly with the plebs trying to understand how it fits together. when you have billions of pounds yes you can make big returns from even 1% uplifts, for the little guys whats the point.Ā 

Ā 

5 minutes ago, Si1 said:

The trouble is that doesn't bear quantitative analysis. Long term stock market returns have been excellent, and have the advantage of being more liquid then houses.

The difficult bit is of course to actually get your fair share of those returns.

depends if you have the appetite to spend years analyzing, i like instant gratification.Ā šŸ˜„

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  • 259 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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