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Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 9:31am On Nov 08, 2023 |
Peerielass: You also receive 25% on a SIPP account......ππ€£ |
Re: Living In The UK: Property,Mortgage And Related by Estroller: 9:46am On Nov 08, 2023 |
Lexusgs430: Chief is it 25% though? Or 20% for basic rate taxpayers and an additional 20% upto a certain limit for higher rate and additional rate taxpayers. |
Re: Living In The UK: Property,Mortgage And Related by Peerielass: 9:50am On Nov 08, 2023 |
Lexusgs430: Yes, higher and additional rate tax payers could get up to 25% but majority of basic rate taxpayers will only get 20% on SIPP. |
Re: Living In The UK: Property,Mortgage And Related by Estroller: 9:53am On Nov 08, 2023 |
Lexusgs430: |
Re: Living In The UK: Property,Mortgage And Related by Peerielass: 10:01am On Nov 08, 2023 |
Estroller: Are you sure this is correct? As far as I know, he would continue to accrue the govt bonus if he continues to save in the LiSA until heβs 50 irrespective of whether he used some of the money to buy a house. |
Re: Living In The UK: Property,Mortgage And Related by Nobody: 10:03am On Nov 08, 2023 |
Estroller: You can continue saving into your LISA and receiving the 25% (Β£1k) top up even after buying an house from it, until age 50. https://www.ajbell.co.uk/faq/can-i-use-my-lifetime-isa-both-buying-my-first-home-and-retirement# |
Re: Living In The UK: Property,Mortgage And Related by hyzich(m): 10:33am On Nov 08, 2023 |
Lexusgs430: Tbh, if there's anything I like about civil service especially NHS is there pension scheme compare to private sector. It's more like receive a lil now and enjoy wella after service 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Estroller: 10:58am On Nov 08, 2023 |
Peerielass: Apparently not, just checked again. Thanks for pointing it out. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Estroller: 11:02am On Nov 08, 2023 |
koonbey: Thanks, you I'll modify my earlier post. I remember reading that you can either use the bonus to buy your 1st home or use it towards retirement. Never knew you can enjoy both. |
Re: Living In The UK: Property,Mortgage And Related by jedisco(m): 11:39am On Nov 08, 2023 |
Lexusgs430: Hehe.. in an ideal world, one would want to maximise all - in a real world, there's the opportunity cost. The way I see it, SIPP (max per yr 60k across board)- for retirement - good stuff is the government tax rebate for those contributing personally. If via a ltd co, reduces corp tax as its an expenditure. ISA (max 20k): tax free and flexible - could be a bridge for early retirement or used to save funds for other things. BTL: 45 - 70k initially (in most parts) if looking at a modest 3 bed with 25% deposit. SIPP and ISA would for most be invested in same things hence the worry i.e diversification. The op seems to have made good success of BTL contrary to the current predominant notion that BTL is 'dead' and small landlords are selling. Maybe cos he started early and had good tenants. With the new legislation plus rising entitlement of the average Brit, I can see how periods of non-payment can be a grave concern. The public and politicians have set their eyes on landlords and just like Brexit, they wouldn't stop going until something breaks. From little maths, a non-flat dwelling should average upto 3% (or more) increase in asset price per annum. Hence benefits would be asset appreciation, rental yield, leverage (both when buying and later remortgaging) Cost wise - additional stamp duty surcharge, conveyancing e.t.c, repairs, LTD co fees, estate finder and mgt fee, insurance (building and void). Currently my sipp and isa are in similar funds and would just keep it that way- when one gets a clearer insight of the BTL market. |
Re: Living In The UK: Property,Mortgage And Related by jedisco(m): 11:39am On Nov 08, 2023 |
ukay2: NHS pension is a good diversity bridge as it's a defined benefit schemme and tracks inflation. But it doesn't preclude one from a SIPP as you'd stil get the government rebate. Your ISA (LISA, S&S) would be invested in the stock market plus the additional risks of picking individual stocks. My looking into BTL is that it can be used as an outlet to diversify. But when compared to a stressfree global cap, is it really worth it? |
Re: Living In The UK: Property,Mortgage And Related by jedisco(m): 11:41am On Nov 08, 2023 |
Peerielass: Isn't it 20% rebate (i.e top-up the SIPP provider applies for) for all initially. Then higher rate tax payers can now claim the remaining 20% on the returns. I.e. 40% tax relief it it's all within the higher rate band- similar to salary sacrifice |
Re: Living In The UK: Property,Mortgage And Related by Solumtoya: 11:46am On Nov 08, 2023 |
All these NHS children... If you're like me that doesn't work in NHS, check your Employers, they might have some juicy offers like pension matching, schemes where you can get Stock Options by buying the Company shares at a discount using your pre-tax income, etc. I will definitely do BTL sha, like jedisco said there's Asset Appreciation, Rental Yield and Leverage. Let's keep packing up chunks of the King's land. Diversification is key |
Re: Living In The UK: Property,Mortgage And Related by justwise(m): 11:59am On Nov 08, 2023 |
ukay2: Congratulations!!! Really happy for you. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by justwise(m): 12:03pm On Nov 08, 2023 |
Lexusgs430: How does this work? I have read this from you before. |
Re: Living In The UK: Property,Mortgage And Related by Lexusgs430: 12:12pm On Nov 08, 2023 |
justwise: You choose a SIPP broker, you manage this SIPP portfolio yourself, you buy, you sell, HMRC gives you 25% on top of each contribution you make...... SIPP account usually cost about Β£9.99 pcm & you cannot withdraw from your SIPP portfolio, until you attain the ripe age of 65......ππ€£π 3 Likes |
Re: Living In The UK: Property,Mortgage And Related by Peerielass: 1:29pm On Nov 08, 2023 |
jedisco: Yes the 20% tax relief is standard for every SIPP. I was referring to the additional 20/25% which needs to be claimed back via self assessment depending on whether you are a higher/ additional rate tax payer. Problem is not everyone will remember to claim this back unless of course you are Lexsugs380 π. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by justwise(m): 4:18pm On Nov 08, 2023 |
