banking, savings

[stevewool]

i have asked this before but i shall ask again , where is the best place to put your money, you fill your isa, both, so where else do you put your cash, the rates are rubbish every where you look,
Will talking to a financial adviser be better or is he going to tell you there is nowhere to put your cash other then in his pocket,
I know we cannot even buy a place over in the phils just yet because we have no one to look after it, so what can you do with your savings rather then putting it under the mattress

[marksroomspain]

Hiya Steve it depends on what type of account you want to put your money in ie: easy access accounts which pay at the most 1.5% apr to fixed bond accounts where you have to leave your cash in for a fixed period ie: 1,2 or 3 years or sometimes longer and in that period you cannot access your money until the time of the bond is up.

On the upside if you can do that then the interests rates climb the longer the bond is held the higher the interest up to 3% for the longer ones.

Still rubbish rates mate but it all boils down to your personal circumstances...

[stevewool]

when i had dreams of moving to the phils, and these dreams have turn into reality i may add, my plans was to have so much cash in the bank, over £100,000 AND THE INTEREST RATE WOULD BE 5%, i could live quite well like that, but know you get bugger all,
We have a 5 year plan to save before i finish work so its not a long time for investments, like i have said we both fill the ISA,s, i was even thinking of setting up my daughter and grandson with savings but that dont sound right and when the time comes to try and get the money well what might happen,

[DaveyWallis]

Hi Steve, nice to meet you on Sunday. The community spirit between all of us on the coach was the best thing about the Barrio Fiesta. I hope Emma had a good time.

For current accounts see these http://www.moneysupermarket.com/current-accounts/search/results/?goal=CUR_INTEREST. Up to £2.5 k Nationwide seems the best, over that it's Santander.

If you want to make a more serious return, albeit with slightly more risk, buy a second property and rent it out.

As an example see this http://www.rightmove.co.uk/property-for-sale/property-37536778.html?premiumA=true, for a rental income see this similar property http://www.rightmove.co.uk/property-to-rent/property-39764011.html. Both 3 bed terraces in central Derby.

Assuming that you bought the property at £95k and got a similar rental income to the example shown you'd be looking at a 10% gross return. Property prices in central Derby are rising at over 8% p.a according to latest figures so you'd win both ways. It's a strong rental area too.

If you can raise a 30% deposit (cash in your ISA's) £28.5k you could get quite a few buy-to-let mortgages.

With regards to Em's British citizenship, go for it. I know it's yet another cost but this will be the last one and at less than £1k I believe that it is very good value for money.

Would be very happy to meet up and discuss both subjects with you and Emma.

Andy

[stevewool]

hi there Andy, i agree to all what you are saying, first it was nice seeing someone face to face from some one on here and Ems did enjoy herself too, the banking i check the internet and go into the banks too, there is not much out there, and buying the second house if we was to be here more then the 5 years i would go for that one,
The house we have at this moment will be rented out so there will be a income from that, but seeing others how they treat rentals well its a big risk, my daughter will be using our house so its going to be as safe as it can i hope,
I am sure the girls will be arranging our meetings when the make contact,but like i have said in the next few weeks we will meet up

[imagine]

dont forget if you rent out a property, then sell at a later date, there is gains tax,

i think if you sell before the end of the 1st 3 years not taxed,after that you are,

there is a way round it, thats if you move into it then after i think its six months, before you sell, gets you off the hook,
so if you did decide to buy for renting, make sure you check out all the pros n cons

[DaveyWallis]

Re capital gains tax you can avoid it by living in the property before selling it but you may not need to.

If you bought a property at £100k and it grew by 2.5% p/a the value at the end of 5 years would be £113,141, giving you a profit of £13,141. If you put the property in both names the gain would be below the threshold (currently £10,900 per person). You could also offset all costs associated with the purchase and the sale against the profits. You'd get letting relief too.

If you re-mortgaged your own house, as I understand that you have paid off your mortgage, you'd be able to offset the interest payments on your own property against income from the rent, thus lowering your tax bill.

If you want your money to do the work for you this is probably the lowest risk against best reward currently available.

I hear what you say about tenants mistreating property but you cover yourself with your Landlords insurance, which you have to have anyway, and use the tenants deposit to pay off the excess should the need arise.

Also use a Letting Agent to carry out regular checks to help prevent against such occurrences. There's one in Derby that I know of that does a full management package for £35 per month (no VAT).

Andy

[imagine]

thats good info Andy:xxgrinning--00xx3:

[SteveJ]

i have asked this before but i shall ask again , where is the best place to put your money, you fill your isa, both, so where else do you put your cash, the rates are rubbish every where you look,
Will talking to a financial adviser be better or is he going to tell you there is nowhere to put your cash other then in his pocket,
I know we cannot even buy a place over in the phils just yet because we have no one to look after it, so what can you do with your savings rather then putting it under the mattress

I am not an expert on this but I personally don't think you will get much return on a Bank account and in real terms you may lose money as inflation is higher than a lot of interest rates being offered by banks.

