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Everything posted by Jugador

  1. I don't know what the arrangements are re council tax but you can be sure they'll be taking their slice. I don't think this guy lost any sleep at all, right up until the day the HMRC got in touch. Another good thing about S24 is that as they all start their LTDs, their accounts become much more visible. The one guy I know who has BTLs is very cagey.
  2. I have a mate who has had some HMOs which he lets to students for a few years. HMRC did a review of his last return and he's been hit with a 38k demand. He's not out for beers tonight.
  3. Hey Jack, Sounds like you might be leaning toward taking the option of another year. Don't. If your skills can get you a job elsewhere then move and improve your options. If your career ceiling is 50k you're never going to have many options in London, even with a HPC. And you mentioned peak productivity and peak earnings. I know us old folk are held responsible for all kinds of things but now we're slackers too I know many people who are earning much more in their late 40s than they ever did in their 30s, so don't give up on that just yet. If you really are looking at a ceiling of 50k then a move might also open up some opportunities that you aren't seeing today. I also believe you'll enjoy London less with each passing year.
  4. I doubt it very much. Before you choose which businesses your p2p money goes to you get to see details of the guarantees put forward by the applicants. I'd be surprised if there is anybody who's been in p2p for a year who hasn't suffered a default.
  5. They're able to get in because they live in the "frozen wastes". I bought my first house up there, at an earnings to price ratio not very different to theirs. This was back when interest rates were 14.5% so over the life of the loan I would pay back the same amount of interest as they have committed to. And back then nothing seemed certain, just as it doesn't now, so interest rises and falls, HPI/C, it was all unknown. And then I went out and bought the sofa and chairs on a 33% credit card, and knew where every penny I didn't have was going. So with that experience behind me, I don't see what they're doing as utterly crazy. Meanwhile, in London and the tropical south, people would be crazy to get in at this time even if they could, which they can't of course. So they spend 4k on a season ticket for standing room only. Maybe these northerners are onto something!
  6. If you're with a p2p you'll be getting constantly updated reports about your gains and losses, and there will be losses. I hadn't seen mention of the ISAs prior to reading this thread but I started with p2p through Funding Circle about 4 years ago. After losses it's performed at around 6.6% over that time. I have a couple of issues with p2p. To do it safely you'll want to spread your money across many loans and it takes time to analyse all the applicants and choose which, so people click the "auto" button which results in the p2p system allocating your cash. And then, when you look at the losses, you're always going to see ones you wouldn't have chosen yourself. The other issue is that these are long term loans in many cases, meaning that you can easily close out. Which I suppose is what makes a p2p-linked ISA look attractive to some, but not me.
  7. I had no idea about the attitude to booze over there. I shall be firing off a couple of teasing emails to world class boozers I met in the Middle East who now live out there.
  8. The FTSE was around 6300 in around 2001 (don't have time to check, going from memory) and I remember one March an "expert" on the radio predicting it smashing the 7000 mark by the year's end. In fact it took many years before that would happen. It's easy after a period of gains to talk it up but the fact is it's been was crap for a long time. If the FTSE had been performing they'd still be selling endowment mortgages. I'd prefer it were not the case but sadly my pension statements serve as a reminder.
  9. And the measure to ensue that there is no low density provision in places of high demand... another excuse for developers to build shoe boxes, not that they need any excuses. My son bought recently and was limited to older stock because after two viewings of new builds he ruled them out: tiny and leasehold. Yes house building is needed but they should make sure they're houses people want to live in.
  10. One measure is to require councils to have plans to meet housing needs and update them every 5 years. Given that no minister has yet answered the question "what's the right number of immigrants post-Brexit", just how the hell are councils supposed to arrive at the numbers they need to plan for. I think it's crap and fails to address the issues.
  11. Yep, and I met some people in Cyprus who had funded their holiday homes using Swiss Franc mortgages. 50% crash in the value of their places plus painful mortgage increases. Painful.
