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.25% interest! Buy more watches?

  1. Spacefruit Prolific Speedmaster Hoarder Aug 6, 2016

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    With the U.K. Interest rates heading to negative, is it time to get any money we might have left out of the bank and buy more watches / cars / things?

    Does anyone have a prediction for the cabbages to constellation exchange rate for the next 2 years. ?
     
    Larry S, Fattony and smitty190373 like this.
  2. DLT222 Double D @ ΩF Staff Member Aug 6, 2016

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    I was thinking exactly the same!

    RBS openly said it near pointless having savings in bank.
     
  3. Darlinboy Pratts! Will I B******S!!! Aug 6, 2016

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    That's either a great idea:thumbsup: or an awful one:thumbsdown:... only time will tell (or be told;)).
     
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  4. WatchVaultNYC Aug 6, 2016

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    Won't stay down for a long time. Here in the US best way to make use of it is to buy a house. Or houses. Factoring in inflation and government deductions, the interest rate for borrowing for houses touches on negative.

    Do I understand correctly that Brits buying a vacation home in Spain is still as easy as it was?
     
  5. smitty190373 Aug 6, 2016

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    Its very easy if you have cash but Spanish mortgages aren't easy to come by anymore. In comparison to the UK housing market Spain has flat lined for years. There's better places to put your money. I was there a few years ago and met with agents who had huge developments on their books...200-300 apartments all completely empty like ghost towns...you could of bought these for peanuts. These were everywhere up and down the coast of southern Spain. Scary really.
     
  6. oddboy Zero to Grail+2998 In Six Months Aug 6, 2016

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    Speedmaster.

    (Just for Dennis)
     
  7. Kringkily Omega Collector / Hunter Aug 6, 2016

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    Hoard some hard to find vintage pieces :)
     
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  8. BlueBoy Aug 6, 2016

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    I wish I knew the answer.

    Cars are still crazy, as are Houses, both seem to be as expensive as I can ever remember.. So it instinctively doesn't feel right to be buying them especially in this Brexitted economy.. ::puke::

    Maybe I will move to Cuba ::psy:: seems like that might be the next place to start a housing boom
     
  9. smitty190373 Aug 6, 2016

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    And some nice smokes ::psy::
     
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  10. Davidt Aug 6, 2016

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    Interest rates are down, my numbers came up, it's saturday, Any excuse to buy more watches!
     
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  11. x3no Aug 6, 2016

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    Having money in most US banks has been pretty much worthless for some time now too.. Might be keeping up with inflation, but most are losing money over time anyway. Invest in the stock market for long run wealth.
     
    Darlinboy likes this.
  12. al128 unsolicited co-moderation giverer Aug 6, 2016

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    Didn't they just vote themselves out of this option?

    :D

    I think the 500.000 Brits in Spain are really happy that they will/Might lose their privileges :whistling::whistling::whistling:
     
  13. al128 unsolicited co-moderation giverer Aug 6, 2016

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    I'd say it's the other way round.

    The only reason the stock markets haven't collapsed is bc there are no other alternatives to park your $.
     
  14. x3no Aug 6, 2016

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    I disagree. Show me the comparison of putting $100K in a bank, and letting it sit for 10, 20, or 50 yrs and compare it to that same $100K invested in the market for the same period of time. From 1950-2009 the S&P averaged 7% gains annually. Stock markets collapse, its part of it. The hard part is staying in and buying more when "there's blood in the streets".
     
  15. LouS Mrs Nataf's Other Son Staff Member Aug 6, 2016

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    Which is a good reason
     
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  16. MSNWatch Vintage Omega Aficionado Staff Member Aug 6, 2016

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    Only if you will be living in it or using it regularly as a vacation home (or rental). Otherwise, houses/land in the US with very few exceptions - SF and NYC over the past 20 years (and even then other investments have done better) - appreciate poorly (over long periods of time below inflation) and are illiquid and have built in costs to sell diminishing your return. The old adage that no more land is being built hence land prices must appreciate and is thus a good investment isn't quite true as technological advances and relaxation of property development rules have made land use much more efficient.
     
  17. WatchVaultNYC Aug 6, 2016

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    That's completely true. But I am not considering (in this instance), housing as an appreciating asset. Just that it's a good time to borrow long term a big amount of money for something you need while rates are still low. And you are correct, houses are illiquid. I have a rental in NYC which is, though not underwater, is worth 25% lower than what I paid for it almost a decade after the financial meltdown - so not selling that any time soon. The tenant though pays like clockwork. He is so good I have not raised his rent in almost 10 years.

    I think you're correct too in that price appreciation of residential property near big cities will probably slow down or maybe reverse. Telecommuting, and soon autonomous cars will make it less enticing to live close to work. Properties with views though, or near the water will probably still go up like crazy.
     
  18. Spacefruit Prolific Speedmaster Hoarder Aug 7, 2016

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    US property has never seemed a good idea, except in areas of limited supply. (Manhattan, Malibu, Aspen to name just a few - and yes you can find examples in those places that have not done well but you have to try).

    Thats why UK property is so hot - same as Hong Kong, there is no place left to build. In HK its a physical land thing, and in UK its because of planning laws.

    The world is gasping for an alternative representative of value. Bitcoin is not the answer, but national currencies are not either.

    I do not have the answer,

    If I did I would not be wasting time typing on an internet forum - i'd be in whatever Mrs Fruit sees as paradise.
     
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  19. Fattony Aug 7, 2016

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    Just a thought but I really do wonder what £100,000 spent on vintage watches 20years ago would return today ,my bet it its scary ,who knows what the future holds but time to buy some more me thinks
     
    WatchVaultNYC likes this.
  20. WatchVaultNYC Aug 7, 2016

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