spare cash

what are people doing with their spare cash?

I have crypto and can't persuade wife to lump it all in on btc and eth

paying a sum off the mortgage is safe but wrong. 

So what are people doing?

 

maxed on the premiums.

I am a more confused than before!

toying with a property/holiday home to air bnb. probably not worth the hassle?

thanks for the advice and an amusing thread

they are about to regulate the airbnb short let market - it will involve some sort of LA licencing. There are lots of LAs under pressure from their residents that it should be more difficult to turn housing stock into FHL property. Airbnb as the market leader has made some proposals but the government may grab this and go tougher than airbnb are proposing. 

Roger - fixed rate savings a/cs are now offering 1.5%+ over 2 to 5 years. If your mortgage interest rate is lower than the post-marginal-income-tax-rate equivalent of that, then you could park the money there to make a slight turn.

Not going to touch Serge's "it's financially illiterate not to mortgage yourself to the hilt rather than sleep at night" argument.

 

 

 

 

Because I'm not emotionally illiterate.

😂 thx 4 backing me up m7, but that sort of reasonable way of explaining the point is not really in keeping with rof’s requisite uber aggressive rodomontading cringefight culture

be more of a dick

you can get a 1% fixed rate mortgage for 2 years with a £1000 arrangement fee. 

and you can get 1.5% in the best savings accounts (your deposit is protected up to £85k in each one - so even if you're happy that your saving bank wont go bust you will probably need to go through the process of setting up 2 or 3 of these to mitigate that risk slightly)

So if you borrow £500k and save it between the best savings accounts you will make about £7500 per year before tax and £4500 after tax assuming you are a high rate tax payer - which you will be to get access to this sort of money. 

Your interest costs will be £10,000 over the 2 years and your arrangement fee will be £1000

So you make -£2,000

nice. 

 

Parsnip just on Sky now how banks are slashing their cheap deals on account of the forthcoming interest rate rise 

I can't re-fix (without ERC) until November. I need the cheap deals to stay until then

Parsnip, which part of "If" didn't you understand in my post ?

No wonder you got into a cripplefight with Serge.

(p.s. best low LTV 2 year mortgage fix is 0.51% with £170 fees, best 2 year FSCS protected fixed savings rate is 1.57% acc to MSE. But otherwise you did great)

(working on being more of a dick)

i didnt think you could get .51% - if you can then of course that's great as your loan will cost you £5170 and you will make about £4k (if those rates are still available). the best rates on the supermarket sites that i saw are touching 1% with £1k to arrange.  Great if you can find lower. 

You're all right and wrong. If you live in the cheapest house your ego can afford you can pay off the gidge and get serious coin invested soon.

Compounding is probably beyond you lot. 

Compounding is probably beyond you lot. 

See covid threads passim. 

 

I am probably the worst investor on RoF over the years so perhaps do not do as I do....... However I still stick with pay down your mortgage on your house as there may come a time when interest rates go up and you probably need somewhere to live for the next 50 years  - we had a 10 year fix at 13% at one stage in the 1980s and that was CHEAPER than our mortgage. Not so cheap when rates went down as "low" as 8%.

Also when you get to my age investing in the next generation (school or university fees and perhaps help with a first property) may be a good use of the money rather than 40% IHT when you die and the state steals almost half of it, particularly for the unmarried.

eeyore absolutely pummelling snippo here

glad i tagged out

and heh @ lyds proving comprehensively y the pay down the gidge mentality is fiscal lunacy, especially in the current enviro - even if it’s emotionally satisfying

Yes - bossed completely. There's obviously always the "possibility" borrowing at a lower rate than you can save at, but that usually occurs when people are already in a long term deal and in the meantime, rates have risen but they are locked into earlier than market. It would be pretty unusual to find a quoted saving rate higher than a quoted borrowing rate at any particular time.  If it does, at the moment, then that would be unusual....and of course worth taking advantage of. When i posted about what rates i was aware of that were available i took them from one of the compare sites. I havent seen anything lower since, but but there is a level of botheredness that i cba to go to - so perhaps one does exist, and if it does, then great. 

Oracle - i am not sure why you are so bothered by me / this.  But congratulations on being you - it must be great.  

😂 ru still fighting this u utter toolbag

just suck up being wrong and go back to making financial decisions based on emotions. it’s fine. we agreed to disagree

i love your posting style. Slag me off - then when there's a response, slag me off again.

I wish you all the luck and every success, because my god it sounds like you need it.  

dude, srsly - can’t u just agree to disagree? and toolbag’s not slagging u off, it’s an accur7 description of the nature of ur being

this is all retarded

you get BTLs

life is just a game of monopoly

Delphi unless you’ve made the sort of cash working for yourself Lydia has, paying off multiple mortgages, you might want to pray you’re not over leveraged as the economy tanks. 

Sorry to disappoint you Serge m7, but I'm with snippers on the broader point. His 08.54 of the 20th is pretty much spot on. A minor disagreement about whether in practice one can arbitrage mortgage Vs savings rates is mere detail.

 

fanks 4 ur concern cookster m7, but i’m propa chilled about the manner in which i earned or did not earn money

eeyore - ah but m7, ur making the mistake of assuming the rof cringefight fish slapping noise actually represents my point. it has been long since lost in strawmans and snippo panicking.

all i did was point out that being gidge-free is neither risk free nor (in the current enviro) dispassionately, the best way of balancing investment risk and in fact using the cash equivalent from the mortgage is likely (in the current enviro) to be very easy to beat the interests cost with lower risk than property.

this is a fooking obvious point and not really groundbreaking. it’s simple maths as u demonstr7d above. how much mortgage (30%? 40%? 60%?) and wot to do with the cash proceeds (cash savings or even something marginally more risky for a better return) is entirely circumstance specific. the point is really that investing only in property is risky too

that the result of my throwaway comment led to snippo having a shitfit and thinking i am preaching 95% mortgages on every property u own without any offset funds is merely demonstrative of how easy it is 4 ppl to misunderstand. and given his clear ignorance i preferred the cringe fight tbh.

and yes, i get that being gidge-free makes humans naturally feel a lot better and more flexible. me too. life’s not lived on a balance sheet.

Heh :)

"All I did was say this bit of halibut was good enough for Jehovah"

well, quite

the only rof classic cringefight python didn’t call have a century ago is brexit v remain

As peace has broken out, can I also say Kudos for use of "rodomontading".