Shmee 150 Emira Update

he has no idea when it is due but hopes it‘s “soon”

 

[prestonc]

So he's in the Oct build / Nov delivery batch, along with about 400 of us

Shmee used to be part of the September 10, when it was named that, back in the day. Ah, reminiscing.
Anyway, his social commitments got in the way, and he went solo, hence the September 9 became a thing. For his lack of commitment to the the cause, his delivery date slipped.

How many of you out there have had the same lack of commitment?

 

[Lots_Of_Trouble]

But equally you could’ve pre-borrowed the money at a better rate, locked that in and already being paying it off.

Really?
Take out a loan for a car that has yet to be delivered?
At this rate it would have almost been paid off before they actually deliver the thing.

Who wants to pay for a car they haven't received?

 

[TomE]

Depends how you manage your finances. You could have borrowed money when rates were lower and invested it if you thought you’d get a better return. My only borrowing is at under 3% and my returns are higher than that.

 

[ADC]

Depends how you manage your finances. You could have borrowed money when rates were lower and invested it if you thought you’d get a better return. My only borrowing is at under 3% and my returns are higher than that.

It just seems so perverse that you could have borrowed some money a couple of months ago and simply tucked it into the bank, and could soon be making money on the loan (if interest rate hikes actually get passed onto us chumps by the banks, that is)... makes my head hurt.

 

[Lots_Of_Trouble]

It's just bad luck that financial markets, inflation, war, china lockdowns, European energy crisis all happened after two years

Depends how you manage your finances. You could have borrowed money when rates were lower and invested it if you thought you’d get a better return. My only borrowing is at under 3% and my returns are higher than that.

I clearly need a strategy talk with you guys over a lotus coffee morning..

 

[ADC]

I clearly need a strategy talk with you guys over a lotus coffee morning..

My strategy so far has been to keep calling up Matt Windle each month to ask for everyone's delivery dates to be pushed back again, so that my investments have more time to recover (soon, i'm sure!) before I have to cough up

 

[Tonyshepp]

My strategy so far has been to keep calling up Matt Windle each month to ask for everyone's delivery dates to be pushed back again, so that my investments have more time to recover (soon, i'm sure!) before I have to cough up

You asked for a final edition in 2030 ?

 

[ADC]

You asked for a final edition in 2030 ?

May as well have, being in the i4 queue...

 

[emiraspain]

Im no expert, but there is a bit more to it than that of course....

It just seems so perverse that you could have borrowed some money a couple of months ago and simply tucked it into the bank, and could soon be making money on the loan (if interest rate hikes actually get passed onto us chumps by the banks, that is)... makes my head hurt.

If you work with your single bank and do that, there would need to be a VERY high interest rate rise to make this work for you. Just throwing numbers out there, but if the bank of E rate is as low as 2%, your bank will still probably charge you 7% for a none secured loan. So imagine you borrowed 100k and pay 7% back on it.....
Now, imagine how high the bank of E needs to raise interest rates in order for you to make MORE than the 7% you are paying. If they raised them to 10% (heaven forbid, but we have been here before and way higher) then you may get between 9-11% from your bank, which is still a very poor 2-4% anual return for the 100k loan you took out.
You need to do a lot more work than just deal with one bank and keep the money in a bank account.... you need to invest it else where and else where means there is inevitably risk........
The UK had quite a few peer to peer lending schemes, Funding Circle springs to mind, but there were many and even when UK interest rates were approx 0, these companies still manages to give you between 4-7% annual return. They have mostly now STOPPED allowing money from the public, which is a shame!
anyway.... there is always a risk..... but as the super rich say, never use your debit card, always use a credit card.. with the same idea of making your money work for you.

If only I had some money to get to work for me... I guess I best get a job to be able to get to work to get the money to go to work for me.

 

[Tonyshepp]

Im no expert, but there is a bit more to it than that of course....


If you work with your single bank and do that, there would need to be a VERY high interest rate rise to make this work for you. Just throwing numbers out there, but if the bank of E rate is as low as 2%, your bank will still probably charge you 7% for a none secured loan. So imagine you borrowed 100k and pay 7% back on it.....
Now, imagine how high the bank of E needs to raise interest rates in order for you to make MORE than the 7% you are paying. If they raised them to 10% (heaven forbid, but we have been here before and way higher) then you may get between 9-11% from your bank, which is still a very poor 2-4% anual return for the 100k loan you took out.
You need to do a lot more work than just deal with one bank and keep the money in a bank account.... you need to invest it else where and else where means there is inevitably risk........
The UK had quite a few peer to peer lending schemes, Funding Circle springs to mind, but there were many and even when UK interest rates were approx 0, these companies still manages to give you between 4-7% annual return. They have mostly now STOPPED allowing money from the public, which is a shame!
anyway.... there is always a risk..... but as the super rich say, never use your debit card, always use a credit card.. with the same idea of making your money work for you.

