When will it all end I ask ?

[pewter]

Did Blair not drop interest rates to get our economy inline with Europe, to then hopefully take on the Euro?

Property was more affordable when interest rates were higher, as rich people couldnt just rely on poor people to pay the mortgage for the property they are renting.

These guys have dug up an old theaory which sounds good to me. Get rid of fractional banking so we are not just lining the pockets of the super rich.

 

[ProDave]

Actually property was more "affordable" with high interest rates and high inflation, because after just a few years, inflation and pay rises make your monthly payments shrink quite rapidly (to a much smaller percentage of your income).  Hence in a few years you could move up to a bigger house.

Today with low inflation you are stuck with a monthly payment that just stays the same. If it's a struggle to start with, it will remain a struggle for some time.

 

[Kurt]

Video just confirms my point about trust, even for the humble fiver. You have to trust the Bank of England to control nicely the value of that fiver whilst its sat under the mattress.

Someone mentioned Gold, and indeed that used to be a universal standard that individual banks could not manipulate  however its prices are too volatile even now for an advanced economy (according to Mervyn King, ex BOE govenor), so we are back to trust again.

Most of my savings are now under professional fund managers, i know who they are, i know where they live, i know their track record and i know what they have invested in and why, thats about the best verification i can make about who to trust with my money. At 54, i do need to save for retirement so its become very very real for me.. lol

 

[Evans Electric]

Video just confirms my point about trust, even for the humble fiver. You have to trust the Bank of England to control nicely the value of that fiver whilst its sat under the mattress.

Someone mentioned Gold, and indeed that used to be a universal standard that individual banks could not manipulate  however its prices are too volatile even now for an advanced economy (according to Mervyn King, ex BOE govenor), so we are back to trust again.

Most of my savings are now under professional fund managers, i know who they are, i know where they live, i know their track record and i know what they have invested in and why, thats about the best verification i can make about who to trust with my money. At 54, i do need to save for retirement so its become very very real for me.. lol

Video just confirms my point about trust, even for the humble fiver. You have to trust the Bank of England to control nicely the value of that fiver whilst its sat under the mattress.

Someone mentioned Gold, and indeed that used to be a universal standard that individual banks could not manipulate  however its prices are too volatile even now for an advanced economy (according to Mervyn King, ex BOE govenor), so we are back to trust again.

Most of my savings are now under professional fund managers, i know who they are, i know where they live, i know their track record and i know what they have invested in and why, thats about the best verification i can make about who to trust with my money. At 54, i do need to save for retirement so its become very very real for me.. lol

Also Private pension ..I hope , Kurt.?    You 'll need more than the State Pension . I speak as Semi- retired ...my private pension took a hammering , following  9/11 and never fully recovered to what was projected.

 

[apprentice87]

Actually property was more "affordable" with high interest rates and high inflation, because after just a few years, inflation and pay rises make your monthly payments shrink quite rapidly (to a much smaller percentage of your income).  Hence in a few years you could move up to a bigger house.

Today with low inflation you are stuck with a monthly payment that just stays the same. If it's a struggle to start with, it will remain a struggle for some time.

Exactly 1000% correct...

john..

 

[Kurt]

Also Private pension ..I hope , Kurt.?    You 'll need more than the State Pension . I speak as Semi- retired ...my private pension took a hammering , following  9/11 and never fully recovered to what was projected.

Its a self invested personal pension (SIPP) - my company makes contributions as well as myself, a benefit of being the boss, ha ha. I have one for Mrs Kurt , this takes the lions share from the business and uses less risky stuff, mine takes a few fliers to increase potential growth. I have tried to balance it as much as possible but returns are meager. i.e. 3% but at least its tax efficient

 

[binky]

Actually property was more "affordable" with high interest rates and high inflation, because after just a few years, inflation and pay rises make your monthly payments shrink quite rapidly (to a much smaller percentage of your income).  Hence in a few years you could move up to a bigger house.

Today with low inflation you are stuck with a monthly payment that just stays the same. If it's a struggle to start with, it will remain a struggle for some time.