I think it really depends on your attitude to risk. I think things to consider would be Fixed rate bonds (fairly safe), Unit trusts and OEIC's (varying degrees of risk) etc. but these are long term investments and you would also need to consider any charges.

If you are looking to retire then you could consider holding some or all of these within a SIPP (Self Invested Personal Pension Scheme) to shield any investments from Tax and Capital Gains, but you would need to consider buying an annuity at retirement and receiving an amount of actual tax free cash - 25% I believe. The amount of income you could receive from an annuity unfortunately at the moment is quite low.

You would also of course be subject to Capital gains if the sum total of any gains exceed the capital gains threshold which for an individual currently is approx £10k. This does not apply to a SIPP though.

Just my thoughts... but hope it helps..

Steve

[fred]

Property prices in the U.K can either go up or down.So thats a risk correct? Personally I would think long and hard about that one,especially in the UK!.. We had two rental properties in Lincoln a few years back.. Nothing but trouble with tenants so we got rid and invested the cash over here instead.If you are planning your future retirement in the R.P then you will need Peso`s..Not Pounds!!I wouldn't bet on the Pound to Peso exchange rate in 5 years time being favorable to todays rates and for that reason I would invest my cash in solid R.P banks in 6 month/one year PESO time deposits until you arrive.. (No more than 500k per depositor per bank.)When we first came over our bank account in the Isle of man was yielding 7.5 % !!That all went pear shaped because of interest rates and exchange rates.(fail)No good planning an overseas income via bank interest.. But you already know that.

[fred]

Land by the island Highways in Panglao (1st lot) was 250.00 per sqr meter 6 years ago. Today the same lot will cost 1,500 Pesos per Sqr mtr and they haven't even started building the airport yet!!Who really knows how fast prices will climb once that project starts?The only way to hedge that type of growth is to buy as early as possible.. (if you are sure this is where you want to live)

[stevewool]

you are right on both account fred, 1 house is enough to have here and like i have said my daughter is having that, about buying land over there, we have the cash but dont yet have the lot,
Depending on how much it would cost to build a place in marikina on her dads lot and turn that into doors , that could be a plan but its not my 1st plan but times can change

[stevewool]

I hear what you say about tenants mistreating property but you cover yourself with your Landlords insurance, which you have to have anyway, and use the tenants deposit to pay off the excess should the need arise.

Also use a Letting Agent to carry out regular checks to help prevent against such occurrences. There's one in Derby that I know of that does a full management package for £35 per month (no VAT).

We have these renters next door to use, music on all night parties and the house is a mess, in other words they dont give a f=== i have reported it but what happens nothing, they get a letter saying on a certain date they will be getting a visit, the days before everyone cleans up and they get a glowing reference, crazy but it happens just like that

[stevewool]

Property prices in the U.K can either go up or down.So thats a risk correct? Personally I would think long and hard about that one,especially in the UK!.. We had two rental properties in Lincoln a few years back.. Nothing but trouble with tenants so we got rid and invested the cash over here instead.If you are planning your future retirement in the R.P then you will need Peso`s..Not Pounds!!I wouldn't bet on the Pound to Peso exchange rate in 5 years time being favorable to todays rates and for that reason I would invest my cash in solid R.P banks in 6 month/one year PESO time deposits until you arrive.. (No more than 500k per depositor per bank.)When we first came over our bank account in the Isle of man was yielding 7.5 % !!That all went pear shaped because of interest rates and exchange rates.(fail)No good planning an overseas income via bank interest.. But you already know that.

why only 500k per bank Fred, is there enough good solid banks to put the cash in

[fred]

500k per depositor is what the PDIC insure in case of bankruptcy.. So if you and you wife have 2 different accounts then thats a million Pesos.Here`s a few to be getting on with..BDO....Metrobank...BPI....Landbank...Unionbank...DBP...RCBC..Chinabank...Security Bank...PNB

[SteveJ]

Property prices in the U.K can either go up or down.So thats a risk correct? Personally I would think long and hard about that one,especially in the UK!.. We had two rental properties in Lincoln a few years back.. Nothing but trouble with tenants so we got rid and invested the cash over here instead.If you are planning your future retirement in the R.P then you will need Peso`s..Not Pounds!!I wouldn't bet on the Pound to Peso exchange rate in 5 years time being favorable to todays rates and for that reason I would invest my cash in solid R.P banks in 6 month/one year PESO time deposits until you arrive.. (No more than 500k per depositor per bank.)When we first came over our bank account in the Isle of man was yielding 7.5 % !!That all went pear shaped because of interest rates and exchange rates.(fail)No good planning an overseas income via bank interest.. But you already know that.

