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Savings and Investments thread

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    FTSE doing well again this morning. Just the 125 points down!
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    It’ll be a rocky road for a while yet, bargains to be had!!
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    Well taking a start point of about 3 weeks ago, my £170,000 stock/fund portfolio is now worth £154,000 so a 9.4% loss in days.  I’m just glad I took my final salary pension as a pension.  I couldn’t imagine sitting invested with drawdown and seeing near 10% wiped off my future in a few days.  

    Will it come back, I expect some stocks will recover quickly. Others may take years. As a Former Lloyds employee, I am overweight in Lloyds which is helping drag me down. 
    Well update I am now down another £5000 to £149,000.  This is heads up as to how quickly  you can lose large sums in your investment. 
    Well latest update some recovery to £153,000 as at close today.  
    As I said upthread,  by summertime you'll be wondering what all this fuss was about.
    Want a bet on that?
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    Can't remember who it was on here singing the praises of Sirius Minerals...?  Hope they didn't invest too much as most investors (including me) have been badly burnt by the impending, agreed, sale to Anglo American for 5.5p per share.  I only put in £500 and stand to get back £82.50 but it could have been a lot worse.
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    Well taking a start point of about 3 weeks ago, my £170,000 stock/fund portfolio is now worth £154,000 so a 9.4% loss in days.  I’m just glad I took my final salary pension as a pension.  I couldn’t imagine sitting invested with drawdown and seeing near 10% wiped off my future in a few days.  

    Will it come back, I expect some stocks will recover quickly. Others may take years. As a Former Lloyds employee, I am overweight in Lloyds which is helping drag me down. 
    Well update I am now down another £5000 to £149,000.  This is heads up as to how quickly  you can lose large sums in your investment. 
    Well latest update some recovery to £153,000 as at close today.  
    As I said upthread,  by summertime you'll be wondering what all this fuss was about.
    And that, I fear, is a statement that may well come back to haunt you. (Dow down another 1100 points tonight - let's have a guess what the FTSE will do tomorrow) 
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    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
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    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
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    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up
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    ...not looking at making millions, just for something to get straight into, until I find my feet with work, and if it works out, maybe do another one. I'll do majority of the work meself 
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    If you don't have another property then it could work, stamp duty for 2nd homes eats into it a lot, fee's to buy and sell, not easy to make a return flipping, although doing all the work yourself will help.
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    Cheers mate
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    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up

    It's a area ripe for this. Lots of property needing attention that can be picked up for a song - and the market in general for decent houses it very strong. So you shouldn't have a problem flipping once renovated, or maybe better still renting to students (Staffs and Keele Universities).
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    Will you need a mortgage or buying totally from cash ?  Will you class it as your own residential property or a BTL  ?
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    edited March 2020
    bobmunro said:
    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up

    It's a area ripe for this. Lots of property needing attention that can be picked up for a song - and the market in general for decent houses it very strong. So you shouldn't have a problem flipping once renovated, or maybe better still renting to students (Staffs and Keele Universities).
    Mate of mine had 4 houses in Stoke until last month. Bought the first one about 6 years ago and then added the others over the next few years. Admittedly he didn't do much to them but had them all rented out for pretty much the whole time. When he sold them I think he only really got his money back and when considering selling costs made a loss. 
    He did have the rental income over the years so he was up on the deal but not as much as he originally hoped.

    Also don't ignore the geographical implications, although property in Stoke is cheap being London based meant that it made it difficult and more time consuming to deal with any problems that arose. 
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    it will be two or three years before markets get back to January levels
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    Well taking a start point of about 3 weeks ago, my £170,000 stock/fund portfolio is now worth £154,000 so a 9.4% loss in days.  I’m just glad I took my final salary pension as a pension.  I couldn’t imagine sitting invested with drawdown and seeing near 10% wiped off my future in a few days.  

