Just set up a N&I income bond home for some cash, and two minutes later they've ditched paying interest, effectively. As has everyone else.
Now what? Premium bonds? Can't be doing with the set up million accounts each paying fourpence on a max of £500 approach.
|
|
BoE base rate is expected to go negative shortly. (not sure how that works?)
|
|
0.5% fixed for a year, no withdrawals is about as good as it gets at the moment.
|
|
Santander 123 account is 0.6% but not fixed up to £20k.
|
>> BoE base rate is expected to go negative shortly. (not sure how that works?)
>>
There will be negative rates on interest so put £100 in a bank. At the end of the year it will be £95 for example, on top of the losses to inflation.
There are likely to be rules in place to stop you taking money out and sticking it under your bed. For example limits on the amount you can withdraw.
|
>> BoE base rate is expected to go negative shortly. (not sure how that works?)
Is there a serious expectation or is it just the old story one member of the Monetary Policy Committee 'freelancing'?
www.theguardian.com/business/2020/sep/27/bank-of-england-rate-setter-backs-negative-interest-rates
Last edited by: Bromptonaut on Mon 28 Sep 20 at 13:20
|
>> Now what? Premium bonds? Can't be doing with the set up million accounts each paying
>> fourpence on a max of £500 approach.
>>
The £500 is the minimum investment. You get an account and pay in to that and all your bonds sit in the account.
They advise you of the amount won at the beginning of each month and it’s available on a smart phone app.
|
Spend it. On anything, if it improves your life quality.
You’re a long time dead.
|
>>You're a long time dead.
Believe in me and have everlasting life.
God.
|
Premium Bonds pay an average of about 1% following recent cuts, but zero if you are unlucky. You need to invest £15000 to be "virtually certain" of winning the smallest prize of £25.
|
>>
>> Believe in me and have everlasting life.
>>
>> God.
>
(Terms and conditions apply. Applicants must be resident in U.K. Limited to one per household. Only available for 30 days)
|
>>(Terms and conditions apply. Applicants must be resident in U.K. Limited to one per household. Only available for 30 days)
Remoaners needn't apply [camels & needles etc.]
:o}
|
Good idea.
I’ll have a big party and invite all my friends an family
Have lots of foreign holidays
Stay in expensive hotels
Perhaps I’ll go on a world cruise.
Oh hang on.
|
|
Yeah, you can't even be criminally profligate these days.
|
Well, i can see the appeal of spending,but I'm naturally parsimonious. I just got a quote for replacement window, the existing one being in very poor condition. It's 1000mm by 500, so quite small. I wanted a double glazed wooden replacement.
Certainly sir, £750 for the window, £300 fitting, plus extra if anything goes wrong with plaster or the surround. All plus VAT.
Ouch. Still, if that's the going rate, what can you do?
|
Several air corridors in place if you don’t want to quarantine. Friends are flying to Cyprus this week and staying in a fabulous 5* hotel for a fortnight.
If you want to do your Spring Cleaning early, maybe decorate a few rooms whilst quarantining back in the U.K. you can have your pick of cut price luxury self catering villas in Spain.
Should you be averse to flying, my ex and her recently retired partner stay in expensive U.K. hotels for 3 nights midweek once a fortnight. These hotels are normally very, very, expensive, so they’ve turned the situation to their advantage.
If you want to be sensible look at the MSE website for the best current interest rates. If you like a gamble invest in some blue chip stocks...some are at historic lows. I’ve just stuffed a load of wonga into RDSB. Not a recommendation, just saying.
Or buy a 911 Targa if you’re running out of space under the mattress.
|
>> If you want to be sensible look at the MSE website for the best current interest rates.
A good website, but it might be worthwhile spending some time looking at individual banks and building societies as well.
|
>> >> If you want to be sensible look at the MSE website for the best
>> current interest rates.
>>
>> A good website, but it might be worthwhile spending some time looking at individual banks
>> and building societies as well.
I've saved on utilities and insurance recently by ignoring MSE. I guess they're not so independent now.
|
|
MSE is part of a commercial enterprise.
|
>> set up million accounts each paying
>> fourpence on a max of £500 approach.
