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-   -   Reevaluating my life and need advice please. (https://www.englishforum.ch/other-general/112995-reevaluating-my-life-need-advice-please.html)

CH_Me 05.05.2011 07:45

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Seb70 (Post 1186647)
I checked my email this morning and was pleased to see more messages.


If you were in my position you would buy property in UK? Isn't the property market in UK dodgy right now?


Yes, but only in a good location. They give you a tax free threshold and no CGT as a non-UK resident too. One flat I had I sold after a few years and made more than my whole years salary. Rental return was 9% too. Now, returns are still good and prices are great value. Sterling is low too :) I'd buy there again if I wasn't using my savings to renovating.

I wouldn't just keep 400k in the bank. I'd make it grow and pay yourself an income.

Seb70 05.05.2011 07:54

Re: Reevaluating my life and need advice please.
 
I saw the thanks button appear and had to go back and thank all 4 pages worth of posts. Was very relaxing for some reason.

Quote:

Originally Posted by MarieZug (Post 1186655)
Yes, but only in a good location. They give you a tax free threshold and no CGT as a non-UK resident too. One flat I had I sold after a few years and made more than my whole years salary. Rental return was 9% too. Now, returns are still good and prices are great value. Sterling is low too :) I'd buy there again if I wasn't using my savings to renovating.

I wouldn't just keep 400k in the bank. I'd make it grow and pay yourself an income.

What would you class as good locations in UK? Will property prices and tank bit more in UK? I would want to hit the iron when it is the hottest.

st2lemans 05.05.2011 07:57

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by V__ (Post 1186556)
Let's say the rent was 3k, that is over 18k saving a year. I can't think that each year you'd spend that kind of money on tax and repairs.

If the rent was 3k/mo, that's 36k/year that gets added to your income for tax calculation, which will surely put you into a higher bracket and you will pay say 1/3 in taxes, so 1k/month more than you would pay if you were renting, perhaps more.

Tom

lilith 05.05.2011 07:59

Re: Reevaluating my life and need advice please.
 
Think of what are the reasons that make you think of settle.

You make clear you don't want a family; and that you like travel. If those are your priorities, buying property is a drain unless it is for rental purposes (but any tax savings evaporate if you don't live in your apartment).

Your 400K can get you a nice little apartment in a ski resort, and that would also be rentable by the week when you don't use it; so it would generate an income (taxable of course), to supplement a retirement income later on.

Or is the goal planning for early retirement? then what you need is investment planning; hit your bank and hear what they say, then go to a couple of other places including your home country.

Or, hit the road. :D that is cool too.

Rangatiranui 05.05.2011 08:26

Re: Reevaluating my life and need advice please.
 
One thing no-one seems to have mentioned is the idea of Risk verses Return.

Issues about having a rental in Switzerland are different that the UK (and AU & NZ - 2 of which i know little about)

In Switzerland it is said that it is easier to get a divorce than to get rid of "undesirable" tenants. So you are expecting a rental return and increase in investment (house) but at the end of the year you are possibly spending more in maintenance and management fees than you are earning - per year.

Houses are long term investments, if you are buying them as an investment. That means 10 years in NZ, and a lot longer here if you want to see any capital gain (unless of course if you are looking at the last 2 years - but then you get hit by high tax on selling). It is said that property in CH at the moment is "over priced". (The REMAX investment report, NAB and some other sources i read used big finance words, but i wont do that here.)

You are 41. You are keeping the cash in a Post Finance account. I dont see you as a "high risk" individual willing to invest in shares (equity) or even hedge funds (look them up on the UBS or Credit Suisse site, or wiki).

It really depends on what you are looking for wrt investment. -a fixed return every year or a lump sum at the end. And how much you are willing to risk to get any of these.

If you are looking to buy a place to live, that again is a different story.

If you go to a "financial advisor" then be sure to look at the fee structure of any products s/he offers you. There are cases where the fees are quite high (and hidden) if they are "independent". And dont just buy into a scheme because the sales person is attractive(!)

This story has a beginning, many middles and no

CH_Me 05.05.2011 08:40

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Seb70 (Post 1186659)
I saw the thanks button appear and had to go back and thank all 4 pages worth of posts. Was very relaxing for some reason.



