Cash rich - are you buying soon?

[Hancock]

55 minutes ago, wherebee said:

This is the thing - in an overpopulated country, security of tenure is vital for mental health.  You should never vote for a mainstream party again - they have all fucked the UK over.

If there was a likely alternative to win a GE they wouldn't let us vote.

I like going to Singapore with its zero crime rate, thriving economy with high paying jobs, affordable housing for the natives, fantastic infrastructure and hot weather along with its slim feminine beautiful women, not to mention immigrants get kicked out if they take a liberty.

Its an OK swap for living in a police state.

We've got the polar opposite on all accounts, and have probably been more totalitarian that the Singapore for longer than the recent shutdown; and it seems to get worse quite literally by the day.

[Frank Hovis]

Quoting myself but I was thinking about how to appraise a house as an investment.

If you are renting then assume £1,000 per month rent then that's £12,000 per year out of net pay or roughly £18,000 gross that you are saving every year.

If you buy a house for £300k then it is returning you a yield of 6% assuming that you recover your tax on that bonus net income of £12k by putting it into SIPP / Pension / VCT.

You'll need to knock some off for maintenance so say an average of £2k per year (£3k gross) and the return is 5%.

Which isn't bad.

Obviously you only save the rent once so if you buy a £1.5m house your return is 1%.

[Hancock]

4 hours ago, Frank Hovis said:

Quoting myself but I was thinking about how to appraise a house as an investment.

If you are renting then assume £1,000 per month rent then that's £12,000 per year out of net pay or roughly £18,000 gross that you are saving every year.

If you buy a house for £300k then it is returning you a yield of 6% assuming that you recover your tax on that bonus net income of £12k by putting it into SIPP / Pension / VCT.

You'll need to knock some off for maintenance so say an average of £2k per year (£3k gross) and the return is 5%.

Which isn't bad.

Obviously you only save the rent once so if you buy a £1.5m house your return is 1%.

Yes but that 6% comes with the headache of a tenant and voids.

[Frank Hovis]

7 minutes ago, Hancock said:

Yes but that 6% comes with the headache of a tenant and voids.

No it doesn't.

I am saying that you should buy a house for yourself in which you live.

I am not advocating BTL; I wouldn't go there.

[Hunty]

Currently renting. Quite like it.

£250k in BP. Av 2.59.

When she hits over ~4. I'll consider my options.

Until then the Divs cover the rent, bills and daily bar bill.

All in all. Happy to sit and watch from the sidelines.

[sleepwello'nights]

On 05/01/2021 at 09:43, maynardgravy said:

Yeah - but one of those you risk being visited by the locals with machetes and the other is errrrrrrr....

I shouldn't laugh but that was my first thought about St. Lucia and then 

[wherebee]

5 hours ago, Hunty said:

Currently renting. Quite like it.

£250k in BP. Av 2.59.

When she hits over ~4. I'll consider my options.

Until then the Divs cover the rent, bills and daily bar bill.

All in all. Happy to sit and watch from the sidelines.

I've rented all over the world, and it can be great.  I've owned houses and flats all over the world and it can be great.

 

The trick is to realise that neither is automatically great.

[Craig]

On 05/01/2021 at 09:02, DoINeedOne said:

Still wondering if i want to stay in the UK to be honest

A family member has been looking to buy recently with a budget of £350,000 in south east London usual story needs to be close to working London

Been to view a few house with them, and just come away thinking what a shit hole and crazy how small some of them are

 

Saw this on twitter last night whilst not within my budget but still makes you wonder 

So i thought no way and with google images its pretty much correct

https://www.regosothebysrealty.com/enb/sales/detail/10-l-581-hjgvkr/pigeon-island-causeway-gros-islet-gr

Currently $1,500,000 = £1,098,510

OR

https://www.douglasandgordon.com/buy/property-details/70609/porden-road-sw2/

For £900,000

 

 

Don't these paradise islands in the Caribbean demand several hundred thousand dollars for residency?

[UmBongo]

2 minutes ago, Craig said:

Don't these paradise islands in the Caribbean demand several hundred thousand dollars for residency?

I think it was @Democorruptcy who posted a link to living in Barbados on a 12 month visa, which costs a few thousand dollars. 

