BTL vs Shares ?

[kramer]

article in the Times over the weekend pegged a 10% return on NAtional Savings scheme

invest in GB... he's our man!

[TheRightStuff]

Like that's a good idea.

why not?
Were married with a child.
anything happens she'll get half anyway. Doesn't matter if it's in my name or her name. Anyway it's an internet account and she's female so there's no way she will be able to get to the money. She can just about read and write e-mails.

[rootsnall]

You pay 40% tax on the interest, giving you a real return of less than inflation. Stupid move.

Same as Rightstuff, non working wife but I will be copping for some tax this time. I've made a punt that some lower rate tax in the wife's name is a better option than having the lot in property or shares at the moment.

[TheRightStuff]

You pay 40% tax on the interest, giving you a real return of less than inflation. Stupid move.

60% of the 6.2% is higher then inflation. Isn't it?
Anyway I agree. I wouldn't do it unless it was all tax free.

[lukemg]

My PEP and ISA portfolio (invested various amounts depending on cash flow since 97) is averaging 14% return/annum tax free, doesn't even need to be declared on returns etc. Yes - would have done a bit better in property in hindsight over the last 10 years (given good renters etc) but happy that these investments have required no further intervention from myself. Wrong time to buy property (other than own home) in my opinion, figures only work well on price rises. I think they will go sideways at best for a while until earnings catch up.

[DimPrawn]

60% of the 6.2% is higher then inflation. Isn't it?
Anyway I agree. I wouldn't do it unless it was all tax free.

The true inflation is the RPI figure which runs at 4.4%

If you are getting less than 4.4% after tax, your money is becoming more and more worthless.

[TheRightStuff]

The true inflation is the RPI figure which runs at 4.4%

If you are getting less than 4.4% after tax, your money is becoming more and more worthless.

I was thinking of CPI 2.5%. Yes I do know if you get less then inflation it's worth is going down.

[Euro-commuter]

I was thinking of CPI 2.5%. Yes I do know if you get less then inflation it's worth is going down.

Purpose of RPI is to measure inflation. Purpose of CPI is to have an inflation figure < 3%.

[DimPrawn]

I was thinking of CPI 2.5%. Yes I do know if you get less then inflation it's worth is going down.

CPI is the figure that removes all the useful stuff like fuel, mortgage, food, clothing, etc and only leaves in the cost of a Playstation and flat panel TV.

CPI is the fudge factor figure that bears no relation to inflation as you and I see it.

HTH

[rootsnall]

CPI is the figure that removes all the useful stuff like fuel, mortgage, food, clothing, etc and only leaves in the cost of a Playstation and flat panel TV.

CPI is the fudge factor figure that bears no relation to inflation as you and I see it.

HTH

CPI is the one the government use to offer nurses a sub 2% phased pay rise while keeping a straight face.