what do you invest your money in?

[scottish cleaning service]

Wealth begins when you have no debt, I think Waldo Emerson stated this. Buying stuff when you have the cash is good because it forces you to save up rather than bump it on a card all the time. Folk are now using their holiday money to reduce debt.

 

[Damo]

I was very late getting on the property ladder (36) but within 12 months i should be renting this house out and buying a bigger house. I am investing my money in houses, bit late in the game but i want a portfolio of houses. 

 

[ched999uk]

I was very late getting on the property ladder (36) but within 12 months i should be renting this house out and buying a bigger house. I am investing my money in houses, bit late in the game but i want a portfolio of houses. 

Just make sure you don't over stretch. i.e. make 100% sure you can afford both mortgages in case a tenant doesn't pay or the property is vacant.  

 

[steve garwood]

I was very late getting on the property ladder (36) but within 12 months i should be renting this house out and buying a bigger house. I am investing my money in houses, bit late in the game but i want a portfolio of houses. 

Hope it works out for you better than it did for me.

My wife and I rented out her old flat and we had nothing but trouble. My brother and I had to get nasty to get the tenants out.

Getting rid of your mortgage is not just good financially, but it’s also nice psychologically. Knowing your biggest dept has gone is lovely. Glad we paid ours off early ??‍?

 

[Attila]

bump it on a card all the time

That's a mistake I committed once or twice even though I'm quite responsible. Once it was out of urgent need and life went in the wrong direction so couldn't pay it back on time. But learned from it big time. However, struggling paying back 2 credit cards and some other form of debt forces me to keep in motion and find new ways to earn more money and get out of debt once and for all.

 

[scottish cleaning service]

That's a mistake I committed once or twice even though I'm quite responsible. Once it was out of urgent need and life went in the wrong direction so couldn't pay it back on time. But learned from it big time. However, struggling paying back 2 credit cards and some other form of debt forces me to keep in motion and find new ways to earn more money and get out of debt once and for all.

We all do it when we are growing up but eventually it has to be paid. I don't get any joy out of buying anything on tick now but I get a momentary high after saving up and buying it with hard cash. Probably just a mature thing or I learned the hard way. Not sure what my next investment is because I have nearly bought everything I need maybe a new van. 

 

[ched999uk]

Not sure what my next investment is because I have nearly bought everything I need maybe a new van.

If you are considering a new van now might be best time. If we don't get an EU deal vans might go up 10-15% in Jan!! 

 

[scottish cleaning service]

If you are considering a new van now might be best time. If we don't get an EU deal vans might go up 10-15% in Jan!! 

Aye, I would probably just lease a van now and change it every 3 to 4 years. That seems the sensible way now.

 

[THL4KEL]

We all do it when we are growing up but eventually it has to be paid. I don't get any joy out of buying anything on tick now but I get a momentary high after saving up and buying it with hard cash. Probably just a mature thing or I learned the hard way. Not sure what my next investment is because I have nearly bought everything I need maybe a new van. 

Upgrade your Maxblast.

 

[scottish cleaning service]

Upgrade your Maxblast.

I'm finding my own pro gutter tool on a 6 to 12 foot purdy pole even faster than the vac. I realise the vac is safer but I don't seem to get a lot of gutter clears now unless its in with a pvc clean. Got a nice job this week and I felt rather good when the roofer couldn't find the leak on a flat copper roof. I knew it could only be the seams where both copper sheets meet so I sealed them. Saved the guy a few bob because the roofers were coming back to try and fix it. Quickest money I have ever made and the home will be on the market tomorrow.

 

[HWCS]

Beers, bikes & birds, and waste whats left.

On a serious note im contemplating buying a property a bit of a doer upper.

