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

[julie121]

@goof

There’s also the hassle of looking after a property.

And the maintenance costs which people often don't include in these calculations.

 

[warassaras]

@julie121 They don't include it because most landlords couldn't give a damn about upkeeping with their BTL.

 

[julie121]

@warassaras Very true, scumbags the lot of them.

 

[zosimus]

@goof Why not keep an emergency fund and invest in the market to likely beat both?

 

[resjudicata]

@goof What does the calculation look like if you add to your monthly income the expected profit from selling the property after X years? (assuming average appreciation in property prices)

 

[jjheel13]

@resjudicata Well if you use his numbers and back calculate how much cash he's using (£150,000), at say a 3% annual increase, that would give £4,500 annual appreciation. So say over a 10 year period, that should add £51,587 over that time. So the equivalent of £430/mo averaged out over that period. Could do it with 2% and be more conservative and have £32,849, or £274/mo.

 

[toosweet2012]

@lancemarshall Don't forget income tax. Anyone on a higher rate of income pays out of their nose on tax.

 

[donnypt2003]

@david_thesalmst Survivorship bias here.