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24 Young entrepreneur, always room for improvement... £100,000 watch

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    (Original post by MAINE.)
    Property market is the best way to amass wealth quickly. Just keep doing what you doing, but make sure you do it smart.
    The lottery would be the best way to amass wealth quickly.

    Housing is slow and has extremely low liquidity.
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    (Original post by voltec)
    £14,000 is the deposit. The reason of me buying the house to rent out is it is valued at £65,000-£70,000 and someone who I know is letting me buy the house for £50,000. They originally bought the house for £12,000 and has made his money out of it. I want to put £14,000 on a deposit so I owe £36,000. The monthly rental income is £450 pcm... so in 7 years time the house will be paid for. Me buying that house is a real 'no brainer'..
    All I would say is do your homework. For every person like your mate who makes lots of money, there is another chap losing money and I have met a few of those. Typical problems incurred are tenants who move out and then the house is unlet for a few months. One chap had his tenants leave without notice. They left the house unlocked for 2 months with all the lights on. The landlord had a massive electricity bill to pay and a wrecked house to sort out.

    If investment is your bag, there are much easier ways to make similar returns.
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    (Original post by ByEeek)
    All I would say is do your homework. For every person like your mate who makes lots of money, there is another chap losing money and I have met a few of those. Typical problems incurred are tenants who move out and then the house is unlet for a few months. One chap had his tenants leave without notice. They left the house unlocked for 2 months with all the lights on. The landlord had a massive electricity bill to pay and a wrecked house to sort out.

    If investment is your bag, there are much easier ways to make similar returns.
    1. Landlord would not be liable for the electricity bill as it was not on his name.
    2. Tenant will be legally liable for the damage caused, any credible landlord will have insurance in place. Not forgetting the landlord will also keep the deposit.
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    (Original post by Bill_Gates)
    1. Landlord would not be liable for the electricity bill as it was not on his name.
    2. Tenant will be legally liable for the damage caused, any credible landlord will have insurance in place. Not forgetting the landlord will also keep the deposit.
    Both are true, however the landlord would also be out of pocket for the time it took to get the house fixed and new tenants in place.

    I've seen figures thrown around that most landlords can expect about a 4% ROI, far too low to compensate for the unpredictable risk imo.
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    (Original post by Reue)
    Both are true, however the landlord would also be out of pocket for the time it took to get the house fixed and new tenants in place.

    I've seen figures thrown around that most landlords can expect about a 4% ROI, far too low to compensate for the unpredictable risk imo.
    that's 4% on rent not including the appreciation in asset value. Plus it varies across the country. West Midlands is much higher than London for example.

    can probably get the house fixed in about 2 months and re-let.
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    (Original post by Bill_Gates)
    that's 4% on rent not including the appreciation in asset value. Plus it varies across the country. West Midlands is much higher than London for example. .
    *not including the below FTSE asset appreciation.


    (Original post by Bill_Gates)
    can probably get the house fixed in about 2 months and re-let.
    2 months?! Ouch.
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    (Original post by Reue)
    *not including the below FTSE asset appreciation.




    2 months?! Ouch.
    Come on lets not buy into that FTSE scam. If you invest in the FTSE and it decides to have a drop of about 20% most will sell the next day and take the loss not wait it out years and years.

    2 months is not a lot for an ENTIRE REFURB. Let's assume it was destroyed. But if it's just a bit of chav damage then 2 weeks.

