70k to invest, buy to let?
Discussion
clubsport said:
DA, along those lines you may have seen Countrywide (largest UK estate agent) shares closing down 30% on the day.
Citing a sluggish market and plans to issue more equity to cut debt.
That should do wonders for their cost of capital?
I didn’t see that. Been putting a new roof on a shed. Citing a sluggish market and plans to issue more equity to cut debt.
That should do wonders for their cost of capital?
Market is quite jittery with slow down concerns, what Trump is going to do next, rising corporate debt costs and a falling number of lenders wanting to be the schmuck with their name on the last rollover or refinance of a shaky firm.
I’m pretty sure that we’re in the transition between cycles.
sidicks said:
The usual ignorance from the usual suspect.
Post reported - it’s demonstrably wrong in numerous areas, areas that have been covered and explained time and time again.
The only conclusion is that you are deliberately trying to troll or you really are entirely ignorant on this topic.
As per one of your previous posts, if you don’t know or understand about a topic, don’t post on it.
Sidicks
Man up don’t run to mama .
I know from my own personal experience that joyless is correct about the BTL market .
I have had over a 1000 tenants , I have never once had to go to court over possession
and I am no gangster .
Rent arrears have been minimal, if a tennant can’t pay find out why and make it easy for him
to pay the arrears , extra payment next month ....
Take the bouncers attitude....if you don’t let them in you won’t have to throw them out ...
if you get my drift ...
As a younger man my bank managers suggested taking out pensions with them if I wanted
finance , they turned out to be the worst investments I have ever made .
For the impartial reader this thread is very useful, I am sure they have the brains to draw their
own conclusions.
Post reported - it’s demonstrably wrong in numerous areas, areas that have been covered and explained time and time again.
The only conclusion is that you are deliberately trying to troll or you really are entirely ignorant on this topic.
As per one of your previous posts, if you don’t know or understand about a topic, don’t post on it.
Sidicks
Man up don’t run to mama .
I know from my own personal experience that joyless is correct about the BTL market .
I have had over a 1000 tenants , I have never once had to go to court over possession
and I am no gangster .
Rent arrears have been minimal, if a tennant can’t pay find out why and make it easy for him
to pay the arrears , extra payment next month ....
Take the bouncers attitude....if you don’t let them in you won’t have to throw them out ...
if you get my drift ...
As a younger man my bank managers suggested taking out pensions with them if I wanted
finance , they turned out to be the worst investments I have ever made .
For the impartial reader this thread is very useful, I am sure they have the brains to draw their
own conclusions.
Edited by sidicks on Sunday 24th June 19:04
As Sidicks points out every time a pension is not an investment. It's a tax efficient wrapper. So what did you actually invest the money in? If you invested in the general market it's likely you should have made a lot if you just left it there, didn't have massive charges on the fund, and didn't potentially buy on the highs/ sell on the lows. Stuff like charges is things you should check, just as you would check a tenant.
What seems to be a general theme is some people specialise in certain things, and generally to do well in them. That makes sense as you will learn area, and be able to make the best decisions based on it. Then perhaps you try something else you don't know, and when it doesn't immediately work out then you say it's crap and get out.
If you're lucky (partly smart) enough to have got in at the correct time in your area that works then you'll love it. There will likely be plenty of people who viewed housing as bad, as they bought at a market high, and perhaps had to sell during the lows to fund their mortgages due to interest rates/ LTV when remortgaging etc. If it works due to the gearing housing will be best. If it goes wrong it can really go wrong.
What seems to be a general theme is some people specialise in certain things, and generally to do well in them. That makes sense as you will learn area, and be able to make the best decisions based on it. Then perhaps you try something else you don't know, and when it doesn't immediately work out then you say it's crap and get out.
If you're lucky (partly smart) enough to have got in at the correct time in your area that works then you'll love it. There will likely be plenty of people who viewed housing as bad, as they bought at a market high, and perhaps had to sell during the lows to fund their mortgages due to interest rates/ LTV when remortgaging etc. If it works due to the gearing housing will be best. If it goes wrong it can really go wrong.
NRS said:
As Sidicks points out every time a pension is not an investment. It's a tax efficient wrapper. So what did you actually invest the money in? If you invested in the general market it's likely you should have made a lot if you just left it there, didn't have massive charges on the fund, and didn't potentially buy on the highs/ sell on the lows. Stuff like charges is things you should check, just as you would check a tenant.
What seems to be a general theme is some people specialise in certain things, and generally to do well in them. That makes sense as you will learn area, and be able to make the best decisions based on it. Then perhaps you try something else you don't know, and when it doesn't immediately work out then you say it's crap and get out.
