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Those with a larger amount to save will need to spread their cash between multiple banks to ensure their cash is protected in full. If you are lucky to have a full £1million that means 12 different accounts.
Remember though you must check whether institutions you choose are part of the same banking group and therefore share the same banking licence - for example, savings with BM Solutions and Halifax both sit under the Lloyds Banking Group licence and are therefore jointly covered up to the £85,000 FSCS limit.
If you are waiting to buy in the property market, biding your time till after brexit you will possibly have a cash war chest that you want to make a return on.?
The best easy access rate I'm achieving is 1.3-1.5%
Obviously I do not want to fix for 2-3 years. But I want a rate which counters current inflation rate of 2.4% otherwise my funds are not keeping pace.
I was reluctant to also deposit with BM solutions as I had 3 mortgages with them.
This would also make a interesting side discussion about what happens in the event you have large deposits with a bank and repossession or calling in of loans.?
In current toppy stockmarket , also slighty reluctant to make short term trades on funds/ shares and im not delevarging on property as I currently remortgaging to better rates. Max 2.85%.
it can be a good idea to add value to property in current climate.(our residential property footprint is extended to max and no space requirement to do loft conversion)
Does anybody have any other UK based ideas for better return? , especially in case may take longer period 2-3 year wait after correction.
any discussion or suggestions appreciated?
Coming soon Investorsk8.com
Wisdom - an integration of knowledge, experience, and deep understanding that incorporates tolerance for the uncertainties of life as well as its ups and downs.
I find myself looking and finding Risker propositions whilst waiting.
.Buy to let Cars - ( old article )
(not saying anything after my 16% due diligence thread dressing down)
this is discussion and opinion only and does not constitute financial advice. Blah blah blah.
Please DYOR = do your own research.)
NEVER but NEVER ever have savings with any institution you have loans with.
Buried in conditions is the facility which allows banks etc to use offset.
They will take savings to pay down debt whenever they choose.
There is also the risk of bank bail ins as happened in Cyprus.
Legislation is there to allow the UK Govt to operate bail ins.
A good safe can be a better way to preserve capital and ready access to it!
You will just have to accept the eroding of the value of your savings.
Better that than risk losing the lot to a bank.
Great foreshadowing of things to look forward too.
I still remember the northern rock cues around the block.
Sadly my amount will fit in a cashbox and doesn't require a safe. Lol
I am in a very similar situation to yours - a significant war chest and only getting 1.3% interest - The Isas are maxed out as well.
My options are -
1. Buy a London flat - approx £475k. Pay £28k in SDLT and yield approx 3.75%. With Brexit and higher interest rates, gut feeling is telling me to keep my powder dry.
2. Fix for 1 year at a rate of approx 2%
3. Pay down my own residential mortgage, which is on flexible terms, and I have done this is in the past and the bank has released the funds when required. Going forward (post Brexit) I am uncertain what the
future holds for the banking sector so I think I will not give the bank any money back that I may like to use in the next 5 years for investment.
4. Invest in the stock market - possibly a world index tracker. Given this a lot of thought over the last few days (watched a gazillion yoututbe videos with Neil Woddford) but a lot of money seems to have been pulled out of funds investing in the UK and the market does appear to have had a very good run. Decided to open an account with H&L and drip feed money in rather than deposit the entire amount. I shall drip feed £3k a month for the next 2 years but thanks to B2L that still leaves a huge amount to find another home for.
5. I have been tempted by the idea of possibly buying in cash a holiday let. My thinking is this. If I pick up a holiday let for cash at around £250k, unlike the stock market my principal amount is largely safe. I f I get 60% occupancy
I will still get a decent return on my money and ablive all I like property. Only thing is I know nothing about holiday lets and therefore shall start a thread asking plenty of beginners questions.
My wife and I went for a walk yesterday and I went on about this topic of what to do with the war chest for the entirety of the walk - almost 10 miles.
Above all - its a lovely problem to have. When I set of on my property journey, I did not think that I would be having problems over surplus money! All thanks to B2L!
Point number 3 is very pertinent. I’m not paying down or deleveraging. Residential lifetime base rate tracker. 0.81% over base. Credit crunch 2.0 might still be a future event.
My war chest is small and I’m just building it up. Will be better and grow after I go back to healthcare profession self employment. But the thread was started with any cash surplus return in mind.
Imho Woodford is past is prime. And overrated .
Thats a long walk. Investing in your health is good.
I have had decent returns in stockmarket but my patience and temperament means I’m inclined to short trade or dividend sniping. There is value traps out there and looking at the graphs of some shares I’m cautious.
I’m considering corporate bonds at present. 5-6% and lendinvest option.
Sometimes wish I could go into state of hibernation and wake up after
Brexit over and crash done. Everything has changed for the better. Patience is a skill I have yet to master. Lol
Are you serious or sarcasm. Can’t tell on here sometimes. Describe in bit more detail if serious.
Glenn Armstrong is looking for people to lend him money with great returns promised........
I also do not fancy tying up my money or deleveraging (not that I am overly leveraged) - I'm now wondering if Brexit will throw all the cards up in the air and present more investment opportunities.
As for Woodford - he seems to have had a winning run for almost 30 years, so I thought it would be wise to listen to what he has to say.
Rather than investing in a managed fund, I am leaning towards a world index tracker - seems to be as good a punt as anything, so far as stocks and shares are concerned.
Do you know of a S&S investment equivalent site to Property Tribes by any chance?
listen to SS advice but take it with a pinch of salt. Never follow tips in papers.
LSE or iii - some boards for aim shares fully of ramblers and derampers.
i found Adfvn quite good. And I might stump up for level 2 -access if I start buying shares again.
HL research is fair/ good.
Right now I just use Free resources.
If looking at induvidual shares. I also use Barchart.com opinion to give me guidance on purchase or sell.
So google lse ticker followed by Barchart Opinion.
e.g Lloy Barchart opinion
i like recovery shares with good dividend prospects.
There was thread started by DL about X gain in 5 years. Which might be worth reading. DYOR caveat applies.
Good luck and great success.