anywebsite Posted August 31, 2012 Share Posted August 31, 2012 If it were that easy then surely we'd all be investing in them right now... Can you give me an example? Land & property would be the classic example. There are other non-perishable commodities that are likely to rise faster than inflation (or bank interest) too, or you could even buy a business. Obviously prices can fall as well as rise, it involves some risk. Link to comment Share on other sites More sharing options...
denlin Posted August 31, 2012 Share Posted August 31, 2012 Take all the people who came to Garrison last week and RR and Sue on cruise to Canada:D:love: Link to comment Share on other sites More sharing options...
Cyclone Posted August 31, 2012 Share Posted August 31, 2012 My advice is wonderful for those currently looking at possible investments, it is not optimistic but the facts. The LHA rate is £950 per month in that area which anyone can take advantage of if they put some time and effort in. If you have £80k to invest in any form, you should be looking at all avenues that offer great returns. BTL in this instance could offer immediate equity, cash-flow income and future capital appreciation. BTL I agree is not for everyone but it is a wonderful opportunity for people with investment funds to look at seriously especially in the current climate. Some amazing deals to be had right now. I'd be more than happy to take a look at your second house for BTL purposes, link it if you want. But as you've decided not to let it out yourself and just release equity to invest in other things that will work better for you, maybe you've concluded that property is not best suited for BTL? Maybe it would make a profitable HMO, how many rooms has it got? What area is it in? Lower Walkley, a fairly busy area for lettings from what I understand, the average monthly rate in the area for a 3 bed terrace seems to be about £550. It's not that the house or area is inappropriate, I just don't want to manage a letting business, I have a full time job and don't want the additional stress of running a 2nd business alongside the existing one. NO, sitting on equity and avoiding risk doesn't make you happy, it gives you peace of mind. Are you saying that peace of mind can't result in happiness? It comforts you to know that your money is safe and it can't be lost, well, not unless house prices drop. No, it's not the money that can't be lost, it's the house. House prices could crash right now and it wouldn't concern me that much (it would concern me less after I've sold the old house). If you leave a large amount of equity in your house, when prices drop you lose it. If you ever intend to trade up then you've gained something, not lost it as the steps on the ladder just got closer together. If you release the equity when it's high and the prices drop, you still have the money. That's true, but if you release it you've got to pay it back. Your money isn't safe, IT'S DEAD! You killed it when you decided to leave it sitting around doing nothing. On the contrary, the money has been used for something. You should be arrested for the murder of money. Everyone of course has the right to do what they like with their own cash, but when you don't leverage your funds on "sure things", the only thing you sacrifice is prosperity. However, as I said earlier, people have different comfort levels when it comes to risk based on the confidence they have in their own abilities and their network of well informed trusted contacts, you should get out more instead of posting 43,000 posts on here. Did you look at over how many years those posts were, I'm not even close to the more prolific posters. Think of the time you've wasted, reading and responding to posts on this forum, time you could have used for far better things. It's generally time spent at work waiting for some code to compile or a server to restart. I couldn't do much useful in those short periods. Every minute you spend on this forum, your house is siting on the market doing nothing, every minute I spend on this forum, my BTL portfolio is making money while I sit here. You see the difference. Not really. Every minute I spend sitting here I'll be invoicing my client for (actually not today, I've got the day off, but it's the first day off since April). Today this is my leisure time and once breakfast has settled I'll be heading off to do other things. Link to comment Share on other sites More sharing options...
Cyclone Posted August 31, 2012 Share Posted August 31, 2012 Land & property would be the classic example. There are other non-perishable commodities that are likely to rise faster than inflation (or bank interest) too, or you could even buy a business. Obviously prices can fall as well as rise, it involves some risk. It certainly does involve some risk. And buying into land or property with the intention of seeing it rise above inflation at the moment wouldn't appear to be very clever. It's been falling consistently for quite some time now... Link to comment Share on other sites More sharing options...
