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How Much Debt Are You In?


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Zero Debts.

0.5m of assets including property, UK and overseas equity, bonds, antiques, gold and cash. I could probably afford a couple of investment properties at the moment, but with yields < 5%, the game's not worth the candle. The stock market is a far more rewarding proposition at present. Just waiting for house prices to reach a more realistic level before I invest in property again.

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Guest muttley
I could probably afford a couple of investment properties at the moment, but with yields < 5%, the game's not worth the candle. Just waiting for house prices to reach a more realistic level before I invest in property again.

How much would prices need to fall before you would invest in property again?

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graduated in 2000 with abuot 10k student loans, 3.5k overdraft and a grand on the card. 3 years later that was 3k on 2 cards(each) and a pair of 8k loans, and 2k on white goods. I mewed 20k out of a flat. Now creditcards are about par with savings, I still owe around 4-5k on the studen loan, and haven't been overdrawn in years. Peak debt was c.25-30k unsecured.... similar amount secured.

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Guest muttley

To be honest, I think prices would need to drop by 50% before I would consider moving into BTL again. I know the hassle involved in being a landlord, and for 5% yield, it's just not worth the effort.

That's some fall!!

I'm guessing you were run out of the Landlord's Guild.

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Guest Charlie The Tramp

To be honest, I think prices would need to drop by 50% before I would consider moving into BTL again.

I have been following a new build of 12x 2 bed flats in my area completed about 6 weeks ago. 8 To Let signs by different Agents, 2 sold, and 2 remaining. Passing today one of the To Let signs had a sticker across it saying For Sale.

A BTL panicking early ?

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That's some fall!!

I'm guessing you were run out of the Landlord's Guild.

No, I'm deadly serious. In the 90s I was earning 7k pa on a 90k investment property (7.7%). I sold quite recently and reinvested in shares. I wasn't the member of any "guild". However, I purchased quite a nice potted plant for the letting agent as a farewell gift and he wished me good luck.

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why's that?

You can buy a good car for £1-£2k.

Can't see why anyone who can afford to *run* a car (which is going to cost at the very least £1k per year) needs a loan to buy one.

sold a car to a young lad (26) a fortnight ago, just a 2K X reg mondeo, good miles only 40K. Anyhow, tells me he's going to drive it for 4 years, it'll be worth 300, his depreciation will be approx. 400 per year, bright lad. I read this week that the average cost per family of a car is 5k per year taking into consideration: depreciation, tax, insurance, petrol...basically £100 per week....what a nation of numpties we are :(

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sold a car to a young lad (26) a fortnight ago, just a 2K X reg mondeo, good miles only 40K. Anyhow, tells me he's going to drive it for 4 years, it'll be worth 300, his depreciation will be approx. 400 per year, bright lad. I read this week that the average cost per family of a car is 5k per year taking into consideration: depreciation, tax, insurance, petrol...basically £100 per week....what a nation of numpties we are :(

One thing I do do is treat myself to the best car I can buy at the time - I usually lose arond £2K per year on my cars...

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Never owed a penny to anyone ever.

All evidence that people behave rationally when it comes to debt. There is of course good debt and bad debt. Home improvements and investigating in improving your skills are good debt. Most people can service their debt if the worse happens equity in homes will always be an escape hatch.

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All evidence that people behave rationally when it comes to debt. There is of course good debt and bad debt. Home improvements and investigating in improving your skills are good debt. Most people can service their debt if the worse happens equity in homes will always be an escape hatch.

:blink:

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One thing I do do is treat myself to the best car I can buy at the time - I usually lose arond £2K per year on my cars...

Ah I'd love a nice car but I have at least one accident a year so I need ABS breaks, air bags and low insurance group, I'm a crap driver.

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Just graduated (Maths,Stats,OR and Economics from Warwick), starting a PhD at Bristol.

Worked during term and holidays, got £3k/yr scholarship but took out max student loan. Parents didn't earn enough for me to pay fees.

Have an £1000 interest free overdraft and took full loan each year, although I didn't spend it (put in building society account).

Thus I estimate I have around £17k in debt

BUT

Although I'm quite uncomfortable with it, every time I think about paying off my debts my brain says "but hang on, you're getting more in interest in your savings account" so I always end up keeping it. The differential between what I get (approx. 5%) and pay (~3%) on my student debt is about 2%, so I make about £320/yr.

I am worried about inflation so am looking for safeish places for my savings.

Despite what we're told (government misinformation), I see inflationary pressures and it hurts (as my PhD stipend is inflation linked!).

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Qualified from university in August 2001 with around 30 grand debt ( student loans, professional study loans, overdraft, borrowing from friends ).

Now, after 5 years, I owe 3.5 grand to the student loans company, have cleared all other debts & have about 40,000 pounds in the building society.

Basically, at uni I didn't think about what I was spending at all - I thought I could pay all my debts off very quickly when I started work. When I did start work I realised the accrued debts would burden me for many more years than I thought unless I grafted harder. So, I did loads of extra work in order that I could have the piece of mind of being ( almost ) debt - free.

Now I'm virtually debt - free & don't have any other burdens - I don't own a car, property, wife, kids, gym membership, sky subscription..........its a nice feeling!

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Personally I have STR'd and taken my 150k with me to climates sunnier.

Was thinking of heading back in the future, but 3 years in Canada have made me realise how low the quality of life is in the UK.

Now am loath to even come back for a holiday.

Still hoping for a crash though to help out family and friends back home.

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I graduated in 1998 with a good bit of student debt -- more than most as i was a mature student. I've paid off all but £2400 and am saving like crazy to do so. We also have a car loan but that was kindly given to us by parents and we are paying it off interest free a set amount each month. No mortgage (still renting) but we should be debt free by this time next year. :)

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Guest grumpy-old-man

Ah I'd love a nice car but I have at least one accident a year so I need ABS breaks, air bags and low insurance group, I'm a crap driver.

ah ha, your a woman then :D

you should have actually re-worded your reply to read "I cause at least 1 accident a year" when pulling out of junctions/round-a-bouts & changing your minds & stopping for no reason at all :ph34r:

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  • 439 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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