A million accounts with £500 each. Someone’s doing well
:-)
|
|
An advantage of NS&I is there's no £85k limit guarantee.
|
The new rate for Premium Bonds is the equivalent of 1%, which is tax-free and safe. Maximum of £50,000 each person in the household.
www.moneysavingexpert.com/news/2020/09/premium-bond-prize-rate-to-be-slashed-to-1-/
|
Yeah. It's all a bit rubbish, isn't it. We already have a wodge of premium bonds, so just not sure whether to add more or if there was anything else obvious. Doesn't seem as if there is.
I looked yesterday at overseas saving accounts, just seeing what was what. Best was an account in the Bank of Georgia, though you have to visit the country for two days and even then its only about 2.5%.
|
>> Yeah. It's all a bit rubbish, isn't it.
Agreed. When I was just married and just got my first place and skint we got a couple of hundred pounds a year on our very meagre savings.
Now I have significantly more and struggle to get the same in absolute pounds which, due to inflation, are worth significantly less anyway.
Also checked a couple of sample loan contracts with work and they say base rate plus x percent. If the base rate is negative then it will be considered to be zero for the purposes of the loan or legalese to that effect.
I got a 5 year fixed rate mortgage at 1.99%. To protect against significant increases which may have been required to protect the £ in a bad Brexit. With my luck that should have been an indicator to everyone else to go variable rate.
Premium bonds are doing ok though. Got £75 last month and no where near the full amount in them.
Last edited by: zippy on Mon 28 Sep 20 at 15:45
|
>> The new rate for Premium Bonds is the equivalent of 1%, which is tax-free and
>> safe
We live in Austria and SWMBO and I have a few premium bonds between us. Unfortunately, although winnings are not taxable in the UK, they are here! And NS&I tell the Austrian tax authorities about our wins.....
We are also lucky enough to own a flat here, which we bought with a legacy from SWMBO's aunt when she passed away some 14 years ago. For the last 9 years we've been renting it out as a holiday apartment and returning c. 5% after tax. We've only achieved that by doing all the admin and preparation ourselves, the profit levels would have plummeted if we'd employed someone! With COVID-19 impacting travel patterns, and our increasing age, we decided to move to a long-term tenant, so we're handing it over tomorrow for an initial five year term. It'll reduce our profits to c. 3% but it's better than we'd get if we sold the apartment and invested the money - plus we still have it as an asset.
|
Interesting to note the term; 5 years. Is that a minimum period in Austrian law?
|
>> Interesting to note the term; 5 years. Is that a minimum period in Austrian law?
>>
No, we could have gone for a 3-year contract or even less, but the laws here are very much in favour of the tenant anyway. He can cancel, with three months notice, any time after the first year. We wanted the security of (hopefully) not having to change tenants for a long time. But he's also obliged to have the place professionally redecorated at his expense at the end of his tenancy.
|
A bit different to the position here then where an Assured Shorthold Tenancy of 6 or 12 months is the norm. Pre-Covid the Landlord had only to give notice and provided he'd complied with the rules and got his documentary ducks in a row he could get possession pretty well automatically. Not much defence to a 'Section 21' unless it's slackly drawn or the landlord's played fast/loose with deposits.
The tenant could delay the inevitable by waiting for a court order/warrant (and might need to do so to advance on the list for Social Housing) but in the end they were out.
|
Here an initial 12 month tenancy and then a rolling notice period, typically a month.
The whole arrangement and law entirely favours the tenant. It typically takes me 12 / 18 months to legally shift a tenant who simply stops paying. Even if they don't fight the process. I had one, about a year ago, where the tenant stopped paying, locked up the apartment and left the city. It took me 18 months to get approval from the courts to repossess it even though the guy was neither living there nor paying.
There are two significant exceptions to the tenants' advantage;
1) Tenants rarely get their deposit back. Many landlords (not me) simply hang on to it whatever the actual situation and just make something up if challenged.
2) There is little protection against harassment. A landlord (again, not me) can simply hassle TF out of the tenant and make life unbearable with little comeback.
Equally though the tenant can make wild accusations which will be accept as true unless the landlord can either disprove them or is willing to go to court. We had one about 4 years ago where he accused me of breaking into his house and stealing his drugs. It went to court.
I should say 10% of my tenants eventually become bad debt. There's little you can do except refuse to give them a financial reference for their next lease and, of course, insist on a financial reference for all new tenants.
