kr79:
I agree the returns on cash isa or savings accounts are negligible unless you have a huge amount of capital to invest but I’ve gone with a stocks and shares plan which funnily enough with the company big truck posted the link to. It’s a long term thing 10-15 years minimum so hopefully any blips in the market should iron themselves out over the period.
I could of cleared the mortgage with the money I’ve put in the isa but as I’m in a fixed deal the redemption penalty was prohibitive.
One alternative was to look at buying another property as a buy to let but between not knowing if the property bubble will burst or will intrest rates rise by a lot added to the agravation of Tennants etc.
We are happy enough where we live now so the security of been mortgage free in a couple of years was the main priority.
Buy to let can be a risky business at least if it has to be subsidised by a mortgage.It is possible to foresee a situation in which either rental defaults or lack of tenants result in repo of the property and it then being sold at auction by the mortgage provider for less than it cost to buy.Thereby leaving the mortgage holder responsible for the outstanding mortgage debt.Which might explain why there was no such thing as buy to let mortgages at one time.
Defaulted mortgages nowdays become unsecured debts for the mortgage-sale price deficit. The house as an asset secured has been repossessed, and thus can no longer be secured on anything other than a new mortgage, which few lenders would consider having seen a first one defaulted by the mortgage borrower. I thought this situation had been the case for many years, but I stand to be corrected here.
I’m surprised though that so few people take up the “walkaway” option.
If I’d had just been booted out of my house (as a lot of people were in 1992-4 for example) then there’s no way I’d be scraping around for some 5 figure sum just to “rush up to zero money” as it were…
If you walk away from the unsecured debt, there’s not a jolly lot can be done to you. Even attachment of earnings orders made by creditors of the now unsecured amounts - are frowned upon by the courts that applications for them are made to.
Regarding suitable investment for the working, particularily trucking community though - if one finds oneself forced to “take a view” on the property market, then “punt done”, one might as well take an eyes-open attitude to risk in general. One is already taking it, so why not endevour to understand the risk and “outs” one has throughout such an investment?
With the greatest respect I can’t be bothered to read through all that waffle Winseer!!!
IMHO,
for an ordinary Joe Bloggs truck driver who wants to put away some money to boost retirement income he should consider either an ISA or a SIPP.
Simple, flexible and easy to understand the basics of investing!!!
Big Truck:
With the greatest respect I can’t be bothered to read through all that waffle Winseer!!!
IMHO,
for an ordinary Joe Bloggs truck driver who wants to put away some money to boost retirement income he should consider either an ISA or a SIPP.
Simple, flexible and easy to understand the basics of investing!!!
kr79:
I agree the returns on cash isa or savings accounts are negligible unless you have a huge amount of capital to invest but I’ve gone with a stocks and shares plan which funnily enough with the company big truck posted the link to. It’s a long term thing 10-15 years minimum so hopefully any blips in the market should iron themselves out over the period.
I could of cleared the mortgage with the money I’ve put in the isa but as I’m in a fixed deal the redemption penalty was prohibitive.
One alternative was to look at buying another property as a buy to let but between not knowing if the property bubble will burst or will intrest rates rise by a lot added to the agravation of Tennants etc.
We are happy enough where we live now so the security of been mortgage free in a couple of years was the main priority.
Buy to let can be a risky business at least if it has to be subsidised by a mortgage.It is possible to foresee a situation in which either rental defaults or lack of tenants result in repo of the property and it then being sold at auction by the mortgage provider for less than it cost to buy.Thereby leaving the mortgage holder responsible for the outstanding mortgage debt.Which might explain why there was no such thing as buy to let mortgages at one time.
When I had a look at buy to let to get a sensible mortgage rate you need to be putting down at least 30% ideally 40%
As an exercise on our house now that would mean 90k down at 30% with repayments of around £1000 a month on a five year fixed rate deal.
The rent on three bed houses in our area is around 1500-1600 a month so there should be scope to pay the mortgage and have enough aside to cover maintenance been empty for short periods etc.
Obviously it’s dependant on interest rates not rising by too much and the housing market not collapsing pros and cons in any investment I guess
kr79:
I agree the returns on cash isa or savings accounts are negligible unless you have a huge amount of capital to invest but I’ve gone with a stocks and shares plan which funnily enough with the company big truck posted the link to. It’s a long term thing 10-15 years minimum so hopefully any blips in the market should iron themselves out over the period.
