|
|
Post by earthbound on Jun 12, 2016 19:22:11 GMT
samford71 now now.. i think your getting a bit greedy.  But is that really achievable.. bit late for me now.  I feel like a big fat pauper now  Me too. in fact i feel like a failure... a loser... a nobody..... dare i say it... a mere surf.. 
|
|
sam i am
Member of DD Central
Posts: 697 
Likes: 555
|
Post by sam i am on Jun 12, 2016 20:14:14 GMT
When I was 25 property was a lot cheaper, you only have to fund the deposit, not the whole investment and it didn't take me 33 years... There's always an opportunity if you look for it. sorry sam i am .. i must be missing something.. i cant see the link.  You were wishing that the opportunity to invest in SS was around when you were 25. It wasn't but other equally good opportunities were.
|
|
|
|
Post by earthbound on Jun 12, 2016 20:21:49 GMT
sorry sam i am .. i must be missing something.. i cant see the link. You were wishing that the opportunity to invest in SS was around when you were 25. It wasn't but other equally good opportunities were. property prices since 1980 36yrs ago have risen by an average of 6.9% per year, had you bought a property in 1980 for £25000 today it would be worth £295000 . not really a comparison to £1m
|
|
sam i am
Member of DD Central
Posts: 697
Likes: 555
|
Post by sam i am on Jun 12, 2016 20:46:15 GMT
You were wishing that the opportunity to invest in SS was around when you were 25. It wasn't but other equally good opportunities were. property prices since 1980 36yrs ago have risen by an average of 6.9% per year, had you bought a property in 1980 for £25000 today it would be worth £295000 . not really a comparison to £1m I bought a property in 1989 for £95,000 BUT I only paid a 5% deposit plus stamp duty and a few costs, say £8,000 total. That property is now worth about £330,000 and I have £240,000 equity. That's a return of 13.4%pa. I have also made a profit on the income. OK, I do have some CGT to pay if I sold it. If you are comparing with 12%pa from SS you are assuming that there are no losses. That's very unlikely over 20-30 years. Edit: And I had another property where I funded the deposit by remortgaging an earlier property so my initial cost was even lower and consequently the return is higher.
|
|
|
|
Post by harvey on Jun 12, 2016 21:07:39 GMT
Funnily enough I also have some premium bonds (a christening present about 60 years ago). It's only £10 and I've never won a penny. I wonder what the £10 would be worth if it had spent 60 years in a current account instead. Me too! £100 from birth but I did win £25 after about 38 years. I was also bought a few premium bonds after I was born. I think I've still got them in my file - £1 Bonds. Over the years I bought a few more when I thought about it like an extra £10 or £20. When they increased the minimum you could buy to (I think) £100, stopped buying any but I have about £300 to £400 worth of premium Bonds altogether. I've done very well from them I think. I had two £50 wins and then about 10 years ago I had another win. I recognised the envelope straight away and thought oh good Ive got £50. When I opened it it was a cheque for £500. Which makes me think I haven't won anything since ,so i haven't had a sausage for about 10 years but after that £500 I suppose I can't complain. I think they've reduced the prizes now with the low interest rate world we live in but even so this has given me an idea because I've got a bit of dead money sitting in my bank deposit account and I think I will invest another £100 in premium Bonds this week.