    Will it come back, I expect some stocks will recover quickly. Others may take years. As a Former Lloyds employee, I am overweight in Lloyds which is helping drag me down. 
    Well update I am now down another £5000 to £149,000.  This is heads up as to how quickly  you can lose large sums in your investment. 
    Well latest update some recovery to £153,000 as at close today.  
    As I said upthread,  by summertime you'll be wondering what all this fuss was about.
    And that, I fear, is a statement that may well come back to haunt you. (Dow down another 1100 points tonight - let's have a guess what the FTSE will do tomorrow) 
    Summertime = July /August.......so 5-6 months away. Experts reckon coronavirus could be at its peak within the next 3 months, and dying out 3 months after that. 

    Stockmarkets dont like uncertainty. Once we get the worst over & on the way down then things will be a lot better and companies/economy will know where we are.

    As I said before, I have no way of knowing where the bottom of the market is, but once it gets so far it will come back up again. We've already seen a "floor" for the FTSE at around 6500 & now the Dow has fallen  again today the FTSE will probably drop again tomorrow, but I doubt it will drop much past 6300 & would reckon the next "floor" is around 6000/6200.

    But to answer @PragueAddick.......no, I wont bet on it...🙂
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    So the floor was 6500. Tomorrow you expect the floor to be 6300 and the next floor could be 6000/6200.
    Can you tell us in your bizarre language, your prediction figure for when the basement is reached ?
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    Will you need a mortgage or buying totally from cash ?  Will you class it as your own residential property or a BTL  ?

    Buying cash and live in rental. Assume that, if this is the case, I'd avoid capital gains?
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    bobmunro said:
    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up

    It's a area ripe for this. Lots of property needing attention that can be picked up for a song - and the market in general for decent houses it very strong. So you shouldn't have a problem flipping once renovated, or maybe better still renting to students (Staffs and Keele Universities).
    Mate of mine had 4 houses in Stoke until last month. Bought the first one about 6 years ago and then added the others over the next few years. Admittedly he didn't do much to them but had them all rented out for pretty much the whole time. When he sold them I think he only really got his money back and when considering selling costs made a loss. 
    He did have the rental income over the years so he was up on the deal but not as much as he originally hoped.

    Also don't ignore the geographical implications, although property in Stoke is cheap being London based meant that it made it difficult and more time consuming to deal with any problems that arose. 
    The plan would be to get a place that is falling apart, keep within a tight budget and do most (95%) of the work myself.

    For example - I found a place in Stoke for £36k guide price, the place next door sold in 2017 for £96k. I know there's a lot more factors to think of, but that would be the kind of place I'd be looking at. If the overall out lay was £60k, and the whole thing took a year, from buying it to actually selling it, that would be the outcome we'd be happy with.
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    bobmunro said:
    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up

    It's a area ripe for this. Lots of property needing attention that can be picked up for a song - and the market in general for decent houses it very strong. So you shouldn't have a problem flipping once renovated, or maybe better still renting to students (Staffs and Keele Universities).
    Mate of mine had 4 houses in Stoke until last month. Bought the first one about 6 years ago and then added the others over the next few years. Admittedly he didn't do much to them but had them all rented out for pretty much the whole time. When he sold them I think he only really got his money back and when considering selling costs made a loss. 
    He did have the rental income over the years so he was up on the deal but not as much as he originally hoped.

    Also don't ignore the geographical implications, although property in Stoke is cheap being London based meant that it made it difficult and more time consuming to deal with any problems that arose. 
    The plan would be to get a place that is falling apart, keep within a tight budget and do most (95%) of the work myself.

    For example - I found a place in Stoke for £36k guide price, the place next door sold in 2017 for £96k. I know there's a lot more factors to think of, but that would be the kind of place I'd be looking at. If the overall out lay was £60k, and the whole thing took a year, from buying it to actually selling it, that would be the outcome we'd be happy with.
    If you paid £36K, spent £60K and sold a year later for £96K you would make no profit and would have worked a year unpaid.
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    bobmunro said:
    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up

    It's a area ripe for this. Lots of property needing attention that can be picked up for a song - and the market in general for decent houses it very strong. So you shouldn't have a problem flipping once renovated, or maybe better still renting to students (Staffs and Keele Universities).
    Mate of mine had 4 houses in Stoke until last month. Bought the first one about 6 years ago and then added the others over the next few years. Admittedly he didn't do much to them but had them all rented out for pretty much the whole time. When he sold them I think he only really got his money back and when considering selling costs made a loss. 
    He did have the rental income over the years so he was up on the deal but not as much as he originally hoped.

