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John The Pessimist

How To Lose Friends And Alienate People On Hpc.

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Having already stated that he has no savings, this is his response to why he's made no pension provision at all until he was into his 50s:

I’ve always been self-employed so I’ve never worked for a company which offered pension contributions as one of the perks. So I would have had to have created one myself, which is not that difficult, but I’ve just never done it. I’ve never thought of myself as being able to afford it. I’ve always lived a fairly hand-to-mouth existence, spending most of what I earned.

When I have thought about it, I’ve thought that the best possible place to put any spare cash is into my home, because that’s likely to appreciate in value more than any other investment vehicle.


Brilliant stuff. A real true believer.

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I'm speechless about this article. The HPI is strong in this one....

When s***e like this is being peddled by the MSM, sentiment is firmly against us.

http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/11683592/Toby-Young-I-made-250000-in-my-best-year-but-still-have-zero-savings.html

When has it been any different? I've had a lifetime of it. Followed the a victim-excuse-fest to this day, how all these £1m+ owners/buyers (with no savings too) are victims of some conspiracy of advertising.. "if only they knew the truth they wouldn't want forever HPI" - reflation QE 50%-100% doubling on 2008.

Do you think property’s a good investment then?

That’s indisputable, isn’t it? It’s not worth saying property’s a good investment. It’s a bit like saying: the sky is blue.

First, property’s unlikely to be beaten by any other investment vehicle, and second, you live in your home so it’s in your interest for your home to be as spacious and comfortable as possible. You don’t get any benefit from most other investment vehicles.

Edited by Venger

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Wow, a £500k mortgage, no savings, just recently started a pension, 4 kids and a stay at home wife. I wonder if he at least has life insurance or income protection insurance. Otherwise he is ******ed if he can no longer make money in his "profession".

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I'm speechless about this article. The HPI is strong in this one....

When s***e like this is being peddled by the MSM, sentiment is firmly against us.

http://www.telegraph.co.uk/finance/personalfinance/fameandfortune/11683592/Toby-Young-I-made-250000-in-my-best-year-but-still-have-zero-savings.html

He's 51 years old. Last knockings of the HPI generation. Bought his first house in 1991 so got in at the dip has only ever experienced HPI. I'd like to see someone 15 years younger do what he's done. He does actually allude to the fact that his kids won't have the same advantages as him, but he still says that getting on the property ladder is the best advice he can give them.

He's a dyed in the wool Tory but there's definitely some insecurity there. The best advice he can think of for Osbourn is to cut inheritance tax. Forget earning your own crust, he is all about who you father was, and he doesn't feel he'll be able to provide his kids with the leg up he would like to be able to.

Would be interesting to read an interview with one of his kids in a few years time. I can imagine they will have a different take on the merits of property investment.

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Wow, a £500k mortgage, no savings, just recently started a pension, 4 kids and a stay at home wife. I wonder if he at least has life insurance or income protection insurance. Otherwise he is ******ed if he can no longer make money in his "profession".

Tax credits?

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Wow, a £500k mortgage, no savings, just recently started a pension, 4 kids and a stay at home wife. I wonder if he at least has life insurance or income protection insurance. Otherwise he is ******ed if he can no longer make money in his "profession".

Aging rent boy?

(Yes, I know what Toby Young does - medeea hangererrer onner).

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Tax credits?

His kids must be coming to the age where they are no longer entitled to tax credits? If tax credits are capped at 2 kids, I would imagine he would at some point regret voting Tory.

Edited by fru-gal

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People have thrown everything into the house.

This is going to be very messy at anything over 3% interest rates.

400-500k mortgages where people are paying 2% ish.

This is why the houses my way top out at about 1500 a month rent for a house worth 500K+ (25yrs @2% for £400k = £1400 pcm approx)

Once that bank loan crosses the rental price we will have carnage....it just wont be "affordable" any more (25 yrs @4% for £300k = £1400 pcm approx)

Theres your 20% drop right there just on the ability of households on £50k+ a year to finance the purchase.

Edited by Fromage Frais

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Comments:

Alex • 6 hours ago

I earned a lot less than you Toby, retired early, two homes, three cars, no debt, where did you go wrong?

---

Edited by 200p

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"Do you think propertys a good investment then?

Thats indisputable, isnt it? Its not worth saying propertys a good investment. Its a bit like saying: the sky is blue.

First, propertys unlikely to be beaten by any other investment vehicle, and second, you live in your home so its in your interest for your home to be as spacious and comfortable as possible. You dont get any benefit from most other investment vehicles."

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He doesn't understand the difference between an investment and an investment vehicle

They're just words

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Comments:

Alex 6 hours ago

I earned a lot less than you Toby, retired early, two homes, three cars, no debt, where did you go wrong?

---

Born a few years too late for that kind of windfall. But at 51 he's still on the right side of the housing divide. His kids are probably screwed though.

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Comments:

Alex • 6 hours ago

I earned a lot less than you Toby, retired early, two homes, three cars, no debt, where did you go wrong?

---

well Raj, I didnt get 18 months for fraud.

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He's 51 years old. Last knockings of the HPI generation. Bought his first house in 1991 so got in at the dip has only ever experienced HPI. I'd like to see someone 15 years younger do what he's done. He does actually allude to the fact that his kids won't have the same advantages as him, but he still says that getting on the property ladder is the best advice he can give them.

