More QE and inflation on the way?

[DimPrawn]

I'm just glad I got into the bonds when I did! There's just no point having cash in the bank these days.

So what else to do? I don't trust gold as I reckon it's overvalued, and shares are not yet cheap enough to tempt me (I'm looking for sub-4000 on the FTSE / 8000 on the DOW).

Property is the only long-term investment worth sticking money into. Why? Well...
1) You get regular rental income (of which there is rising demand)
2) Someone else pays off the BTL mortgage.
3) Rising inflation helps to erode the value of your debt.
4) House prices may in fact fall over the next few years, but they will eventually rise (in the UK, SE anyway) and house prices won't go that low anyway.

I pretty much agree with what you are saying, BUT I think you need to stick to the very best parts of the SE and London to avoid any nasty falls. The rest of the UK is fooked.

[TimberWolf]

I pretty much agree with what you are saying, BUT I think you need to stick to the very best parts of the SE and London to avoid any nasty falls. The rest of the UK is fooked.

According to the Halifax measure, house prices stand 2.6 per cent below their levels in August 2010.
Halifax points to fall in house prices - FT.com

2.6% nominal + 5 to 15% inflation = a tidy real drop, for some.

[ChimpMaster]

I pretty much agree with what you are saying, BUT I think you need to stick to the very best parts of the SE and London to avoid any nasty falls. The rest of the UK is fooked.

London is too expensive, but I am sticking to some parts of the SE where rental demand is strong or substantially financed by the local councils.

One of my (3 ) friends is buying in Bradford, of all places. He is buying £65k houses with £16k down, and the rest mortgaged. Gross rent (per house) is £500/month. After interest-only debt financing cost of ~£200/month, he walks away with a ROI of 22% (before running costs).

Not a bad ROI, but you'll need upwards of 30 houses to get a decent monthly income stream.

[Lockhouse]

London is too expensive, but I am sticking to some parts of the SE where rental demand is strong or substantially financed by the local councils.

One of my (3 ) friends is buying in Bradford, of all places. He is buying £65k houses with £16k down, and the rest mortgaged. Gross rent (per house) is £500/month. After interest-only debt financing cost of ~£200/month, he walks away with a ROI of 22% (before running costs).

Not a bad ROI, but you'll need upwards of 30 houses to get a decent monthly income stream.

The cost of repairs to a 65K house in Bradford are roughly comparable to repairs to a 250K house in the SE as the houses are around the same size. It's very easy for a new boiler to eat your entire profits for the year.

[DimPrawn]

The cost of repairs to a 65K house in Bradford are roughly comparable to repairs to a 250K house in the SE as the houses are around the same size. It's very easy for a new boiler to eat your entire profits for the year.

And the tenants in Bradistan are going to trash the place, costing you £0000s of pounds.

This sort of thing:

Darlington landlord Glenn Schofield battles to evict nightmare tenants for 6 months | Mail Online

[PAH]

Buy a new property and short the builder's stock. Can't lose.

[lukemg]

Mate had to move across the country, decided to rent his gaff out to nice young lady. Rent stopped so he phoned up repeatedly until a bloke answered and advised him to 'f**k right off' and if he came round he would kill him.
Took him months to get them out and they had stripped the place of light switches and light sockets.....
Will stick with shares thanks.

[BoredBloke]

Mate had to move across the country, decided to rent his gaff out to nice young lady. Rent stopped so he phoned up repeatedly until a bloke answered and advised him to 'f**k right off' and if he came round he would kill him.
Took him months to get them out and they had stripped the place of light switches and light sockets.....
Will stick with shares thanks.

Why did they want the light switches and sockets?

[AtW]

Why did they want the light switches and sockets?

They've probably read this thread.