    Also don't ignore the geographical implications, although property in Stoke is cheap being London based meant that it made it difficult and more time consuming to deal with any problems that arose. 
    The plan would be to get a place that is falling apart, keep within a tight budget and do most (95%) of the work myself.

    For example - I found a place in Stoke for £36k guide price, the place next door sold in 2017 for £96k. I know there's a lot more factors to think of, but that would be the kind of place I'd be looking at. If the overall out lay was £60k, and the whole thing took a year, from buying it to actually selling it, that would be the outcome we'd be happy with.
    If you paid £36K, spent £60K and sold a year later for £96K you would make no profit and would have worked a year unpaid.
    Total outlay includes the purchase price. 
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    bobmunro said:
    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up

    It's a area ripe for this. Lots of property needing attention that can be picked up for a song - and the market in general for decent houses it very strong. So you shouldn't have a problem flipping once renovated, or maybe better still renting to students (Staffs and Keele Universities).
    Mate of mine had 4 houses in Stoke until last month. Bought the first one about 6 years ago and then added the others over the next few years. Admittedly he didn't do much to them but had them all rented out for pretty much the whole time. When he sold them I think he only really got his money back and when considering selling costs made a loss. 
    He did have the rental income over the years so he was up on the deal but not as much as he originally hoped.

    Also don't ignore the geographical implications, although property in Stoke is cheap being London based meant that it made it difficult and more time consuming to deal with any problems that arose. 
    The plan would be to get a place that is falling apart, keep within a tight budget and do most (95%) of the work myself.

    For example - I found a place in Stoke for £36k guide price, the place next door sold in 2017 for £96k. I know there's a lot more factors to think of, but that would be the kind of place I'd be looking at. If the overall out lay was £60k, and the whole thing took a year, from buying it to actually selling it, that would be the outcome we'd be happy with.
    If you paid £36K, spent £60K and sold a year later for £96K you would make no profit and would have worked a year unpaid.
    £60k overall out lay. Property sells at auction for £45k + £15k spent on the work = £60k, IF it sold for nywhere near £96k (£36K profit), I'd consider that sort of return worthwhile over a 12 month period
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    So the floor was 6500. Tomorrow you expect the floor to be 6300 and the next floor could be 6000/6200.
    Can you tell us in your bizarre language, your prediction figure for when the basement is reached ?
    As I said, I have no idea.

    All I was doing is giving the benefit of my 35 year experience of watching the markets. The FTSE isn't going to fall through the floor tomorrow & end up at 4000 points. The US brought in "circuit breakers" after the 1987 crash (no idea if they still have them) which was supposed to stop a complete meltdown. Once the FTSE gets to a certain point traders (and even some posters on here) will start to buy again. 

    Also, I didn't say the floor was 6500 as if it was a given. More that this week 6500 has been tested & has shown there is some resistance there. Seeing as the Dow Jones has has fallen more than 4% today I would imagine the FTSE will start lower tomorrow, but only as a knee jerk reaction. There is a level at which it will stabilise. I'm guessing 6300 for the short term. No idea about the next couple of months but stand by my assertion that in 6 months things will be better. FTSE above 6750 & more likely 7000.
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    Well taking a start point of about 3 weeks ago, my £170,000 stock/fund portfolio is now worth £154,000 so a 9.4% loss in days.  I’m just glad I took my final salary pension as a pension.  I couldn’t imagine sitting invested with drawdown and seeing near 10% wiped off my future in a few days.  

    Will it come back, I expect some stocks will recover quickly. Others may take years. As a Former Lloyds employee, I am overweight in Lloyds which is helping drag me down. 
    Well update I am now down another £5000 to £149,000.  This is heads up as to how quickly  you can lose large sums in your investment. 
    Well latest update some recovery to £153,000 as at close today.  
    As I said upthread,  by summertime you'll be wondering what all this fuss was about.
    And that, I fear, is a statement that may well come back to haunt you. (Dow down another 1100 points tonight - let's have a guess what the FTSE will do tomorrow) 
     We've already seen a "floor" for the FTSE at around 6500.