Lexusgs430: I got it now. Thanks |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 6:36pm On Nov 08, 2023 |
justwise: Thank you Boss. |
Re: Living In The UK: Property,Mortgage And Related by Stenvee: 6:48pm On Nov 09, 2023 |
Finally I read every page God bless everyone who contributed in one way or the other Make I put my name for register, God help us 2 Likes |
Re: Living In The UK: Property,Mortgage And Related by jedisco(m): 8:55am On Nov 11, 2023 |
Solumtoya: Thinking about it is bonkers... the main advantage is that of leverage The government ensures you get a cheap loan to buy a dividend yielding product. Thesame government also ensures that by its policies (building constraints, migration, help-to-buy, mortgage guarantee e.t.c), the price of the underlying asset rises with time. It's an ever-yielding fruit as once the house price has risen well enough + built equity, you return to the bank to borrow fresh money on the value of your house to rinse and repeat. Reason how many portfolio landlords started with a small sum. I can't find any other example in general consumer finance. Imagine same occurring with stocks 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Estroller: 10:05pm On Nov 11, 2023 |
On the subject of overpayments, putting the overpayment amount in an account with interest rate that is higher than the mortgage interest rate and paying it all towards the mortgage at the end of the fixed period will achieve the same thing wrt to overpayment if not better considering the higher interest rate on the savings account. Is this thinking correct? |
Re: Living In The UK: Property,Mortgage And Related by ukay2: 10:13pm On Nov 12, 2023 |
Estroller: Anyone that works for you is fine.... I just feel putting aside a setting amount as monthly overpayment does not prevent me from investing in other investments like the S&S ISA and LISA. with good yields... For me, except it is a fixed deposit or bonds , you cannot guarantee the yield of the investment.. Usually the small little monthly overpayments could even be spent on other non demanding things if one is not careful..... 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Pearlyfaze: 11:25pm On Nov 12, 2023 |
Good evening dear ancestors. Please I will need some clarification to use hold body before meeting with Mortgage Advisors in few weeks time. I would love to know, For a new build home, How long does it take from reservation to moving in. We will complete two years by next month, we have 15% deposit for the property we intend to buy. So we intend to start the process by next month and by this time we will be having one year left on our current visa. What are the things to look out for. |
Re: Living In The UK: Property,Mortgage And Related by solveabode(m): 4:14am On Nov 13, 2023 |
Congratulations. Please can you enlighten me on how you are able to get Β£4k on LISA? Cos from my understanding, you only get a bonus of Β£1k if you deposit Β£4k in a year. Also, can you recommend a solicitor? Thank you Solumtoya: |
Re: Living In The UK: Property,Mortgage And Related by Solumtoya: 5:36am On Nov 13, 2023 |
Pearlyfaze: Reservation to Completion for a new build could take anywhere between 1 month and 8 months depending on what stage of building the property is in. Once you apply for a mortgage when you clock 2 years (if you're waiting till then), you could get an offer in 2 weeks, then Exchange Contracts in another 2 weeks. Afterwards, you just wait for the Developer to finish the building which could take a few weeks or a few months. An empty plot, for instance, could take up to 6 months while if the house is ready, it could be 1 week. My only worry is the length of time left on your visa but just get a good Advisor, with 15% deposit, they could make some magic. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Solumtoya: 5:40am On Nov 13, 2023 |
solveabode: My wife and I opened in Oct/Nov. By March, we had both put in Β£4k each and got Β£2k bonus. Then by last month, we had both put in another Β£4k each and got yet another Β£2k bonus. The Tax year ends 5th April so the Β£4k limits reset on that date. As for solicitors, I just used the one the Developer recommended, they say it's not advisable but it worked for me. If it was an old house agent's recommendation, I won't have used them though but New Build, I'm comfortable using their recommendation. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by solveabode(m): 9:04am On Nov 13, 2023 |
Thank you. Congratulations once again Solumtoya: 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Pearlyfaze: 12:12pm On Nov 13, 2023 |
Solumtoya: Thank you so much Sir, So at exchange of contracts, while waiting for the developer to finish the building, is one expected to start paying the Mortgage?. Or you start paying when you move in?. I just want to be clear and get ready for it. 1 Like |
Re: Living In The UK: Property,Mortgage And Related by Solumtoya: 1:20pm On Nov 13, 2023 |
Pearlyfaze: You start paying Mortgage monthly instalments at Completion when you move in. However, unless the Developer allows you, you will typically be required to pay the deposit at Exchange of Contracts. |
Re: Living In The UK: Property,Mortgage And Related by deept(m): 2:35pm On Nov 13, 2023 |
Pearlyfaze: Be careful o. There was a programme/documentary sometime ago about people who went to exchange contracts on buildings yet to be finished. The developer failed to deliver and for years they waited for 'houses' to be complete. Once you exchange contract there is no backing out. Get a good solicitor to look at whatever contracts you wil be committing to. EOC means paying your deposit, these people could not get their money back and no house. There was no timeline for house to be complete. |
Re: Living In The UK: Property,Mortgage And Related by Solumtoya: 2:57pm On Nov 13, 2023 |
deept: Solid point. That's why I prefer to use big developer names as listed on this thread. Also, it's a good point to ask your solicitor to protect you against such. The builder should give you a date in contract. Mine gave a proposed date with a 2 month extra hard stop after which if the building isn't ready, they have breached the contract. 1 Like |
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