At the peak of the COVID-19 apocalypse 2 or 3 months ago I'd say we lost about 50% of the rental income through bad debt, reduced rents and empty properties. Though it's climbing back up fairly steadily now.
The UK system is a gazillion times fairer.
>>Landlord had only to give notice and provided he'd complied with the rules and got his documentary ducks in a row he could get possession pretty well automatically.
And if the tenant complies with the rules and hands in his notice can he leave pretty well automatically?
Seems fair. Though there will always be exceptions, on both sides.
Last edited by: No FM2R on Tue 29 Sep 20 at 19:50
|
>> >>Landlord had only to give notice and provided he'd complied with the rules and got
>> his documentary ducks in a row he could get possession pretty well automatically.
>>
>> And if the tenant complies with the rules and hands in his notice can he
>> leave pretty well automatically?
>>
>> Seems fair. Though there will always be exceptions, on both sides.
Surrendering your home to its owner seems, to me, to be in a different league to having it taken from you.
Last edited by: Bromptonaut on Tue 29 Sep 20 at 21:56
|
>>Surrendering your home to its owner seems, to me, to be in a different league to having it taken from you.
Emotionally you are correct, of course. And I am not in favour of it being easy for either party to get out of a contract mid term but it needs to be reasonable.
I know it is someone's home, but that's one of the compromises about renting - essentially building your home in someone else's house.
A tenant needs to understand that it's part of someone's business, and as such the business owners plans, needs and investment may [will?] change over time.
It's an area where using the law will never be adequate. It's too binary and will always result in unfair exceptions. An analogue process, say an approval panel, would be a perfect approach. But people would be forever suing for any decision they didn't like.
They ought to try something like variable taxation; the longer period you leave it in rental the better tax breaks you receive, but that must be paid back if you cut the lease short. Something like that.
I think, though, that the greatest resentment comes from the tenant when the contract finishes and the landlord does not wish to renew.
As I am sure you think, but may be surprised to hear that I agree, there is considerable justification for a significant State run rental infrastructure.
Though it'd need to be a lot better run than the previous approaches to 'council houses' have been.
Last edited by: No FM2R on Wed 30 Sep 20 at 07:57
|
Where both the landlord and tenant are half sensible things will usually work regardless (is my guess).
If either is a git, a slob, or hard of thinking there's likely to be a problem however you legislate. If the tenant becomes unable to pay of course things get more difficult.
We're in rented for now. I took it for 6 months, we've done 2 3 month extensions, and we're now on 2 month's notice either side. I trust the landlord, and at least for now she's happy for us to stay as long as we need it because we clearly aren't going to trash the house and can pay the rent. I get the impression we're a big improvement on the last lot. I'm aware that if she wants it back subject to notice before we're ready, we'll have to find somewhere else. She lives in Spain.
I'm sure I'd have done much better money wise if I'd gone into BTL 15-20 years ago but I don't want to be a landlord.
|
>> I'm sure I'd have done much better money wise if I'd gone into BTL 15-20
>> years ago but I don't want to be a landlord.
>>
We never intended to become landlords, we bought our flat simply for our own use when we lived in the UK. A couple of years later we decided to take early retirement and move to Austria lock, stock and barrel, buying our own house. It made sense to let the apartment to cover the service charge. It's worked well for us, we've not spent much on it but everything is tax deductible while we rent it. I'd happily buy another but we don't have that sort of spare cash.
I think tenants here are in general well behaved. As in Germany, it isn't seen as necessary to own your own place,
and people rent for years. Our tenant claims to be a very practical chap, so I'm not expecting a lot of call on my time.
|
Where will your money go when you crawl of this mortal coil? Do you have children?
If it is money you don't need, if it will go to your children, then maybe reducing their mortgage now may be more sensible then sticking it in a savings account for them to get a lesser amount x years from now.
If not that, then consider the stocks & shares perhaps. Depends how comfortable you are with risk. And how much risk.-
|
Already pay down the mortgage by the maximum amount each year.
I have shares. Did fairly well out of them a while back (paid off a mortgage and brought Mrs Z a new Touran).
Since then I’ve not been so lucky but that’s just timing I hope.
I’m not keen on managed funds. I have heard a few too many horror stories.
