Stock noob - oil
- Thread starter Cryogenic
- Start date
If you don't have much money left at the end of the month as it is, how do you propose to make the mortgage repayments
For such a proposition, I am looking to lose £140 per month in repayments for the next 30yrs assuming a rate of 5% - I would be willing to stake this vs a £1 lottery ticket each week which will generate nothing, or go straight for the big one on a dead cert. But trundling along looking down on the pavement as I walk down the street hoping to progress through study, luck and determination is no great way to live either for another couple of K to pay in tax serving the next great company master - I know it works for the vast majority but the depression enroute has killed many people mentallly if not physically. I wish to keep my mental faculties intact
A foolish gambler would do that, not a strategic planner, it is basically a business bet - like will Apple make the iphone 7? Ja or Nein?
For such a proposition, I am looking to lose £140 per month in repayments for the next 30yrs assuming a rate of 5% - I would be willing to stake this vs a £1 lottery ticket each week which will generate nothing, or go straight for the big one on a dead cert. But trundling along looking down on the pavement as I walk down the street hoping to progress through study, luck and determination is no great way to live either for another couple of K to pay in tax serving the next great company master - I know it works for the vast majority but the depression enroute has killed many people mentallly if not physically. I wish to keep my mental faculties intact
right, but how are you going to find your big cert?
how long are you going to last without that extra 140 waiting for the win?
if ou could really make 1250% return this way easily don't you think everyone to whom 40k is pocket change would be doing it?
just whats your timescale for this?
Permabanned
- Joined
- 8 Feb 2004
- Posts
- 4,539
For such a proposition, I am looking to lose £140 per month in repayments for the next 30yrs assuming a rate of 5% - I would be willing to stake this vs a £1 lottery ticket each week which will generate nothing, or go straight for the big one on a dead cert. But trundling along looking down on the pavement as I walk down the street hoping to progress through study, luck and determination is no great way to live either for another couple of K to pay in tax serving the next great company master - I know it works for the vast majority but the depression enroute has killed many people mentallly if not physically. I wish to keep my mental faculties intact
How would you feel mentally if you lost all your money?
A foolish gambler would do that, not a strategic planner, it is basically a business bet - like will Apple make the iphone 7? Ja or Nein?
If it was that easy/certain, do you not think everyone would be doing it?
how exactly is oil futures going to increase by 1250% to reach your target?
What if for the next 5 years, the futures continue to drop in value and your £40k is £30k. You've also paid out £10000 in interest payments on your mortgage and lost £10k of your capital.
ARe you saying you would be ok with this risk - is severely doubt it!
What if for the next 5 years, the futures continue to drop in value and your £40k is £30k. You've also paid out £10000 in interest payments on your mortgage and lost £10k of your capital.
ARe you saying you would be ok with this risk - is severely doubt it!
A foolish gambler would do that, not a strategic planner, it is basically a business bet - like will Apple make the iphone 7? Ja or Nein?
I like the way your posting attitude has moved from 'can I even do this' to 'I'm a strategic planner, I know what I'm doing' in the space of an hour.
If you applied such optimism and positivity to your day job you'd probably be earning enough every month to not worry about gambling your house on easy money schemes.
Hi, no worries, I appreciate your opinion but think about it logically for a second.
1. Buy-buy to let - it could bring in £400 a month in the north, take out 20% tax, tax deductible repairs, void periods, agents fees, capital costs for improvement, mortgage payments etc. you will be left will nothing until 20 years unless you overpay the mortgage (still left with nothing), then it is cash and you plan to sell, to avoid CGT, you will have to up sticks and live there, plus it may jump into an IHT liability with existing property - do you really want to give the govt 40% of your hard work and risk taking?
2. Funds - great fund manager taking an annual chomp of a fee, high risk ventures always tend to lose - you may win but is 15% worth the headache and stress per annum as you frantically check your charts? Or would you rather sit back on the sofa, and bet once and possibly lose on the big one (the middle east is always going to war - I love Islamists for only that reason and nothing else because as it pushes up the price of crude
Total loss over 5 years = the price of a car (20k) - yes, but you are right. I need to research the futures side because if the returns are too low (less than 1000%) then no I will not risk it
Hi, no worries, I appreciate your opinion but think about it logically for a second.
1. Buy-buy to let - it could bring in £400 a month in the north, take out 20% tax, tax deductible repairs, void periods, agents fees, capital costs for improvement, mortgage payments etc. you will be left will nothing until 20 years unless you overpay the mortgage (still left with nothing), then it is cash and you plan to sell, to avoid CGT, you will have to up sticks and live there, plus it may jump into an IHT liability with existing property - do you really want to give the govt 40% of your hard work and risk taking?
2. Funds - great fund manager taking an annual chomp of a fee, high risk ventures always tend to lose - you may win but is 15% worth the headache and stress per annum as you frantically check your charts? Or would you rather sit back on the sofa, and bet once and possibly lose on the big one (the middle east is always going to war - I love Islamists for only that reason and nothing else because as it pushes up the price of crude
but how is oil going to increase enough to make you a 1250% return? frankly if that happens your ****ed anyway as the world economy would be crippled.
How long is your bet?
Cause to put this in perspective you need oil to reach about 1,000 dollars a barrel
With that attitude, why not spend the whole £40k on euromillions tickets when there's a big rollover? Turn £40k into ~£180mil
Haha, that is a sure fire way to lose your money, what are the odds these days 116 million to one -noones that lucky otherwise everyone would be doing it
Physical oil doesn't have to increase that much for him to make that return
Up to 10 years, you are right I do not know if this is even possible so as a noob in the area I will have to research it based on the advice of the initial posters to see if it is even possible
Thought so!
Up to 10 years, you are right I do not know if this is even possible so as a noob in the area I will have to research it based on the advice of the initial posters to see if it is even possible
ok you need oil to reach 1,000 dollars a barrel for some perspective here.
I seriously doubt the bank would grant you a remortgage anyway, they would need solid evidence of what you were using it for are you going to say, 'oh I'm just going to bet it all on the price of oil going up tomorrow, no biggie', and you would need to submit all your finances and they will see you are too risky or that you couldn't pay the extra back anyway, they are not stupid, they will suss out what you are doing.
Back in the 90s you could get 100+% mortgages, the banks were throwing them at you, I was a student who new petty much nothing about the financial world, but I will still able to instinctively know that something wasn't right hence the big crash years later.
Back in those days it was like ok I'll get a 100% mortgage but wait maybe I'll ask/get for an extra 10-20% on top just for house cleaning duties, that's not the case anymore.
Back in the 90s you could get 100+% mortgages, the banks were throwing them at you, I was a student who new petty much nothing about the financial world, but I will still able to instinctively know that something wasn't right hence the big crash years later.
Back in those days it was like ok I'll get a 100% mortgage but wait maybe I'll ask/get for an extra 10-20% on top just for house cleaning duties, that's not the case anymore.
