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Posts posted by rickycockroach

  1. 1 minute ago, spyguy said:

    Eh? Yu suer you arent a troll, hyping properdee as a magic investment, cure for cancer

    Private pensions. Most workplaces are DC i.e. same as private pensions these days.

    As a contractor Im eye brow over my head surprised that your accountant has not screamed at you to get a pension. Is the easiest, most tax efficient way of building wealth that youll need at a later stage in life.

    I really dont understand this 'pension plans dubious' It more than suggests a level of money crankdom/naivety/financial simpleton/paranoia.

    As a contractor, its simple - you save 20% of your earning - more if you can afford i, for 40 years. You save on income tax on your contributions.

    Pick a plane which has low - under 2%. And keep going. You can change the makeup of your investments as you approach retirement.



    Not a troll, being honest as I value the feedback. I hate the state of the property market and would gladly see it fall. My accountant is a cold hard SAAS that doesn't offer any advice. My accountant before was human yet in 10 years he never mentioned a pension to me once. Sound nuts but it's never been a part of my working life and no one has advised me on it. Thanks for the tips - I will look into it!

  2. 20 hours ago, happyguy said:

    For goodness sake why do you not have a pension or any retirement plan?  Whatever you do you need to be making provision for retirement the state pension of £600 a month is poverty.  


    Yep this I've overlooked. Have been focused on paying off the mortgage. As a contractor, I've missed out on workplace pensions. Retirement provisions will be the new focus if I give up on the idea of buying more of my home - seems I can't have both. Must say, I find the world of pension plans rather dubious - but I will explore. 

  3. On 02/04/2019 at 20:21, Bear Hug said:

    Agreed. I'd certainly try to cash out if that is at all a possibility.  I can imagine these things are much easier to buy than to sell.

    You'd be surprised. Progressively over past 10yrs, I've seen a few friends move into shared ownership (unable to afford to buy outright) and it's been very competitive (area specific, but this area is spreading wide) - they've had to go further out. Resales are snapped up if 50% or less, can be a bit slower 75 - 100%. Again, the area - decent amenities and it's well connected, commute times are fair. It's changed a lot over 10yrs. I should have seen it coming.


    On 02/04/2019 at 20:25, Bear Hug said:

    My first thought when looking at shared-ownership and equity-release prices in SE is: "this reduced price is still looks way too expensive even if it was for buying it outright"

    Agree - prices are nuts and these are pitched as affordable. 10yrs ago they felt pricey but achievable over time. Full value was x5 my salary - which felt harsh back then. My salary increased over the years but the full value raced off ahead out of sight. 

  4. On 02/04/2019 at 10:59, Captain Kirk said:

    I would rent then. And if it gets cheaper to buy than rent, then that's the time to buy. In the event that the rent and price have gone up so much you can't afford either, cash in your chips and move somewhere cheaper.


    Sounds sensible. 

    On 02/04/2019 at 19:47, bushblairandbrown said:

    Read John Kay the long and short of it. 

    Bought and started - thank you.

    On 02/04/2019 at 19:57, 24gray24 said:

    I wouldn't buy more; prices are topping out. And beginning to drop. 


     I'm hoping a drop gets to my area. E8 seems to be riding another wave of developments, buildings going up everywhere, businesses and flats getting occupied. A flat in my block smaller than mine with no outdoor space (I have a small roof terrace) sold for 542k - 5 months ago. Eurgh.

  5. 4 hours ago, janch said:

    Prices are coming down in London so I'd hang on paying rent and keep reviewing whether or not it's a good time to buy. I certainly wouldn't put all my eggs in the property basket; as you say it would be very worrying to have to pay much more each month on a bigger mortgage and you don't then have any choice as to what to do with your money when it's all being eaten up by a mortgage.  Also if you buy now and really struggle think how you'll feel when prices fall and you're stuck paying through the nose. 