I could of cleared the mortgage with the money I’ve put in the isa but as I’m in a fixed deal the redemption penalty was prohibitive.
One alternative was to look at buying another property as a buy to let but between not knowing if the property bubble will burst or will intrest rates rise by a lot added to the agravation of Tennants etc.
We are happy enough where we live now so the security of been mortgage free in a couple of years was the main priority.
Buy to let can be a risky business at least if it has to be subsidised by a mortgage.It is possible to foresee a situation in which either rental defaults or lack of tenants result in repo of the property and it then being sold at auction by the mortgage provider for less than it cost to buy.Thereby leaving the mortgage holder responsible for the outstanding mortgage debt.Which might explain why there was no such thing as buy to let mortgages at one time.
When I had a look at buy to let to get a sensible mortgage rate you need to be putting down at least 30% ideally 40%
As an exercise on our house now that would mean 90k down at 30% with repayments of around £1000 a month on a five year fixed rate deal.
The rent on three bed houses in our area is around 1500-1600 a month so there should be scope to pay the mortgage and have enough aside to cover maintenance been empty for short periods etc.
Obviously it’s dependant on interest rates not rising by too much and the housing market not collapsing pros and cons in any investment I guess
EXACTLY
Not too many Joe Bloggs truck drivers got £90k lying under the mattress for the deposit and what if something unforeseen happens and you need say £20/30k out in a hurry from your buy to let “nest-egg”
With an equity investment trust fund within an ISA wrapper you can have the emergency money in your current account within a week, TAX FREE
He started his own investment fund last Aug and I’ve a % of my SIPP invested within it.
Now I’m well aware that investment values can go down as well as up but in his 1st year his fund has a 16.72% gain for the grand total of a tiny 0.60% annual management charge invested via HL brokers.
So some lucky person who invested £100k (provided they had £100k already within an ISA wrapper) via an ISA last Aug could have sold in Aug2015 and had quite close to an extra £17k to play with COMPLETELY free of ANY tax
I wonder will I “do ok” when I turn 60yrs on 23/8/25 (another 10yrs invested with Neil Woodford)) and decide to start taking a
yearly “drawdown” from my SIPP pension
BTW,
I put £120month into my SIPP and the Gov adds another £35 “for the craic”,
“KER-CHING”
Winseer:
Defaulted mortgages nowdays become unsecured debts for the mortgage-sale price deficit. The house as an asset secured has been repossessed, and thus can no longer be secured on anything other than a new mortgage, which few lenders would consider having seen a first one defaulted by the mortgage borrower. I thought this situation had been the case for many years, but I stand to be corrected here.
I’m surprised though that so few people take up the “walkaway” option.
If I’d had just been booted out of my house (as a lot of people were in 1992-4 for example) then there’s no way I’d be scraping around for some 5 figure sum just to “rush up to zero money” as it were…
Big Truck:
With the greatest respect I can’t be bothered to read through all that waffle Winseer!!!
IMHO,
for an ordinary Joe Bloggs truck driver who wants to put away some money to boost retirement income he should consider either an ISA or a SIPP.
Simple, flexible and easy to understand the basics of investing!!!
If you’ve got money - do a SIPP.
If you don’t have much, don’t bother with anything government-stamped at all, or have some small scale equities that return decent yields.
ISAs are desgined to destroy money over a long period of time using veiled inflation disguised by low interest rates.
That’s why I’ve only ever done SIPP and never done ISAs of course, so I can honestly say I’ve “always” put my money where my mouth is.
I don’t do (and never will) a “deposit based” ISA,
all my ISA investments are equity based and I don’t think low interest rates affect equity based ISAs performance at all.
I have been VERY happy with mine and so has “wifey” with hers!!!
Am also about to swap my two boys CTF (Child trust fund) accounts over into a Children’s ISA as the choice and flexibility is FAR greater!!!
Just received an email from HL brokers on the recent performance of
“Lindsell Train Global Equity Fund” which is also part of my SIPP portfolio.
I invested from launch in March 2011 and the fund has risen 97%
Remember in a SIPP you can take out a 25% TAX FREE lump sum from age 55yrs but think I’m gonna leave the heap invested until I’m 60yrs.
“IF” your were married and wifey/you put in your max £10k each/yr ISA allowances since launch (£100k invested) you’d be sitting on a whacking TAX FREE £97K GAIN today,
KER-CHING
Think maybe you should consider an equity based ISA or SIPP Winseer
