Owning your own home

Explain your working.
With reference to pension funds and how they're financially inert.

Have a look. Only buy it if you can convince the existing owner to acquire and then sell you the freehold.

If they can't acquire the freehold it might be because some dodgy shit is going down. Avoid.

More capital flowing into housing market = higher house prices = transfer of wealth from wage earners to asset owners. House prices are very strongly correlated to how much equity plus mortgage debt is flowing into the system.

The result is that rental yields are very low (sub 3% in most of London) so your returns will probably be fairly skinny compared to traditional pension fund investments (bonds plus equities) absent significant capital growth.

So return is low compared to pension funds.

My point was
:
compared to pension funds NOT fucking future generations.

As in, how is letting a single property worse than investing in a pension fund?

(Apart from if that pension fund is managed by you and only invests in Ethical business. For a given value of ethical considering so.eone has to pay somewhere. Somehow.
#6thformeconomicsargument)

Because when you put your money in a pension fund, at least some of it will be invested in a productive use, i.e. building a factory or creating capital goods or whatever. Bidding up asset prices is just socially useless, even damaging.

If anyone is really itching to be a landlord, I have a cheap rental property house in west midlands i should really sell (7ish percent yield)

Anyone got a good extension person in SE?

Just got a quote back from someone for 20m2 single floor extension with new kitchen: £112k

😂😂😂😂😂😂😂😂

Yeah. Unless you're gold plating everything that's well over twice what's sensible.

It's all profiteering though isn't it?
You're putting money somewhere hoping to increase your money without doing anything. If you put your money into an aggressive fund, what companies are going to be in there? What good are they providing for their promise of cash from the fund in return for loan plus profit back?

What would be objectionable about renting long term at about the cost of the mortgage (rather than at market rates with an increase every time the market increases) and being a sensible person?

I'm just looking at options on how to have a cake and eat some more cake.

Lots of cake requests there. "Brexiteer" returns on your investments?

This. I'm not sure that many high street pension funds are going to be doing anything another than investing in (very mature) secondary markets, not in raising capital or lending.

Chucking your pension eggs in property is, for all intents and purposes, the same thing (even if it concentrates the risk more at a personal level), in terms of contributing to macro-level free capital flows.

That's the zero sum game cake.

Clearly, there is no cake

Those fucking euros and their croissants and flaky pastry.

You'll end up paying more tax on property then a pension fund.
Putting a deposit on a buy to let essentially a leveraged investment. And carries the risk. That risk has paid off handsomely for the last 20 years. Which is forever for most people's memory.

The cake is a lie...

https://youtu.be/5Mr11n6ZzSA

Cheers. Drop me a pm...

Never heard a peep from the architect

If you want to rent your property out at below market rates, I applaud you for it, but there are ways to combine the twin objectives of making a decent return plus doing something genuinely economically productive with your capital.

I really would reject the notion that investing in even a secondary equity market is comparable to property in that regard. Having a well-functioning capital market is in general a Goood Thing, and the negative social consequence to stocks or bonds increasing in price relative to incomes are far lower - you don't have to buy equities but you do have to live somewhere.

The tax position is complex and it depends how you derive your property return (income vs cap gains) and what your income tax band is both when you put money into your pension and when you take it out (except the 25% tax free cash).

The tax question is also a little circular as a lot of gov funding is consumed by attempts to correct the housing market (i.e. help to buy ISA bribes, inflated rents pushing up housing benefit costs, inflated land prices for council developments etc etc)

Buying equities is similarly leveraged over the lifetime of the investment (average gearing in FTSE 100 is about 50%).

sell your gangsta at 20% yield first

owning someone else's home thread

All property is theft yeah?

This is really odd. I emailed them and they said they weren't able to negotiate on my behalf and suggested I get a surveyor. But it sounds like my situation is identical to yours. Very odd.

Any suggestions for a solicitor to extend the lease on my flat? It's very straightforward, I own one flat and the guy downstairs the other and we jointly own the freehold on the building so nothing to pay to extend. We just need the individual leases extending/varying, probably up to 999 years I guess. Cheers