ordered prior to test drive

[Japseroony]

Discount I managed was just over 11%, took out their finance deal for that and its the first time I've financed a car, but crunching the numbers and looking at taking that chunk of cash and investing elsewhere, I'm confident I can outperform the 4.7% Apr.

Where you gonna get a return of 4.7% APR these days mate to out perform the finance

[doodlebug]

Property, markets....4.7% is feck all.

[Japseroony]

Property, markets....4.7% is feck all.

Is that what you do for a living then?

[HYFR]

Just buy any house in London.
Done.

[Japseroony]

Just buy any house in London.
Done.

Are there many for sale for less than £50,000 then

[HYFR]

Takes money to make money.

[Japseroony]

Takes money to make money.

So you gonna lend me some to make some lol

[Chesterfield]

As others have said, property can return well over 4.7%. Its not without its risks however.

[Japseroony]

Only thing is the property up here in the North East aint going up in the same way and lots of empty rental properties around - typical North/South divide and unless someone has some spare cash to go into a deal with me in London it aint gonna happen - anyone want to do a joint purchase then

[Chesterfield]

You dont need to bank on the capital value increasing to make a return. In fact anyone doing that is taking a very big risk, even in London imho.

Quick back of fag packet example for a cheap 2 bed "up north":
30K invested, 85k mortgage, Mortgage £205/month, rental £475/month. Net monthly = £270. Gross return per annum on the £30k investment is therefore 10.8%.

You then need to account for things like boiler checks, insurance, void periods, repairs, and any fees to remortgage when any special deals may end, Knock it down to around 7% to be on the safe side.

[HYFR]

TAX !

Boom and its gone

[Golfather]

£475 rent up north?! You'd struggle to get half that, and thats if you manage to get it on rent in the first place!

[Japseroony]

You dont need to bank on the capital value increasing to make a return. In fact anyone doing that is taking a very big risk, even in London imho.

Quick back of fag packet example for a cheap 2 bed "up north":
30K invested, 85k mortgage, Mortgage £205/month, rental £475/month. Net monthly = £270. Gross return per annum on the £30k investment is therefore 10.8%.

You then need to account for things like boiler checks, insurance, void periods, repairs, and any fees to remortgage when any special deals may end, Knock it down to around 7% to be on the safe side.

So your assuming a mortgage rate of 2.9% ish on a buy to let property and in the North East - not going to happen sorry and then a rental of just under 5% which aint bad IF I could get someone to rent it out. Even in the poor NE a property for £115k is not going to be much and in a poor area so probably looking at renting to folk on benefits and getting the payment in would be problematic I think.

Not wanting to on your parade or anything but life is somewhat different up here unfortunately and the property market is stuffed for rental and capital growth

Happy to be proved wrong if someone in the property market can help - I do have some spare cash to play with

[Chesterfield]

The figures Ive quoted are what Ive got on one of my propeties right now. In the Nottinghamshire/Derbyshire area. Buying off plan has also returned 10%

The latest one currently being built will have similar returns too.

These are new build properties to a high standard and rented to mainly old couples that want to release their equity and see out their days in a nice small home with garden, so void periods are almost non existent.

Even taking a 40% hit on the net monthly its still possible to outperform the finance deal by a couple of percentage points. Thats also before any capital gains from buying off plan are factored in.

Heck, even if you only match the APR from Audi, £80k sunk into property is going to retain its value a lot better than £80k sunk into a car.

This is the first car I've financed, but running through various investment opportunities and comparing them to the very low APR available from Audi, I've opted to finance it rather than buy outright this time. If it were the usual 7-8 or even double digit APR figures from a car dealership I'd have opted for the cash purchase route.

[Japseroony]

Hi Chesterfield,

Is there a development that you can let me know of or I can contact for this?

I see you are nearly up to "First Gear" on your posts