Why invest at all when fixed-rate savings account are so high? [6-month "update"]

[monad_wisdom]

@ebmommypayne No tax on your cash ISA either so we're back to square one

 

[wondering1985]

@ebmommypayne True but that’s max £20k

 

[imsome]

@wondering1985 £20k a year. If you stuff it for a decade the current market jumps we're seeing make for some decent returns.

 

[goof]

@david_thesalmst 5% easy savings is (for me) more profitable than rent from a second property

 

[lancemarshall]

@goof How come that is? Mortgage repayments for second property eating up your rental income?

 

[goof]

@lancemarshall £1000rent -£500mortgage -20% tax.
V
£620 monthly interest easy access money

On a rental property you need to expect extra cost for wear and tear

 

[quentin]

@goof I'm not saying it's better to invest in property, but you're not taking into account the huge factor of the increase in value of the property.

 

[mrsc49017]

@quentin Is it a huge factor? Property value increases aren't even beating inflation.

 

[glenny61]

@mrsc49017 My flat has stayed at the exact same nominal price since 2007.

 

[ojusvee06]

@glenny61 Yet my house has more than doubled in value since I bought it in 2009. You just bought at the worst possible time (through no fault of your own).

 

[glenny61]

@ojusvee06 I bought it in 2017 for the same price it sold at in 2007. I'm selling it now for the same price again.

 

[quentin]

@mrsc49017 Yes. Isn't it? Do you have any data over a fair period of time that shows house prices increase slower than inflation (genuine question)? There may be short term anomalies but that would be like pointing to a market crash and saying investing in index funds don't beat inflation. You've got to look at longer term trends. https://www.statista.com/statistics/751605/average-house-price-in-the-uk/