 

[Cleanco]

Is it really a good time to be investing in houses? I’d have thought not unless already on the ladder or have very good deposit to put down. The housing market still hasn’t settled from the last recession and the way we are going you could end up five years down the line paying fir a mortgage that’s worth more than the house. My philosophy is spend it whilst you can. Without trying to sound glum you can’t take it with you and you never know what’s around the corner. Years ago we all got told to save, save, save but nowa days it’s completely the opposite with credit deals being thrown in your face everywere you go with most young families living in the red. It’s ok for people who bought years ago to say buy, it’s the best thing I ever did but the game has changed massively these days and it’s no we’re near as easy. I’m 37 and still don’t know weather to even bother buying. Yes renting is classed as dead money but it’s not like you’ve got it in your hand as you would still have to pay a mortgage and then when that’s paid off just before you retire you may be able to release some equity but that’s it. You still need a house to live in until you die. I’m investing in my hobby which is prestige sports cars. The trick is to find ones that hold their money but it’s not that easy to predict the future. Once you get to the really high end stuff you will even find the in demand cars are being bought back from the customers by the dealers for more than they paid originally. By the time I retire I’ll have a good enough nest egg to buy a retirement home whilst my cleaning business will take care of the rest. 

 

[Iron Giant]

Got to agree with Omega on this one. Overpaying your mortgage isn’t the best use of money for the reasons he said. 

I think the vast majority of people think all debt is bad, that’s why they want to overpay their mortgage. There is good debt, used for an investment that will grow in value or generate long term income. 

A mortgage is typically most peoples biggest debt and biggest monthly payment each month so it makes sense to overpay on a mortgage no point having a massive debt and investing spare cash in something else when a mortgage can be paid down far quicker with over payments when the interest rates are as low as they are,  as years can be shaved off the loan term and ultimately save £1,000's over a period of years.

 

[Davy G]

Securing ownership of the family nest is my biggest priority. It's the same for the wildlife on the side of a cliff or wherever else they make their stand to live or reproduce. For me it's on a par with building and running a successful, secure family business. How can it not be?

If I were paying rent on the family 3 bed semi, I'd have to find over a thousand pounds every month. How would I find that if I were retired on a state and/or other modest pension? Rents will always increase over time, at the whim of the landlords and in line with market forces of supply and demand. That's a certainty. Folk can have other plans : Investing in classic cars, stock market, gold etc. All well and good, and I wish them the very best. They may well be lucrative. BUT, they can only be sold once. Meanwhile, in rented accommodation that monthly bill will be relentless and unceasing.

 

[Oli]

A mortgage is typically most peoples biggest debt and biggest monthly payment each month so it makes sense to overpay on a mortgage no point having a massive debt and investing spare cash in something else when a mortgage can be paid down far quicker with over payments when the interest rates are as low as they are,  as years can be shaved off the loan term and ultimately save £1,000's over a period of years.

What I mean is why over pay something that’s only charging you say 2% interest when you can invest it in something that’s making you 20% interest? After a few years you could still use the money to pay off your mortgage but you’ll have a lot more of it. 

 

[Pjj]

Is it really a good time to be investing in houses? I’d have thought not unless already on the ladder or have very good deposit to put down. The housing market still hasn’t settled from the last recession and the way we are going you could end up five years down the line paying fir a mortgage that’s worth more than the house. My philosophy is spend it whilst you can. Without trying to sound glum you can’t take it with you and you never know what’s around the corner. Years ago we all got told to save, save, save but nowa days it’s completely the opposite with credit deals being thrown in your face everywere you go with most young families living in the red. It’s ok for people who bought years ago to say buy, it’s the best thing I ever did but the game has changed massively these days and it’s no we’re near as easy. I’m 37 and still don’t know weather to even bother buying. Yes renting is classed as dead money but it’s not like you’ve got it in your hand as you would still have to pay a mortgage and then when that’s paid off just before you retire you may be able to release some equity but that’s it. You still need a house to live in until you die. I’m investing in my hobby which is prestige sports cars. The trick is to find ones that hold their money but it’s not that easy to predict the future. Once you get to the really high end stuff you will even find the in demand cars are being bought back from the customers by the dealers for more than they paid originally. By the time I retire I’ll have a good enough nest egg to buy a retirement home whilst my cleaning business will take care of the rest. 

