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Money - Making it and saving it


PongRiddims

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2 minutes ago, Risso said:

I mean look at this for £1.4m:

http://www.zoopla.co.uk/for-sale/property/chiswick/?new_homes=include&price_max=1500000&price_min=1200000&q=Chiswick&radius=0&results_sort=newest_listings&search_source=refine

It's reasonable enough I guess, but the kitchen is hideous, there's only street parking and the back garden is tiny.  

That's shocking - the price as well as that bloody kitchen (the other rooms aren't much better).

I dread to think what my old landlord is renting out the crappy bedsits in N17 for nowadays.

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Pictures of the kitchen and bathroom in my current flat, the one being sold for 345k, aren't even on foxtons website because they're so shoddy. The bathroom  can't be much more than a metre and a half in length and under a metre wide. The kitchen isn't much better.

in fact I reckon you'd struggle to actually get far enough away from anything in the bathroom to actually picture it. 

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21 hours ago, Demitri_C said:

I'm thinking in investing in gatwick airport parking spot. 10 years you have made your money back then it's profit for life

Be very careful. I am sure there are some legitimate schemes but there are far more scams.

The most common scam is that you buy the land (Land Registry deed included). You get a guanteed income for a few years. But after that the money dries up. All you own is a small bit of land purchased at a high price. Even worse you don't have any right of way over the land around the space. Therefore you can't even get there and might be charged for access. 

If it does not generate income you decide to sell on. If it's a scam are you likely to find many people willing to buy it?

Think of it like this. I sell you a small piece of my back garden for £10,000 and guarantee you £2000 per year rent for 2 years. After that 2 years you have a small piece of my garden that you cannot access, cannot use and can't sell. I'll offer to buy it back from you for £4000. I'm still £2000 up on the deal and haven't done a damn thing. 

But here is the kicker - I haven't broken any laws. 

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40 minutes ago, Mandy Lifeboats said:

I sell you a small piece of my back garden for £10,000 and guarantee you £2000 per year rent for 2 years. After that 2 years you have a small piece of my garden that you cannot access, cannot use and can't sell. I'll offer to buy it back from you for £4000. I'm still £2000 up on the deal and haven't done a damn thing. 

But here is the kicker - I haven't broken any laws. 

So no one can grass you up for Money lawndering and if he goes into your garden you can just turf him out.

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If you were going to buy a second property in Birmingham to rent out, where would you buy? Budget - say £200k

Apartment in city centre? House in the suburbs? 

Edited by Xela
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1 hour ago, Mandy Lifeboats said:

Be very careful. I am sure there are some legitimate schemes but there are far more scams.

The most common scam is that you buy the land (Land Registry deed included). You get a guanteed income for a few years. But after that the money dries up. All you own is a small bit of land purchased at a high price. Even worse you don't have any right of way over the land around the space. Therefore you can't even get there and might be charged for access. 

If it does not generate income you decide to sell on. If it's a scam are you likely to find many people willing to buy it?

Think of it like this. I sell you a small piece of my back garden for £10,000 and guarantee you £2000 per year rent for 2 years. After that 2 years you have a small piece of my garden that you cannot access, cannot use and can't sell. I'll offer to buy it back from you for £4000. I'm still £2000 up on the deal and haven't done a damn thing. 

But here is the kicker - I haven't broken any laws. 

Cheers mate, Trent and risso I think I'll give this a miss ! 

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35 minutes ago, Xela said:

If you were going to buy a second property in Birmingham to rent out, where would you buy? Budget - say £200k

Apartment in city centre? House in the suburbs? 

You can have my house for £200k

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1 hour ago, Xela said:

If you were going to buy a second property in Birmingham to rent out, where would you buy? Budget - say £200k

Apartment in city centre? House in the suburbs? 

Avoid city centre flats at all costs unless you are lucky you'll lose money.

Go for a house and go for the best area you can but with a good rental market. Avoid student areas but young professional house shares are good and so are areas near hospitals.

I don't know the local market well enough any more to be more specific .

 

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On 7/10/2016 at 21:58, TrentVilla said:

 

Are there any other stoozers on here?

I looked into it but decided it was more effort than it was worth.