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    edited March 2020
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    Good point ...
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    bobmunro said:
    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up

    It's a area ripe for this. Lots of property needing attention that can be picked up for a song - and the market in general for decent houses it very strong. So you shouldn't have a problem flipping once renovated, or maybe better still renting to students (Staffs and Keele Universities).
    Mate of mine had 4 houses in Stoke until last month. Bought the first one about 6 years ago and then added the others over the next few years. Admittedly he didn't do much to them but had them all rented out for pretty much the whole time. When he sold them I think he only really got his money back and when considering selling costs made a loss. 
    He did have the rental income over the years so he was up on the deal but not as much as he originally hoped.

    Also don't ignore the geographical implications, although property in Stoke is cheap being London based meant that it made it difficult and more time consuming to deal with any problems that arose. 
    The plan would be to get a place that is falling apart, keep within a tight budget and do most (95%) of the work myself.

    For example - I found a place in Stoke for £36k guide price, the place next door sold in 2017 for £96k. I know there's a lot more factors to think of, but that would be the kind of place I'd be looking at. If the overall out lay was £60k, and the whole thing took a year, from buying it to actually selling it, that would be the outcome we'd be happy with.
    It's highly likely the tax man will see this as your occupation/it is an investment rather than your main home, and therefore CGT would apply, especially if you never live in it. But if you register in your name and your wife's you've got two CGT allowances then.

    Stamp Duty will be more of a mute point and may be down to your solicitor's interpretation. I'd be concerned on taking a year to do up a place, you need to be in and out much quicker, what happens if the housing market crashes or starts dropping? A Years too long.

    Student rentals although lucrative are hard work much like any HMO's and quite rightly regulations are getting tougher, but the returns can be good.

    @bobmunro what's a 4 bed HMO suitable property for Keele/Staffs likely to cost?


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    So the floor was 6500. Tomorrow you expect the floor to be 6300 and the next floor could be 6000/6200.
    Can you tell us in your bizarre language, your prediction figure for when the basement is reached ?
    As I said, I have no idea.

    All I was doing is giving the benefit of my 35 year experience of watching the markets. The FTSE isn't going to fall through the floor tomorrow & end up at 4000 points. The US brought in "circuit breakers" after the 1987 crash (no idea if they still have them) which was supposed to stop a complete meltdown. Once the FTSE gets to a certain point traders (and even some posters on here) will start to buy again. 

    Also, I didn't say the floor was 6500 as if it was a given. More that this week 6500 has been tested & has shown there is some resistance there. Seeing as the Dow Jones has has fallen more than 4% today I would imagine the FTSE will start lower tomorrow, but only as a knee jerk reaction. There is a level at which it will stabilise. I'm guessing 6300 for the short term. No idea about the next couple of months but stand by my assertion that in 6 months things will be better. FTSE above 6750 & more likely 7000.
    Not sure that circuit breakers will help here - this is a steady sell off, as you said earlier, driven by market uncertainty until it can be more accurately priced.  I designed the circuit breakers for the London options and futures market back in 98 and then gave the design to the LSE in 99 as they hadn't realised they would need them!

    They are there to stop things like fat fingers triggering mis-pricing in markets that then bring the market into disrepute and have to be unwound.  And they didn't help in the flash crash, but that's another story, which I'm saving for a book as Flash Boys only got half of it ... :-)

    Still think 6250 is where we are heading in the near future, before any kind of recovery.  And after that it could go down a lot further, if the data starts to support a genuine global recession.
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    Rob7Lee said:
    bobmunro said:
    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up

    It's a area ripe for this. Lots of property needing attention that can be picked up for a song - and the market in general for decent houses it very strong. So you shouldn't have a problem flipping once renovated, or maybe better still renting to students (Staffs and Keele Universities).
    Mate of mine had 4 houses in Stoke until last month. Bought the first one about 6 years ago and then added the others over the next few years. Admittedly he didn't do much to them but had them all rented out for pretty much the whole time. When he sold them I think he only really got his money back and when considering selling costs made a loss. 
    He did have the rental income over the years so he was up on the deal but not as much as he originally hoped.

