I'm 30 with no pension...

[GT03ROB]

Welshbeef said:

GT03ROB said:

Of course it's the smart & sensible thing to do, but maybe a little boring? Its the art of balance, how much do you sacrifice today, for a future that is uncertain in terms of both its length and quality (health/mobility). If length & quality were certain the choice would be easy!

It's not unreasonable for people to take some jam today. No prizes for being the richest corpse in the graveyard!

It is a personal choice however as you say.

But most have a spouse to consider so having lots of Jam today the chap goes first by some years leaving he wife living in utter poverty as the husband didn't want to be the richest corpse in the graveyard

One would hope the amount of jam on the toast would be decided jointly!!

[TheLordJohn]

Welshbeef said:

50years or inter generational mortgages?

Think they're rather common in Germany, don't know anywhere else so wouldn't like to just guess.
I'd be up for the idea of that, but the problem for me would be how much has the borrowing cost?
As if it was repayed at the same % as a 20/25 year mortgage, the cost to borrow would be horrendous... !

[drainbrain]

Hainey said:

I dont know about those figures, but where I work the surrounding area has properties that can be had for 12.5-20k and yield about 150-300 per month.

However, the people who inhabit those properties, what you are actually buying to begin with, and the general associated ball ache that goes with it means it's not exactly an easy lifestyle managing it all. I know someone who has a few of them and he is looking to offload as he can't seem to get away from them and their issues. You soon start to see why everyone isn't in to it when entry is affordable to almost all.

Personally I've never had a unit trust call me up at 3am on a Wednesday morning to tell me the toilets leaking sewage everywhere or had a tracker fund send the Police to my door on a Saturday afternoon due to a drugs death. I've never had to send some big boys who work the door to Hargreaves Lansdowne to get my dividend paid either.

Well acksherly the good owners in South Carbrain have just had the early letter about the impending game of Double Your Money aka compy purchase. Yum Yum!! Especially yum yum if you got in cheap. Triple bubble for THOSE sharks.

It's a very easy lifestyle owning them. And to the managers it's just A N Other day. It's what they do. The 3 am calls go to an emergency night service. In the case you mention a sleepy plumber would end up calling a sleepy industrial plumber who'd end up blowing the drain and charging an extra £50-100 for the antisocial hours bit. The management art's in arranging the system. Daytime the Trades Desk deals with it. Drugs death? Suspicious or non-suspicious? Non-suspicious? Cleaner, market, re-let. Suspicious? Cops keeping the flat for a month or two? Rent insurer please. Flat burned out AND suspicious drugs death at the same time? (like mine in December). 3 months loss-of-rent payment and flat fully renovated to a high standard via insurance please. Anything else? Now and then you get a new one. Something that's never happened before. In the agency that's called "interesting".

Big boys? BIG boys? lol. Gerry in Posso hasnae paid over his Housing Benefit money this month. A wee 5'3" skinny alky with a dug. The Big Boyz won't be getting any answer when they chap his door. Of course they could always kick it in. Doors get kicked in quite a lot in Gerry's street. The first Big Boy would be looking at the hilt of the blade sticking out of his thigh/femoral artery or bawbag before a word had been spoken. The second Big Boy would be wondering how the strange little staffy with its jaw locked round his ankle could be dislodged before it actually amputated his foot. And the third Big Boy would be half way down the stairs and back to the car reminding himself that it ain't the size of the dug in the fight its the size of the fight in the dug! Of course, another very good reason you don't 'go the bully' is that you don't know who owes a favour to your victim's ma/da/brother/cousin or even owes a favour or, worse, has a bond with the victim themselves. Nothing guaranteed to spoil a Big Boyz day more than a black Golf cruising up and a hoody in the passenger seat handing him a 'phone out of its window with a "Haw You. The Crackpot wants a word". And the last, and best reason to avoid Big Boyz is the attitude of the law to using them as collectors. The charge would be extortion - demanding money with menace. And apart from the sentence there might well be a supplementary money-laundering accusation and enquiry and POCA investigation as well. Of course a guilty finding would be the end of your registration as a landlord which would always save you the bother of having to do the same thing ever again.

So no....the era of Big Boy rent collectors ended around the same time as flared trousers. It's done a different way now. Rather more civilised, old boy!

On the same theme, when did you last have a unit trust on the 'phone telling you the cooncil wants to buy it for twice what you paid for it? CGT free of course.

Edited by drainbrain on Thursday 2nd February 11:56

[drainbrain]

fat80b said:

@drainbrain, you said you'd come back with more details on the £6.5k properties that can yield 150pcm

Any chance of a link demonstrating one of these?

