Reply to: Budgeting

[Old Greg]

Not if it's mapped on a sphere.

Hth.

Well that's beyond my AO level maths. Isn't that just two dimensions mapped onto a sphere or is it three dimensions? If the latter, does that mean that a cube mapped onto a hypersphere is four dimensional? And is that good or bad for a BTL?

[Churchill]

Rectangles only have two dimensions, so you've done well on that front.

Not if it's mapped on a sphere.

Hth.

[DimPrawn]

I know a lot of people on interest only mortgage, equity all spent, with a 100 credit cards maxed out living the high life new cars, top hotels, best holidays every year.

They have lots of life insurance and pray they die young and happy.

[lukemg]

Don't touch BTL and dont bother paying off your mortgage - ever, it only eats up all your IHT allowance later.
They go up and down of course but averaging 11.5%/annum currently across large range of investments built up over last 17 years.
Long-term (10years +), you should get 7-8%/annum for a full market tracker with re-invested divis although you have to hold your nerve when it drops 40%, if you can't and think you will sell, don't bother.

[Old Greg]

Hi all, when buying a property would you:
(a) chuck in most of your savings, get a lower rate and slash monthly payment a bit
(b) keep a bit for a rainy day

If I told you this is for a flat with a north-facing balcony and rooms that are not rectangular?

Tks.

Rectangles only have two dimensions, so you've done well on that front.

[mudskipper]

5 Year No Access ISA Tax Free Savings Account | Leeds Building Society

3.05% Tax-free for a cash ISA, fixed for five years.

Interesting. 5 years is a long time - wonder what interest rates will do...

[NickNick]

So what 'safe' investment returns >= 3%?

5 Year No Access ISA Tax Free Savings Account | Leeds Building Society

3.05% Tax-free for a cash ISA, fixed for five years.

[northernladuk]

So what 'safe' investment returns >= 3%?

The lady speaketh the truth. I guess I should have said less risky. Crowd funding appears to have a much 'safer' approach than shares for example but buggered if I know all options available.

[northernladuk]

Disagree with the yield calculator. The service charge on flats eats up a lot of potential yield.

Erm, there is a line for Annual Expenses which you would put the charges in. Service charges do indeed eat up a lot of it so maybe there is a lesson there?

I had a flat on BTL and never again. The service charge did eat in to it plus lots of arguments with the management company about upkeep over the years. I wouldn't get a flat again. I am in the NW so different options to London of course.

[Doggy Styles]

Hi all, when buying a property would you:
(a) chuck in most of your savings, get a lower rate and slash monthly payment a bit
(b) keep a bit for a rainy day

If I told you this is for a flat with a north-facing balcony and rooms that are not rectangular?

Tks.

Get an overdraft account for the mortgage, like Virgin One Account.

You can use it exactly like a bank account with a low-interest overdraft. You stick your cash savings in there to get the repayments down, but always have the option of spending it any time if you need to.

Note that the interest repayments you save doing this will always be higher than the return you'll get in a cash savings account, so it's a no-brainer really.

Does the north-facing balcony overlook anything interesting?

[doodab]

What would you say is a sane price for a sq ft of indoor space in London?

About half of what it currently costs.

[mickey]

Disagree with the yield calculator. The service charge on flats eats up a lot of potential yield.

I know vendors/buyers normally go by a number of bedrooms, while the agents go by a £ per square foot. What would you say is a sane price for a sq ft of indoor space in London?

[mickey]

Buy To Let

Disagree with the yield calculator. The service charge on flats eats up a lot of potential yield.

[mudskipper]

A mortgage is the cheapest way to borrow money. If you get a good discounted rate you could be looking at around 3%. Find something that out performs that and stick it in that. If you need it it's there, if you don't it's making more money than the interest payments anyway. Have to be disciplined if the aim is to pay off your mortgage with it in the long run though, don't just spend the interest. Personally I wouldn't also gamble it in shares etc. Find something fairly safe so you know full well the amount you put in will always be there with a rate at least the mortgage income.

So what 'safe' investment returns >= 3%?

[northernladuk]

A mortgage is the cheapest way to borrow money. If you get a good discounted rate you could be looking at around 3%. Find something that out performs that and stick it in that. If you need it it's there, if you don't it's making more money than the interest payments anyway. Have to be disciplined if the aim is to pay off your mortgage with it in the long run though, don't just spend the interest. Personally I wouldn't also gamble it in shares etc. Find something fairly safe so you know full well the amount you put in will always be there with a rate at least the mortgage income. If you are talking a decent wage spare then get a BTL. Right property could easily get you ROI's of up to 10%+

If you are interesting in BTL's have a look at the spreadsheet at the site below. Be pragmatic with the numbers though, don't just stick ridiculously high forecasts in because it looks attractive.

Buy To Let

If it isn't that big think of something else. I don't have a clue what ISA's are doing nowadays but there is the crowd funding things or whatever.