rollover Posted March 2, 2015 Share Posted March 2, 2015 Like thousands of other parents of young adults and teenagers, Trevor Catmull, 52, recognises that achieving financial independence as a 20-something is much harder than it was in his day. So, when he recently received a tax-free lump sum from a pension, he decided to split the money between his three sons, Robert, 25, John, 23 and Andrew, 16 to give each of them £10,000 towards a deposit for their first home. “It’s incredibly difficult to get on the ladder these days,” he said. “My boys are lucky because I can afford to help them out.” Trevor and his wife Dawn live in a mortgage-free, four-bedroom house worth between £350,000 and £400,000. Trevor is worried because although £26,000 is enough for a deposit on a home now, he knows property prices are rising fast while the real value of cash is declining. He wants Andrew to be in the same position as his brothers when he reaches his early 20s. https://uk.finance.yahoo.com/news/want-help-16-old-buy-070822163.html Quote Link to comment Share on other sites More sharing options...
Maynardgravy Posted March 2, 2015 Share Posted March 2, 2015 Like thousands of other parents of young adults and teenagers, Trevor Catmull, 52, recognises that achieving financial independence as a 20-something is much harder than it was in his day. So, when he recently received a tax-free lump sum from a pension, he decided to split the money between his three sons, Robert, 25, John, 23 and Andrew, 16 to give each of them £10,000 towards a deposit for their first home. “It’s incredibly difficult to get on the ladder these days,” he said. “My boys are lucky because I can afford to help them out.” Trevor and his wife Dawn live in a mortgage-free, four-bedroom house worth between £350,000 and £400,000. Trevor is worried because although £26,000 is enough for a deposit on a home now, he knows property prices are rising fast while the real value of cash is declining. He wants Andrew to be in the same position as his brothers when he reaches his early 20s. https://uk.finance.yahoo.com/news/want-help-16-old-buy-070822163.html NE then. Quote Link to comment Share on other sites More sharing options...
LiveinHope Posted March 2, 2015 Share Posted March 2, 2015 Like thousands of other parents of young adults and teenagers, Trevor Catmull, 52, recognises that achieving financial independence as a 20-something is much harder than it was in his day. So, when he recently received a tax-free lump sum from a pension, he decided to split the money between his three sons, Robert, 25, John, 23 and Andrew, 16 to give each of them £10,000 towards a deposit for their first home. “It’s incredibly difficult to get on the ladder these days,” he said. “My boys are lucky because I can afford to help them out.” Trevor and his wife Dawn have created the problem however, as they live in a mortgage-free, four-bedroom house worth between they expect someone to pay between £350,000 and £400,000 for. Trevor is worried because although £26,000 is enough for a deposit on a home now, he knows property prices are rising fast while the real value of cash is declining. He wants Andrew to be in the same position as his brothers when he reaches his early 20s. https://uk.finance.yahoo.com/news/want-help-16-old-buy-070822163.html You can't have your cake and eat it, Trev Quote Link to comment Share on other sites More sharing options...
Fully Detached Posted March 2, 2015 Share Posted March 2, 2015 NE then. Nailed it. It won't even take a crash to put each of them in NE - removal of any one of the government's desperate props would be enough to wipe out all of that 10k each, and probably just as much again. Quote Link to comment Share on other sites More sharing options...
@contradevian Posted March 2, 2015 Share Posted March 2, 2015 Plenty in Southern Bulgaria for £2-3k with easy access to Greek beeches and possible the highest broadband speeds in Europe! Quote Link to comment Share on other sites More sharing options...
FreeTrader Posted March 2, 2015 Share Posted March 2, 2015 Needs to hurry up and think bigger.From yesterday's Observer on pensions reforms:One of the biggest beneficiaries, however, could be the property market. A recent survey from the Bank of Ireland found that 29% of retirees nationwide were planning to use their pension to buy property. “There is going to be a stampede into property from those who were contemplating a low-yield annuity,” says Mark Hayward, managing director of the National Association of Estate Agents. “They will predominantly be buying first-time buyer properties [to let] and will be in a good position to do so, as they will be buying with cash.”Henry Sherwood, a buying agent, says he has already had inquiries from parents wishing to buy homes for their children with their pension funds. “Our advice to parents is to take full advantage of the new rules to help secure their children a place on the property ladder,” he says. “If a parent bought their child a £500,000 property today, in 20 years it could potentially be worth up to £1.5m.” http://www.theguardian.com/money/2015/mar/01/uk-pensions-spending-spree-old-age-plan Quote Link to comment Share on other sites More sharing options...
