This Week in Property: The Latest News (10th September 2021)
Take a look at what our CEO Gill Fielding has to say about this week’s property news…
Can you afford to lose £1.5 billion?
I’ve mentioned the high level of personal savings in the UK before but figures just out from the Bank of England suggest that there is a record level of savings, £245 billion in personal no interest paying savings accounts at the end of July. I repeat that: personal ‘no interest’ paying accounts! What the heck are people doing with that! Even if they put all that money into a normal deposit account earning say, 0.65%, that would amount to a staggering £1.5 billion of interest and that money is going down the drain because people can’t be bothered to move their money to a savings interest paying account.
It just goes to show that small amounts do matter and saving at 0.65% makes a huge difference to your overall wealth in comparison to 0%. Mind you, 10% would be even better! 10% is my personal target and I get that from both my property investments and my share trading. If those people who don’t get interest on their portion of the £245 billion want to contact me
I’ll show you how to do it!
Beach Hut Bonus!
I’m constantly amazed by how much people are prepared to pay for beach huts and I see that there’s a beach hut for sale in Abersoch Bay, North Wales at a staggering £175,000. The hut itself is only 10 foot 6 inches wide and doesn’t have any facilities: no kitchen and no toilet but it does come complete with an added bonus… of a deckchair! I ask you. If you’re paying £175,000 for a hut, then I suspect the cost of a deckchair isn’t going to put you off but what I did find funny is that the agent has the audacity to publish the addition in the sales particulars.
What’s next? A property being sold with a bonus lightbulb? We all need to get a sense of proportion and use our common sense. The added deckchair bonus just makes the offer seem ridiculous. I suspect it might even put some buyers off as well which is not what I think they’re aiming for.
It’s a win-win
The situation in Afghanistan is appalling and I feel for all the displaced people, not having a home is the most unsettling situation we can ever find ourselves in but I’m delighted to see that the UK has pledged to take 20,000 refugees in the next few years. It’s a small number but at least it’s something. And I see that 4 lucky refugees will be given housing in £1 million housing in Kensington and Chelsea as that’s what’s been allocated.
All councils are trying to do their bit and many are also offering bonus payments to landlords who offer their properties for the refugee cause. Golden hello payments of up to £3,500 plus 6 weeks rent in advance are being offered by councils to people who can house refugees. Some councils are also offering to do maintenance and to update properties with a high standard of furnishings. For landlords it’s a guaranteed income and a high level income at that, oh AND its helping the refugees which is a magnificent win-win for all.
If you have any properties, please offer them to your local council to help out.
Social Care Solution
The news today about the rise in National Insurance to cover social care costs both concerns me and doesn’t bother me. It concerns me as I am concerned about the people who won’t get good social care when they need it and may have to spend too much of their money and savings in order to pay for it. But on the other hand, it doesn’t bother me because it doesn’t concern me personally as I have provided for my own social care by having a share and property portfolio which generates income which will pay for any care I need throughout my old age. I long ago decided that the only person who really cared about me and my welfare was me and I decided to take responsibility for that and create my own ‘fund for retirement’.
The problem with relying on the government to care for me is that the government has different priorities to me and their priorities change whereas mine don’t. I don’t have to worry about immigration, or schools, or defence, or libraries for instance and although I’m happy to pay my taxes to contribute to all of those I also have my own ‘economy’ that will support me whatever happens and if the government ends up giving me any support well that’s a bonus.
So, I feel relaxed today irrespective of any governmental economic changes. I don’t have to worry or panic as I’m immune to any of these changes. That’s a great place to be and a place that every person could be in if they took responsibility for their money and their own economy and we provided the education to help people do that. The government would win long term too.
First class service costs first class money
I’m reading today about how some of the new social care fund money will be spent and they’re going to recruit some senior managers who will apparently be paid about £200k per year. There’s a bit of an outcry in the media about how high these salaries are but in the real or business world this would be a fairly low salary for a senior manager. It’s weird that we want our NHS and social care provision to be first class but don’t feel comfortable paying first class salaries to manage it. We need to get real. We can’t expect serious managerial players to work for substantially less plus a sense of moral duty.
No worker wants to work for significantly less than they are worth in an open market just because of a sense of duty. Bus drivers or shop workers wouldn’t do it so why should senior personnel be expected to do it? It’s a weird conundrum. We live in a free, and capitalist economy and most of us are very content with that but as part of that economy we must accept that some people will be paid highly for highly skilled work and comparative to what they are worth in the open market. We want first class, so we have to pay for it.
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