Agree with this.. depending on the time period that you are looking at, the property price may fluctuate and go down and you may end up making a loss especially when taking into account fees etc.

[imagine]

and if the tennants dont pay the rent, it can take 6 months to leagaly get them out i beleive,

unless its in bradford then it costs £50 for a hit man :icon_lol:

[Bluebirdjones]

This is an interesting retail bond offer, which you can put in an ISA or SIPP:
Bruntwood Investments plc launch 6% retail bond offer
http://www.retailbondexpert.com/Blog/Latest-News/2013/07/Bruntwood-Investments-plc-launch-6-retail-bond-offer/

Applications closed on 17th July... so if you wish to get involved, you'll need to buy via a stockbroker now.

[fred]

This is an interesting retail bond offer, which you can put in an ISA or SIPP:Bruntwood Investments plc launch 6% retail bond offer http://www.retailbondexpert.com/Blog/Latest-News/2013/07/Bruntwood-Investments-plc-launch-6-retail-bond-offer/Applications closed on 17th July... so if you wish to get involved, you'll need to buy via a stockbroker now.That is very interesting..
Depending on how much it would cost to build a place in marikina on her dads lot and turn that into doorsAs its near UP Dilliman university,I assume you wish to rent to students? Correct?If not what type of tenants are you wishing to target?From memory you said you have about 100 sqr meters there.. How many units (doors) do you want and unit size?

[stevewool]

the university is 1 hour away or as Ems says 2 rides away, this is what Em would love to do and if its right then i would go along with her, but this is where the problem lies, i have no idea of the cost and if its right too, 5 doors is what she would like her dad would run the place and live there two, other then that Fred i have no idea

[jake]

Land by the island Highways in Panglao (1st lot) was 250.00 per sqr meter 6 years ago. Today the same lot will cost 1,500 Pesos per Sqr mtr and they haven't even started building the airport yet!!Who really knows how fast prices will climb once that project starts?The only way to hedge that type of growth is to buy as early as possible.. (if you are sure this is where you want to live)

Good points Fred.

If someone was planning to buy land and live in our area in 5 years time i would tell them exactly the same thing. Any land we own has appreciated immensely every year. Just wish we had more!

[jake]

the university is 1 hour away or as Ems says 2 rides away, this is what Em would love to do and if its right then i would go along with her, but this is where the problem lies, i have no idea of the cost and if its right too, 5 doors is what she would like her dad would run the place and live there two, other then that Fred i have no idea

Plenty of universities and colleges in Marikina that may only be one tricycle or jeepney ride from Ems family home.

Which barangay is the family home located? I buy materials in Marikini on a regular basis and know the area reasonably well.

Who would actually own the property?

[stevewool]

who would own the property the answer to that is NOT ME,
Its the family home so her dad wants the family to keep it as that once he goes which is a very nice idea, but if its our money that has build it then thats where my problem lies,
I know i cannot own property out there and what we do is for our future but also for Emmas future if anything goes wrong with me,
Its every girls dream to help look after there family so thats what Ems is trying to do , cannot blame her for that, but its the british way of life where you have to look after number one first,

[stevewool]

the problem is do you leave the money in the bank and just live happy, renting or buying a place over there,
There will be enough in the bank to out see me and out see emma too i do beleive, so is it best to be safe with no worries or put your money into something and worry if its not making anything, as the saying goes a bird in the hand is better then two in a bush

[Terpe]

The only UK sourced income stream I will have will be pensions which I cannot do much about.
Apart from that, all our deposits and investments etc are focussed in the Philippines which will eventually be the main source of our income and asset base.

Just too much at risk to rely on future currency exchange variations.

Just my 2 centavos

[jake]

who would own the property the answer to that is NOT ME,
Its the family home so her dad wants the family to keep it as that once he goes which is a very nice idea, but if its our money that has build it then thats where my problem lies,
I know i cannot own property out there and what we do is for our future but also for Emmas future if anything goes wrong with me,

If you want to look after Ems future buy and if you want build away from the family (sorry ems :smile:). To build something for rental is Marikini is going to cost a lot of money. If the family for some reason fallout the whole thing will become one big headache.

[jake]

the problem is do you leave the money in the bank and just live happy, renting or buying a place over there,
There will be enough in the bank to out see me and out see emma too i do beleive, so is it best to be safe with no worries or put your money into something and worry if its not making anything, as the saying goes a bird in the hand is better then two in a bush

Can you be sure banks in the UK or any other countries are not going to have problems in the future. Keeping all your assets in a bank is not something i would do.