spyguy Posted March 2, 2015 Share Posted March 2, 2015 Needs to hurry up and think bigger. From yesterday's Observer on pensions reforms: One of the biggest beneficiaries, however, could be the property market. A recent survey from the Bank of Ireland found that 29% of retirees nationwide were planning to use their pension to buy property. “There is going to be a stampede into property from those who were contemplating a low-yield annuity,” says Mark Hayward, managing director of the National Association of Estate Agents. “They will predominantly be buying first-time buyer properties [to let] and will be in a good position to do so, as they will be buying with cash.” Henry Sherwood, a buying agent, says he has already had inquiries from parents wishing to buy homes for their children with their pension funds. “Our advice to parents is to take full advantage of the new rules to help secure their children a place on the property ladder,” he says. “If a parent bought their child a £500,000 property today, in 20 years it could potentially be worth up to £1.5m.” http://www.theguardian.com/money/2015/mar/01/uk-pensions-spending-spree-old-age-plan If a parent had about £2m million in their pension they could. Why not have a quick round robin and ring the ~50 odd people who hve that money in their personal pension funds and ask them? Quote Link to comment Share on other sites More sharing options...
zugzwang Posted March 2, 2015 Share Posted March 2, 2015 Needs to hurry up and think bigger. From yesterday's Observer on pensions reforms: One of the biggest beneficiaries, however, could be the property market. A recent survey from the Bank of Ireland found that 29% of retirees nationwide were planning to use their pension to buy property. “There is going to be a stampede into property from those who were contemplating a low-yield annuity,” says Mark Hayward, managing director of the National Association of Estate Agents. “They will predominantly be buying first-time buyer properties [to let] and will be in a good position to do so, as they will be buying with cash.” Henry Sherwood, a buying agent, says he has already had inquiries from parents wishing to buy homes for their children with their pension funds. “Our advice to parents is to take full advantage of the new rules to help secure their children a place on the property ladder,” he says. “If a parent bought their child a £500,000 property today, in 20 years it could potentially be worth up to £1.5m.” http://www.theguardian.com/money/2015/mar/01/uk-pensions-spending-spree-old-age-plan Unpossible. UK household debt is already 150% of income (again). Even the idiot Chote doesn't project it past 180%. Quote Link to comment Share on other sites More sharing options...
porca misèria Posted March 2, 2015 Share Posted March 2, 2015 If a parent had about £2m million in their pension they could. A £2m pension fund would exceed the lifetime limit, and get hit for a serious tax bill (in addition to regular tax on your income from it). I guess it's possible someone out there has a way round that problem. 'Grandfather' rights from an era before such limits? Sorry, I don't know the relevant history to say whether and for whom that might work. My neighbours bought a house for their 19-year-old daughter last year. But they didn't make a fuss about it in some public forum. Quote Link to comment Share on other sites More sharing options...
cool_hand Posted March 2, 2015 Share Posted March 2, 2015 Without serious wage inflation the £1.5 million starter home is la la land. And we can't have wage inflation, interest rates will have to go up if we do and then pop. Quote Link to comment Share on other sites More sharing options...
silver surfer Posted March 2, 2015 Share Posted March 2, 2015 A £2m pension fund would exceed the lifetime limit, and get hit for a serious tax bill (in addition to regular tax on your income from it). I guess it's possible someone out there has a way round that problem. 'Grandfather' rights from an era before such limits? Sorry, I don't know the relevant history to say whether and for whom that might work. Yes, you could protect pension rights that exceeded the limit, it was a simple one page declaration called the "Certificate For Fixed Protection" and it eliminated liability to any charge from the £1.8m lifetime allowance. As far as I know the same principle held true for each subsequent reduction in the lifetime allowance (£1.5m, £1.25m, and now proposed to be reduced further to £1m). So if you've exceeded a cap before the new limits are enacted you can grandfather your pension pot. Quote Link to comment Share on other sites More sharing options...
Sandwiches33 Posted March 2, 2015 Share Posted March 2, 2015 They were saying on sky news this morning that we "need" wage increases to afford housing, what a stunningly stupid industry housing is the say we "Need" wage rises to support there ********. Not once was the concept of reducing prices brought up. They did however say we need tighter controls for the landlords of generation rent, nice to knwo it is being pu tout there Personally I cannot wait for my "esoteric" wage rise, ho ho ho Quote Link to comment Share on other sites More sharing options...
goldbug9999 Posted March 2, 2015 Share Posted March 2, 2015 (edited) Without serious wage inflation the £1.5 million starter home is la la land. Not really. HPI doesnt necessarily require people to be able to pay more for the same level of housing - it also works if people are prepared to pay the same for a lower level of housing e.g. single people and childless couples settle for bedsits or rooms in shared housing, small middle income families live in flats, the well off live in terraced houses (what we might think of today as a "starter home") the rich live in semi/detached etc. Essentially each social tier simply moves down a rung (or two). Edited March 2, 2015 by goldbug9999 Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted March 2, 2015 Share Posted March 2, 2015 Ponzi-tastic Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted March 2, 2015 Share Posted March 2, 2015 Suggest they blow the money on wine, and women as it'll will be surely wasted on housing. Quote Link to comment Share on other sites More sharing options...