[UmBongo]

I may be looking to buy later this year after my late dad's estate had gone through and the house sold, hopefully by March. 

I'm considering a 1 - 3 bedroom house in the Norwich area with a budget of £160,000k and depending on what will be left, around 30-40% deposit. 

[Boon]

13 hours ago, Hunty said:

Currently renting. Quite like it.

£250k in BP. Av 2.59.

When she hits over ~4. I'll consider my options.

Until then the Divs cover the rent, bills and daily bar bill.

All in all. Happy to sit and watch from the sidelines.

Do you have other investments or is that most of the eggs in one basket?

[Democorruptcy]

23 minutes ago, Craig said:

Don't these paradise islands in the Caribbean demand several hundred thousand dollars for residency?

Barbados are currently doing a 12 month visa for people able to work remotely. It might be a foot in the door for longer term. https://barbadoswelcomestamp.bb/

St Lucia will have you for $100k https://nomadcapitalist.com/2020/05/20/st-lucia-citizenship-by-investment/

Costa Rica has a Caribbean and a Pacific coast they will have you for $60k in the bank on their Rentista scheme. They are going to the IMF next week for a $1.75b loan. Recently cut public sector wages!

 

[Frank Hovis]

14 hours ago, Hunty said:

Currently renting. Quite like it.

£250k in BP. Av 2.59.

When she hits over ~4. I'll consider my options.

Until then the Divs cover the rent, bills and daily bar bill.

All in all. Happy to sit and watch from the sidelines.

'Kinell.

I hope you have other investments.  I hold BP and bought more, and more Shell, end of last year when they were both low but I wouldn't have even 10% of my investments in a single company.

 

9 hours ago, wherebee said:

I've rented all over the world, and it can be great.  I've owned houses and flats all over the world and it can be great.

 

The trick is to realise that neither is automatically great.

 

Yep.

Whilst I haven't always followed it* my general rule is to only buy somewhere where you would be happy and able to live for a long time; which means a house and not a flat.

 

* I did actually buy a flat in London when I knew I wasn't going to stay because it was half the price of renting and it was cheap so I was able to pay off the mortgage in a couple of years.  I saved about £30k in doing that.

[Talking Monkey]

3 minutes ago, Frank Hovis said:

'Kinell.

I hope you have other investments.  I hold BP and bought more, and more Shell, end of last year when they were both low but I wouldn't have even 10% of my investments in a single company.

 

 

Yep.

Whilst I haven't always followed it* my general rule is to only buy somewhere where you would be happy and able to live for a long time; which means a house and not a flat.

 

* I did actually buy a flat in London when I knew I wasn't going to stay because it was half the price of renting and it was cheap so I was able to pay off the mortgage in a couple of years.  I saved about £30k in doing that.

I'll second that 'Kinnell Frank, 250 large in a single stock, Holy shmoley. Hunty, I'd say at least split it between the oil majors just in case.

[Frank Hovis]

4 minutes ago, Talking Monkey said:

I'll second that 'Kinnell Frank, 250 large in a single stock, Holy shmoley. Hunty, I'd say at least split it between the oil majors just in case.

I'm particularly sensitive on BP because I had a lot prior to that Gulf of Mexico blow out as I saw them as a guaranteed one way bet.  Whoops.

That was just another example that there is no such thing as a one way bet.

[Talking Monkey]

23 minutes ago, Frank Hovis said:

I'm particularly sensitive on BP because I had a lot prior to that Gulf of Mexico blow out as I saw them as a guaranteed one way bet.  Whoops.

That was just another example that there is no such thing as a one way bet.

There sure isn't, I've had it drilled into me on being diversified via several good old fashioned kickings down the years

[CVG]

3 hours ago, Democorruptcy said:

Barbados are currently doing a 12 month visa for people able to work remotely. It might be a foot in the door for longer term. https://barbadoswelcomestamp.bb/

St Lucia will have you for $100k https://nomadcapitalist.com/2020/05/20/st-lucia-citizenship-by-investment/

Costa Rica has a Caribbean and a Pacific coast they will have you for $60k in the bank on their Rentista scheme. They are going to the IMF next week for a $1.75b loan. Recently cut public sector wages!

