Is cash really king ??
Is cash really king ??
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Discussion

qureshia

Original Poster:

4,560 posts

222 months

Wednesday 15th June 2011
quotequote all
Is cash really king ??
I have some cash (due to house sale and now renting) and thought I would put it to some good use, yet there seems to be no real bargains to be had in the areas of business investment, used cars or property ?
Is cash really king or was that just for a few months back in 2008 after lehmans went to the wall, since then QE has put an end to real cash bargains ?

pugwash4x4

7,620 posts

237 months

Wednesday 15th June 2011
quotequote all
depends on circumstances

most businesses will fail if they run out of cash.

somebody desperatae to sell house due to divorce or job less may take a cash sale- but they'd have to be desperate.

A stal holder at the end of a country fair will always do a cash deal to sell the last of his stock and not ship it home again.

how much were you thinking?

qureshia

Original Poster:

4,560 posts

222 months

Wednesday 15th June 2011
quotequote all
“how much” ...enough to buy a super car (if the wife is not watching) or an average house....ideally something that needs modernisation

Is it the case with the advent of WBAC/ ebay there is now always a sensible minimum price for a used car and similarly at property auctions little shortage of people bidding close to retail money ?

Late 2008 there was a period of about 4 months when you could buy used luxury cars for a similar price to what they are worth today (when nearly 3 years older) and part built new builds at real knock down prices .......

Where are the truly viable, profitable businesses that can’t get hold of bank funding ??


No doubt life is very tough for many, however there seems to be very few truly desperate sellers around (which overall I guess is good thing)

pugwash4x4

7,620 posts

237 months

Wednesday 15th June 2011
quotequote all
If you can get in with estate agents, and keep your nose to the groun then you can get some bargains

i was offered a 2 bed flat requireing modernisation on the outskirts of Brighton for £25k 3 months ago!

RichyBoy

3,743 posts

233 months

Wednesday 15th June 2011
quotequote all
Isn't it just a question of waiting for a rate rise for the smart money part of the cycle?

qureshia

Original Poster:

4,560 posts

222 months

Thursday 16th June 2011
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RichyBoy said:
Isn't it just a question of waiting for a rate rise for the smart money part of the cycle?
could be years away ??? and with inflation at 5% money in the bank is only going backwards

R11ysf

1,956 posts

198 months

Thursday 16th June 2011
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It's tricky. 2008 there were some bargains such as Rod Stewart's Gallardo spyder, 13 months old with 1,500 miles on the clock selling at auction for 57k + fees = £67k. You could have bought it, run it for 8 months and sold it to trade for £90k, a near identical one with 4k on it sold for £99k through Lambo London. When things were at their deepest and stocks were getting smashed everyone was afraid.

Since then those with money realised that nothing really affected them and those who were leveraged beyond their capabilities were the distressed sellers - most of those guys have gone now. Decent London property is well through all time highs and bonuses are back.

In Feb '08 I found out about a 7 storey, 5000+ sq ft house on Park Street, Mayfair with a sitting tenant for £2m. You had to wait until he died but he was 82 and in a wheelchair. If that had another £2m spent on it it would be worth at least £8m-£10m in today's market.

It seems that 2008 could be a once in a generation/lifetime opportunity that only the very brave/smart/foolish took.

NoelWatson

11,710 posts

258 months

Thursday 16th June 2011
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R11ysf said:
It seems that 2008 could be a once in a generation/lifetime opportunity that only the very brave/smart/foolish took.
Give it a few years. No one belives the problems have been solved, just postponed

R11ysf

1,956 posts

198 months

Thursday 16th June 2011
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NoelWatson said:
Give it a few years. No one belives the problems have been solved, just postponed
True, only now those who were scared to touch anything last time now have a recent memory example on which to base their decisions. They were in a state of shock last time but most people with cash have emerged unscathed or in a better position.

Also with the desperate sellers already been flushed the glut of bargains won't be a great and people will be more eager to get it.

The first crash is always the most severe from the highs.

qureshia

Original Poster:

4,560 posts

222 months

Friday 22nd July 2011
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One month on….
Appears more posts on the forums about hard it is to sell an expensive car private…more news in the media about vendors struggling to sell houses.. Speculation is the Euro blow or not …
Little reflection in asking prices of either …

scotal

8,751 posts

295 months

Friday 22nd July 2011
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qureshia said:
Little reflection in asking prices of either …
If you are looking to pick up a bargain house you need to get in with the agents in your target area.
There are always a few people on an agents books who need to sell, and who can accept a low ball offer.
Just sitting watching asking prices won't tell you much at the mom.

Eric Mc

124,054 posts

281 months

Friday 22nd July 2011
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Cash is not king.

CASHFLOW is king.

Steff

1,420 posts

279 months

Friday 22nd July 2011
quotequote all
Eric Mc said:
Cash is not king.

CASHFLOW is king.
Exactly

qureshia

Original Poster:

4,560 posts

222 months

Friday 22nd July 2011
quotequote all
Eric Mc said:
Cash is not king.

CASHFLOW is king.
say what ears

Eric Mc

124,054 posts

281 months

Friday 22nd July 2011
quotequote all
The ability to ensure that cash flows in regularly from your customers is essential for your business.

"Cash" in this context does not just mean simple "cash" but all forms of payment from your custometrs. If you do not control your cashflow, no matter how big your sales are or no matter how large your profits may appear to be - you will go bust.

mgroadster

257 posts

175 months

Friday 22nd July 2011
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Dearly Beloved,
I am the only surviving relative of chief mbwongigalongi who was head of revenue and Finance on the Golden Island of steringu de llama.
Before his death he had access to enormous cash reserves which he placed in safe keeping.
God has always looked after him right upto his death and now, I have found a way to remove these cash reserves which the Good Lord would have wanted me to have.
However, I am monitored daily by the grabonjo secret Police and therefore I seek an Honest God fearing person like yourself to help me remove £886,000,000 and look after it in a recognised British bank account. If you can provide my money with this safe haven, I am happy to give you 10% of this wealth to keep and use in the good lords endeavours.
I understand that you have some ready cash and it is this that I need to "grease palms" from the Greedy satanists who will turn a blind eye. Therefore if you could send to me via Western Union the tiny sum of £50,000 this afternoon, I will send Reg (sorry the Prince Regent) to collect this from the Steringu post office and then you will be showered with the golden gift from our Lord.I honour and entrust you with my request and will always consider you a pillock (sorry PILLAR of society) and when god allows me will also travel to collect my share. Yours mbebei sawazi.

fid

2,431 posts

256 months

Saturday 23rd July 2011
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NoelWatson said:
Give it a few years. No one belives the problems have been solved, just postponed
No no, most people do believe the problems have been solved, and that is a very large part of the problem. Impossible to know whether everything will stagnate for years or crash again though.