Bear Goggles Posted March 2, 2015 Share Posted March 2, 2015 Fast forward to the year 2042: Like thousands of other parents of young adults and teenagers, Robert Catmull, 52, recognises that achieving financial independence as a 20-something is much easier if you are not in negative equity. So, when he recently received £1,000 from a pension he'd somehow managed to pay into from his zero-hours contract, he decided to keep the money to feed the only child he could afford to have, Robert Jr, 25. He said. “My boy is lucky because I can afford to help him to eat.” Robert and his wife live in a one-bedroom studio flat worth between £35,000 and £40,000. However a loaf of bread now costs £1,200. Robert is worried because although £1,000 is enough for a deposit on a home now, but it's not enough to buy a loaf of bread. Quote Link to comment Share on other sites More sharing options...
Wayward Posted March 2, 2015 Share Posted March 2, 2015 Not really. HPI doesnt necessarily require people to be able to pay more for the same level of housing - it also works if people are prepared to pay the same for a lower level of housing e.g. single people and childless couples settle for bedsits or rooms in shared housing, small middle income families live in flats, the well off live in terraced houses (what we might think of today as a "starter home") the rich live in semi/detached etc. Essentially each social tier simply moves down a rung (or two). I agree. I am single and have been renting since 2007. Mostly two bed flats in the £700 - 850 pcm range in Hampshire. However I am now looking at renting a room in a shared house, to cut costs. Rents have increased dramatically in recent years. i want to hand over less of my hard earned to the landed classes but i guess me stepping down a rung and renting only a room they win again. Look around the world and you will see over crowding in cities with sharing rooms common place - this is the way we are going. We will still be paying the same proportion of our income on housing but we will be four to a room. And all by design - don't you love our enlightened leaders. Quote Link to comment Share on other sites More sharing options...
iamnumerate Posted March 2, 2015 Share Posted March 2, 2015 I agree. I am single and have been renting since 2007. Mostly two bed flats in the £700 - 850 pcm range in Hampshire. However I am now looking at renting a room in a shared house, to cut costs. Rents have increased dramatically in recent years. i want to hand over less of my hard earned to the landed classes but i guess me stepping down a rung and renting only a room they win again. Look around the world and you will see over crowding in cities with sharing rooms common place - this is the way we are going. We will still be paying the same proportion of our income on housing but we will be four to a room. And all by design - don't you love our enlightened leaders. +100. Although I believe in the stupidty theory not conspiracy. Quote Link to comment Share on other sites More sharing options...
Sandwiches33 Posted March 2, 2015 Share Posted March 2, 2015 even if we all downsize to single rooms, caravans then tents, then cardboard boxes who is going to come along and buy all these 400k semis that cover England? It is a ponzi because without people at the bottom buying houses non of it works anymore. It is an enormous ponzi and they are running out of suckers at the bottom. Lots of people congratulating themselves on how much there house is "worth" but without millions of youngsters in well paid jobs its meaningless. They have tried everything to prop it up, lending vast amounts, various schemes but the collapse is inevitable now. The collapse is starting where I am, lots of denial going around and lots of for sale signs but no young people with secure jobs and decent wages. It might be hard to see especially if you are in london but it is coming.houses arent like cornflakes or spam they take ages to sell and turn around. I know sometimes the propaganda can make you feel like shite but if I do I just go for a drive round my neighborhood and count all the for sale signs, some have been up over a year, I sometimes count up the home values and i think where the ****** in a shit part of Yorkshire are they gonna find 20 million+ just to buy all the houses locally to me? there is no international finance here just sports direct or shit factory jobs. Managers of bacon roll cafes? or van drivers picking up 400k homes? Its ******ing hilarious. The powers know this and are desperately trying to hold it all together, there is an epic amount of lying going on, I dont trust many figures either. If its not ******ed now I wouldn't give it much longer before its totally ******ed, the media will be the last people on earth to tell you just how bad things have got. When I see what people are asking for a terrible house next to the motorway in some grim northern town I laugh out loud. shits and giggles Quote Link to comment Share on other sites More sharing options...
juvenal Posted March 2, 2015 Share Posted March 2, 2015 About to be pensioner: "I'm going to take my pension pot and plough it into property!" Juvenal: "You realise it you'll pay 40% tax on a big chunk of it if you take it all in one go?" About to be pensioner: F***!!!!!! Quote Link to comment Share on other sites More sharing options...