|
|
|
|
Post by earthbound on Jun 12, 2016 21:13:56 GMT
sam i am property prices since 1980 36yrs ago have risen by an average of 6.9% per year, had you bought a property in 1980 for £25000 today it would be worth £295000 . not really a comparison to £1m I bought a property in 1989 for £95,000 BUT I only paid a 5% deposit plus stamp duty and a few costs, say £8,000 total. That property is now worth about £330,000 and I have £240,000 equity. That's a return of 13.4%pa. I have also made a profit on the income. OK, I do have some CGT to pay if I sold it. If you are comparing with 12%pa from SS you are assuming that there are no losses. That's very unlikely over 20-30 years. Edit: And I had another property where I funded the deposit by remortgaging an earlier property so my initial cost was even lower and consequently the return is higher. BTL.. good example, done it for 35 yrs, but IMO not comparable, BTL is a business venture, i can quote many business ventures that started with a lot less.. and were a million within 5 yrs. You then used your rental income to pay the BTL mortgage, so you still payed £95k+ INTEREST... and over a period of 27yrs turned that into £330k . the compound interest calculator is here. www.online-calculators.co.uk/interest/compoundinterest.php .... if you input £95k@12% i am sure you will have quite a large sum over 27yrs,
|
|
sam i am
Member of DD Central
Posts: 697
Likes: 555
|
Post by sam i am on Jun 12, 2016 21:23:01 GMT
I bought a property in 1989 for £95,000 BUT I only paid a 5% deposit plus stamp duty and a few costs, say £8,000 total. That property is now worth about £330,000 and I have £240,000 equity. That's a return of 13.4%pa. I have also made a profit on the income. OK, I do have some CGT to pay if I sold it. If you are comparing with 12%pa from SS you are assuming that there are no losses. That's very unlikely over 20-30 years. Edit: And I had another property where I funded the deposit by remortgaging an earlier property so my initial cost was even lower and consequently the return is higher. BTL.. good example, done it for 35 yrs, but IMO not comparable, BTL is a business venture, i can quote many business ventures that started with a lot less.. and were a million within 5 yrs. You then used your rental income to pay the BTL mortgage, so you still payed £95k+ INTEREST... and over a period of 27yrs turned that into £330k . the compound interest calculator is here. www.online-calculators.co.uk/interest/compoundinterest.php .... if you input £95k@12% i am sure you will have quite a large sum over 27yrs, That's not how an IRR calculation works. Look at the NET cashflows. At no point did I have to stump up £95k of capital. When I do it will be from the sale of the property. If you want to take your line of argument then nothing is comparable with P2P except P2P. So by definition you are correct 
|
|
|
|
Post by earthbound on Jun 12, 2016 21:25:39 GMT
BTL.. good example, done it for 35 yrs, but IMO not comparable, BTL is a business venture, i can quote many business ventures that started with a lot less.. and were a million within 5 yrs. You then used your rental income to pay the BTL mortgage, so you still payed £95k+ INTEREST... and over a period of 27yrs turned that into £330k . the compound interest calculator is here. www.online-calculators.co.uk/interest/compoundinterest.php .... if you input £95k@12% i am sure you will have quite a large sum over 27yrs, That's not how an IRR calculation works. Look at the NET cashflows. At no point did I have to stump up £95k of capital. When I do it will be from the sale of the property. If you want to take your line of argument then nothing is comparable with P2P except P2P. So by definition you are correct I think we are going to have to agree to disagree here.... 
|
|
|
|
Post by brianac on Jun 12, 2016 22:35:57 GMT
An interesting fact for younger investors when the AFISA comes into play , £25000 invested with SS @12% (interest compounded) will take you 33yrs to become a millionaire (£1052288.34)  I wish i was 25 again, i wish i had £25k when i was 25... and i wish SS had been around then. Unfortunately i'm not, i didn't and they wern't ...  Or simply double their investment in 7yrs outside ISA I make it just under 31 years (30 years 11 months - £1,002,696.92258174 ) But I did compound it monthly not annually And similarly 5 years 10 months to double Brian
|
|
freddy
Member of DD Central
Posts: 147
Likes: 145
|
Post by freddy on Jun 13, 2016 0:33:32 GMT
And so does every other wannabe p2p millionaire.. not an excuse tho to not try.. Why are you aiming so low? A million is chicken feed these days. You need to start aiming a bit higher ... say a 100mm ISA?Isn't it funny how many of us still think of a million pounds as being a huge amount of money. Very easy to blow a million if not careful. I wouldn't say no though. I remember when I was a boy (about 9 yrs) I was very impressed to hear from my best friend that his Dad earned £100 a week and also remember saying to my Mum that I hoped I would have a job earning that amount when I grew up. I thought they were rich. My dad passed in 1986 and I was shocked to find that his weekly wage then was £39 after stoppages. My Mum made me smile the other day. She was talking about her will and announced that she had left each of the Grandchildren £100. She announced it as though it were a life changing amount. Probably won't even be a Friday night out changing amount by the time they inherit. I shall now climb off my nostalgic soapbox.