Have you done it & is it profitable enough?

 

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4 hours ago, Mandy Lifeboats said:

Think of it like this. I sell you a small piece of my back garden for £10,000 and guarantee you £2000 per year rent for 2 years. After that 2 years you have a small piece of my garden that you cannot access, cannot use and can't sell. I'll offer to buy it back from you for £4000. I'm still £2000 up on the deal and haven't done a damn thing.

Actually there's a further angle to the scam. You retain an option to buy back the plot for £4000 (or any sum you care to include). But you never take up the option. That's how the parking ones are worded. Their option, not yours.

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23 minutes ago, ender4 said:

I looked into it but decided it was more effort than it was worth.

Have you done it & is it profitable enough?

It isn't as profitable as it used to be back in the days before fee's for cash transfers but there is still money to be made, free money.

There is a bit of work to do initially and then its just about being organised and staying on top of things. It takes a bit of moving money around but that is mainly via DD's and standing orders. It is dangerous if you aren't disciplined as it would be easy to spend the cash.

There are two ways of doing it short and long stoozing, I can't be arsed with short so only really do long.

I'm making about £1k a year doing it, I could probably make more if I wanted.

For me it basically pays for a holiday every year.

 

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Must've missed this thread. 

Most important thing is to follow a few simple principles.

- Pay yourself first and make it automatic - i.e. save a percentage of your salary each month before you spend anything and make it an automatic transfer i.e. set up a direct debit/standing order. This could be a work pension, an ISA, saving for a property etc.

- Make sure you have an emergency cash reserve. The textbook will say 6 to 12 months worth of expenditure but in reality its whatever lets you sleep at night. I've had some clients say they need £1 and some say they need £1m (obviously not most people). 

- Any large capital expenditures in the next 1 to 5 years that won't be covered by your regular income, keep in cash or near-cash investments. I suggest fixed rate accounts.

- Lastly when you invest, invest for the longer term i.e. more than 5 years. Don't speculate on short term volatility unless you are an expert. 9.9/10 you lose. 

- Don't get emotionally involved in an investment. 

- Try to understand what you are targeting. Whether it is a specific income in retirement or a specific capital lump sum.  Or it can be for a specific purpose or event i.e. travelling the world, school fees, passing money down to your kids etc. This will help you focus more and ensure you keep good discipline. 

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On 7/10/2016 at 21:59, TrentVilla said:

Ha... I'm in West Bridgford so don't start with the bed and butter land stuff :)

 

I do miss it. Lived there for a bit, Lace Market and Mapperely Park. Wish I had bought a place at that time!

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On 7/11/2016 at 00:10, Demitri_C said:

Thanks I'll check these out mate :)

A lot of "financial advisers" here in the offshore market try to sell these airport parking spaces. I'd stay well clear as comparable funds have not only paid the introducer some hefty commissions but have then gone on to be suspended or illiquid when clients have tried to cash their investment in.

Always remember that in order to sell any stock, mutual fund or structured note, there must be someone willing to purchase your asset. The secondary market for these types of investment is virtually nil IMO. 

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7 hours ago, omariqy said:

I do miss it. Lived there for a bit, Lace Market and Mapperely Park. Wish I had bought a place at that time!

Shame you didn't mate, just don't look at how the prices in WB have gone the last 10 years!

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22 hours ago, TrentVilla said:

Avoid city centre flats at all costs unless you are lucky you'll lose money.

Go for a house and go for the best area you can but with a good rental market. Avoid student areas but young professional house shares are good and so are areas near hospitals.

I don't know the local market well enough any more to be more specific .

 

Cheers. Good tip about being near hospitals. Never thought about that. I guess from a local perspective that would mean Selly Oak, but that also happens to be student central.

I guess near a train station is also a good selling point

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On 11 July 2016 at 19:01, Xela said:

If you were going to buy a second property in Birmingham to rent out, where would you buy? Budget - say £200k

Apartment in city centre? House in the suburbs? 

Depends who your target is, young people who will want the next trendy area but in a good school catchment area with decent transport links or students who want something that isn't an utter shit hole but is a decent size 

I'd be tempted to say somewhere on the harborne side of uni of brum

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