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No Savings, No Pension, But Hey, You May Be Able To Get A Property!

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I'm really starting to wonder about things now, this article in the Independent really sums it up, even if you don't have two pennies to rub together, there are people that are still saying you may be able to afford a home. The madness of it all...

http://money.independent.co.uk/personal_fi...ticle325061.ece

:o

Scary stuff.

The IFA is suggesting a loan of 8x her salary paying the interest only. Thats good advice if her goal is to get into negative equity (which she will instantly be in with her £30k of existing debt).

Her salary seems very low for London + 6 (?) years experience. Sounds like a starting salary for a graduate in London.

I think her best bet is to get a higher paid job (or raise) and pump the extra cash into paying off the debt ASAP. Do overtime for extra pay where possible and be thrifty.

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Work harder and save? Are you mad!?! :blink:

Clearly you have to spend your way out of debt!

:lol::lol::lol:

I know it's looney, but I feel this is an open-minded forum where my extremist views can be aired!

Here is a more attractive alternative: Buy a house for £200k. It will be worth £240k in a year. Then MEW the difference to pay back the original loan. Keep the student loan ticking over and with the £20k 'profit' buy a 4x4.

:lol::lol::lol:

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Scary stuff.

Her salary seems very low for London + 6 (?) years experience. Sounds like a starting salary for a graduate in London.

I think her best bet is to get a higher paid job (or raise) and pump the extra cash into paying off the debt ASAP. Do overtime for extra pay where possible and be thrifty.

Unfortunately this is not, in my experience, an unusually low salary for a graduate in London. Many people leave university with the idea that something will come up and live beyond their means.

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[

b]Pension provision should be one of Ailsa's priorities, urges Mr Yearsley. "As a rule of thumb, you should put half your age in as a percentage of your salary."[/b]

Blimey as a rule of thumb being 34 I have to put 17% of my salary into my pension, how exactly do you afford that in today's world? Even if you're renting? I put 8% away, I thought that was generous and I don't even have any debts!

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[

Blimey as a rule of thumb being 34 I have to put 17% of my salary into my pension, how exactly do you afford that in today's world? Even if you're renting? I put 8% away, I thought that was generous and I don't even have any debts!

Jeez!! How can people save that much when they've been told to 'stretch yourself to get on the ladder' ?

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How can people save that much when they've been told to 'stretch yourself to get on the ladder' ?

You MEW the profits out of your house and put it in the pension, silly :).

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I know it's looney, but I feel this is an open-minded forum where my extremist views can be aired!

Here is a more attractive alternative: Buy a house for £200k. It will be worth £240k in a year. Then MEW the difference to pay back the original loan. Keep the student loan ticking over and with the £20k 'profit' buy a 4x4.

:lol::lol::lol:

You may well :lol: , but this is the way many people actually think... :blink:

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[

Blimey as a rule of thumb being 34 I have to put 17% of my salary into my pension, how exactly do you afford that in today's world? Even if you're renting? I put 8% away, I thought that was generous and I don't even have any debts!

Eh? I don't make much more than this girl, and I manage to put away approximately 50% of my net income for the future (it is a struggle sometimes I admit). The secret is to commit to a minimum amount that MUST be paid every month - it focuses the mind wonderfully and forces you to maintain your saving...just opening a savings account and telling yourself you will save as and when is not good enough.

Anyway, £30,000 of debt from her student days!?! I know it was London but even so! What was she doing? Did she have a Millenium Eye addiction or something? Most likely the silly girl was wazzing thousands up the wall and not giving a hoot about tomorrow...."Living in the capital was very expensive"...I'm sure it was, if you spent all your time in trendy wine bars being fleeced for alcopops. I agree with the earlier comment about unrealistic expectations - no sympathy for this girl at all I am afraid.

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  • 302 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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