Bob

Yes there is, Bob. Of course there is. And the buy price to me (next week I believe it settles) is £5k, not £6.5k.

But why would you want the thing proved? If you doubt it, would you be prepared to make even a small wager on the matter, with a charity as the beneficiary?

Come on Bob. Be a sport! Take a chance! 'call my bluff' for a poxy tenner. Or any amount really. Put it down to a learning experience if you lose. You'd be paying a lot more if it was a bit of info from a seminar.

[Welshbeef]

drainbrain said:

fat80b said:

@drainbrain, you said you'd come back with more details on the £6.5k properties that can yield 150pcm

Any chance of a link demonstrating one of these?

Bob

Yes there is, Bob. Of course there is. And the buy price to me (next week I believe it settles) is £5k, not £6.5k.

But why would you want the thing proved? If you doubt it, would you be prepared to make even a small wager on the matter, with a charity as the beneficiary?

Come on Bob. Be a sport! Take a chance! 'call my bluff' for a poxy tenner. Or any amount really. Put it down to a learning experience if you lose. You'd be paying a lot more if it was a bit of info from a seminar.

What he is doing is buying small shops not houses and that way making £.

[drainbrain]

Welshbeef said:

drainbrain said:

fat80b said:

@drainbrain, you said you'd come back with more details on the £6.5k properties that can yield 150pcm

Any chance of a link demonstrating one of these?

Bob

Yes there is, Bob. Of course there is. And the buy price to me (next week I believe it settles) is £5k, not £6.5k.

But why would you want the thing proved? If you doubt it, would you be prepared to make even a small wager on the matter, with a charity as the beneficiary?

Come on Bob. Be a sport! Take a chance! 'call my bluff' for a poxy tenner. Or any amount really. Put it down to a learning experience if you lose. You'd be paying a lot more if it was a bit of info from a seminar.

What he is doing is buying small shops not houses and that way making £.

Really? Is that what 'he's' doing?

And there was me thinking that this was a flat? Wait till I get hold of that Land Registrar!

(ps: the rent on this babe is closer to £400pcm)

Application Number : 13GLA05661
General
Price £5,000
Applicant/s Hidden
Property
Title No. Parent Property
GLA75060 - 642, Balmore Road, Glasgow, G22 6QS
Registry Title Description
Application Date 6th March, 2013
Land Class Residential
Application Type Dealings with Whole (DW)
Deed Type/s Disposition
Other Sales of these Titles
Application No. Date Title Number Price
No other sales have been found for these titles.

[Welshbeef]

drainbrain said:

Really? Is that what 'he's' doing?

And there was me thinking that this was a flat? Wait till I get hold of that Land Registrar!

(ps: the rent on this babe is closer to £400pcm)

Application Number : 13GLA05661
General
Price £5,000
Applicant/s Hidden
Property
Title No. Parent Property
GLA75060 - 642, Balmore Road, Glasgow, G22 6QS
Registry Title Description
Application Date 6th March, 2013
Land Class Residential
Application Type Dealings with Whole (DW)
Deed Type/s Disposition
Other Sales of these Titles
Application No. Date Title Number Price
No other sales have been found for these titles.

Rightmove show that the cheapest there is £50k for a skanky 1 bed needing full refurb then the rest are £99k for 2bed flats.
Where does one find £5k houses? That rent out at £400pcm?

[drainbrain]

Welshbeef said:

Rightmove show that the cheapest there is £50k for a skanky 1 bed needing full refurb then the rest are £99k for 2bed flats.
Where does one find £5k houses? That rent out at £400pcm?

Well, you never know.

Next time your mum sends you to the market with a silver coin to buy bread you might- just might - bump into a strange character offering you the chance to buy some Magic Beans instead. Okay. Your mum will give you a row when you get home. And these pesky strangers never tell you that at the top of the beanstalk there's a big bad giant who you're going to have to overcome. But you have to get by him one way or another if you want the pot of gold!

Some people don't believe the Magic Beans work so they don't buy them. Some people can't overcome the giant. And there's even some people who think the whole thing's a fairy story! Unfortunately they're all going to have to get their pot of gold another way. And most of them will end up arguing with each other on how to get any gold at all!

[CoolHands]

talking gibberish again I see

[Welshbeef]

drainbrain said:

Welshbeef said:

Rightmove show that the cheapest there is £50k for a skanky 1 bed needing full refurb then the rest are £99k for 2bed flats.
Where does one find £5k houses? That rent out at £400pcm?