I’m not too annoyed at a 1.99% mortgage. It was a very very good deal at the time from work and is not classed as a staff mortgage so no BIK.
|
|
shares, like houses, are long term investments. At 66 with a medical history that gives me zero chance of a life assurance quote, my investment portfolio, sorry spending plan, is pretty short term. My outgoings are laughably small (in the grand scheme of things) and people keep chucking money at me. My spending plan has to expand to keep up.
|
I’ve stopped drinking wine that costs less than a tenner a bottle but I need to do more.
|
|
John tells of a man who could turn water into wine - I've tried it with hops and barley, and it works!
|
I spent a boring hour today scouring the interweb looking for a more profitable home for some ISAs. It's a bit of a lost cause, isn't it - but I suppose a fixed 0.75% is better than half that amount in a variable account.
Like others, I'm thinking of Premium Bonds. 1% looks to be about the best (safe) deal around at the moment. Although the 2 that I've had since the 60s haven't shown a profit yet!
|
Zeddo, treat your mutts.
Bailing twine as a lead, and feeding scraps doesn’t reflect well on a person of your good taste. That’s one way to expand your spending plan.
|
>> Where will your money go when you crawl of this mortal coil? Do you have
>> children?
No children. But we took early retirement, which we don't regret for one second. However, it does mean our pensions are not huge. So some months, not by any means all, I top them up with a sub from cash savings.
If I'm a bit careful that will work until the state pension kicks in, which added to the private pensions will continue to leave us ok I think. So I'll have spent it over the next decade.
I'm not so on the breadline the interest is vital, but a few tens extra a month was always nice is all.
|
You could consider an investment which would reduce your outgoings.
Maybe a more economical (or electric) car.
A holiday home which can also be rented out.
Season tickets rather than individual tickets.
A large freezer for bulk buying.
New insulation for the house.
Heating systems.
Really anything in your usual outgoings which could cost less or be better if you had other facilities.
Stuff that you could invest in now that would stand you in good stead when your income is more fixed.
|
That's an interesting viewpoint I'd not particularly considered, Mark. Thanks for that.
I'm not sure any of those actual examples work for me but I do get the point. Have to mull it over.
|
I'm not sorry to be building a house at the moment. Our insurance cash settlement was around £200k for our damaged house and the luxury of knocking it down and building a better one will mean finding about the same again.
It's quite incidental to the decision to demolish and rebuild but I think the money will be better sunk into the house than just about anything else we can do with it. My blood runs cold when I think of the inflation the government would probably love to see.
Mark's idea is very sensible. There's a difference between spending and investing but they do overlap.
|
>>Spending to invest
Exactly that. Currently getting quotes to add a much needed master bedroom suite, double glazing, loft insulation, pressurised water system, solar panels and battery.
Unlikely to do them all but leaving large sums in the bank is very likely to see its true value eroded very quickly.
|
I volunteer weekly to help raise money for a local organisation...sorting donations etc. It’s really quite amazing what gets donated....it’s then listed on EBay or added on local FB Seek & Sell sites, as well as put into the shop.
It’s the furniture on the Seek & Sell sites that amazes me. Top quality bedroom furniture, wardrobes, cabinets etc being sold for peanuts.
Zippy..you’d be amazed.
I’m decluttering my life and just sold two top quality leather settees and armchairs, solid wood bookcase and contemporary coffee table at £20 each. All in as new condition, three of them having been bought in Harrods winter sale several years ago, so they weren’t cowboy built.
If I sell my house fully furnished I know where I’ll be looking....
|
>>just sold two top quality leather settees
What exactly are settees :o)
I've been looking for a 2 seater and a 3 seater for me new owse - almost bought 'em yesterday from Sofasofa, even got as far as entering my cc details but, pulled out at the last mo b'cos yoos really got to sit in 'em to make sure they're 4U.
Got Sofology, DFS, SCS, etc. within 15 smiles of here but, I've heard 'stories', knowlmean.
|
I hate picking sofas / couches / suites as you can be guaranteed that 3 months in they will be different from when they were new.
When I worked in the charity retail game we sold furniture and I remember speaking to a customer who only bought second hand. His theory was
1. Substantially cheaper
2. The foam etc will have settled so the way the seat is now is the way it pretty much will stay for a good while.
|
Yup, I could buy a couple of second hand leather sofas .. this house is second hand after all, the carpets/curtains etc. she even left a £1000 chaise longue thingy in the 'sun room'.