 

Ok. St Lucia sounds good. If you all chip in $5K each I'll volunteer to roadtest it for you.

[Hunty]

2 hours ago, Frank Hovis said:

'Kinell.

I hope you have other investments.  I hold BP and bought more, and more Shell, end of last year when they were both low but I wouldn't have even 10% of my investments in a single company.

 

If BP goes pop, I'll hang my Bowler up and sign on for full state bennies. 

I always keep plenty of powder dry should she drop below my AV.

Laddering in below AV @ roughly ~4% below per ladder and @ roughly ~20% of per initial pot always works for me.

We all do things differently.

GLA.

[CVG]

3 hours ago, Hunty said:

If BP goes pop, I'll hang my Bowler up and sign on for full state bennies. 

I always keep plenty of powder dry should she drop below my AV.

Laddering in below AV @ roughly ~4% below per ladder and @ roughly ~20% of per initial pot always works for me.

We all do things differently.

GLA.

This sounds rude but have you heard of Enron or Deepwater Horizon or Wirecard? The biggest can get trashed at a stroke and do.

[AWW]

We'll be looking around summer time. South Hertfordshire. I'm not looking forward to it, given the prices being asked for dross.

I think the only vaguely sensible thing to do is buy purely on location and plot size, raze whatever piece of shit occupies it to the ground, then build something good.

[Hancock]

15 hours ago, AWW said:

We'll be looking around summer time. South Hertfordshire. I'm not looking forward to it, given the prices being asked for dross.

I think the only vaguely sensible thing to do is buy purely on location and plot size, raze whatever piece of shit occupies it to the ground, then build something good.

Lets hope these kind of drops keep happening in the south, though £200k is closer to the mark for this one so still absurdly overpriced, but looks as if the kite flyers are slowly coming back down to earth.

[Green Devil]

On 07/01/2021 at 11:14, Democorruptcy said:

Barbados are currently doing a 12 month visa for people able to work remotely. It might be a foot in the door for longer term. https://barbadoswelcomestamp.bb/

St Lucia will have you for $100k https://nomadcapitalist.com/2020/05/20/st-lucia-citizenship-by-investment/

Costa Rica has a Caribbean and a Pacific coast they will have you for $60k in the bank on their Rentista scheme. They are going to the IMF next week for a $1.75b loan. Recently cut public sector wages!

 

1.75b?

Pah, that's small change to what our guys spend! 

[Green Devil]

8 hours ago, Hancock said:

Lets hope these kind of drops keep happening in the south, though £200k is closer to the mark for this one so still absurdly overpriced, but looks as if the kite flyers are slowly coming back down to earth.

Or you could buy this and have 60k left over for Thai massage? 😂

 

https://www.rightmove.co.uk/properties/74428877#/

[Hancock]

Just now, Green Devil said:

Or you could buy this and have 60k left over for Thai massage? 😂

If only i had £300,000 in cash. That's my saved search criteria, would mean borrowing some thus cutting back on the hand shandy's.

But i wouldn't pay 250k for that house, only person who'd go near the sellers asking price is a landlord.

[BurntBread]

On 07/01/2021 at 15:37, Hunty said:

If BP goes pop, I'll hang my Bowler up and sign on for full state bennies. 

I always keep plenty of powder dry should she drop below my AV.

Laddering in below AV @ roughly ~4% below per ladder and @ roughly ~20% of per initial pot always works for me.

We all do things differently.

GLA.

Now you have highlighted the point, I'm guessing there are a lot of people who are all-in on essentially one financial instrument.

A few chose Sirius Minerals, a very large number are essentially all-in on property (quite a lot for both income and pension), a lot just have their income and no savings (i.e. all-in on one company, and maybe even have their pension with them, too) and a small, but significant number are all-in on cash, usually in one bank account.

We have turned into a "bet it all on the one thing you know" nation. There will be some epic screaming if property ever does tank. Also lots of smaller screams as multiple companies fold, and maybe a bank goes down.

I think that BP is a better bet than all of those, but it still seems a shame not to diversify a bit, even if you don't want to use the the usual rule of thumb of several sectors, and no more than about 5% in any single stock.