Porsche 911 (air cooled) - coupe/manual. No tips/targa/cabs.
A 964 RS just sold in Monaco for £225k - 10 years ago they were between 30-50k.
Plus you to get the pleasure of driving it.
Thank me later
Whoever does not know how to hit the nail on the head should be asked not to hit it at all.
Friedrich Nietzsche
I thought the idea with BTL was to max out the mortgage so don't pay income tax on the rent as offset against the mortgage for capital appreciation ?Originally Posted by DB9yeti
Friend is looking at investing for her children and is looking at pensions so they can have an extra 30 years of growth and can't be spent until 65
Your 75K would be over 300K today...
Paul
Very nice business.
Cheers,
Neil.
Mortgage interest payments can be declared against property income I believe, thereby reducing the tax bill. So in this scenario it may be better to pay off as much as possible on the home you live in and have the larger mortgage on the property to let. Clearly any savings will also depend on the mortgage deal in place on each property.
If only I knew what that meant....
Did anyone take the advice?
It's a Call Option, in this particular case, giving the holder the option to buy Apple shares ( AAPL ) for $550 on January 15th 2015.
As Apple shares are currently trading over $630, that option is worth quite a lot ( about $107 last time I checked ). At the time I posted about it, Apple shares were trading in the low $500 range, and the option price was in the low $20 range.
Seriously, this has worked out well so far but I hope no one takes advice of anonymous tipsters on internet fora. Options especially, are highly risky.
Paul
Clear all debts, make sure you have cash savings, pension, money for tuition fees etc. if needed, etc.
Then buy to let, then blue chip equities as investments.
Then maybe a handful of gold sovereigns and a few Rolex / Patek for fun.
NB disclaimer: this is not financial advice!
Last edited by Archduke; 6th June 2014 at 08:11.
out of interest when would you close the option? It's currently in the money but if APPL tanked tomorrow then the option would follow suit.
Also my understanding is that most you would lose is the option premium. You're not on the hook for potentially unmimited losses like futures.
I thought this was a futures contract?
There are different types of future contracts, this is one.
If you buy a call option, as said, you have the option to buy in the future at a set price. If the price goes up you can profit hugely, if it drops you lose the premium.
The big losses can come if you sell a call option where you agree to let someone else buy at the price while collecting the premium for yourself.
Put options are similar but an arrangement to sell at the fixed price. You'd buy these if you think the price of a company was going to drop and sell if you thought it'd rise.
You are mixing up options and futures. The suggested trade was indeed an option, which gives you rights as you describe above. While an option can be listed on an exchange or OTC, it is not a future. A future is also listed (most of the time), but it commits you to deliver or take delivery of the underlying at expiry. And then there are options on future....
My mistake, been a few years since I had to get my head around them!
That's right. Options give you the right but not the obligation whilst with Futures you get the right AND the obligation to take delivery. Because of this obligation you can be exposed to very big losses if the commodity price moves against you. Unlike options where the most you would lose is your premium.
I was interested in knowing when would be the optimum time to close out an option when you're in the money to maximixe your profit. Close out too early and you lose out on any future price increases and vice versa.
This is true if you are buying an option, but not if you are writing ( selling ) an option.
-Paul
meth lab
Absolutely agree. I was referring to your original trade idea.
If I was writing the option Id hedge my exposure by taking a position on the underlying.
this is all excellent advice.....
With property I would bear in mind estate agent fees, and if you plan on having it managed then the associated fees of that.
Consider the risk of bad tenants and the potential costs associated with evicting them, costs associated with having self assessment tax Returns, and of course CGT as you would no longer be able to get PPR (principal private residence) ie you would be taxed at 18%/28% on the gain.
Not trying to play devils advocate just more make people aware.
Other things to consider is how likely/ liquid you need the cash. Ie in a fund much more accessible but more like to be volatile during the 10 year period......
Nailed it.
^^ This
Spend 50% and stash the rest.
What makes you think you'll be around in 10 years? ( it's a hell of a long time ) , i know plenty of people that made millions then died before getting the chance to *enjoy* after working themselves to death.
If you invest the lot, what will you do with the money in 10 years time?
We're in the final stages of getting rid of a tenant that hasn't paid rent for months.
She boasts round the estate that she's spending the rent on takeaways, but then makes a complaint to the local authority tenant relations officer when we handed her an eviction notice in public - no discussion, just handed her the notice while she was stood by her boyfriend's back gate with nobody anywhere nearby.
She claims to have been hundreds of miles away and not reading warning letters while posting on facebook from her (OUR!!!) back garden.
She invents 2 witnesses that claim we entered the flat while she was out, and the TRO investigated causing us loads of hassle, despite being able to prove that I was in the middle of a driving lesson and my wife was in surgery.
Get her near a court date and she makes a complaint to muddy the water.
We can't go into the property and change the locks, despite knowing she's left, as there are still a few possessions in there and we've been advised by the TRO that they would support a prosecution for illegal repossession if we did that. We can't even ask her when she intends to hand back the keys as that would be seen as hassling her to leave and, again, could ead to a prosecution.