He's a dyed in the wool Tory but there's definitely some insecurity there. The best advice he can think of for Osbourn is to cut inheritance tax. Forget earning your own crust, he is all about who you father was, and he doesn't feel he'll be able to provide his kids with the leg up he would like to be able to.

Would be interesting to read an interview with one of his kids in a few years time. I can imagine they will have a different take on the merits of property investment.

Considering that even with a minor fall in house prices he won't have a pot to p1ss in. Why's he worried about inheritance tax?

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His kids must be coming to the age where they are no longer entitled to tax credits? If tax credits are capped at 2 kids, I would imagine he would at some point regret voting Tory.

I shouldn't think he'll be on tax credits. I can imagine he's probably earning around £80-100k pa as a senior journalist with book sales and speaker engagements in the mix. What he doesn't grasp is what kind of lifestyle a family in their mid 30s will be living while earning a similar amount and living in London. Many will be stuck in rental accommodation or commuting from miles away while trying to service student loans and pay nursery fees. He's the other side of the drawbridge and he's voting to pull it up.

His views will not change unless he witnesses the effects it has on his kids when they come of age. Although in his position he may have enough contacts in high places to get them into plumb media jobs straight out of uni. Job done.

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His views will not change unless he witnesses the effects it has on his kids when they come of age. Although in his position he may have enough contacts in high places to get them into plumb media jobs straight out of uni. Job done.

Given that said plum media jobs are likely to be in London, they'll have to be incredibly plum for his kids to have even half the lifestyle he's had. That £1m property he bought in Acton in 2008 would probably cost £1.5m now. His kids will need to earn >£200k pa (and be married to another 6 figure earner) to live like he does. Except that he can afford for his wife not to work:

http://westlondonmum.co.uk/at-home-with-caroline-bondy/

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If he pulls in 100k that's 65k after tax

Given his mortgage interest is probably something north of 10k

Then how does he expect to pay down his 500k+ mortgage in 10 years?

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If he pulls in 100k that's 65k after tax

Given his mortgage interest is probably something north of 10k

Then how does he expect to pay down his 500k+ mortgage in 10 years?

He's probably working via a PSC which might cut his tax and NI bill a bit.

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Born a few years too late for that kind of windfall. But at 51 he's still on the right side of the housing divide. His kids are probably screwed though.

How sad.

If many a HPI projection story turns out to be even half correct for the next 5-10-40 years (and they're lapped up by many an owner who want HPI for their own wealth gain), they'll be laughing, for the Dad can downsize and bank millions of pounds. Or maybe we'll have HTB 5 by then, giving the excuse giver side so sappy to even allow authorities to bring in HTB 1 and 2 in the first place. Renter-saver/patient upsizer willl put up with anything, it's true.

This guy suggests one of his kids is real entrepreneur special anyway, so a future downsize on HPI gains could give him and other kids a buying boost against another 10 years of HPI+++++ think of the children of HPIers. a] Don't know anyone around my way who would let such young child do anything like that unsupervised even on edge of a driveway, and b] Who would buy that liquid?

http://www.dailymail.co.uk/news/article-2002963/Toby-Youngs-son-6-sets-lemonade-stall-outside-home--robbed-just-12.html

Given that said plum media jobs are likely to be in London, they'll have to be incredibly plum for his kids to have even half the lifestyle he's had. That £1m property he bought in Acton in 2008 would probably cost £1.5m now. His kids will need to earn >£200k pa (and be married to another 6 figure earner) to live like he does. Except that he can afford for his wife not to work:

http://westlondonmum.co.uk/at-home-with-caroline-bondy/

DM gave it a value of £1.3m in 2013. HPI+++ immediately accepted on the owner saver side. Takes many owners months/years to accept values fall, on the rare occasions markets turn. Many didn't accept their homes had fallen even in 2008 because it was mini HPC followed by new peak year-on-year HPI.

Maybe we can donate directly to the kids whose parents only know and expect HPI and actually get such HPI year on year on year? Just about every sob story on hpc I've ever read has turned out to be perfect HPI glory vs reality position that you're/we're still renting + a lot more priced out. Get used to it getting worse.

2011 http://www.dailymail.co.uk/femail/article-2065481/Thanks-recession-more-couples-stuck-starter-homes.html

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=32261559&sale=53594090&country=england

2011 http://www.dailymail.co.uk/femail/article-1379039/The-nouveau-poor-They-earn-twice-national-average-struggle-make-ends-meet--sympathy.html

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=44339395&sale=51962564&country=england

2013 http://www.dailymail.co.uk/news/article-2367293/Welcome-wedge-90in-wide-house-expands-22ft-transformed-800-000-luxury-home.html

http://www.rightmove.co.uk/house-prices/detailMatching.html?prop=28088898&sale=42837584&country=england

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Born a few years too late for that kind of windfall. But at 51 he's still on the right side of the housing divide. His kids are probably screwed though.

If he'd only had two kids, or just the one, they'd be in a much better position to benefit from their inheritance. :lol:

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Just shows how basic financial illiteracy can exist even among the supposedly successful.

If I got 250K in a lump sum I'd take some advice about how best to look after it. Nothing in a pension? Fool!

You think 'investing' in a pension is a good idea ?.... :unsure:

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