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About IntoTheStorm

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  1. Absolute Gold innit. Read that on way home.. Funny how it took months to realise, and only did so when tried to put car in garage. Surely even a complete muppet would sort of notice size of their car in driveway - size of garage opening...hmmm that would be a pretty tight fit.. without having to wait several months to test the theory.. Seems a claim for some compo from the developer case....
  2. Maybe he's right though. You need to take some little risks to get somewhere in life.. Helpful if you can locate online or remotely of course before 'marching into the wilderness'. Ring around likely places in advance.. Sure, perhaps not suitable if you are older or have family commitments, council house etc. But if you are 18-25 unemployed, living with parents or in a cheap house share then you're not walking away from much to go and work somewhere else for 6 months. No different from going and working in a ski chalet or beach resort for summer. Good to at least get a 'start' in working life. Sure you have to leave your drinking buddies and local networks & surroundings etc - step a bit out of your comfort zone. Could take the Xbox still if really need to.. 100,000s of Poles (+ in the old days it was the Aussies and kiwi working holidays) do exactly this. Actually see quite a few of these types of job ad when travelling in the more remote parts of the UK.
  3. And the main example to... $1.425m for 1st time buyer house....! Thats approaching £1m. What sort of other world reality is this..? Admittedly blah blah blah about skipping some rungs but wth... The headline just makes me want to throw up to.. Disclaimer: I am from the colonies, which just makes me want to throw up more..
  4. 100% spot on. Just comical how anyone could could describe it as a FTB home.. Incidentally. A group of us rented a fantastic holiday home almost right within that area last spring.. Great for a getaway, but it was 30mins of windies even just to get to Helston.. Hows the local young person job market - Er... country pub..? Very much a retiree gaff, or gaffs that retirees who need to move into town want to flog to FTB!!
  5. Yeah, the fact they are just comparing savings account balances at all means it's pretty limited value I think the balances in my two savings accounts with two different banks are 0.05 and 0.01, so i would be destroying the 'man' average. I'm very strongly of the view that no point sitting on too much cash when BOE is debasing its value by the day..so am quite happy to have my liquid 'savings' sitting in shares instead. I'd tend to say this wouldn't be an uncommon theme, Women are a little more risk adverse so will more likely 'save' cash, men tend to be a bit more risk taking so will more likely to split some of their surplus funds into 'crack pot' investments, - shares, gold etc... I can only think of one of my female friends who actively plays on the sharemarket, whereas a number of my male friends do. (or maybe the girls don't all rabbit on about it like the guys do!)
  6. Ha, I actually identify quite well with this point about the needs of the Gen X single male - and the concepts being brought up by the original poster have been in my mind also recently. - I just about exactly fit his profile described in original post. 36yo, currently circa £300k investments as per example (£100k shares - Mostly good dividend yielders, fair chunk in ISA, £200k equity in my 2 rental gaffs in NZ, minimal mortgage). No house in UK at present. Still working flat tack in good paying london job - although may get option of redundancy next year with a decent lump payout to add to the above. The 'present' tax guidance on UK dividends is that if you don't exceed the 40% tax threshold, then you don't have to pay any extra tax on what is recieved net (usually 10% taken off at source. So a lump sum of £300-400k shares throwing off £20-£25k would have minimal tax if that was your only income. So in theory could stop work, lump the whole lot into decent dividend paying shares (I work on being able to average 6% portfolio yield as maintainable) and live off most of the income, just re-investing a little . Again in theory, a good pool of companies should grow their share price and dividend payout with inflation over time, so effectively that capital portion is somewhat inflation proofed. Although a bit risky to bet another 50+ years on it! So I could consider to try next year as the OP describes and 'retire' or semi retire or at least take a mid career extended break. Its certainly enough income to get by on for quite some time and travel on a upper end backpacker basis (say £2k/mth is plenty for a single guy to get about cheaper parts of the world on if not paying rent in the UK) or just hang round in UK going Gen X male things, like exercise/train for club sports events, enjoy the outdoors/beach and learn some new personal hobbies etc, without really eating the capital in short term.. As Pitdown man says, a Gen X single male could entertain themselves ok for quite a while like this but a women partner might not be impressed!! Also its important to maintain and build your social networks and relationships with people, which are a big part of what make people happy. If many of these come through work then need to be able to somehow maintain these and/or replace them. Alternatively take middle ground - get out of career role and then blend the above with contract/shorter term jobs. Make less money - but get a lot more time each year while semi young to experience other things, rather than 60hrs a week tied to an office chair,. Or last option in my case behave myself, plonk the lot into an overpriced London flat, and get back to working for the man.....:-) Its important to keep in mind there is no rule saying you must work for 40 years straight until you are 60 then you retire for 20 years after. I find the thought to use some of those years while younger if you can afford to, to be very appealing. Everyone has their £ 'number' that would work for them depending on their lifestyle tastes and commitments. A lot of good and thought provoking postings on this string.
  7. The investigative power on this website (mr silent dancer and co) is quite scary... Blows the poor daily mail article investigative journalism into the weeds...
  8. Actually if you go back a few years on his linked in it does have a quasi-state mail delivery organisation in there for 6 years (and can't see the history prior to that - so could be more), so actually he probably does have a nice FS pension to look forward to eventually...
  9. Standard linked in spiel if between roles for extended period of time , Put yourself as director/manager of you own 'contracting' company or similar so as to not give impression of a 3 year hole in CV. looks like a couple of short contract projects in there. The Lavin Weston thing seems to be some sort of small firm that offers freelance contractors which he would be signed up with. Oddly enough he came up in my 3rd removed connection level on linked in... Sure the Polish wife 15 years his junior (23 when bought their gaff 12 years back) came with high maintenance expectations which would have eaten through that £70k salary back in the day... Anyone working that long a string of contract accounting roles should really have been very conscious of putting aside plenty of savings when going is good, no redundancy parachute and you can't just expect the big $ contracts to just clocking up end to end forever especially as you get older.