|
|
adrianc
Member of DD Central
Posts: 10,014
Likes: 5,143
|
Post by adrianc on Jun 13, 2016 7:44:17 GMT
Isn't it funny how many of us still think of a million pounds as being a huge amount of money. Very easy to blow a million if not careful. A million quid is still enough to be happy for the rest of your life, and never need to work again. Sure, if you've got expensive tastes, you can burn through it - or more - in short order, but...
|
|
andyb
Posts: 69
Likes: 36
|
Post by andyb on Jun 13, 2016 8:19:38 GMT
Isn't it funny how many of us still think of a million pounds as being a huge amount of money. Very easy to blow a million if not careful. A million quid is still enough to be happy for the rest of your life, and never need to work again. Sure, if you've got expensive tastes, you can burn through it - or more - in short order, but... Agreed, a million quid should last anyone a lifetime even with a very decent lifestyle if they had half a brain and knew how to make some decent investments
|
|
|
|
Post by dualinvestor on Jun 13, 2016 8:25:31 GMT
Isn't it funny how many of us still think of a million pounds as being a huge amount of money. Very easy to blow a million if not careful. A million quid is still enough to be happy for the rest of your life, and never need to work again. Sure, if you've got expensive tastes, you can burn through it - or more - in short order, but... Indeed most of us here are in a little "bubble" of wealth. 40% of UK adults have less than £500 in savings (BBC) 28% nothing at all (ING). £1million represents 30 years national average earnings before tax, more like 40 years after. For most of us as adrianc says would never have to work again those that would still need to only have themselves to blame.
|
|
Liz
Member of DD Central
Posts: 2,426
Likes: 1,297
|
Post by Liz on Jun 13, 2016 8:32:50 GMT
A million quid is still enough to be happy for the rest of your life, and never need to work again. Sure, if you've got expensive tastes, you can burn through it - or more - in short order, but... Indeed most of us here are in a little "bubble" of wealth. 40% of UK adults have less than £500 in savings (BBC) 28% nothing at all (ING). £1million represents 30 years national average earnings before tax, more like 40 years after. For most of us as adrianc says would never have to work again those that would still need to only have themselves to blame. Exactly right. And if we were born is a 3rd world country........
|
|
imp
Posts: 9 
Likes: 4
|
Post by imp on Jun 14, 2016 7:43:49 GMT
...I guess I'm an outlier on this forum, in that I lend very small sums of money which are at the same time pretty much my entire net worth. I'm 28, and until 2 years ago was earning around 6.5k a year. PhD funding has doubled that for the past two years, but unless I get an academic job quickly (extremely unlikely in my field, but still worth working towards imo) I am unlikely to reach the lowest income tax threshold for a good while. When I received an inheritance of 8k I decided to keep it separate and try to build up some savings, but wanted better interest rates than banks were offering. At first I divided it between Lending Works and Santander's 123 account, and then I found SS and the other higher rate P2Ps. So now LW is my 'safer' investment, and SS has the rest. (LW seems fairly solid as a platform, and I've been pleased with them over the past few years - I chose them over Zopa and RS for their protection fund. I found SS simpler and easier to navigate than MT or AC, so haven't diversified yet among the higher risk platforms). I hope to have enough for a reasonable housing deposit in the next few years, provided there aren't too many defaults.
TLDR: For growing a small amount of savings and building towards a housing deposit.
|
|
But is that really achievable.. bit late for me now. 