A very good point which I had forgotten. The downside of inflation is that it tended to errode the  value of your savings, whreas now you can't live off your savings cos interest rates are so low. Either way the fiscal policies of the last few decades seems to have punished the frugal and rewarded the irresponsible.

 

[Doc Hudson]

Property was more affordable when mortgage lenders only lent a smaller multiplier of your earnings. Such as; three and a half times the annual salary of the highest wage earner, excluding overtime and bonuses. As compared to; five or more times the combined salaries of two wage earners, including overtime and bonuses. the simple law of supply and demand kept prices more affordable, irrespective of the interest rates. If people couldn't borrow so much, then sellers couldn't ask for stupidly high amounts.

Doc H.

 

[ProDave]

A very good point which I had forgotten. The downside of inflation is that it tended to errode the  value of your savings, whreas now you can't live off your savings cos interest rates are so low. Either way the fiscal policies of the last few decades seems to have punished the frugal and rewarded the irresponsible.

I remember in the 80's having a tea room discussion, "how much would you need to retire?"  My answer then was £250K in the bank drawing the 10% interest.  That wouldn't work today.

 

[Kurt]

I remember in the 80's having a tea room discussion, "how much would you need to retire?"  My answer then was £250K in the bank drawing the 10% interest.  That wouldn't work today.

I need a million....... cos when i dont work i spend. Looks like i will be working til 70, like Tel  

 

[Murdoch]

My misses works for the NHS. On her portal, the value of her fund is over £800, 000 

 

[Evans Electric]

I need a million....... cos when i dont work i spend. Looks like i will be working til 70, like Tel  

Well at todays NatWest savings interest  of 0.01%     with your million,    you'd be living it up large at £100 per anum .    

 

[rapparee]

How much of a pension pot do you need to pay you an annuity of £100 a week.

https://www.propertypal.com/29-bendigo-street-ravenhill-road-belfast/433522 this house is £55000 and pays £435 of a monthly yield in rent.

 

[steptoe]

How much of a pension pot do you need to pay you an annuity of £100 a week.

https://www.propertypal.com/29-bendigo-street-ravenhill-road-belfast/433522 this house is £55000 and pays £435 of a monthly yield in rent.

We've been looking at this very thing @rapparee

Sell up here and have enough equity to upgrade and buy outright in NI and still have enough to buy a small rental for an income,

All dependent on work availability tho,,,, :|

 

[Evans Electric]

Sounds like a plan to me . 

Theres possibly a couple of points to look at ...........one would be selling up in London say , and moving north to buy where prices are much lower .

Or do a similar thing as Raparound & Stepps say ..sell here and move to NI    or even the Republic  .

 

[steptoe]

Sounds like a plan to me . 

Theres possibly a couple of points to look at ...........one would be selling up in London say , and moving north to buy where prices are much lower .

Or do a similar thing as Raparound & Stepps say ..sell here and move to NI    or even the Republic  .

It was never a planned thing for me Deke,

But, my missus would do it as a lifestyle choice, she's a manc lass born and bred, and just couldn't believe how much a work life balance could be had in NI, it is her idea tbh, not mine, I never thought I'd ever move back, but she likes the lifestyle, 

 

[Evans Electric]

Do you think all the troubles have ended now  and won't be returning ?  

I understand tourism is flourishing again .

 

[steptoe]

Do you think all the troubles have ended now  and won't be returning ?  

I understand tourism is flourishing again .

I don't think it will ever be the way it was,

I don't think it ever went away tho,

it just changed into a more focused thuggery, and rather than target the general population it turned into more criminality towards drugs etc. 

 

[rapparee]

I don't think it will ever be the way it was,

I don't think it ever went away tho,

it just changed into a more focused thuggery, and rather than target the general population it turned into more criminality towards drugs etc. 

Tiocfaidh ár lá

Its 3.50 am and I'm lapped.

Only Huns did the drugs. Our shower stuck to diesel and fags

 

[rapparee]

We've been looking at this very thing @rapparee

Sell up here and have enough equity to upgrade and buy outright in NI and still have enough to buy a small rental for an income,

All dependent on work availability tho,,,, :|

Plenty of work in Dublin for you. Not messing about acting sectarian, although it's a long commute but there is big bucks there