  12. All the numbers are sound but I don't believe that the performance of the investment they've made will drive the behaviour that would cause a HPC. Anybody who's already sunk the costs to be in the position of that low yield due to S24 changes is probably just going to stay in there and suffer lower returns and be even more hopeful of HPI. Of course, anything else they buy in future would probably follow the path you suggest, i.e. going in with lower priced properties, but I can't see that alone causing a big HPC. I do expect some will bail out altogether but they'll only be from one segment of the landlord population, probably the casual ones who bought a couple of things as a pension whilst the day job puts them in the 40% bracket. With the slim profits coupled with the shag and hassle I can see them bailing if the HPI halts. As for the big players, jeez, when you see a whiny landlord who has a large portfolio (i hate that word) stating he's not in the 40% bracket it makes me question why the hell they're in it at all, unless he's telling porkies of course. Anyway, good analysis but plenty of other factors at play make it a guessing game rather than a scientific experiment, IMO. But then I am generally wrong so will enjoy the Humble Pie when you're telling me you told me so :-)
  13. I know a guy who went all-in on BTL as his only source of income. He quickly worked out that it wouldn't give him sufficient income and he therefore went the HMO route, which he tells me is profitable (and judging by the car he bought would appear to be, but maybe it's just more debt). This was before the S24 thing so I think BTL in the current climate is very much a sideline vs. a big risk for those looking to give up work and make it their primary "job". When you have some people in there happy with 2% yield and others in double figures due to HMOs, and the choices (and challenges) around taxation and LTDs to factor in, I think you're going to be disappointed in trying to arrive at HPC figures based on that analysis. Just saying, I would in fact be interested to see what you come up with.
  14. The yield as it is usually calculated is much higher than 0.3%. Although, as you suggest, hardly a great investment without HPI.
  15. I have a flat in Spain. Common practise over there is that the owners of blocks of flats co-own the freehold. They have laws over how residents' communities control their joint interests. If developers were forced to give up the rights to the land when they develop something here, there would be no need for flats to be leasehold. If the government is going to look at the law to prevent developers from these sharp practises with houses, they should go all the way and examine flats too.
  16. Yes, Spain's a very mixed bag. The high end of Barcelona, for example, held up quite nicely (too nicely in fact, I want something there but can't afford it). Meanwhile, places like Almeria were hit hard by the crunch because the demand was driven by speculators sat in hotel conference rooms in UK cities on a Sunday afternoon, buying 2 or 3 without ever having visited the places.
  17. Don't rule out moving to a better paid job and signing-up up to the new company's pension scheme if they will also make contributions for you. You should be able to choose how the money is invested (so you could choose a S&S ISA0-style strategy) and you have the benefit of a return on the gross amount paid in. As long as you are able to access it when you need to (which should be possible) then it will probably pay more than taking the salary and using it yourself.
  18. How true. My son was paying 1k a month for a share of a flat in Clapham. In the streets around were terraced houses with doors almost onto the pavement, going for 2m+. Clapham! He says it's quite the sought after place these days. F-knows why, I formed my view about it 20 years ago and decided it was sh!t, and it hasn't changed (Clapham or my opinion of it). Opportunity is most certainly out there, via an airport or a train station. And it's easy but only for the time being, because the Boomer's kids couldn't be arsed getting out of bed and voting.
  19. I happen to agree with the bit in bold. Apparently the chief exec's on 215k + bonus. He'll have to be on his toes though with this high calibre leader looking over him https://www.youtube.com/watch?v=w2D1taIviyY&feature=youtu.be
  20. Why not? It's a sensible post. By all means wish for a HPC and bemoan the high cost of housing, but don't let frustration with that and other parts of the system cloud everything. Not all Boomers are loaded. Not all old people are sat in expensive houses. And anyway, not all of the money the council is looking for is for them. It's for learning difficulties and childrens' care. People who can't for a variety of reasons, in many cases none of which they are responsible for, look after themselves. And we can have a society that puts them on the streets or one that looks after those in need. I know which I would rather live in.
  21. If only that were true. IME local government manages to grow whatever the weather. We can dream.
  22. It wasn't aimed at you. I agree about the lazy Brit bolox, it is just that. In fact, my travels to numerous countries have left me with the opinion that Brits are amongst the least lazy. But everybody I know knows somebody who's done the pointless degree thing.
  23. Probably more to do with the big shift in Sterling vs. Euro.
  24. They'd rather remain in-situ, moaning about Boomers having it all and them having nothing.
  25. Bit surprised to see posts from people proactively doing something about their lot and getting on in life. Earlier it was about the degrees and the doctorates and the cr*p money that followed.
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