We bought a £2200 '3 piece suite' when we moved to Cornwall 23 year ago, still got the 2 armchairs and the leather is purrfect [buy cheap buy twice!)
|
Amongst various investments I have a moderate load in this - returns about 6% p.a. and didn't plop too hard in either the financial crash or spring's collapse either.
www.youinvest.co.uk/market-research/FUND:B0CNHP0
Not advice, of course, just one of many options.
Share-based investments historically have done better but often needs 20+ years to reliably beat bonds.
Last edited by: Lygonos on Tue 29 Sep 20 at 16:30
|
Obviously if you are investing in something like the above, or in shares, do it in a stocks and shares ISA if you can for tax free returns. The limit pa is £20k across all ISA types.
Somehow I ended up with a share portfolio in a S&S ISA with Willis Owen. I didn't/don't do a lot of work on comparing costs as they seem reasonable. I've paid more in., taken it out and had a few technical queries and all has gone very well.
(On 27 July I invested £1350 for each of my daughters in a S&S ISA with Hargreaves which also seemed fair. Currently that is 6.72% up!)
If you want an outright punt with a few bob buy some shares in Reabold Resources, they are literally about to start drilling in what they are claiming is the largest UK onshore oil and gas field, in Yorkshire. I think drilling results are expected this side of Christmas, maybe sooner. Speculation is that the shares will go up in many multiples if it's not a duster (if it is then you probably lose most of it!). And I know quite a few who have made pots of money on COVID drug company shares - for instance Novacyt (NCYT) were under 20p in January but they are £5.20 today.
But don't take any of the above as advice - do your own research, as they say on the share forums!!
|
Problem I have with shares is that I cannot react fast enough.
I need specific permission from work for every sale purchase and transfer of sales of any shares an transferable instruments and in some periods I am banned from all trades in my employers shares.
They always ask how I made my decision to buy. With the large companies it's not a problem but if I suddenly said NCYT they would be all over it.
I cant even put in automatic stop loss or high automatic sales in place.
It's a pain to do and actually needs authorisation from the company secretary, so don't bother as much as I would like to.
Last edited by: zippy on Tue 29 Sep 20 at 20:58
|
With shares I'm not suggesting day trading though. That's hard work and fairly risky. Find something you think might have long term value, make the investment and leave it.
The funds (not shares) I invested in for my daughters seem to have been comfortably averaging upwards of 10% a year for years. In my view, anything which goes up that quickly can also come down just as quickly so there must be some risk but they are respected companies. They are (Trustnet links as that gives fuller info):
www.trustnet.com/factsheets/o/bq95/baillie-gifford-global-discovery
www.trustnet.com/factsheets/o/lsx6/fundsmith-equity-i-acc
www.trustnet.com/factsheets/o/tu35/janus-henderson-global-technology-leaders
Again, do not take this as a recommendation.
|
My ex IFA mate is a strong believer that share and fund prices will always, over time, rise, so you should not panic if your investment starts to drop.
In particular I wouldn't set any stop limits on AIM shares as you can often end up selling when really you'd be better hanging on. The theory (not mine!) is that the market makers seem to have a tree shake once in a while on some shares, taking the price down drastically in order to get themselves some cheap shares for an expected future rise. Stop limits would trigger and people feel fleeced when the price rises quickly again shortly afterwards. I can't say how much truth there is in this but I don't use them - then again there are some investments I should have sold but I hung on to for the expected turn around which never came (in my desired time frame)
Last edited by: smokie on Tue 29 Sep 20 at 21:26
|
Corona Virus hit my personal portfolio hard - mainly bank shares that I am tied in to for a number of years.
I expect and hope for a rise over the next couple of years.
A very good mate is reasonably senior in an AIM listed co, not a director, but close enough that I really ought not by shares in it. Shame as the price has nearly tripled over the last couple of years - and not just in the last few months.
My only sensible forecast was Northern Rock. It just didn't seem right to me from figures I was seeing on competitor performance figures at work and a mate who worked for them had enough invested to set himself up very nicely (think paying for a house in Hove actually), though it only cost him a fraction of that.
