Interest Rate .5% cut

[Deleted User X18H]

cant you people see this is shit news inflation is up at 4.7% there is no f***ing way this should demonstrate a requirement to cut interest rates if you think its good you must be f***ing thick we will all pay for this in a few months!!!!!!!!

 

[Rusthall Seagull]

cant you people see this is shit news inflation is up at 4.7% there is no f***ing way this should demonstrate a requirement to cut interest rates if you think its good you must be f***ing thick we will all pay for this in a few months!!!!!!!!

sorry for being thick....but I don't understand that sentence.

 

[nail-Z]

cant you people see this is shit news inflation is up at 4.7% there is no f***ing way this should demonstrate a requirement to cut interest rates if you think its good you must be f***ing thick we will all pay for this in a few months!!!!!!!!

Spoken like a true person with a big stash of cash in the bank and no mortgage.

 

[Deleted User X18H]

Spoken like a true person with a big stash of cash in the bank and no mortgage.

no comment!!!!

 

[Ex-Staffs Gull]

This cut in interest rates I would guess, will be to make borrowing a little more affordable to businesses. Thus stimulating spending and an economic boost. The only question is whether the banks have the capability of lending, as over lending on assets is what has contributed to our current state.

 

[Gully]

Spoken like a true person with a big stash of cash in the bank and no mortgage.

If I were in that enviable position at the moment I would remove the money from the bank and buy a/some house/s to let, probably generating more in income than I was earning in interest.

 

[Tricky Dicky]

If I were in that enviable position at the moment I would remove the money from the bank and buy a/some house/s to let, probably generating more in income than I was earning in interest.

Wouod be the thing to do, but you can;t do it very quickly. I was discussing earlier in the week, what happens if you win the lottery, you could have £7m - where would you put it ? A load of it could be gone in a day - nice problem to have in he first place though.

 

[Gully]

True, but I reckon if you walked into most estate agents and offered to do cash deals for a house there would be queue out of the door of vendors waiting to bite your arm off. At the beginning of last year it was taking an average of two weeks for houses in my road to sell, from the estate agents board going up...there are two now on the market that went up just before Christmas, not sure if they have cut their asking price but if I had a few quid spare that is where I would start.

 

[Cian]

Wouod be the thing to do, but you can;t do it very quickly. I was discussing earlier in the week, what happens if you win the lottery, you could have £7m - where would you put it ? A load of it could be gone in a day - nice problem to have in he first place though.

I'd ask for the National Lottery to give me lots of 50 grand cheques, and use lots of variations of my name when opening accounts in the banks nobody has suggested are about to tank yet...

 

[Uncle Spielberg]

cant you people see this is shit news inflation is up at 4.7% there is no f***ing way this should demonstrate a requirement to cut interest rates if you think its good you must be f***ing thick we will all pay for this in a few months!!!!!!!!

Don't be a muppet Tim. Inflation is likely to plummet to 1-2% next year.

 

[Uncle Spielberg]

If I were in that enviable position at the moment I would remove the money from the bank and buy a/some house/s to let, probably generating more in income than I was earning in interest.

£ 175000, 2 bed flat £ 800 pm rent - agents = £ 720 - net - minus up keeping costs and possible 10% fall from present value, ie £ 157500 in 1 year

£ 175000 invested 5% net = £ 729 pm interest and £ 175000 capitol

 

[Uncle Spielberg]

If I has £ 175000 as above I would buy £ 175000 off premium bonds at the moment.

 

[wehatepalace]

I have no mortgage bought (outright) but no savings either where does this leave me ? Indifferent I suppose ?

 

[Uncle Spielberg]

In a good position.

 

[Deleted User X18H]

If I has £ 175000 as above I would buy £ 175000 off premium bonds at the moment.

you can only buy £30000 worth of premium bonds per person however me mrs and Junior have £75000 between us and win about £200 some months there not much in it between them and sticking in the bank except of course you could win a Million

 

[Gully]

£ 175000, 2 bed flat £ 800 pm rent - agents = £ 720 - net - minus up keeping costs and possible 10% fall from present value, ie £ 157500 in 1 year

£ 175000 invested 5% net = £ 729 pm interest and £ 175000 capitol

£175k invested in a property that may drop in value initially, but over the long term should increase again, whilst giving you a reasonable monthly income as it does.

I might point out that you haven't included tax on the income in your calculation, which does reduce what you make on it...but I reckon if you just calculated this over say 5 years and then sold the property you would be in a net gain position.

 

[Uncle C]

£175k invested in a property that may drop in value initially, but over the long term should increase again, whilst giving you a reasonable monthly income as it does.

I might point out that you haven't included tax on the income in your calculation, which does reduce what you make on it...but I reckon if you just calculated this over say 5 years and then sold the property you would be in a net gain position.

Why not wait, continue getting interest, then catch the market at a lower point? Whats the rush to buy into a falling property market?

 

[Gully]

Fair point, but if we get another couple of interest rate drops the interest on your money in the bank will be less than the income from the property.

 

[Cian]

And the only likely chance of them is the market and the economy getting even worse, meaning the house gets cheaper.

Buy house = value lost; cash in bank = value not lost (unless they go under, of course...)

 

[Gully]

I think you are missing my point MYOB, yes the property market is in decline...that will probably mean more repossessions and an increase in demand for rental property, don't believe the bull about lenders wanting people to stay in their homes when they default, if things are bad for them they will want to realise their assets as fast as possible...it is better to anticipate this than try to play catch up later, the property market will recover eventually...all things are cyclical.