    I think I'd I'd put any spare cash into a SIPP.  Also when you come up to retirement or circumstances change you may change your mind about London and be happy to sell and move somewhere cheaper in another part of the country.

    Thanks, sounds sensible! I'll explore the world of SIPPs

  6. 4 hours ago, spyguy said:

    Show me a shared/social housing flat, built  in the last ~20 years, thats selling for ~550k and Ill believe your story.


    These are shared ownerships, not social housing...

    50% at £300k https://www.rightmove.co.uk/property-for-sale/property-70852693.html

    35% - full value 530k https://www.rightmove.co.uk/property-for-sale/property-61104717.html

    65%, full value 560k https://www.sharetobuy.com/properties/53970/

    An old one here, a shared ownership flat going for a million ££  https://www.theguardian.com/money/2015/aug/24/affordable-shared-ownership-flat-hackney-1m

  7. Hi, thanks for your thoughts, appreciate it!

    – No other pensions.
    – No cheaper properties - my area has gone crazy with gentrification and 'luxury' flats and workspaces (East London) - new builds on my road are now going for 800k to a million and they are putting swimming pools on top of buildings.
    – Leasehold left is 115 years. 
    – Yes, a financial advisor may help, I'd cynically assumed they are motivated to push products (going by friend's experiences).

    Flat prices are crazy around here. 5 years ago I thought it was nuts. It's cheaper to rent my flat - it goes up 2% above inflation every year. But a pension won't cover it. I wonder if 20 years investing in an index fund could supplement the rent. Or, push all out and try to buy it now, taking on a 2k pension and work till I drop!

  8. Hello HPC! I’ve a quandary that led me to this site which I’ve been following for many years now. I’m still stuck on what to do, so here’s my first post. Thoughts very welcome.

    10 years ago I took on my first mortgage for 30% of a shared ownership flat - full value back then was 252k. This year I paid off my mortgage, so I’m left paying rent + service charge for the 70% at £670 a month (an increase of £200 since I moved in). I live alone, I’m single, 44. I wish to stay here, potentially retire here as I love the flat and the area, it’s my home. I’ve been saving to buy the rest of the flat. The problem is it's now valued at 550-600k and I can’t afford it. Buying part of it (say another 20-30%) would double or triple my outgoings and lower the rent only a little. It’s much cheaper to rent than to buy.

    I’m happy to rent for the rest of my days but worry about covering it on a state pension. For years I’ve been trying to figure out what to do whilst waiting for the crash/correction that seems will never come. I’ve explored suggestions ranging from buy-to-let to generate an income stream (makes me uncomfortable), to buying 100% and seriously over-stretching myself for the rest of my life (living in stress, risk and fear). What with stamp duty, a bank recently told me I simply can’t afford 100% anyhow, suits me as I don’t want to take on that kind of debt. A friend of mine went 100% a couple of years back and recently got made redundant. He is 50+ in age, and has had a nightmare getting another job - he’s had to take a 50% pay cut to keep working. With a seriously big mortgage debt, things don’t look good. 

    I’m very aware of job insecurity with age and taking on massive mortgage debt. I’m ok with renting, it’s just retirement - how the hell would I cover that kind of projected rent? What can I do now to help times ahead? I can’t find anything worthwhile to do with my savings (50k), maybe I’m better off ploughing it into the flat, buy another 10% than it being eaten by inflation. Or stick it in an index fund? Is it too late for that? Too risky? Markets look surreal and overwhelming to me.

    Overall, I’m happy and have nothing to complain about, things could be worse and I’m very grateful for what I have. But it feels a little frustrating to have so far been independent, sensible and planned ahead and now see that won’t work anymore. The only answer I can see is to leave the flat one day and go live somewhere much cheaper, alone and far away from my roots and community - the thought of which caves me in. I wonder if others in shared ownership are in this predicament. Obviously, it’s easier if in a couple to buy more over time, but I'm on my own with this.

    Thanks for reading if you got this far!



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