He didn't listen and unfortunately lost the lot.
|
|
I suspect that if you knew what was what Northern Rock looked as dodgy as an egregious DWP decision looks to me.
|
.
Last edited by: No FM2R on Wed 30 Sep 20 at 05:35
|
>> My ex IFA mate is a strong believer that share and fund prices will always,
>> over time, rise, so you should not panic if your investment starts to drop.
I hope he didnt have money in Sun Microsystems, Baltimore Technologies, Enron, ...........
|
|
Highest rise on my pile just now is Royal Mail - bought at 130p - expecting solid parcel sales through winter, and as long as Covid is around.
|
>> My ex IFA mate is a strong believer that share and fund prices will always,
>> over time, rise, so you should not panic if your investment starts to drop.
> > I hope he didnt have money in Sun Microsystems, Baltimore Technologies, Enron, ...........
He wasn't much of an investor himself but unfortunately had a reasonable lump (but by no means everything) in the Woodford funds and his missus has a load of employee share option HSBC shares which are trading at not much more than half what they were at the turn of the year.
However his point about not panicking has legs, as I've done it a couple of times only to find I bailed more or less exactly at the bottom on a steep upwards climb. It's very hard to sit on your hands watching your investment dropping quickly though
|
>>My ex IFA mate is a strong believer that share and fund prices will always, over time, rise
I sold a load of BT shares when they reached £13, and bought back when they dropped to £9. Currently around £1.
The divi used to supplement my pension, but they've announced there'll be no final divi this year and none at all next year.
I also thought Lloyds bank would be a good investment.
Don't take any financial advice from me!
|
If many professional fund managers fail to beat the market consistently why do you think you can do better. Some on here have clearly made some good deals - but (with respect) may prefer not to boast about their failures!
Investment decisions are dominated by risk appetite and personal circumstance - eg: age, need for income, is it for the short, medium or longer term, do you need access to capital. There are no low risk high return investments unless you have inside knowledge.
Key determinant may be age - 50/60+ possibly with retirement looming and your risk appetite is likely to be low. If you are less than 40 you may hope to recover any losses in the future.
Low risk but relatively secure - quality bank accounts or government bonds. £85k covered by Financial services compensation scheme. Close to zero return at present and probably for the next few years. If inflation remains low just bite the bullet for low risk and access to capital.
There are higher risk deposits offering higher rates. Probably not covered by FSCS. With Covid uncertainty I would not personally risk capital for the sake of 2-5% interest benefit right now.
Investing for the longer term and shares become an option. If you have the time and are motivated to actively follow market developments then select your own shares. Alternatively go for a low cost tracker and leave the management to the professionals.
Final thought is buy to let if you have a reasonable amount of capital. Returns of 4-5% are quite achievable with the possibility of capital growth. Again it is a long term investment and you can't get your hands on the capital easily. I would regard it as fairly low risk - the population continues to grow and people need somewhere to live whether they rent or buy.
I too have the problem of cash earning nothing. I am retired and risk averse. Currently looking at feasibility of buying another buy to let!
|
>>Currently looking at feasibility of buying another buy to let!
Does that mean you already have one? If so, I guess you already have experience. If you don't mind the work then it's a pretty safe activity. Adding another property doesn't double the work.
It is really down to how much you need the money and how you value or balance the effort & reward equation. And it is work without end.
I'm sort of getting to the point where I've had enough of it, though it's difficult to know what else to do.
|
>>why do you think you can do better.
Without insider trading then I don't think you can.
It's like playing a fruit machine. You have no real idea of what it's going to do, it's just a matter of choosing an honest one in a reliable place, only putting in what you can afford and walking away if you're lucky enough to put your coin in the right machine at the right moment.
|
Vanguard may be worth considering. Their rates are low. They are a Which? recommended provider.
www.vanguardinvestor.co.uk/
|
I’ve never had enough cash for a ‘buy to let’ and didn’t want to borrow the money. One friend of mine has 3 rental properties. He does all their repairs, apart from when specialist trades are required...Gas Safe, electrical. Mostly good tenants, but also bad.
Another friend has two rental properties. His deceased mothers house and his previous house. Maybe he’s been unlucky but stories he tells me are horrific. A high earning family in his nice previous detached who manage to damage the kitchen...cupboard doors off, burn marks on worktops, smashed toilets, blocked drains. Then tenants, although vetted by the agent, who stop paying rent and disappear 6 months later.