Ash4781 Posted March 2, 2015 Share Posted March 2, 2015 (edited) I thought the tax free lump sum was 25% of pension in one year. The article mentions 3 children 10k each so was his pension pot 30K/0.25 £120K ? Plus a £350k mortgage free property at what age 52? This is not advice. Edited March 2, 2015 by Ash4781 Quote Link to comment Share on other sites More sharing options...
pig Posted March 2, 2015 Share Posted March 2, 2015 (edited) They were saying on sky news this morning that we "need" wage increases to afford housing, what a stunningly stupid industry housing is the say we "Need" wage rises to support there ********. Not once was the concept of reducing prices brought up. They did however say we need tighter controls for the landlords of generation rent, nice to knwo it is being pu tout there Personally I cannot wait for my "esoteric" wage rise, ho ho ho I've given up even thinking "I don't believe it!!". Apart from the fact it marks a descent into Victor Meldrew I really do believe it. In truth tis but a short step from the 'First Time Buyers Summit (without first time buyers)': concluding with the house-builders telling the government to solve the housing crisis by getting the tax-payer to make first time buyers afford their prices. I'm listening to David Cameron on the radio literally this moment talking about providing houses discounted because 'enthusiastic house builders' have told him to release them from section 106 agreements and regulations. You couldn't make it up. Edited March 2, 2015 by pig Quote Link to comment Share on other sites More sharing options...
@contradevian Posted March 2, 2015 Share Posted March 2, 2015 (edited) even if we all downsize to single rooms, caravans then tents, then cardboard boxes who is going to come along and buy all these 400k semis that cover England? It is a ponzi because without people at the bottom buying houses non of it works anymore. It is an enormous ponzi and they are running out of suckers at the bottom. Lots of people congratulating themselves on how much there house is "worth" but without millions of youngsters in well paid jobs its meaningless. They have tried everything to prop it up, lending vast amounts, various schemes but the collapse is inevitable now. The collapse is starting where I am, lots of denial going around and lots of for sale signs but no young people with secure jobs and decent wages. It might be hard to see especially if you are in london but it is coming.houses arent like cornflakes or spam they take ages to sell and turn around. I know sometimes the propaganda can make you feel like shite but if I do I just go for a drive round my neighborhood and count all the for sale signs, some have been up over a year, I sometimes count up the home values and i think where the ****** in a shit part of Yorkshire are they gonna find 20 million+ just to buy all the houses locally to me? there is no international finance here just sports direct or shit factory jobs. Managers of bacon roll cafes? or van drivers picking up 400k homes? Its ******ing hilarious. The powers know this and are desperately trying to hold it all together, there is an epic amount of lying going on, I dont trust many figures either. If its not ******ed now I wouldn't give it much longer before its totally ******ed, the media will be the last people on earth to tell you just how bad things have got. When I see what people are asking for a terrible house next to the motorway in some grim northern town I laugh out loud. shits and giggles Excellent post. Same here in West Yorkshire. They managed to double the price of two up;s and two downs here between 2001 and 2010. But the 'jobs and pensions for life' at the ICI are long gone. (Broken up and now in foreign hands). And the jobs for life at the Council are rapidly going. The last bastion will be the bursting of the NHS and Education bubbles. Staff from these organisations still drive around like Czars in their 4x4's and I bet are neck deep in BTL (hopefully) Bring on the crash! Extra shit sandwich please, with extra shit mayonaisse if you please! Edited March 2, 2015 by aSecureTenant Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 2, 2015 Share Posted March 2, 2015 Needs to hurry up and think bigger. From yesterday's Observer on pensions reforms: One of the biggest beneficiaries, however, could be the property market. A recent survey from the Bank of Ireland found that 29% of retirees nationwide were planning to use their pension to buy property. There is going to be a stampede into property from those who were contemplating a low-yield annuity, says Mark Hayward, managing director of the National Association of Estate Agents. They will predominantly be buying first-time buyer properties [to let] and will be in a good position to do so, as they will be buying with cash. Henry Sherwood, a buying agent, says he has already had inquiries from parents wishing to buy homes for their children with their pension funds. Our advice to parents is to take full advantage of the new rules to help secure their children a place on the property ladder, he says. If a parent bought their child a £500,000 property today, in 20 years it could potentially be worth up to £1.5m. http://www.theguardian.com/money/2015/mar/01/uk-pensions-spending-spree-old-age-plan It still boggles me that unfounded speculation from people without financial qualifications can be legally printed as unqualified fact in this country when it relates to houses Quote Link to comment Share on other sites More sharing options...
Si1 Posted March 2, 2015 Share Posted March 2, 2015 (edited) It rather amuses me that these boomers are going to plough every spare penny they have right into the property market at peak bubble and therefore absorb much of the pain for the rest of us. Wish they'd shut the f#ck up about how clever they are though Edited March 2, 2015 by Si1 Quote Link to comment Share on other sites More sharing options...
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