Negative equity is something that can happen but with house purchase you have to look at it long term you dont buy a house this year and sell next , that way you could loose money but over a 10- 30 year period there is no better way to make money than buying houses , now is a very good time to be buying as mortgage rate is very low , rent the property out and the rent will pay the mortgage and still give you cash return each month as an example a £250,000 mortgage will cost you £750 per month the rental from that property will be at least £1000 per calendar month , it’s a no brainier . 

 

[Davy G]

What I mean is why over pay something that’s only charging you say 2% interest when you can invest it in something that’s making you 20% interest? After a few years you could still use the money to pay off your mortgage but you’ll have a lot more of it. 

It's not just for the low interest. That's the lesser of the reasons. It's mainly for paying off and securing the family home, which is also increasing in value over time. Rather than taking the chance of having to find money long term for ever increasing rent prices or a seemingly never ending mortgage. Now, with interest rates low is the best time to be paying off the capital.  A much bigger portion of the monthly payment is actually going towards paying off the capital owed, reducing the debt and the time needed to pay it off. Rather than just treading water and the debt hanging over for years and years, delaying or in worst case, if things really go wrong (illness, a family break up, a severe recession or even a depression) preventing ownership while losing money unnecessarily to interest.

Mortgage rates can and do spiral up as well as down and it can happen quickly. Homes do get repossessed. If things got really difficult I'd much rather be paying interest on a smaller remaining debt, on an asset that has always proven to gain significant value over time. Even better, if I could have my mortgage paid off and I being in full ownership of my home and therefore being in a stronger position. Not to mention not HAVING to find that money every month no matter what.

Years ago I took the advice of a so called professional financial advisor, to change my repayment mortgage to an interest only one. Reduce my payments and instead invest in unit trusts which were going to be much more lucrative. Result : mortgage rates increased, the investments I made instead of paying off the mortgage failed dismally. I ended up paying the mortgage and its interest for many years more than I would have needed to if I'd simply overpaid it on a monthly basis.

I took his advice, he turned out to be a crook. I didn't understand about mortgages and investments.  I'd like to think, though I could be wrong, that I understand a bit more now and that hopefully I've gained a little wisdom in the 30 odd years since.

 

[Dave B]

I think it's a good idea to pay off the mortgage earlier if possible. Rates are very low at the moment but mortgage rates can change rapidly. I've been through times of high rates in the past when I only held on to my home by the skin of my teeth due to rate increases and family break up when I was working on a modest wage for utility contractors.

On one occasion I was working on a water main in a small Cotswold village when various people started turning up at a 3 bed semi. I asked a neighbour what was going on. He told me with disgust that one was the bailiff. I can't remember who the others were. Only that they were waiting for a locksmith to arrive to change the locks. They were about to repossess the house while the owner, a decent, hard working man according to the neighbour,  had fallen on difficult times. He was driving a lorry in Europe. I don't know whether it was due to a broken marriage or what the reason was that he had fallen into arrears.

What I remember most vividly is how delighted and excited they all were with their work. Securing my home is my most important financial aim.

You are right though, that it's very important to build and maintain a sound business.

1 more year and my mortgage is gone and only 45.

It's the biggest bill a family has so a lot more spending cash in a years time.

Makes perfect sense to me.

 

[Dave B]

We all do it when we are growing up but eventually it has to be paid. I don't get any joy out of buying anything on tick now but I get a momentary high after saving up and buying it with hard cash. Probably just a mature thing or I learned the hard way. Not sure what my next investment is because I have nearly bought everything I need maybe a new van. 

Buy a ton of coke lol.

That will make you some money ?

 

[Dave B]

I prefer pepsi but the bubbles sting my nose.

 

[Davy G]

1 more year and my mortgage is gone and only 45.

It's the biggest bill a family has so a lot more spending cash in a years time.

Makes perfect sense to me.

Good for you Dave. Delighted for you. Not having to keep finding the money every month for years and years. Wow! ??