If you're lucky (partly smart) enough to have got in at the correct time in your area that works then you'll love it. There will likely be plenty of people who viewed housing as bad, as they bought at a market high, and perhaps had to sell during the lows to fund their mortgages due to interest rates/ LTV when remortgaging etc. If it works due to the gearing housing will be best. If it goes wrong it can really go wrong.
I would say 99% of people would imagine pension payments are an investment ( where else do their payments go )What seems to be a general theme is some people specialise in certain things, and generally to do well in them. That makes sense as you will learn area, and be able to make the best decisions based on it. Then perhaps you try something else you don't know, and when it doesn't immediately work out then you say it's crap and get out.
If you're lucky (partly smart) enough to have got in at the correct time in your area that works then you'll love it. There will likely be plenty of people who viewed housing as bad, as they bought at a market high, and perhaps had to sell during the lows to fund their mortgages due to interest rates/ LTV when remortgaging etc. If it works due to the gearing housing will be best. If it goes wrong it can really go wrong.
Well considered remarks though .👍🏻
kitz said:
I would say 99% of people would imagine pension payments are an investment ( where else do their payments go )
Well considered remarks though .????
Probably a bit less than 99%. However I agree, most.Well considered remarks though .????
That's the scary thing though - often people will spend a few hours looking where to get a cheaper computer/ phone deal etc. Yet when it comes to their pension often it's either not bothering to make one, or perhaps doing the company scheme without checking anything about it. My work pension has 4 risk profiles to choose from, low risk to high risk. However the low risk is basically interest in a bank account. A really bad idea over 30-40 years. However if people just went for that then they'd complain a pension gave them terrible returns. It pays off big time to build a little bit of understanding.
When I first started funds saving I didn't pay much attention to the charges as a few % doesn't mean much really, does it? A few months later and a bit more reading it was obvious how much it would affect compound interest over many tears. So I cancelled the funds with around 2.5-3% yearly costs and moved them elsewhere with much cheaper costs (and bigger gains when comparing now). If I just kept the first funds I would have done a lot worse, but it was my choice and lack of research that was the issue, not saving in funds.
kitz said:
Man up don’t run to mama .
I know from my own personal experience that joyless is correct about the BTL market .
I’m not questioning his comments on the BTL market. It’s just about everything else that he has posted that is total nonsense and he doesn’t hesitate to pollute any and every thread with same ignorance over and over again. I know from my own personal experience that joyless is correct about the BTL market .
kitz said:
As a younger man my bank managers suggested taking out pensions with them if I wanted
finance , they turned out to be the worst investments I have ever made .
For the impartial reader this thread is very useful, I am sure they have the brains to draw their
own conclusions.
But presumably not the brains to understand the difference between an investment (tax efficient wrapper) and the underlying investment risk...finance , they turned out to be the worst investments I have ever made .
For the impartial reader this thread is very useful, I am sure they have the brains to draw their
own conclusions.
Been very busy at work serious issues yet again. Sigh
Anyway not caught up with last couple of pages but here is where I am,it’s just going through now.
Whilst looking at shares and still looking around at houses I found a house in a lot nicer area for only a little more percentage wise. It just popped up and seemed too good a deal to pass up.
If you remember the 80k house I found estimated rent at 400-450 in a not great area.
well I found a house in a nicer area but a little tired inside, so good price for area. Kitchen and bathroom very good though rest of house needs gutting.
It was only a little more but estimated rent is 650 so made sense to me, only little bit more down initially much better return. Seemed quite logical to me.
Yep it’s a risk and yes worry about tenants although thinking about what you guys said this being in a nicer area with higher rent I expect it’s a better bet.
I spoken with an estate agent who does this kind of thing and all in for 10% of the rent which seems about fair for this area. They excpect a working family and they don’t have any houses in that area and s expect it to be popular.( we will see although they seemed genuine.)
They could have made it 8% but for the extra they will do it didn’t make any sense to me to penny picnh that’s much.
Another reason I went this route.this house will be paid off and in my name only. It’s a decent popular area.
I’m thinking of it as a worse come to the worse I have a bolt hole in a nice area I could always live in if everything else goes wrong. I like to have a fall back plan.
Will update with nightmare stories or indeed impecible pay on time and keep place nice tenants.
Anyway not caught up with last couple of pages but here is where I am,it’s just going through now.
Whilst looking at shares and still looking around at houses I found a house in a lot nicer area for only a little more percentage wise. It just popped up and seemed too good a deal to pass up.
If you remember the 80k house I found estimated rent at 400-450 in a not great area.
well I found a house in a nicer area but a little tired inside, so good price for area. Kitchen and bathroom very good though rest of house needs gutting.
It was only a little more but estimated rent is 650 so made sense to me, only little bit more down initially much better return. Seemed quite logical to me.
Yep it’s a risk and yes worry about tenants although thinking about what you guys said this being in a nicer area with higher rent I expect it’s a better bet.