When my late Aunt died I inherited half her flat. I spent 3 months stripping it right back to bare concrete floors, new bathroom, then modernised it apart from leaving an empty space where the kitchen had been. Redecorated top to bottom. I could have bought out the other half owner and then rented it out. A great flat in a half decent area and made a good % return. We sold it for £135k instead.
I bought a new Porsche. Much less hassle and more enjoyable. Money’s for spending.
|
>> Mostly good tenants, but also bad.
>>
Quite so. Tenants are like employees. Some as good as gold. Some unreliable liberty takers.
|
>>Some as good as gold. Some unreliable liberty takers
About 90:10 in my experience.
|
>> >> Mostly good tenants, but also bad.
>> >>
>>
>>
Same as Landlords I would think.
|
"If many professional fund managers fail to beat the market consistently why do you think you can do better."
Not sure if that is aimed at me but of course I don't think I can consistently do better. I think you are an ex-IFA and I've heard that line from most IFAs I've ever dealt with - must be on page one of the training manual!! :-) I've always liked a flutter. Professional fund managers are sometimes constrained whereas the individual investor isn't.
There are some funds which do appear to consistently outperform the market. I named three which have considerably and consistently exceeded norms. Those are funds and are from respectable providers and are less risky than stocks and shares.
Personally I have balanced my portfolio to one which suits me. The last time I had a lump of available cash I didn't want to put yet more in low rate fixed income, and my SIPP is reasonably well funded and is invested in fairly secure funds (Royal London).
So I set up what you'd probably term a gambling pot, which did extraordinarily well over a the first four years or so but at the moment I'm in some stocks which have fallen dramatically but there is expectation that they will come back. So right now it's only about 60% up on where it started - I'm hoping it has bottomed out! The new Tesla or Aston was honestly within reach a few weeks back but has slipped away again! There now, I've "boasted about my failures". I'm hoping and expecting it to be back on the agenda soon but maybe it never will.
I've never been a fan of buy to let though of course with hindsight it may have worked out OK. Going forwards I still wouldn't touch it because my own view is that we are in for a massive drop in the ability of people to pay for things which will result in huge price drops in many areas, housing included. Because of the size of the investment required,it could be rather a lot of eggs into one basket for many investors.
My initial responses were based on thinking that the OP (Crankcase not Zippy, IIRC) may have been looking for something other than the safe run-of-the-mill offerings, so I offered an alternative. Obviously not suited to all.
|
I am not an IFA and never have been.
Watching markets, assessing fnancial performance, trading or using a fund is a personal choice. You need to properly understand what you are doing - there will be winners and losers.
A somewhat unfair analogy may be the horses - overall bookies always come out on top. But many enjoy the buzz of studying form, and backing ocassional winners.
Many years ago I used to go with friends to an ocassional race meeting. Happy to put £5 on each race. At the end of the day I either lost £40 or sometime had a free day out with a nice meal on the way home.
Providing you remain in control and can afford the losses when they happen, that's fine.
There are active fund managers who beat the market for a few years. However it seems that the market (eg: FT top 100) usually beats actve fund management in times of growth. Active management can be better in a recession.
On buy to let I have one flat bought with an inheritance. Precisely because I don't want the aggro of direct management I use a rental agent - it reduces the returns but they find tenants, ensure rent collected, have a network of tradesmen to do repairs etc. My day to day involvement is zero, although I did get involved in organising a refurbishment a few years ago.
As you say - we all have different needs and expectations. Just make sure that the risks and possible rewards are properly understood.
|
Pooled funds have a bad press but I would like to see performance comparisons between Unit Trusts/OIECS on the one hand and Investment Trusts on the other. I prefer the latter; they can borrow and use the money to even out yields and offer the possibility of buying at a discount
compared with net asset value, although the best are likely to sell at a premium. Thus HICL Infrastructure Plc , a solid performer, yields 5.72% with capital appreciation of 20% for me, but sell currently at a 12% premium.
The last 14 quarterly dividends have been at the same rate. That makes me feel better about an overall portfolio loss.
|
>>HICL Infrastructure Plc
I've got some of that...price did very well for a while then slid... must have a look and see how it's doing.
|
Cash and where to put it? - Zero