She should be out tomorrow, so I'm expecting to find the flat in a sh*t state. The only good thing is that she claims to have moved from Pembrokeshire to Portsmouth and won't give her forwarding address, but some of her neighbours are so disgusted by her behaviour that we've been given a new address for her a few miles away.
Add that to the rumour that she's stolen the fridge and caused a lot of damage while removing it, and I can see us making a statement to the police for theft and criminal damage. We might not get the rent she owes, but if we can get her prosecuted then at least that's something.
Having said all that, we've got 3 properties we rent out and she's the first problem tenant we've had. The only problem is that any profit we've made on that flat in the last couple of years has been wiped out in six months.
When you get a good tenant the returns can way exceed what you get from the bank, but when you get a bad one then the stress and hassle really make you want to chuck in the towel.
Thats why I prefer to let out myself rather than via the agency as I can get a vibe from the potential tenant. So far I only got it wrong once but at least impact was minimal as they agreed to pay for damages from the deposit. Other tenants I had (incl current ones) I had a good feeling about them when I met them to show the place and then to sign the contract and so far its been pretty pain free.
That was us doing it all ourselves.
She said all the right things, refs checked out and kept the place fine for the first couple of months. Then.............................
You'd be over £500K by now
Paul
Did you follow your own advice?You'd be over £500K by now
Paul
I don't think you would. £75K ($122,986.5) at $550 per share would have bought you 223 shares. Apple did a 7 for 1 stock split in June, giving you 1561 shares now. The closing price yesterday was $102.13. That gives you $159,424.93 (£96,153.72), a profit of £21,153.You'd be over £500K by now
Paul
Phil, it was a call option
I have no idea what that is :)
It's a way to make/lose money quickly
Cracking answer, The buyer of a call is essentially buying the right to buy something.
Spend £5k on a plane ticket and a week at a nice hotel in Vegas. On your last night there, bet £70k on red. Either way you're coming home with a story you'll be telling for years to come :)
buy to lets, you could get 2 for 75K, enjoy 5K, split the £70k into 2 deposits of £35K each(taking into account legal/survey fees etc.) and that will get you a reasonable mortgage rate
In a similar position myslef - lots of good stuff in this thread - standout suggestions were becoming an MEP or starting a meth lab.
However the property on was heavily suggested - but the calculations I have done don't exactly look stellar. It might do okay over the years but I can't see the returns that most are on about. Here's my observations.
My house is worth about £160k - I can rent that out at £625p.m - take off 15% management fee and say another £1,000 for insurance and maintenance and that gives me £5,375 to the good each year - a RoI of 3.3% - not great and if it were a 100% mortgage it would not cover the interest. Okay so most people rely on capital gain - but surely that is coming to a bit of an end, house prices are at record highs, rental yeilds are low and I suspect the market won't take a great deal more of increase in days where salaries are being eroded. Add to that higher interest rates in maybe a year or two and house prices will have to stall. the only plus side is that if you borrow 75% and cover the mortgage with rent then you have a highly geared investment which is god if prices rise.
I don't share much optimism for the stock market too - it is at historic highs but really what is causing this optimism. Some gains have been made on unemployment and some negativity has gone from the general atmosphere of the recession but nothing to generate growth. Deficits are going up, european budgets are not in control. Maybe I'm too bearish but I can see an almightly crash coming in next 6 months. Which is what I'm waiting for.
Choices choices - or no choices. Bit of a ramble but can anyone offer me more confidence on the property side without having to go down the high-occupancy student let route?
Buying a property to rent out on AirBnB can be a pretty good earner. You can charge a lot more than standard rent. It's a bit more work but worth it. Got a few mates who do it and it's going great guns
You should be guided by your own attitude to risk and how much work you personally are willing to do. BTL can and does work, I´m achieving an average of 8% net BUT I´m hands on in management terms and hunted around for the "right" property. Also enjoyed my share of luck.
On the other hand I´ve purchased a couple of longish term corporate bonds yielding 5% and 7% respectively, no effort on my part and less risky than stocks.
You should take into account your personal tax liabilities as I´m sure others have said.
On the third hand my gold purchases have notionally lost money, so far, I view them as insurance rather than investments.
Peer to peer lending may be something I´ll have a go at in the future.
Good luck.
Don't do it in the US they have an additional double zero...... Not much difference in odds but still one more chance to lose.
I did use AirBnb once a room for the Olympics - worked out very well. But I'm based in Saudi Arabia and wouldn't have the ability to manage the property - hence the use of a letting agent for my current house.
I'm not risk averse but need to get numbers right in my head to make the investment. I can risk capital but not a wild risk. P2P lending rates were quite low when I last looked and everyone seemed to be complaining that all they got were low return lending.
Tax wise complicates things a little, if applicable I will pay income tax on UK income - the trouble is actually being able to make the investment in the first place - most investments are limited to UK residents and if not then generally EU residents. CGT is being tightened up and will include my house from April-2015 - that said I would be quite pleased if I had enough rise to justify Capital Gains Tax - however it's less of a hassle with stocks as you can use you limit up each year.
Looks like Cameron is setting the stock market scene already :-)
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