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ShirtyTheSlightlyAggresiveBear

Bbc - Working Lunch - Sipps

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Apologies, know its been all done before so many times.

SIPPS once again was discussed on the BBC's working lunch program. Anyone else see it. Was right at the start of the program.

  • Mentioned the increasing inter departmental disagreement over the SIPP changes.
  • Growing resentment that first time buyers (especially in rural areas) will be completely locked out an already unaffordable market. They fully expect SIPP to completely dominate over FTB'ers
  • Example presented was a theoritical property of 100k and tax advantages. 60k needed, 40k back in tax, oh which 22k back into pension, and 18k in there words "do whatever you like with, ie holidays".
  • Very strict rules on what you can do with the property. I.e a third parties are mandatory for pension administration, property management, maintenance etc. can't do any of these activities yourself so potentially higher costs than a normal BTL approach.
  • Only those with a 500k+ pension pot it makes sense for in terms of a diversified pension plan with max 20% in property. Risk for 100%.

The second point about first time buyers and I guess owner occupiers having to compete against SIPP buyers who may potentially have major tax advantages to buying looks like being a very hot political potato in the new year, as it gets closer to implementation day.

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Thanks shirty. Lik eyou say, much discussed but always good to hear how the media are approaching this. The "hot political potato" comment seems well founded: another year, another generaltion of FTBs and FTVs (first time voters). Any chance you copying to the SIPPS pinned thread.

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Thanks shirty. Lik eyou say, much discussed but always good to hear how the media are approaching this. The "hot political potato" comment seems well founded: another year, another generaltion of FTBs and FTVs (first time voters). Any chance you copying to the SIPPS pinned thread.

It's not just the first time voters Tony and Gordon should be worried about but also their parents. The first generation of students who paid tuition fees (sorry...who's parents paid for tuition fees) are just about working through the system, passed first job and probabaly looking to buy/settle down soon.

Tutition fees were sold to the middle class on the basis that their sons/daughters did better off if they had a university education and should, therefore, pay for this advantage (or rather the tax payer shouldn't be expected to fund it all).

Emmm...and what have they got instead. Son/daughter with university education (partly paid for) now with huge debt and can't even afford to buy a manky one bedroom flat above a chip shop.

I predict huge generational conflict in the next fews years.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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