Well, you never know.

Next time your mum sends you to the market with a silver coin to buy bread you might- just might - bump into a strange character offering you the chance to buy some Magic Beans instead. Okay. Your mum will give you a row when you get home. And these pesky strangers never tell you that at the top of the beanstalk there's a big bad giant who you're going to have to overcome. But you have to get by him one way or another if you want the pot of gold!

Some people don't believe the Magic Beans work so they don't buy them. Some people can't overcome the giant. And there's even some people who think the whole thing's a fairy story! Unfortunately they're all going to have to get their pot of gold another way. And most of them will end up arguing with each other on how to get any gold at all!

Well rightmove sold prices for that postcode and last 5 years selected doesn't give anything for less than £47k.

So either a stranger offering you magic beans really took you for a ride or your telling porkie pies about these £5k houses for sale and it appears 3 bed Semis rent for £400-500 in that area.

Great if true but the evidence available doesn't tie up - and it's also utterly irrelevant to OP and his £800pcm spare to invest.

[drainbrain]

Welshbeef said:

So either a stranger offering you magic beans really took you for a ride or your telling porkie pies about these £5k houses for sale ......

Great if true but the evidence available doesn't tie up - and it's also utterly irrelevant to OP and his £800pcm spare to invest.

You never know. The OP might be a Magic Bean type. Maybe not this type of Bean, but like I said there are many many varieties of Magic Beans.

OTOH he might not be. Which kind of leaves him with, well, not a lot of choice really with a fairly narrow spectrum of predictable outcomes. And tbh, some people live a whole life like that and are very happy with it, and why not! Salt of the Earth. Stones did a song for them back sometime in the mid 20th century. Here it is:

https://www.youtube.com/watch?v=P2bxix3vFYM

[CoolHands]

drainbrain said:

You never know. The OP might be a Magic Bean type. Maybe not this type of Bean, but like I said there are many many varieties of Magic Beans.

OTOH he might not be. Which kind of leaves him with, well, not a lot of choice really with a fairly narrow spectrum of predictable outcomes. And tbh, some people live a whole life like that and are very happy with it, and why not! Salt of the Earth. Stones did a song for them back sometime in the mid 20th century. Here it is:

https://www.youtube.com/watch?v=P2bxix3vFYM

gibberish

[fat80b]

drainbrain said:

But why would you want the thing proved?

I think everyone is interested in a few more details as to "properties" that can be bought for 5K that yield 150pcm.

Your offers of a wager are of no interest to me - I'd rather guess.

My thoughts are :
Perhaps they are garages / or lockups but I can't see them being worth 150pcm?
Perhaps you are buying freeholds but again, I can't quite see any that get close to 150pcm?

Feel free to PM me if you don't want to put the info on the public forum - I promise I won't gazump you.

Bob

[PurpleTurtle]

OP, I'm 44, married with a 2yo, started a pension 3 years ago.

I am currently hoovering £20k a year into it, but that's only because I'm a one-man-band IT contractor caught inside the IR35 regs. Fortunately they allow me to put up to £40k of my company gross income into a pension before I get taxed - unfortunately I can't afford that, I have to live. I'm purely doing it to avoid paying as little higher rate tax as I can by getting my after-pension deemed salary down as low as manageable, because I consider that higher rate tax is something originally intended to hit the very well off, but it now squeezing a large swathe of middle-income earners. Thta's why I am positive on pensions, for me.

That aside, if I was your age again, I would be getting that mortgage down as quickly as I could. You mention married but no kids yet and your wife a teacher. I'm going to assume a) a kid or kids on the way at some point and b) your wife wanting to return to teaching. In which case you have the exhorbitant cost of childcare to consider. Will you have enough spare cash if she wants to take 6/12/24 months off on top of statutory maternity pay? Maybe worth saving without locking your money in to cover that first?

We are relatively lucky, my wife was pulling in £35k pre-kid, but her employer made it near impossible for her to go back part-time or full-time. Ergo we decided that she would be a stay at home mum for a couple of years (we are only going to have one kid at our age) so we've had a big drop in joint income, but have been able to swallow that because we are not saddled with a massive mortgage relative to income.

I've got plenty mates whose wives have had to continue working just to retain their job status for when kids eventually go to school, pretty much all their salary going on nursery costs, £300pw in my neck of the woods.

[drainbrain]

fat80b said:

I think everyone is interested in a few more details as to "properties" that can be bought for 5K that yield 150pcm.

Your offers of a wager are of no interest to me - I'd rather guess.