I spoken with an estate agent who does this kind of thing and all in for 10% of the rent which seems about fair for this area. They excpect a working family and they don’t have any houses in that area and s expect it to be popular.( we will see although they seemed genuine.)
They could have made it 8% but for the extra they will do it didn’t make any sense to me to penny picnh that’s much.
Another reason I went this route.this house will be paid off and in my name only. It’s a decent popular area.
I’m thinking of it as a worse come to the worse I have a bolt hole in a nice area I could always live in if everything else goes wrong. I like to have a fall back plan.
Will update with nightmare stories or indeed impecible pay on time and keep place nice tenants.
Edited by Pesty on Monday 9th July 21:55
BarryGibb said:
b
hstewie said:
hstewie said:M3333 said:
If you havent used your isa allowance have a look at www.fundsmith.co.uk
It has done really well for me and many others. Its very easy to set up. No guarantees of course but i was in a simular position to OP and its a minefield!
I have a third of my ISA allocation in Fundsmith and top up every month.It has done really well for me and many others. Its very easy to set up. No guarantees of course but i was in a simular position to OP and its a minefield!
Even if you don't go with Fundsmith I'd advise anyone considering equities to watch the Fundsmith AGMs or basically anything from Terry Smith.
Seems very straight talking and has a good track record and says things in terms that make sense to idiots like me.
M3333 said:
All I can say is that I am into a 4 figure profit and only started investing in May! If it crashes so be it but he seems to have a record of decent sustained growth and I like the fact Terry Smith put £115m of his own money into his own fund, that is not someone lacking confidence in his own fund.
Depends what your original investment was! NRS said:
M3333 said:
All I can say is that I am into a 4 figure profit and only started investing in May! If it crashes so be it but he seems to have a record of decent sustained growth and I like the fact Terry Smith put £115m of his own money into his own fund, that is not someone lacking confidence in his own fund.
Depends what your original investment was! Currently worth £9046 in an accumulation ISA. Wont let me retire. Carries risk. If i had stuck 70k in it then that would have produced a far higher return than a BTL.
You pays your money takes your chances but so far so good. It is a long game i dont expect it to make me rich overnight.
Ridicule all you want, its fine.
I also own 1 x BTL property and its also been a long game, probably a lot safer in bricks and mortar (any guarantees NO) but it comes with a lot more responsibility and aggro and management with additional expenses, taxes and headaches. Luckily i have a good long term sane tenant.https://www.telegraph.co.uk/investing/funds/terry-...
Edited by M3333 on Friday 20th July 06:21
M3333 said:
NRS said:
M3333 said:
All I can say is that I am into a 4 figure profit and only started investing in May! If it crashes so be it but he seems to have a record of decent sustained growth and I like the fact Terry Smith put £115m of his own money into his own fund, that is not someone lacking confidence in his own fund.
Depends what your original investment was! Currently worth £9046 in an accumulation ISA. Wont let me retire. Carries risk. If i had stuck 70k in it then that would have produced a far higher return than a BTL.
You pays your money takes your chances but so far so good. It is a long game i dont expect it to make me rich overnight.
Ridicule all you want, its fine.
I also own 1 x BTL property and its also been a long game, probably a lot safer in bricks and mortar (any guarantees NO) but it comes with a lot more responsibility and aggro and management with additional expenses, taxes and headaches. Luckily i have a good long term sane tenant.https://www.telegraph.co.uk/investing/funds/terry-...
Edited by M3333 on Friday 20th July 06:21
Sounds like it's been great for you so far though,
More money makes it easier to have greater diversity, but you're still fundamentally looking at the same range of potential assets.
A larger portfolio when staring from scratch means you've got to really concentrate on tax advantaged options (Pension, ISA, VCT for example) in a way that when building it up at say £40K/year is less challenging, as you've got access to fresh ISA and Pension allowances each year.
A larger portfolio when staring from scratch means you've got to really concentrate on tax advantaged options (Pension, ISA, VCT for example) in a way that when building it up at say £40K/year is less challenging, as you've got access to fresh ISA and Pension allowances each year.
xeny said:
More money makes it easier to have greater diversity, but you're still fundamentally looking at the same range of potential assets.
A larger portfolio when staring from scratch means you've got to really concentrate on tax advantaged options (Pension, ISA, VCT for example) in a way that when building it up at say £40K/year is less challenging, as you've got access to fresh ISA and Pension allowances each year.
I’d agree. The same assets but safer through diversity which would make space for some of the higher risk assets. But still with a primary focus on tax efficiency as a means for the greatest returns. In essence you end up with the same returns but far greater stability. A larger portfolio when staring from scratch means you've got to really concentrate on tax advantaged options (Pension, ISA, VCT for example) in a way that when building it up at say £40K/year is less challenging, as you've got access to fresh ISA and Pension allowances each year.
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