Forums

Raging.

Link copied from the Ukraine thread https://www.theguardian.com/world/2022/jun/26/proposed-price-cap-on-russian-oil-moves-closer-at-g7-summit ... A price cap would operate by dictating to the quasi-monopoly responsible for insuring Russian oil tankers that they will be sanctioned if they allow oil to be sold above a fixed price. About 95% of the world’s tanker liability coverage is arranged through a City of London-based insurance organisation called the International Group of Protection and Indemnity Clubs, which has to heed European law... This is like punishing the truck insurer for "allowing" the supermarket to overcharge for the produce arriving in the truck. How is the insurer supposed to enforce this? Such an obvious question but the Guardian (unsurprisingly, since their journalists are first spoon-fed the bilge that they then spoon-feed to their readers) doesn't even acknowledge it, let alone make an effort to analyse it.

Yes I’m guessing that if I took out say £100k of mortgage debt now that £100k will be worth a great deal less by the end of the 10 year fix. EDIT: I was quoted 3.55% for a 10 year fix.

Upon reflection, I think I may have done that years ago without realising....

@reformed nice guy has put some numbers together that illustrate how the yields on houses are really poor….and I concur they are. I have developed property and been a LL for 25 years and my wealth from houses has been almost entirely created through adding value and then sales (with a massive icing on the cake of balmy price rises). A new boiler every 8 years, window replacements, fences, driveways, carpets, voids, roof repairs, ovens replacing, blocked drains (£3k last 24 months just on those), replacement garages, curtains, furniture removal, leaking shower, wobbly floor tile, condensation, glass hob smashed by tenant dropping a pan etc etc. EPC is a new cost and those goalposts will keep moving I am not moaning about my costs but highlighting how for me the rental side was effectively for me to cover costs whilst holding. I held until I could time a sale to minimise CGT. I did make ‘some’ cash flow profit as time went by….but I am fairly hands on and resourceful and interest rates plummeted. The key for me was having a connected network so I could buy at 60/70% of value…carry on working to pay for my normal frugal lifestyle…and save huge amounts of my large salary into a real pension. Many BTL’ers aren’t even close to thinking in those terms. Now after 25 years I am a bit like a Bitcoin holder who paid £200 a coin, or a Rio shareholder who has had 25 years of Dividends…..ie the market can pretty much do what it wants for me. I think we will see a decline in private LLs…I hope we see price falls and this allows it to become more achievable for 25 years old to buy a half decent modest family home. Then we can rely less in private let’s and rely more on cheap owner occupied homes. I have lived through several crashes and it’s amazing just how people ‘forget’ what sentiment can do. In 1986 I would have paid as much as I could for my first home….in 1993 our neighbours virtually couldn’t give their property away. Literally I have seen a pair of houses (admittedly it was a HMO) being bought at 30% of the amount paid by the previous owner in superb rental areas. When other people stop buying the really do stop. Just words…but when you see it (and are unaffected yourself) then it is actually a beauty to behold. However I do agree nothing is 100% nailed on. I wouldn’t bet against the government coming up with more props….we have had dozens so far. I also wouldn’t bet against the crazy attitude that we have that you can’t lose on houses continuing. However the arrows and sentiment are pointing in the other direction….