  10. Yes, there was a nice wee piece in the Evg Std last week about this. Pa Winehouse quoted as saying 'it would make a lovely home for a young family'... I was just there on the train mouth agape thinking of all the lovely young families i know with a £ three quarter mil income.... Good to see some blatant profiteering attempt to.
  11. Yeah, even though real growth is stuffed, have to agree the lure of the printing press for each succesive govt/BOE is still very likely to give the UK 'nominal gains' in property values over the coming years. I'd still prefer a BTL that makes a profit year on year as beating a loss maker (as with any investment) while still givng the CG benefits (although could also convinced that a 4% yielding london property might be a safer bet than an initially tempting 10% yield in some struggling northern student uni town - where no students will be going soon cos the Unis too expensive now). I don't read it as the value your loan goes down, so much as the nominal value of the property and the rental income (plus hopefully working incomes) go up as the printing presses churn out more. It is still a capital gain you refer to - but of a nominal nature. But the result is the same of course. There is a underlying long term advantage to owning your own property and/or BTLs just for a pedestrian 2-3% average inflationary gain over time, which of course with printing presses on, will prob be more. Moral of story is don't stay in cash for a long period of time over coming years, as it will get chewed.. Which is why Johnny Rich man is buying his BTLs. A big fat BTL portfolio is effectively hedging long on property and shorting cash... Based on this logic, maybe i should take the parking brake off and get on with at least buying myself a gaff in London then, but I still can't get past the fact that in short term the market seems over-ramped. The HB changes are only slowly starting to impact, (with existing tenants not yet affected), the Olympics fervour keeps things bubbling along for another 2-3 months, banks are slowly now pushing up SVRs and its making the news, but the real impact of people having to pay them month in, month out, will take a while to trickle through. I still feel something has to crack soon. Just not sure if it will be the house prices or me.... I don't get the 'can't offset BTL loss against other salary or profits' point raised either. As far as i know in most tax juristictions this is possible as it's a ' taxable business venture' just like anything else. Appreciate anyone can reference the HMRC guideline on this 'non offset' as i find it hard to believe. If it is true for non offset of residential BTL losses, there would be a nasty web of grey areas (landlord with mixed use commercial and residential building etc)
  12. Mr Tharg, I have to agree with our 40 years tax accountant man and really think you're reading more in to the picture than there really is. I'm only 15 years of accounting background including a few years in tax practice in the older days, but have played the BTL game (not in this country) a fair amount myself, having been through owning 7 of them with maximum 4 at my 'peak'.. There isn't some magic 'tax avoidance' jiggery pokery to the whole thing at all. If you've got a decent set of BTL properties with rent that exceeds interest and maintenance costs etc, then you will make a taxable profit. No tax avoidance there, apart from fact that half of the amatuer part timer BTL shysters here i suspect don't even bother putting their BTL profit in their tax return.. If you have Shieschen set of BTLs with rent that is less than your interest and other costs then yes you make a loss. I haven't checked this in the UK, but in most countries this does get to offset against working income. I had a 2-3 years in NZ where interest rates went off the roof at 10% and i was getting the loss from my BTLs offsetting my working income.. All very nice getting my tax refund but fact remained i was still losing money each year for a while there. Didn't exactly think i was laughing all the way to the bank and would have been kidding myself if thought i was (- but that seems to be the idea portrayed in the article that people doing this now are some sort of canny investors....?!) I'd be much happier with BTLs making a profit and me paying the tax to be honest. Investing in some rubbish 2-3% yield propety and Losing a £1 to save 0.50 makes no sense to me. Yes, understand your logic on time value of money and very applicable over period from say 1970 to 2010. That mortgage the interest is paid on became worthless while the properties values went ballistic. I wouldn't be so keen to bet on that today though buying property at todays prices, running a BTL at a big loss and hoping nice johnny wage inflation will eat up my mortgages in next 10-20 years. Seems to be plenty of consumer inflation about, but its wage inflation that will really devalue the borrowings and we aren't seeing much of that. I say good luck to any of these 'canny investors' who want to buy a poor returning BTL for some sort of tax advantage, but i certainly won't be joining them.. thats a Suckers game.. invest for real time cash profits and then you aren't reliant on inflation and capital gains. If you get them its a bonus, not what your whole plan is dependent on..
  13. This photo was in the Evening Standard a month or two back, was a feature about illegal accom for Johhny immigrant. Is in Hounslow, out near Heathrow
  14. +1, totally in agreement on that. Despite how the article was worded for some of them, not one person referred to was genuinely based off their OWN income and savings.. I'm not sure in what world inheritance from gandmother counts as doing the hard yards on your own. I flatshare in Balham, for a little less than her rent, and wouldn't be blowing my wedge on some over priced 'exec' apartment in Kennington,,,.. Also love this one to: 'They are also canny market operators. Max Rudolf, a 24-year-old student at Oxford, has combined an inheritance with some money from his mother to buy the £740,000 three-bedroom flat next door to her house in Fulham.' How exactly does spending gifted inheritance and money from mumsy on some totally excessive flat for his needs (and he doesn't even currently require a flat in Fulham if he's in Oxford), make Maxy a 'canny market operator....' Thats an insult to even the Wilsons and Assetz camp.. I'd more refer to him as a mummys boy market operator...
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