What would you class as good locations in UK? Will property prices and tank bit more in UK? I would want to hit the iron when it is the hottest.

Nice towns/areas, close to a rail line (but not too close), with rental demand and on a quiet street. I would only buy in an area that I was very familar with.

The_Love_Doctor 05.05.2011 08:42

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by V__ (Post 1186556)
Just my reasoning, I have to say I don't have much experience or real knowledge yet in Switzerland, please correct me if I have misunderstood something, I have lived in Switzerland for only a year now.

This is the exact same reasoning that got us all in this mess... This kind of thinking created the bubble that hasn't quite burst just yet... The reason for the bubble not bursting is also due to the fact that inflation is at an all time high which is in turn due to a collaborated effort by western goverments to pump dough into the system to keep it affloat during the crisis... once they start tightening their belts noone knows what's gonna happen, but three likely scenarios:
A. Growth will slow down and subsequently we will have the dreaded deflation.
B. Growth is flat and we have the dreaded stagflation where everything carries on going up in price and noone can afford to pay for it.
C. We will all prosper and generate a shit load of cash (highly unlikely)

so going back to your reasoning... No! Buying a house in the long term doesn't necessarily make money countrary to popular belief. ;)

MrVertigo 05.05.2011 08:43

Re: Reevaluating my life and need advice please.
 
Do you usually read books by starting from the end?
I guess no. This is because you need to understand the "why" before the "what". In a few words, to know what you want to do with your money you need a strategy. To have a strategy you'll need a vision/mission/purpose. To have the vision you need to answer first what you want to do with your life.
Once you have the answer the rest is then just trivial stuff.
The answer to this last question can't be bought with money and is definitely not here in the forum.

The_Love_Doctor 05.05.2011 08:53

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Seb70 (Post 1186647)
If you were in my position you would buy property in UK? Isn't the property market in UK dodgy right now?

Buying property is irrelative of where it is, there are good bargains to be had anywhere, if you buy a property in the UK at 30% discount of what someone paid for it in 2008 then you're probably not making a bad investment. If you buy a property that yields 10% rental income (which you probably won't find anywhere) then you're clearly making a good investment decision. But yes you're right about the UK market being dodgey because rental yields are around 5% at the moment, and headline inflation is at 5% but everyone knows that housing inflation is even more than that so by you buying into this model you will lose money unless you believe the housing inflation is gonna carry on where you would make money on the capital appreciation which is quite a weak reason to invest in the UK market... :D

Rangatiranui 05.05.2011 08:53

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by MrVertigo (Post 1186686)
..... what you want to do with your life.
Once you have the answer the rest is then just trivial stuff.
The answer to this last question can't be bought with money and is definitely not here in the forum.

:msnshock:

what?!


NOOOOOOOOOOOOOO

p42 05.05.2011 09:00

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Seb70 (Post 1186659)
I saw the thanks button appear and had to go back and thank all 4 pages worth of posts. Was very relaxing for some reason.



What would you class as good locations in UK? Will property prices and tank bit more in UK? I would want to hit the iron when it is the hottest.

My view, yes they will tank more. Both prices and the . Interest rates will go up before the pound recovers, and tenants will continue to struggle to pay rents as a result. A coalition too worried about its own image in Europe, now busy bombing Libya with NATO, all takes political time and hard money off the real UK problems. Transaction costs are high in the UK too.

So you have quite a few risks with the UK. Prices are still falling outside London. London is weakening slightly too after some recovery. When you have seen an increase across most regions of a few %, then perhaps you know it is on the way up.

London is a great place to invest. However, prices there are still not too much below their peak, although the FX rate is better for you. Places in the middle of nowhere, nice villages, market towns, have really tanked, and bargins abound, but really only if you are going to live there. I know good builders in Poland that would come over and renovate to a fantastic standard too. However, these places have poor transport links to London, and they are no good if you are in Zurich. Easy jet flights and car hire, estate agent fees for letting, gas inspections, energy certificates, landlord insurance, rental voids, soon eat into profits.

Zurich is a good place. With your 400K you could by a multi-family house, keep one place for yourself, and rent the rest to cover the mortgage. I think this is possible with your employment situation too.