If only I had some money to get to work for me... I guess I best get a job to be able to get to work to get the money to go to work for me.

High interest rates, poor FTSE 350 returns, house prices depreciating, slowing economy as no one can purchase anything. My best returns have been in Latin America and Schoders energy fund but unfortunately that's not an option now due to the weak pound.

Some of us can remember interest rates of 10% plus on mortgages.

 

[emiraspain]

High interest rates, poor FTSE 350 returns, house prices depreciating, slowing economy as no one can purchase anything. My best returns have been in Latin America and Schoders energy fund but unfortunately that's not an option now due to the weak pound.

Some of us can remember interest rates of 10% plus on mortgages.

well, and well off topic, BUT... latin america is an option in my opinion as if you look over the last 12 months, 48 months 120 months... the pound is actually still strong against many currencies there. Colombian peso for example, where you can earn 9-14% through bank bonds AAA rated.
Pound has only lost not even 3% over last 3 months 6 % 12 months and 22% gain over 5 years...
If you felt the pound was going to drop more, then it is in fact a great time to invest over there.... make 12% a year and then make more on the currency when you send it back .
I myself have lost a fortune on currency loss as pound has been very strong against this currency over last 10 years..(I sent pounds 10 years ago, bad timing..story of my life).. but the interest helps to balance out my milllllllions of pesos worth of losses.... sounds good

 

[Leonard]

High interest rates, poor FTSE 350 returns, house prices depreciating, slowing economy as no one can purchase anything. My best returns have been in Latin America and Schoders energy fund but unfortunately that's not an option now due to the weak pound.

Some of us can remember interest rates of 10% plus on mortgages.

If I'm completely honest with myself buying an 80k luxury item at this moment in time is not a very sensible economic decision.
But I'm a man so

 

[lion shf]

 

[Lots_Of_Trouble]

If I'm completely honest with myself buying an 80k luxury item at this moment in time is not a very sensible economic decision.
But I'm a man so

Haha exactly my line of thought too

 

[Lotustoronto]

It just seems so perverse that you could have borrowed some money a couple of months ago and simply tucked it into the bank, and could soon be making money on the loan (if interest rate hikes actually get passed onto us chumps by the banks, that is)... makes my head hurt.

I mean when the world was lending money at the lowest rate possible for the last two years, you would have to safely assume that it would eventually rise.... Some people I know went on a buying spree at the end of 2020. Not so much after mid 2021.

 

[Scruff111S]

You asked for a final edition in 2030 ?

Is that the latest First Edition delivery date?

 

[Porter]

But equally you could’ve pre-borrowed the money at a better rate, locked that in and already being paying it off.

Is that a thing in the UK? In the US the asset has to exist as collateral before the loan origination.

 

[Leonard]

Is that a thing in the UK? In the US the asset has to exist as collateral before the loan origination.

You can get a normal loan pretty easily. Just cash not attributed to any asset

 

[TomE]

Is that a thing in the UK? In the US the asset has to exist as collateral before the loan origination.

You can borrow unsecured in the UK - the rates are a bit higher. I borrowed money against my property portfolio as collateral. Then invested it in other (non-property) assets.

For me, diversification is key. No single investment strategy is foolproof. Some of mine have lost money. But the best one produced a 13x return in 2 years.

 

[ADC]

Im no expert, but there is a bit more to it than that of course....


If you work with your single bank and do that, there would need to be a VERY high interest rate rise to make this work for you. Just throwing numbers out there, but if the bank of E rate is as low as 2%, your bank will still probably charge you 7% for a none secured loan. So imagine you borrowed 100k and pay 7% back on it.....
Now, imagine how high the bank of E needs to raise interest rates in order for you to make MORE than the 7% you are paying. If they raised them to 10% (heaven forbid, but we have been here before and way higher) then you may get between 9-11% from your bank, which is still a very poor 2-4% anual return for the 100k loan you took out.
You need to do a lot more work than just deal with one bank and keep the money in a bank account.... you need to invest it else where and else where means there is inevitably risk........
The UK had quite a few peer to peer lending schemes, Funding Circle springs to mind, but there were many and even when UK interest rates were approx 0, these companies still manages to give you between 4-7% annual return. They have mostly now STOPPED allowing money from the public, which is a shame!
anyway.... there is always a risk..... but as the super rich say, never use your debit card, always use a credit card.. with the same idea of making your money work for you.

If only I had some money to get to work for me... I guess I best get a job to be able to get to work to get the money to go to work for me.

To be crystal clear, I think holding fat stacks of cash in a bank account is probably the worst thing you could be doing for going on nearly the last 20 years (remember the good times when instant access savings were paying 5% plus!)... I was just bemused/horrified that things have turned so quickly that such a scenario is even close to being possible.
In the meantime, I'm just going to go back to dribbling money into index funds and hope the pain diminishes by Spring :/