You should seriously take on board what Fred said about land prices in Bohol. That 25,000 pound lot will be at least 50,000 in 5 years time if not more.

[stevewool]

i understand everything you all are saying , the only difference here is you guys have loads more experience then i concerning the phils, i have know idea at all about banking there or even where to go and so on,so everything once there is down to Ems,
Once we have left these shores and are on our new life i shall have a income from the house plus pensions plus savings, we shall have our bank accounts seperate and joint, but for now the main money will be in the banks in England.
Maybe we shall be travelers for a good few years coming and going but with no set roots for now, now thats a good idea boys, just give me your addresses and i can stay with you lot for a few days/weeks/months, and of course a few pesos here and there to pay my way, whos in on this idea:xxgrinning--00xx3:

[stevewool]

Can you be sure banks in the UK or any other countries are not going to have problems in the future. Keeping all your assets in a bank is not something i would do.

You should seriously take on board what Fred said about land prices in Bohol. That 25,000 pound lot will be at least 50,000 in 5 years time if not more.

its finding it jake, Ems is all for this and as she says if its not what we want in 5 years time then we shall sell it,
Years ago in my old life we was looking for a place in france and we looked and looked at places on the internet and papers then went over many long weekends looking at them 99% was crap but you did not know that until you was there looking at them.
So i do know we have to get over there quick and look too, but there lies another problem , what about seeing the family, well lets take them all to Bohol WITH US SO WE CAN LOOK AND ENJOY THE HOLIDAY TOGETHER, UPS SORRY, :icon_lol:thats paying for another 9 people,
Am i making to a mountain out of a mole hill, :NoNo:

[jake]

i understand everything you all are saying , the only difference here is you guys have loads more experience then i concerning the phils, i have know idea at all about banking there or even where to go and so on,so everything once there is down to Ems,
Once we have left these shores and are on our new life i shall have a income from the house plus pensions plus savings, we shall have our bank accounts seperate and joint, but for now the main money will be in the banks in England.
Maybe we shall be travelers for a good few years coming and going but with no set roots for now, now thats a good idea boys, just give me your addresses and i can stay with you lot for a few days/weeks/months, and of course a few pesos here and there to pay my way, whos in on this idea:xxgrinning--00xx3:

You wont like my place as there is no beach nearby! Could teach you how to make shoes though and Ems birthday present would become very cheap :wink:

Myself or any other member with experience in the Philippines will be more than happy to help you. I know you would also do the same if the tables where reversed.

[stevewool]

:icon_lol::icon_lol::icon_lol::icon_lol::icon_lol:cheap birthdays no such thing, strange things can happen anytime , what you think you want one day can change the next, just a nice view to sit and watch and who knows where that shall be,
Thanks jake and Fred and every one else for the imputs, all is appreciated

[fred]

I agree with Jake although its always a bit sensitive when mentioning trust and the wife`s family!!It has to be said though that Jake and I can see serious problems on the not so distant horizon.It all really depends if the "doors" idea is ONLY to help the family and not to supplement Steve`s and his wife`s income..The only way around something like this is for Steve`s wife to consult a lawyer to arrange a 25 year lease so that she regains control should the .... hit the fan.. Hey!!It may never happen!!The doors for students idea is a really good one though....... Not sure exactly how large a unit could be if he wants 5 on a single story but I reckon between 10 and 15 Sqr meters per unit..All depends on local building regs... Doable for just under a million if we base the construction cost at 12,000 per sqr meter.Anyway.. If the location is good (and Jake has a far better idea about that then I) then a 15 mtr unit with its own CR and shower will be good for 4 students paying 2k per month all inclusive of bills. No A/C of course..Just a fan and light. The units must be secured with a fence and gate and better still a guard.. Not sure if there will be room but a small Canteen Sari Sari and laundry area are good spin off businesses.A full occupancy could produce 48k per month and the store/food and laundry between 10 and 15k per month...Maybe more.. Lets say 60k a month.Not sure about school holidays though.. Pretty sure this will amount to OFF seasons so that needs to be taken into account..So lets say,all going well a business like that makes a safe 40 k per month,minus taxes,business permit renewals etc,etc then I suggest that that would be a great help for the family!!:icon_lol:What do you reckon? Steve? Jake?No offense Steve.. Just trying to help you make sense of things a bit.

[fred]

Did I say 2k?? Oops... Looks like we have competition!!http://marikina.olx.com.ph/angel-s-room-and-lady-bedspacer-in-marikina-iid-4806019201.800 PHP per month..http://images04.olx.com.ph/ui/7/19/20/1370854143_480601920_1-Angel039s-Room-and-Lady-bedspacer-in-marikina-Puregold-Baytree.jpg