Former east Germany is cheap too. Cheaper than Bulgaria, and a lot better located. 50K would get you a nice place there, and you could invest the remainder.

SOBEIT 05.05.2011 09:03

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by The_Love_Doctor (Post 1186685)
This is the exact same reasoning that got us all in this mess... This kind of thinking created the bubble that hasn't quite burst just yet... The reason for the bubble not bursting is also due to the fact that inflation is at an all time high which is in turn due to a collaborated effort by western goverments to pump dough into the system to keep it affloat during the crisis... once they start tightening their belts noone knows what's gonna happen, but three likely scenarios:
A. Growth will slow down and subsequently we will have the dreaded deflation.
B. Growth is flat and we have the dreaded stagflation where everything carries on going up in price and noone can afford to pay for it.
C. We will all prosper and generate a shit load of cash (highly unlikely)

so going back to your reasoning... No! Buying a house in the long term doesn't necessarily make money countrary to popular belief. ;)

Speak for yourself...made a huge amount of money in the property bubble.

The_Love_Doctor 05.05.2011 09:08

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by SOBEIT (Post 1185903)
Speak for yourself...made me a huge amount of money!

I never said noone has ever made money from the housing bubble... in fact a lot of people did and still do... People are cashing out and the people paying them are the ones entering the market now!

Just jumping on bandwagon and thinking that history repeats itself is a human cognetive bias that leads, but not always, to errors. The people who survive the bubble are the only ones likely to come out and say "Yeah! What are you talking about?! I made a sh** load of dough wheeling and dealing, renovating houses and buying property". What you won't see my friend are people who lost money coming out and saying "Well we jumped on the bandwagon like everyone else and unfortunately for us it didn't work, we lost money / we're in negative equity, but hopefully there is gonna be some idiot in the future who might pay more than what we paid for our place" :rolleyes:

SOBEIT 05.05.2011 09:18

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by The_Love_Doctor (Post 1186714)
I never said noone has ever made money from the housing bubble... in fact a lot of people did and still do... People are cashing out and the people paying them are the ones entering the market now!

Just jumping on bandwagon and thinking that history repeats itself is a human cognetive bias that leads, but not always, to errors. The people who survive the bubble are the only ones likely to come out and say "Yeah! What are you talking about?! I made a sh** load of dough wheeling and dealing, renovating houses and buying property". What you won't see my friend are people who lost money coming out and saying "Well we jumped on the bandwagon like everyone else and unfortunately for us it didn't work, we lost money / we're in negative equity, but hopefully there is gonna be some idiot in the future who might pay more than what we paid for our place" :rolleyes:

It is all about being smart love :msnnerd:

NotAllThere 05.05.2011 09:31

Re: Reevaluating my life and need advice please.
 
If you've got 400K in the bank and don't know what to do with your life, then investing that 400K will mean, in the end, that you have a different sum in the bank... and still not know what to do with your life.

btw - I'm a free spirit and have been married for over 20 years. The two are not mutually incompatible.

The_Love_Doctor 05.05.2011 09:33

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by SOBEIT (Post 1186725)
It is all about being smart love :msnnerd:


Have you considered that you might have been just lucky? :rolleyes:

PS. Lucky and smart are not the same thing ;)

panda 05.05.2011 10:34

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by phdoofus (Post 1186397)
This is how you turn 400K into 0K: get a girlfriend.

would be fun along the way though

Rangatiranui 05.05.2011 11:40

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by The_Love_Doctor (Post 1186735)
Have you considered that you might have been just lucky? :rolleyes:

PS. Lucky and smart are not the same thing ;)

A wise old friend of mine once said, those that are the luckiest, are those that work hardest for it.

Chemmie 05.05.2011 11:48

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Rangatiranui (Post 1186881)
A wise old friend of mine once said, those that are the luckiest, are those that work hardest for it.


hehehe I don't think your wise friend properly understands the definition of lucky :D

The_Love_Doctor 05.05.2011 11:51

Re: Reevaluating my life and need advice please.
 
Quote:

Originally Posted by Rangatiranui (Post 1186881)
A wise old friend of mine once said, those that are the luckiest, are those that work hardest for it.

that maybe the case however the opposite is not necessarily true...

hard work is not necessarily the cause of success and success is not necessarily the effect of hard work... ;)


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