My thoughts are :
Perhaps they are garages / or lockups but I can't see them being worth 150pcm?
Perhaps you are buying freeholds but again, I can't quite see any that get close to 150pcm?

Feel free to PM me if you don't want to put the info on the public forum - I promise I won't gazump you.

Bob

495 Balmore Road, Glasgow, G22 6NX
Commercial add details...
£168,122 View Location Map Bird's Eye View View Full Application Details
2013-03-06 642 Balmore Road, Glasgow, G22 6QS
Residential add details...
£5,000 View Location Map Bird's Eye View View Full Application Details<<<<<<<<<<<<<<<<<<<<<< 1
2012-10-05 495 Balmore Road, Glasgow, G22 6NX
Commercial add details...
£168,195 View Location Map Bird's Eye View View Full Application Details
2012-02-15 0/2, 560 Balmore Road, Glasgow, G22 6QW
Residential add details...
£64,000 View Location Map Bird's Eye View View Full Application Details
2011-11-24 138 Balmore Road, Glasgow, G22 6LJ
Commercial add details...
£150,000 View Location Map Bird's Eye View View Full Application Details
2011-11-24 142 Balmore Road, Glasgow, G22 6LJ
Commercial add details...
£150,000 View Location Map Bird's Eye View View Full Application Details
2011-05-06 642 Balmore Road, Glasgow, G22 6QS
Residential add details...
£5,000 View Location Map Bird's Eye View <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< 2

That's a grab from the Ourproperty price comparison website. 2 residentials.

Will that do, or do you want to see one that costs £2500 that does £250pcm ?

Bob, the point of this is that it's a Magic Bean. There are MILLIONS of Magic Beans. My neighbour on the left - pretty well heeled guy - renovates write-offs for 'pocket money'. My neighbour on the right - retired electrical engineer -deals in diamond and emerald jewellery for his pocket money. It's like hobbies to these guys. Millions of people do things like this.

And the relevance is that developing a happy little sideline that you like and that's an earner whether it's buying/selling property or working 10 hours a week in a cafe is a perfectly good alternative to trying to accumulate inordinate amounts of money in dc private pension plans. It's an ALTERNATIVE POSSIBILITY and also a potential ADDITIONAL source of funding when you're old. Or you can be a sleeping partner in someone else's Magic Bean. Or this and or that.

Or maybe like Mr Cold Hands succinctly puts it, it's just gibberish. And the only thing anyone should do is save money from teenage to dotage one way or another via the pension wrapper. Just doesn't seem to me that that's working out so well for so many.

Knocking Magic Bean funding doesn't really work, Bob. Let me ask you this. How many people living the high life in old age on 6 and 7 figure incomes do you think AREN'T doing it with a Magic Bean? So why shouldn't the lowest economic demographic be encouraged to try a Magic Bean as well?? Build it into their old age funding plan. Some of them cost little or nothing y'know.

[DonkeyApple]

Welshbeef said:

GT03ROB said:

I keep hearing this argument about not needing as much money when you retire as when you are working & totally fail to understand it, unless there is a drop in standard of living. Kids are frequently cited, but lets face it for most they will have left well before retirement. Mortgage? Well that should have gone before retirement too, but there are a lot of retired people with mortgages. The biggest advantage of work is not that I earn, but that it reduces the time available to spend!!

I think the reality is that a lot of people suddenly discover they have more disposable income from around 50 as the kids go, get into a habit of living better, then retirement will come as nasty shock as they potentially see their income drop.

What sensible/smart individuals should do once mortgage is paid off and the kids burden is gone put that extra away into pension savings or investments for the future. Unless you want Jam today then fine you make that call or you have half Jam today holf Jam on retirement.

Apparently first time buyers are getting onto the property ladder more into the 30-35age group so a standard 225 year mortgage would take them right up to retirement age. Some will be lucky and clear it sooner others not so and have to carry on into retirement others like braindrain has elected interest only mortgage so he has the issue of not owning anything and apparently not willing to downgrade to a smaller property to own outright so his free cash is a lot less than it could be his choice.

Traditionally, that is exactly what took place. As the cost of children fell away and the mortgage was cleared the extra spare income was then utilised to accelerate or infill the required pension contributions to ensure a fully funded retirement at the preferred standard of living. However, what you will probably have noticed is that in the 50+ demographic we've seen them instead spaffing their cash in facelifts, whoring, divorcing and generally living the dream. Just leaving ok at daytime me TV advertising, if it's not about people who can't stop stting their pants when they cough, morons who are unable to cross the office without falling over or walking out of a window then it's flogging some tat to a SAGA punter.