    Regardless i'm just saying this on the basis of my parents generation. Property has been a great investment.
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    (Original post by Bill_Gates)
    Come on lets not buy into that FTSE scam. If you invest in the FTSE and it decides to have a drop of about 20% most will sell the next day and take the loss not wait it out years and years.
    Considering most people invest in the FTSE through their pensions; I really doubt they'd sell the next day

    (Original post by Bill_Gates)
    Regardless i'm just saying this on the basis of my parents generation. Property has been a great investment.
    Try saying that to the people in Northern Ireland or the old Liverpool estates. How about those who live next door to people that instead invested their money in a FTSE index fund instead of buying 30 years ago? Guess which would have more accumulated wealth now...
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    (Original post by Reue)
    Considering most people invest in the FTSE through their pensions; I really doubt they'd sell the next day



    Try saying that to the people in Northern Ireland or the old Liverpool estates. How about those who live next door to people that instead invested their money in a FTSE index fund instead of buying 30 years ago? Guess which would have more accumulated wealth now...
    Pensions? that thing you invest and some won't even see? Let alone to be able to cash in entirely. Considering how the UK economy is being run i wouldn't be so silly.

    Who said i would buy in an Liverpool estate or N.Ireland for that matter?! Never mind, i have a nice diversified portfolio atm. I don't have exposure to the FTSE.
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    (Original post by Bill_Gates)
    Pensions? that thing you invest and some won't even see? Let alone to be able to cash in entirely. Considering how the UK economy is being run i wouldn't be so silly.
    Oh dear :rolleyes:

    I guess my parents are just living off of thin air then?

    (Original post by Bill_Gates)
    Who said i would buy in an Liverpool estate or N.Ireland for that matter?! Never mind, i have a nice diversified portfolio atm. I don't have exposure to the FTSE.
    But what's to say that whichever property you do pick isn't going to plummet in relative value?
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    (Original post by Reue)
    Oh dear :rolleyes:

    I guess my parents are just living off of thin air then?



    But what's to say that whichever property you do pick isn't going to plummet in relative value?
    Come on the conversation was about investing today for us. Not your parents

    If you buy smart you'll be perfectly fine. I run a business which is where my interests are.
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    (Original post by Bill_Gates)
    Come on the conversation was about investing today for us. Not your parents
    Ok, so let's get it back to us:

    I invest in a pension which gives me an immediate 20% income tax relief, 10% NI relief and 100% employer matched contribution. My money more than doubles before it's even invested anywhere.

    Tell me; which of your portfolio makes such immediate and sustainable gains?
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    (Original post by Reue)
    Ok, so let's get it back to us:

    I invest in a pension which gives me an immediate 20% income tax relief, 10% NI relief and 100% employer matched contribution. My money more than doubles before it's even invested anywhere.

    Tell me; which of your portfolio makes such immediate and sustainable gains?
    Why would i share such valuable information?

    Enjoy your pension aged 70 odd?! sure it's going to be a right bundle of laughs then. IF it does actually still exist then.
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    (Original post by Bill_Gates)
    Why would i share such valuable information?

    Enjoy your pension aged 70 odd?! sure it's going to be a right bundle of laughs then. IF it does actually still exist then.
    Impossible to share what you don't possess? Plus if it's such an industry secret on how to get such good returns.. why would you be trying to suggest others do the same?

    70? Where did you pull that number from?

    There's also the S&S ISA investments to bridge any gap.
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    (Original post by Reue)
    Impossible to share what you don't possess? Plus if it's such an industry secret on how to get such good returns.. why would you be trying to suggest others do the same?

    70? Where did you pull that number from?

    There's also the S&S ISA investments to bridge any gap.
    LOL you're like a wet dream for the finance sector.
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    (Original post by Bill_Gates)
    LOL you're like a wet dream for the finance sector.
    What a well articulated and sourced response.
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    (Original post by Reue)
    What a well articulated and sourced response.
    All comes down to net worth tbh. This conversation is pointless if i don't know where you stand. If you live month to month then fair enough, not much you can do for higher returns.
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    (Original post by Bill_Gates)
    All comes down to net worth tbh. This conversation is pointless if i don't know where you stand. If you live month to month then fair enough, not much you can do for higher returns.
    Currently about £75k
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    (Original post by Reue)
    Currently about £75k
    Seems ok. I think you're playing it ok for now. But tbh pensions just don't appeal to me in the slightest.
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    (Original post by Bill_Gates)
    Seems ok. I think you're playing it ok for now.
    High praise indeed
 
 
 
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