Cyclone Posted August 31, 2012 Share Posted August 31, 2012 I'm as bored of talking about BTL now as you are so I'm going to stop, I made a short post about it as an option, Cyclone jumped all over it to pick fault as he does with most of his posts, he was wrong to do so as all strong options should be considered. Sadly, his need to be right exceeds his ambition and only he can be hurt by this. There's no need to lie, you made a short post that massively exaggerated the potential profit and ignored the costs involved. I pointed that out and you got all upset about it and set about trying to prove that BTL was the best investment going. Your advice (which you then claimed not be advice) was completely inappropriate to the OP who apparently wanted a 1 year investment. Link to comment Share on other sites More sharing options...
GodStar Posted August 31, 2012 Share Posted August 31, 2012 What are you going to do when doomsday hits in December? Picture this, the dust settles and it just so happens that the only habitable place left on earth is baghdad. Well, you're going to need something to barter with and a way of getting past the language barrier. One bar of gold will speak their language. So while I'm lying back in a warm hot country being fanned by exotic dancers you're going to be stuck in your bunker with nowhere to go. You do have a bunker right? if you want in on mine, that will be 2 bars of gold please. Picture this. The dust has settled and you have nothing apart from a little bar of gold and a tiny rag covering your modesty. I have a herd of goats because I invested all my money in goats. You are cold and hungry and desperately want a goat so you offer me your gold. I dont want your gold as I cant eat it, wear it to keep warm or build with it for shelter. Nobody else wants it either for the same reasons. Link to comment Share on other sites More sharing options...
anywebsite Posted August 31, 2012 Share Posted August 31, 2012 It certainly does involve some risk. And buying into land or property with the intention of seeing it rise above inflation at the moment wouldn't appear to be very clever. It's been falling consistently for quite some time now... They fell in 2008 & they've risen since You can also get rental income which pays more than bank interest even if property prices remain stagnant. Link to comment Share on other sites More sharing options...
Cyclone Posted August 31, 2012 Share Posted August 31, 2012 Zoopla keep sending me an tracker for S6, and it's down every month. The national prices might have risen, but you don't buy a national house/property, you buy a specific one. http://www.zoopla.co.uk/market/s6/ Still well below 2008 prices, pretty flat though. Value change from 1 year ago. £4,528 (-3.14%) For the entirety of Sheffield Value change £3,338 (-2.13%) The last 3 months have seen a small increase, but the last 6 months, 1 year, 2 year, 3, 4 and so on have all shown a decrease. So any investment since 2008 would currently be lucky to break even (and that's ignoring the costs involved with buying, owning and then selling a property). This was your example of a commodity that's definitely going to beat inflation and/or a bond return of 3% with no risk! Link to comment Share on other sites More sharing options...
Hairyloon Posted August 31, 2012 Share Posted August 31, 2012 The most sensible things to invest in are land and energy. Possibly both at the same time: set up an off-shore wind farm, and build an island around it. Link to comment Share on other sites More sharing options...
anywebsite Posted August 31, 2012 Share Posted August 31, 2012 Zoopla keep sending me an tracker for S6, and it's down every month. The national prices might have risen, but you don't buy a national house/property, you buy a specific one. http://www.zoopla.co.uk/market/s6/ Still well below 2008 prices, pretty flat though. Value change from 1 year ago. £4,528 (-3.14%) For the entirety of Sheffield Value change £3,338 (-2.13%) The last 3 months have seen a small increase, but the last 6 months, 1 year, 2 year, 3, 4 and so on have all shown a decrease. So any investment since 2008 would currently be lucky to break even (and that's ignoring the costs involved with buying, owning and then selling a property). This was your example of a commodity that's definitely going to beat inflation and/or a bond return of 3% with no risk! I missed the part about the property needing to be in S6 Anyway, what's the rent yield? Link to comment Share on other sites More sharing options...
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