OT: Recession Coming

[Tim Watts]

Clearly such a method isn't for you...

Some of us would be capable of arranging an encrypted list, or a mind trick to remember.

[Tim Watts]

You can't really, if you buy somewhere that is functionally solid. The issue is it's not a passive investment, you have to maintain the building and tenants (which you need to have otherwise you'll get stung for council tax).

Second properties also attract higher stamp duty now, but that won't make much difference in the long term - it's more of an anti-churn tax.

Of course, that's based on residential property - there may be other options...

[harry]

Another option, "heritage vehicle". Might as well have something you can enjoy.

Nil road tax, (if 40+ years old) cheap insurance. You need somewhere to keep it of course. Some have rocketed in value.

I've been told the next "good one" is Jag XJS. You have to get ta suitable one of course.

[Nightjar]

That is one form of uninvested cash.

[Nightjar]

I get 7.6% return on capital on buy to let commercial property. The tenants are responsible for maintenance, have to return the property in original condition when they leave and generally have to enter into 12 year leases. Occasionally I will allow a 12 month licence to occupy for a start-up, but they have to pay me a lump sum in advance in lieu of rent. The values of the properties dropped by 33% in the last recession, but are now back up to above their values at the time.

[Nightjar]

You need to find a different interest bearing deposit account. I have one that guarantees a 6% return, although the amount I can invest in it is limited to £250 a month.

[Tim Watts]

On 18/01/16 09:39, Nightjar I get 7.6% return on capital on buy to let commercial property. The

May I ask what class of property - retail or industrial units (or other)?

[Mike Tomlinson]

En el artículo , Nightjar escribió:

Is that even worth bothering with?

Santander 1-2-3 pays 3% on a balance of 20k. That's ~40 quid a month after interest. Account fee 5 quid/month.

[Adrian]

...before tax.

[Nightjar]

B2 general industrial units. Mine have all been around 1,000 sq ft, which are easier to lease out than larger units. There are always people wanting to start up their own business, especially in a recession, and they are usually looking for something in the 500-1000 sq ft range. If they are successful, renting another unit of the same size from a landlord they know can be more attractive than moving.

[F]

3% on £3000 to £20000 in a Santander current account.

[Nightjar]

It also depends upon whether you buy at the right time or not. Gold prices hit a low around 2000. If you had bought in 1980, then you would probably be sitting on assets that, corrected for inflation, are worth less now than they were when you bought them.

Prices are still above the long term trend line of value. If you do want to buy gold, it is better to wait until it dips well below that.

[Chris B]

But for how long.......

The Center for Policy Studies (CPS) said that after 40 years of ?increasingly frequent, increasingly severe? banking crises, it was time to consider the abolition of deposit insurance, which guarantees the first £75,000 of each person?s combined savings at banks and building societies.

The CPS claimed in a new report that scrapping deposit protection would bring about ?an end, in perpetuity, to the need for the state bail-outs of UK banks? and reduce the ?moral hazard? it has produced.

[Nightjar]

It is somewhere to put money that would otherwise be earning less, while it builds up to a point where there is enough to move to a more profitable investment.

I would be disappointed with a return of only 3% on 20k.

[Mike Tomlinson]

After tax.

[Tim Watts]

Cool - thank you Colin.

[Adrian]

Ah, yes. You said "after interest", you meant "after tax". I'm with you now...

[Dave Plowman (News)]

Be very easy to make a great deal of money if you were certain when a recession was coming.

Mr Doom's post reminds me of the sort of spam you get:-

'Send me 100 quid and I'll show you how to become a millionaire'

[Cursitor Doom]

Peanuts if you have a half-decent postcode. Certainly nowhere near prohibitive.

[Cursitor Doom]

I wish I had your faith. I suspect the sheep will just swallow this latest assault on their rights just as they have with all the others.