It's the story of the brain, the stomach and the arsehole about who is the most important organ in the body ...
Inflation
- Thread starter Bramble
- Start date
It's the story of the brain, the stomach and the arsehole about who is the most important organ in the body ...
Gerbert
Member
- Location
- Dutch biblebelt
The people that should be classified as non essential are those who are making that decision. And secondly those who enforce it.
- Location
- Cumbria
Sad, but true.
We moved the business emphasis to property some years ago, with some borrowed money. For sometime, renting money has been easy to repay, and with those borrowings now cleared, we have a portfolio of some value.
My children will benefit, not us, however that's our choice. They were very young when we headed this direction, I now have 5 grandchildren.
Hopefully what we have achieved will rub-off, and they will take a similar attitude.
It's all about timing. Get it right, and you can really benefit, get it wrong and, well we all know the outcome.
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Doing it for the kids
Member
Borrowing money is all well good if you use it to buy appreciating assets.
its obvious saying that but I’m still baffled by those living in modest houses buying on tick new cars and TV’s which are worth so much less in a years time, how do they do it?!
its obvious saying that but I’m still baffled by those living in modest houses buying on tick new cars and TV’s which are worth so much less in a years time, how do they do it?!
livestock 1
Member
Probably don’t pay it off or not very fast anyway
by leveraging the increase in the value of those modest houses you mentioned
Don't forget salt.
Tubbylew
Member
- Location
- Herefordshire
Being a humble peasent i'm not certain what leveraging means? Is it extending the mortgage and kicking the can down the road? Genuine question it's all a bit of a dark art to me.
- Location
- Bay of Plenty NZ
There are three things that determine the value of a floating currency, the market, the market and the market.
- Location
- Devon
But the value of Bitcoin or Dodgecoin is surely quite irrelevant?....
If I want to send you £2k, that is what you get whether it is 0.067 Bitcoin or 8000 Dodgecoin.
- Location
- North Wales
Id say to think of it this way.
You buy house with mortgage. After a couple of years the house has gone up in value by £30k.
you increase the mortgage on the house to realise some of that 30k, let's say the banks lend 50% of that. Now you have a £15k deposit to buy another one. There's now more debt on the original house which your leveraging but your now buying a second house as well to increase your networth, well as long as your tenants are paying.
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- Location
- Cumbria
A pair of retired school teachers (mathematics) made millions using that system. They used equity release on property owned to buy the next, and the next one and so on. They used interest only mortgages to keep repayments to a minimum, and allowed increased values and rentals to ensure strong liquidity.
They sold them all for over £275m !
I wonder if they'd take £50.00 for the spreadsheet
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Hilly
Member
- Location
- Scottish Borders.
I know a self made multi millionaire who made his money through investing etc , he’s old now and has seen a lot , he’s predicting the mother of all recessions starting in January, be interesting to see if he right or not .
he will be right …… eventually
question is will a recession make debt bad ? raising interest rates will make any recession worse
what will a government do to avoid or “fix” a recession ? My bet is they do what they always do now and print yet more money …….. if they do then yet again debt (used to buy assets ) will pay
Hyper inflation is a bigger risk than a recession now imo
- Location
- Cumbria
The world population growth has gone vertical, demand will follow. The only things that can cause a recession are the Politicians and us.
Queuing for fuel has already seen pump prices rise, people are buying houses for more than market value, all of a sudden everything is in demand (including undertakers).
toquark
Member
Question really is for how long can we keep kicking the can down the road?
Clearly inflation is out of control, as the BoE seem to be conceding.
- Location
- Lincolnshire
Inflation which is due to rises in prices of things we dont make, or choose not to make enough of, can't be controlled.
We could build more houses, get some nuclear power stations, have an indigenous manufacturing industry. We have chosen not to. Interest rates will "do a Japan" for a loooong time.
We could build more houses, get some nuclear power stations, have an indigenous manufacturing industry. We have chosen not to. Interest rates will "do a Japan" for a loooong time.
Tubbylew
Member
- Location
- Herefordshire
It'll be interesting to see what happens over the next 5 yrs. They seem to have painted themselves into a corner with interest rates. It has to rise at some point but most of the population haven't borrowed to increase their wealth, but to increase their standard of living, holidays and phones/cars/sofas/kitchens etc. Their will be a huge amount of pain for many if rates go up even slightly. Imo
- Location
- Cumbria
We need managed inflation !!!
If not, we end up with peaks and troughs as the market corrects itself. It used to be in 10 year cycles, however the World has changed.
Look at property values in 2006, and compare them with today, they were way over valued, and in many cases have still not caught back up yet.
Two years of doldrums now see's everything in demand. Plus despite all the negatives we hear and read, many have lots to spend (in there eye's) so this will show increase's in prices, then of course inflation.
It's a spike, the question is for how long if it catch's on.
Managing it is the problem, as well as taking all the VAT and other stealth taxes.
If not, we end up with peaks and troughs as the market corrects itself. It used to be in 10 year cycles, however the World has changed.
Look at property values in 2006, and compare them with today, they were way over valued, and in many cases have still not caught back up yet.
Two years of doldrums now see's everything in demand. Plus despite all the negatives we hear and read, many have lots to spend (in there eye's) so this will show increase's in prices, then of course inflation.
It's a spike, the question is for how long if it catch's on.
Managing it is the problem, as well as taking all the VAT and other stealth taxes.
dried fish (Hanseatic League) homespun wool (Saga era norse), good flint type rock (pre-european era Australian Aboriginals....and probably a whole lot of others, preserved herring? (Pacific northWest tribes)
Our concept of money is merely a simple media of valuing everything else.