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DimPrawn
7th September 2011, 09:13
NS&I pulls inflation-linked savings certificates - Telegraph (http://www.telegraph.co.uk/finance/personalfinance/savings/8746163/NSandI-pulls-inflation-linked-savings-certificates.html)


National Savings & Investment has pulled its hugely popular inflation-linked savings certificates.


The announcement is the latest blow to savers who have seen their income plummet at a time when most savings accounts fail to offer any real rate of return once inflation and tax are taken into account.


NS&I’s website and call centres stopped taking new sales of Savings Certificates yesterday. Postal applications received today (7 September 2011) will be honoured, but all postal applications received after midnight tonight will be returned to the customer.



I think they did this last time before the last round of QE to stoke debt busting inflation.

TimberWolf
7th September 2011, 09:21
Britain and the PIGS seem to be banking on inflation saving the day.

scooterscot
7th September 2011, 09:22
George's two finger salute to poor people.

SneakySimon
7th September 2011, 09:39
George's two finger salute to poor people.

They should stop being poor then :freaky:

AtW
7th September 2011, 09:48
Well, that's nice but how the Govt is going to deal with all public sector workers whose contracts are linked to inflation? Redefining it only saves money so far.

TimberWolf
7th September 2011, 09:57
Well, that's nice but how the Govt is going to deal with all public sector workers whose contracts are linked to inflation? Redefining it only saves money so far.

By lying about inflation of course :confused: Isn't this what governments do?

PAH
7th September 2011, 11:24
Yep, tweak the lower inflation index to keep it artificially low, and tie interest rate decisions to it, and public sector pay and pension deals.

Then pension and pay themselves according to the more realistic other inflation index.

:rolleyes:

BrilloPad
7th September 2011, 11:38
Weimar here we come...

AtW
7th September 2011, 11:45
Weimar here we come...

The good news is that unpaid taxes will also be devalued :eyes

ChimpMaster
7th September 2011, 12:03
I'm just glad I got into the bonds when I did! There's just no point having cash in the bank these days.

So what else to do? I don't trust gold as I reckon it's overvalued, and shares are not yet cheap enough to tempt me (I'm looking for sub-4000 on the FTSE / 8000 on the DOW).

Property is the only long-term investment worth sticking money into. Why? Well...
1) You get regular rental income (of which there is rising demand)
2) Someone else pays off the BTL mortgage.
3) Rising inflation helps to erode the value of your debt.
4) House prices may in fact fall over the next few years, but they will eventually rise (in the UK, SE anyway) and house prices won't go that low anyway.

DimPrawn
7th September 2011, 12:28
I'm just glad I got into the bonds when I did! There's just no point having cash in the bank these days.

So what else to do? I don't trust gold as I reckon it's overvalued, and shares are not yet cheap enough to tempt me (I'm looking for sub-4000 on the FTSE / 8000 on the DOW).

Property is the only long-term investment worth sticking money into. Why? Well...
1) You get regular rental income (of which there is rising demand)
2) Someone else pays off the BTL mortgage.
3) Rising inflation helps to erode the value of your debt.
4) House prices may in fact fall over the next few years, but they will eventually rise (in the UK, SE anyway) and house prices won't go that low anyway.

I pretty much agree with what you are saying, BUT I think you need to stick to the very best parts of the SE and London to avoid any nasty falls. The rest of the UK is fooked.

TimberWolf
7th September 2011, 12:36
I pretty much agree with what you are saying, BUT I think you need to stick to the very best parts of the SE and London to avoid any nasty falls. The rest of the UK is fooked.



According to the Halifax measure, house prices stand 2.6 per cent below their levels in August 2010.
Halifax points to fall in house prices - FT.com (http://www.ft.com/cms/s/0/a1ae3a16-d92b-11e0-884e-00144feabdc0.html#axzz1XGltMhaV)

2.6% nominal + 5 to 15% inflation = a tidy real drop, for some.

ChimpMaster
7th September 2011, 12:38
I pretty much agree with what you are saying, BUT I think you need to stick to the very best parts of the SE and London to avoid any nasty falls. The rest of the UK is fooked.

London is too expensive, but I am sticking to some parts of the SE where rental demand is strong or substantially financed by the local councils.

One of my (3 :eyes) friends is buying in Bradford, of all places. He is buying £65k houses with £16k down, and the rest mortgaged. Gross rent (per house) is £500/month. After interest-only debt financing cost of ~£200/month, he walks away with a ROI of 22% (before running costs).

Not a bad ROI, but you'll need upwards of 30 houses to get a decent monthly income stream.

Lockhouse
7th September 2011, 12:52
London is too expensive, but I am sticking to some parts of the SE where rental demand is strong or substantially financed by the local councils.

One of my (3 :eyes) friends is buying in Bradford, of all places. He is buying £65k houses with £16k down, and the rest mortgaged. Gross rent (per house) is £500/month. After interest-only debt financing cost of ~£200/month, he walks away with a ROI of 22% (before running costs).

Not a bad ROI, but you'll need upwards of 30 houses to get a decent monthly income stream.

The cost of repairs to a 65K house in Bradford are roughly comparable to repairs to a 250K house in the SE as the houses are around the same size. It's very easy for a new boiler to eat your entire profits for the year.

DimPrawn
7th September 2011, 12:54
The cost of repairs to a 65K house in Bradford are roughly comparable to repairs to a 250K house in the SE as the houses are around the same size. It's very easy for a new boiler to eat your entire profits for the year.

And the tenants in Bradistan are going to trash the place, costing you £0000s of pounds.

This sort of thing:

Darlington landlord Glenn Schofield battles to evict nightmare tenants for 6 months | Mail Online (http://www.dailymail.co.uk/news/article-2026152/Darlington-landlord-Glenn-Schofield-battles-evict-nightmare-tenants-6-months.html)

PAH
7th September 2011, 14:10
Buy a new property and short the builder's stock. Can't lose.

lukemg
7th September 2011, 14:24
Mate had to move across the country, decided to rent his gaff out to nice young lady. Rent stopped so he phoned up repeatedly until a bloke answered and advised him to 'f**k right off' and if he came round he would kill him.
Took him months to get them out and they had stripped the place of light switches and light sockets.....
Will stick with shares thanks.

BoredBloke
7th September 2011, 14:52
Mate had to move across the country, decided to rent his gaff out to nice young lady. Rent stopped so he phoned up repeatedly until a bloke answered and advised him to 'f**k right off' and if he came round he would kill him.
Took him months to get them out and they had stripped the place of light switches and light sockets.....
Will stick with shares thanks.

Why did they want the light switches and sockets?

AtW
7th September 2011, 14:53
Why did they want the light switches and sockets?

They've probably read this thread (http://forums.contractoruk.com/general/70384-ska-news.html). :eyes