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sam

Property Owners Have A Better Cashflow Than Renters

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Fot a while now i have made the point that life can be that little bit more difficult while renting rather than living in your home, and before someone starts the argument that there really is no difference between rented and owning your own home, i think it all goes a lot deeper than that, and effects more of your life than you can imagine.

Yesterday was a good example to me, for a while now i have not been able to really articulate the difficulties of not owning my own home anymore(handed over to wife in 2003), or it was a case of not really been bothered to look too deeply. But yesterday it was highlihghted to me in black and white the hardships of renting and the 2nd class status that goes with it, and more importantly to me CASHFLOW.

I run my own business which is doing very nicely thank you, the money i have ploughed into it was my own, i have been debt free for a while, the only thing i do not have is my own home.

Over the last few months business has gone crazy, never in my life have i had it so good when it comes to work on the books, the only thing right now is that i need a decent cashflow for materials and other expenses, i also have pensions and saving plans.

I phoned my business manager at Nat West to arrange a decent overdraft in order to have get a good cashflow going and also so i do not have to meddle with anything else(ISA, pension wise), i could not believe the hassle i had.

When i was in my late 20's and owner of a nice house in a nice area with my now ex wife and daughter i was living hand to mouth, money was tight, but it allways supprised me how my Bank were so keen to give me loans and overdarfts, all down to the fact that i owned property and the big mortgage that went with it, in my eyes i was a greater risk because of the house.

Today i find life a lot easier now that my daughter is grown up, ex gone, and business is doing great, money is not a worry anymore, or should not be.

I did get my overdaft yesterday, but only after a big fight, nearly to the point where i told them they could stuff their bank(been there 20 odd years), i was a great customer to them in all that time, if they had fobbed me off because i no longer owned property i would have been p****d off, and after all the questions that i have had i am in no doubt that was what it was all about, you get your hands on a property by any means and have some illusionary wealth and they will bend over backwards to loan you money.

This has effected many walks of life over the last few years, MEW dosh being used to for all sorts good and bad, for someone like us now, we have to work for it, homeowners get handed it on a plate.

I know that one day this illusionary wealth will come to an end, and it will bite those muppets who were so full of themselves, but the fact is that we are having to compete with people who are just given money no questions asked, it effects everyone from a parent that cannot buy her kid a toy but her MEW friend can to a genuis who wants to start up a company but cannot because he wrongly decided to educate himself rather than join Phil and Kirsty's get rich with property scam.

The fact is we have to compete with property owners, and property owners are being handed money like there is no tommorrow, non property owners have to work that bit harder.

Sam

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Do what now?

So because you don't own a home, the bank won't give you an overdraft to help you with cash flow? Who's to say you even need an overdraft to have good cash flow? What's wrong with have a cash surplus and topping it up from savings accounts when it gets low? Crazy. We don't all depend on debt.

I'm not really sure what your point is apart from saying 'renting sucks'.

I'm even not sure who you really are? You came across in previous posts as a youngish FTB (like me), yet now you have your own business and a daughter?

I'm sorry if i'm wrong, but it seems like your here to whind people, who are priced out, up.

Edited by Jason

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Fot a while now i have made the point that life can be that little bit more difficult while renting rather than living in your home, and before someone starts the argument that there really is no difference between rented and owning your own home, i think it all goes a lot deeper than that, and effects more of your life than you can imagine.

Maybe you should change your bank!

I have never owned a home, but banks etc are falling over themselves to throw money at me. My bank keeps offering to increase my credit card limit to 25k. They were even doing that several years ago when I was earning less than that gross per year.

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Maybe you should change your bank!

I have never owned a home, but banks etc are falling over themselves to throw money at me. My bank keeps offering to increase my credit card limit to 25k. They were even doing that several years ago when I was earning less than that gross per year.

When I was in my late teens and 20's (not long ago) I never had problems getting loans or overdrafts

and I never owned my own home til I was 24 (god I had it good then). I wish the banks had been harder

on me, as my control of money was terrible! Hindsight eh! ;)

Edited by OzzMosiz

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This dosen't make much sense, running your own company but taking a secured loan on a house is a rather rare thing to do and is very risky - you want a business loan; if you have an established company and can't get one, go elsewhere.

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This dosen't make much sense, running your own company but taking a secured loan on a house is a rather rare thing to do and is very risky - you want a business loan; if you have an established company and can't get one, go elsewhere.

But is your business on the books?

I know what it's like to run out of working capital. I made a killing on the xbox 360's over xmas but when the outlay for each was £400 (Yes even I bought them at a premium from other buyers who pre ordered but sold them for £600). Whilst the profit was very good it took around 2 weeks to get the money for each and it came to a point where I just couldn't buy any more till I had received the money meaning I could not buy fresh stock and therefore probably lost about 2k because of it.

But like I said, if you have rpoven in and out income (that's on the books on a business account) then you shouldn't of had a problem...if you did time to change banks.

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But is your business on the books?

I know what it's like to run out of working capital. I made a killing on the xbox 360's over xmas but when the outlay for each was £400 (Yes even I bought them at a premium from other buyers who pre ordered but sold them for £600). Whilst the profit was very good it took around 2 weeks to get the money for each and it came to a point where I just couldn't buy any more till I had received the money meaning I could not buy fresh stock and therefore probably lost about 2k because of it.

But like I said, if you have rpoven in and out income (that's on the books on a business account) then you shouldn't of had a problem...if you did time to change banks.

Exactly

One week you might have to pay out £10k in order to get £20k next month, i don't think some of the replys to this thread(apart from yours) have any idea about business at all, no disrespect.

Loans are just a last resort and are a terrible idea, we are talking cash flow here, not investment into a business.

On the example i gave you could be £10k in the red one week, £10k in the black next, overdraft is the perfect solution for a debt free business that only need the money when times are good.

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One week you might have to pay out £10k in order to get £20k next month, i don't think some of the replys to this thread(apart from yours) have any idea about business at all, no disrespect.

Er no, I run my own business and had the same reaction as the others.

It all depends on the type of business.

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Guest Baffled_by_it_all

I don't agree.

I run my own business and the bank are more than happy to up my overdraft, offer me an offset mortgage etc - because I've had thousands paid into them in the past.

Yes people like to offer you loans secured against your property but if you have a good credit rating then they'll always lend you money.

The downside of being self-employed is that they only look at your net profit when you're going for a mortgage rather than your salary weighting things in favour of the government's beloved PAYE crowd - but that's another story...

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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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