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spyguy

I Cant Do The Maths On This

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http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11724160/We-earn-47000.-Can-we-get-into-buy-to-let-and-retire-at-50.html

'Stuart works for a security railings company and earns around £34,000 a year, plus a £5,000 bonus. Louise earns £8,000 a year working part-time at a school.'

Around 34K? He doesnt' know?? 32K, or 16K?

'They have no debts apart from a £40,000 mortgage on their home, which is worth £130,000. They bought the house for £50,000 through the Right to Buy scheme in 2013 and so they can’t sell it for another three years.'

Wow. A newbuild that's worth almost 3 times what they paid for it rather than 20k less, which is what most new builds fall in price. Where is the wondrous place - built on a gold mine? Nope, Strourbridge.

After that last paragraph, Im guessing the rest of the article is just going to be made up numbers and wishful thinking.

'Stuart has a cash Isa with £5,000 in it, and £3,000 in a current account that pays an impressive 5pc on balances up to £5,000. He also has £1,600 in another savings account that pays 4pc and is making regular monthly deposits of £400 into this.'

Fck me, its looking that way.

Wonder if he has some magic beans?

'“We are overpaying on our mortgage and expect to have £70,000 equity in our current house by the time we sell it in 2018. Can we use this to kick-start our investment plans?”'

Jesus .....

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Forget about BTL, go and have a child/children and live a life, and stop thinking about "investing". You can't take it with you.

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I read that earlier. Obviously moronic but the question that came to mind was - why is the DT printing this shit?

That couple is hardly their readership demographic. I guess the targeted audience of this article is someone else. Seems that they are a thoroughly compromised paper.

Didn't their political editor Peter Oborne resign recently because of their links to HSBC.

Edited by growlers

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http://www.telegraph.co.uk/finance/personalfinance/investing/buy-to-let/11724160/We-earn-47000.-Can-we-get-into-buy-to-let-and-retire-at-50.html

Wow. A newbuild that's worth almost 3 times what they paid for it rather than 20k less, which is what most new builds fall in price. Where is the wondrous place - built on a gold mine? Nope, Strourbridge.

After that last paragraph, Im guessing the rest of the article is just going to be made up numbers and wishful thinking.

Right to buy discount?

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Its Help To Buy - sub to the builder.

Rather than RTB, which is a council house buying thing.

The Right to buy discount is less than the fall when you sell a new build property.

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I read that earlier. Obviously moronic but the question that came to mind was - why is the DT printing this shit?

That couple is hardly their readership demographic. I guess the targeted audience of this article is someone else. Seems that they are a thoroughly compromised paper.

Didn't their political editor Peter Oborne resign recently because of their links to HSBC.

HSB will; not lend to this crap.

Its wierd DT Epress cross over.

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'They have no debts apart from a £40,000 mortgage on their home, which is worth £130,000. They bought the house for £50,000 through the Right to Buy scheme in 2013 and so they can’t sell it for another three years.'

'“We are overpaying on our mortgage and expect to have £70,000 equity in our current house by the time we sell it in 2018. Can we use this to kick-start our investment plans?”'

Jesus .....

Probably about right.

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Its Help To Buy - sub to the builder.

Rather than RTB, which is a council house buying thing.

The Right to buy discount is less than the fall when you sell a new build property.

Says "Right to Buy" in the article? Sure you're not confusing the 2??

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Says "Right to Buy" in the article? Sure you're not confusing the 2??

It does.

I am wrong.

The article, and the ages just do not look like a council house.

The ages are very wrong - early 30s, no kids. How on earth did they get a council house FFS?

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Peter Chadborn, IFA at Plan Money

It would be wise for Stuart and Louise to consider upsizing ahead of starting a family, because mortgage lending is based more on overall affordability than just income. Having a young family would probably reduce their borrowing capacity.

Er ... so borrow lots, then have a young family?

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The whole article is symptomatic of the problems with housing in the UK. You'd think anyone who has just got a massive windfall from the purchase of discounted property from the government would be glad of it and just be happy at the lucky break they've had.

Instead they're figuring out how they can leverage it up in housing to retire early at others expense.

Scum is too nice a word for them.

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It does.

I am wrong.

The article, and the ages just do not look like a council house.

The ages are very wrong - early 30s, no kids. How on earth did they get a council house FFS?

That is an archetypal council house. Having lived my early life pretty much on a tour of the council estates of the city I grew up in I can spot one a mile off. My guess is she or he inherited the tennancy when his/her parent/parents died/moved on.

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The whole article is symptomatic of the problems with housing in the UK. You'd think anyone who has just got a massive windfall from the purchase of discounted property from the government would be glad of it and just be happy at the lucky break they've had.

Instead they're figuring out how they can leverage it up in housing to retire early at others expense.

Scum is too nice a word for them.

Harsh. BTL is seen as a one way bet, they're lumping on. If they turn out to be wrong they'll be ruined financially. If they turn out to be right however...

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It does.

I am wrong.

The article, and the ages just do not look like a council house.

The ages are very wrong - early 30s, no kids. How on earth did they get a council house FFS?

If you grew up in a council house you get preference over everyone else. I know a single guy with no kids who got his own council place like this, zone 2 north London. RTB'd it now thinking of letting it out directly and moving back into his mum's council place.

Edit: changed from 'original' to 'his mum's' as I think the way in which they both ended up with separate properties involved downsizing from a large house into two flats.

Edited by Neverwhere

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Harsh. BTL is seen as a one way bet, they're lumping on. If they turn out to be wrong they'll be ruined financially. If they turn out to be right however...

If the investment didn't involve other people and was just risky I'd agree. But they're trying to get into this in the full knowledge that their planned early retirement would be funded by the hard work of other people paying their BTL mortgages for them.

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Like I said, they're gambling. They just don't know it.

That's their own problem. Due diligence and all that. Also, they know they're trying to engineer a situation in which other people go to work so that they don't have to.

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