Anyone concerned by interest rates rising re mortgage?

[gas112]

As I said.

With interest rates on savings less than inflation, their real value is constantly trickling away.

And as I asked what do you suggest .spending all your savings and what on ?

 

[JohnD]

Most people need a cash cushion to cover short-term expenditure, and in case of unexpected costs or drop in income.

Cash savings, long term, are a guaranteed way to get poorer.

Investment is different.

 

[Harry Bloomfield]

Investment is different.

But is potentially, much riskier.

 

[gas112]

Most people need a cash cushion to cover short-term expenditure, and in case of unexpected costs or drop in income.

Cash savings, long term, are a guaranteed way to get poorer.

Investment is different.

so what are you saying spend all your money or save and be poor ? and if so what do you suggest people spend this excess income on that they would normally put away

 

[Mottie]

As with everything, those most in need usually end up with a worse deal...

Thus the less well off keep getting poorer!

Well if those in most need were given all they wanted, there really would be no incentive to better themselves, would there? Give a man a fish………

 

[JohnD]

so what are you saying spend all your money or save and be poor ?

No.

 

[gas112]

No.

So what are you saying . Save or risk losing money in trickle investments

 

[Mottie]

so what are you saying spend all your money or save and be poor ? and if so what do you suggest people spend this excess income on that they would normally put away

Keep up. Don’t you know JohnD is a superinvestor - his European investments saw a 40% growth in a year. This is a post from 2020:

Up 1% since the referendum.

I've done more than 40 times better.

Poor Britain.

Poor Brexers.

They must be up over 400% by now - strange that JohnD still boasts of winning on the premium bonds though when he could have placed that devaluing premium bond money elsewhere……..

 

[JohnD]

strange that JohnD still boasts of winning on the premium bonds though when he could have placed that devaluing premium bond money elsewhere……..

There is nothing strange about keeping a cash cushion. It's one of the things I suggested earlier.

I have been reducing mine, as you know.

 

[Mottie]

There is nothing strange about keeping a cash cushion. It's one of the things I suggested earlier.

I have been reducing mine, as you know.

<yawn> Yeah, yeah. Of course you have. You say you've reduced your holdings every time I mention it. I normally mention it after you repeatedly tell everyone how shît they are. Don't you fancy keeping your cash cushion in a guaranteed interest paying instant access account then? Presumably you kept an amount in them that you felt you might need so why are you reducing them on a seemingly never ending monthly basis?

 

[JohnD]

Of course you have.

That's right.

 

[Notch7]

I should move my money out of premium bonds really -wife and I have have max x 2 but returns are quite cr@p

 

[diy_fun_uk]

Your theory sounds good until you actually think about it.

When landlords decide to sell up (or get reposessed), they don't burn down the house. They sell it to someone else. It's likely that their tenant will need a new home, but the new buyer of this house may well have been renting elsewhere. Sometimes the sitting tenant may even buy it themselves. Either way, there are exactly the same number of households and houses, only the middleman has been removed from the system.

Landlording has become a parasitic industry that works against the interests of the vast majority, mainly by driving up house prices. It's time for a much needed clearout - those who are genuinely wealthy and can afford things like maintenance will remain, the upstart get-rich-quick-on-credit brigade will have to come up with a new plan or possibly even do something productive with their time, i.e. some actual work.

First bib, it's not a theory, it's fact, or at least it is in my tenants cases. One of my tenants is an older woman who moved back to the UK after divorcing later in life. Her circumstances mean that, for her, renting has been a good option and at her stage in life buying a property would have been a non-starter. I get on really well with her and she keeps the place like a show home. Although she could obviously just be spinning me a line, she tells me she's happy in the property, she rates me as a landlord (quick to react to issues etc) and ideally she'd live in the property for the duration. However as it's first floor, she's starting to find the stairs a bit of a struggle so planning ahead she put her name down with the council a few years back. They told her it would be a good few years until she'd be near the top of the list for a council property. If I was to put the property up for sale, yes she might be able to buy it (I don't know her personal financial circumstances) however if she didn't have the £££, she'd be forced to leave. If another landlord bought it, in what way has the tenant benefitted? It would simply keep the whole circle going that you obviously detest.

My other tenant also loves the property, keeps it in great order, says I'm a decent landlord and also has no intention of moving, although again I'm not daft, I'm fully aware this could just be them saying the right things to the landlord. She is on benefits and can't work through ill health. She was saying to me a few weeks back if she had to move to another rental she'd most likely be up the proverbial sh1t creek as there's a distinct lack of them in our area at present. Social housing doesn't overly appeal to her. So again if I sell up and she can't afford to buy the place, she'd be forced to leave but to where and at what financial cost?

I had tenants in another property that eventually moved out after not paying rent for 10 out of the last 11 months they lived there. They left the place like a tip (and then some) so I'm currently in the process of a complete refurb. Of course, I can imagine in your world, this is entirely fair and you would encourage more tenants to do likewise.

As for your second bib, I don't doubt landlords have had a part to play in driving up house prices ... but only landlords? If you believe that, you're misinformed at best

 

[Trazor]

I should move my money out of premium bonds really -wife and I have have max x 2 but returns are quite cr@p

My wife and I both have the maximum, but as I showed in the Premium bond thread, we have won just over £2000 in the last 2 months.
Well pleased.

Will keep an eye on interest rates as we go.

 

[Vinty]

Possibly because they never got around to saving a deposit or had a poor credit rating and a history of debt?

Good point.
I have experience of that type of tenant.
I had a small terrace house once that wouldn't sell, probably due to the area it was in.
It was lying empty for awhile which attracted the attention of local vandals who smashed the windows.
I was advised to put a tenant into the property on the principle that a lived in property is less likely to get vandalised.
I got a tenant on a short term tenancy, he was a bit of an alcho but not aggressive.
I explained to him that my intention was to sell the property and he could stay until the property was sold, he seemed OK with that as no other landlord wanted him in their property.
The council paid his rent, he caused no real problems for me or the neighbours.
Eventually the only offer to buy the house was from another Landlord, he was happy to take over the property and keep the tenant, however when viewed the property and met the tenant, he said that he had evicted my tenant from one of his properties.
So i said to my tenant, George you have to go, he said, nae bother, gimme a letter for the council saying you are evicting me and they will rehouse me.
So, i gave him letter stating that i had to ask him to leave because the house had been sold.
To my surprise the council gave him a refurbished flat and a 1000 quid to furnish his flat and purchase cookers, fridges and various other white goods.
The above is just my experience as an accidental Landlord and confirmation of your point that such people exist, however, i know lots of other examples of young people who are caught in the rental sector, working full time and having to pay rent and childcare.
To owning a home is a distant dream to these people.