old age

[One Day]

When I was a kid I remember asking my dad what a pension was.
He said something like: "you pay in a percentage of your earnings to a pension account and that gets invested in the stock market. Over time you pay in tens of thousands but you'll get it all back and a lot more besides." 😱

Even at a yound age I said it doesn't make any sense. It looked like gambling to me.
My dad had an endowment mortgage too by the way. Now his "gold-plated" pensions are a dusty memory and he is still paying a mortgage.

By my early teens I had worked out that the whole financial system is basically legalised robbery.
Either save what you have and squirrel it away - or buy tangible things which at least hold value.
(Or try your luck in the investment casino)

 

[One Day]

If you have more than 2 property's and then sell one don't you have capital gains taxes to pay ?

Only poor people pay taxes!

 

[Rizzle from the Portizzle]

Only poor people pay taxes!

no the poor simple dont work and claim benefits the rest working hard to get away from that pay the most
tax the richer you get the less tax you pay but the more you employ the more tax and ni you pay on there
behalf the ni you pay part of .

 

[Rizzle from the Portizzle]

If you have more than 2 property's and then sell one don't you have capital gains taxes to pay ?

you dont sell give to the the kids live seven years they dont pay tax they pay you an income

 

[widler]

No pension, We have 3 house rentals and a building which the wifes business is in , we also rent out some offices and garages in and on the buildings land , im going to buy another house or two in the future.
My own house and wifes building mortgages are paid off in 5 years.
Hopefully we can sell the wifes business then building , rent our house out, rent a place abroad and live off our rental income .
maybe in about 8 years ish, thats the plan, wether we do it i don't know 😵

 

[Doggit]

you dont sell give to the the kids live seven years they dont pay tax they pay you an income

The taxman closed this loophole. You'll pay CGT at the point you give it to the kids, but it'll reduce you're Inheritance tax bill, so you're taking the hit (and paying the tax now) so the kids get to keep more when you're gone. They'd get taxed on the rental income they receive, and they'd then give you the balance, but the taxman would then try and tax you on it as well (assuming they find out of course), because they'd view it as a way of avoiding some sort of tax.

This is where trust advice is needed. You can put the property into a trust for the kids, and still receive the income from the property, but they're complicated, and you need someone with specialsed knowledge to set it up.

Osborne buggered up the buy to rent sector (also known as the self employeds pension plans) by adding 3% to any 2nd house purchase, so on a £250K property, you now need to find £20K for stamp duty.

 

[hmtiling]

The taxman closed this loophole. You'll pay CGT at the point you give it to the kids, but it'll reduce you're Inheritance tax bill, so you're taking the hit (and paying the tax now) so the kids get to keep more when you're gone. They'd get taxed on the rental income they receive, and they'd then give you the balance, but the taxman would then try and tax you on it as well (assuming they find out of course), because they'd view it as a way of avoiding some sort of tax.

This is where trust advice is needed. You can put the property into a trust for the kids, and still receive the income from the property, but they're complicated, and you need someone with specialsed knowledge to set it up.

Osborne buggered up the buy to rent sector (also known as the self employeds pension plans) by adding 3% to any 2nd house purchase, so on a £250K property, you now need to find £20K for stamp duty.

I got stung with the higher rate stamp duty 2 weeks after it came into force. 🙁

 

[widler]

Taxman = tosser
We get taxed on everything , everything bloody everything .
We are going to get stung again now us with rentals, upping the tax on any profit we make on rents.
So cos i saved big deposit, bought a wrecker, spent a lot on it , rent out and make more on the rent after ive paid , mortgage and ins, im gonna get stung more.
Taxman=tosser

 

[widler]

Have i mentioned my brother inlaw is a taxman

 

[Andy Allen]

The reason your getting stung on rentals is because everyone is jumping on the bandwagon. With savings at an all time low people are looking elsewhere to invest there money this in turn is hiking up the price of houses, supply and demand, which in turn means people have to spend more for a roof over there heads and have less money in there pockets to spend, this effects the economy and forces the government to up the tax system on rentals to try and brake the cycle, kick start the economy and stop us falling into recession.
So in a nutshell if we go into recession it's Graigs fault...🙂