    Also don't ignore the geographical implications, although property in Stoke is cheap being London based meant that it made it difficult and more time consuming to deal with any problems that arose. 
    The plan would be to get a place that is falling apart, keep within a tight budget and do most (95%) of the work myself.

    For example - I found a place in Stoke for £36k guide price, the place next door sold in 2017 for £96k. I know there's a lot more factors to think of, but that would be the kind of place I'd be looking at. If the overall out lay was £60k, and the whole thing took a year, from buying it to actually selling it, that would be the outcome we'd be happy with.
    It's highly likely the tax man will see this as your occupation/it is an investment rather than your main home, and therefore CGT would apply, especially if you never live in it. But if you register in your name and your wife's you've got two CGT allowances then.

    Stamp Duty will be more of a mute point and may be down to your solicitor's interpretation. I'd be concerned on taking a year to do up a place, you need to be in and out much quicker, what happens if the housing market crashes or starts dropping? A Years too long.

    Student rentals although lucrative are hard work much like any HMO's and quite rightly regulations are getting tougher, but the returns can be good.

    @bobmunro what's a 4 bed HMO suitable property for Keele/Staffs likely to cost?


    Rob7Lee said:
    bobmunro said:
    Rob7Lee said:
    Anyone dabbled in property? Seriously thinking about buying a cheap place to do up and sell on, once I get back to the UK. Know research is key, but wondered if anyone had any genuine experience and advice. Cheers
    Tough at the moment to buy, do up and flip, I have some BTL's but you need to pick your area carefully.
    Looking up North, Stoke on Trent seems to keep coming up

    It's a area ripe for this. Lots of property needing attention that can be picked up for a song - and the market in general for decent houses it very strong. So you shouldn't have a problem flipping once renovated, or maybe better still renting to students (Staffs and Keele Universities).
    Mate of mine had 4 houses in Stoke until last month. Bought the first one about 6 years ago and then added the others over the next few years. Admittedly he didn't do much to them but had them all rented out for pretty much the whole time. When he sold them I think he only really got his money back and when considering selling costs made a loss. 
    He did have the rental income over the years so he was up on the deal but not as much as he originally hoped.

    Also don't ignore the geographical implications, although property in Stoke is cheap being London based meant that it made it difficult and more time consuming to deal with any problems that arose. 
    The plan would be to get a place that is falling apart, keep within a tight budget and do most (95%) of the work myself.

    For example - I found a place in Stoke for £36k guide price, the place next door sold in 2017 for £96k. I know there's a lot more factors to think of, but that would be the kind of place I'd be looking at. If the overall out lay was £60k, and the whole thing took a year, from buying it to actually selling it, that would be the outcome we'd be happy with.
    It's highly likely the tax man will see this as your occupation/it is an investment rather than your main home, and therefore CGT would apply, especially if you never live in it. But if you register in your name and your wife's you've got two CGT allowances then.

    Stamp Duty will be more of a mute point and may be down to your solicitor's interpretation. I'd be concerned on taking a year to do up a place, you need to be in and out much quicker, what happens if the housing market crashes or starts dropping? A Years too long.

    Student rentals although lucrative are hard work much like any HMO's and quite rightly regulations are getting tougher, but the returns can be good.

    @bobmunro what's a 4 bed HMO suitable property for Keele/Staffs likely to cost?


    This part of the thread got me thinking.  If we are in a crash, is it 1929, 1974, 1987, 1998, 2000/1 or 2008?

    My money would be a 1987 style crash, maybe 1974.  If the former, you might have a short 1989 style property boom to follow.  It would need the Chancellor's budget to loosen some of the recent property tax rises ... stamp duty??
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    OK, @golfaddick, if you don't want a bet, that's OK. I understand if you are frit ;)

    However, everybody, how about we have a predictor game on the subject?

    Close of play 31. July. What will be the level of the market index?

    The thing I am not sure about is, which index? We are aware that FTSE 100 isn't quite what people assume it is. We could have more than one index for the competition though...

    Any takers?

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