+ Reply to Thread
Page 5 of 5 FirstFirst ... 3 4 5
Posts 41 to 50 of 50

Thread: Weekly Dividend

  1. #41

    Super poster

    NorthWestPerm2Contr's Avatar
    Join Date
    Sep 2009
    Posts
    4,092
    Thanks (Given)
    16
    Thanks (Received)
    36
    Likes (Given)
    27
    Likes (Received)
    206

    Default

    Quote Originally Posted by northernladuk View Post
    No problems. Much easier to point out to people how badly they are doing something when you have a practical real life example at hand.
    Maybe to a high flying, loaded contractor like yourself I am doing badly, to others (and myself) I consider myself to be doing quite well. It's easy to look down on others, what is more difficult is showing a bit of humility in life and respecting that every person's situation is different. e.g. Just because somebody ended up a cleaner it doesn't mean we should look down on them.

    For you 5 months warchest is nothing, for me to have a house, invest my money in a property and still have a few months buffer is good enough and I am happy to live on the edge while I am still not 30.

  2. #42

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    31,696
    Thanks (Given)
    124
    Thanks (Received)
    1090
    Likes (Given)
    1570
    Likes (Received)
    5304

    Default

    Quote Originally Posted by NorthWestPerm2Contr View Post
    Maybe to a high flying, loaded contractor like yourself I am doing badly, to others (and myself) I consider myself to be doing quite well. It's easy to look down on others, what is more difficult is showing a bit of humility in life and respecting that every person's situation is different. e.g. Just because somebody ended up a cleaner it doesn't mean we should look down on them.

    For you 5 months warchest is nothing, for me to have a house, invest my money in a property and still have a few months buffer is good enough and I am happy to live on the edge while I am still not 30.
    Nicely put. You're getting there.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  3. #43

    Ddraig Goch


    Join Date
    Apr 2011
    Location
    Cymru
    Posts
    8,761
    Thanks (Given)
    88
    Thanks (Received)
    122
    Likes (Given)
    1007
    Likes (Received)
    455

    Default

    Quote Originally Posted by NorthWestPerm2Contr View Post
    I am back up to 3 months warchest

    Hopefully will be up to 4 or 5 by the end of the contract!

    Again thanks for keeping me in your thoughts.
    3 months aint much IMHO. I like 6 months minimum....
    Rhyddid i lofnod psychocandy!!!!

  4. #44

    Nervous Newbie


    Join Date
    Feb 2013
    Posts
    16
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default

    Hello!

    New member here. I couldn't figure where to put this post, whether to create a new thread or add it to an existing, but I figure I'd add it here as it's sort of the same subject. Thanks for the posts in here by the way, good info and has eased some concerns I had.

    I've recently started contracting. Unfortunately I hadn't managed to buy a house prior to my move from perm. Nor had I managed to save any money, so I'm looking at saving money and buying a house at some point.

    Now, I understand that the most tax efficient way for me to work is to take a salary of 7400 or there abouts and pay the rest in dividends. My intention is to take fairly regular dividends till my credit card and overdraft is paid off (some 3000), then start slowing down how often I take them as I build up more money in my own personal accounts. Anyway, this is kind of by the by and not my question.

    What I want to know is what is the 'best' way for me to buy a house quickly? I've been told by a colleague at work that if I pay myself via the above means then I would find it harder to find a lender due to having a low salary and that I should pay myself a higher salary for a few years and then after 2-3 seek a mortgage. But on the flipside I have been reading a lot online which suggests that there are a lot of brokers out there who are contractor friendly and simply work out deals based on daily rates, work history and CV.

    Any guidance or personal experiences please?

  5. #45

    Ddraig Goch


    Join Date
    Apr 2011
    Location
    Cymru
    Posts
    8,761
    Thanks (Given)
    88
    Thanks (Received)
    122
    Likes (Given)
    1007
    Likes (Received)
    455

    Default

    Datalink - speak to your accountant. You do have one yeh?

    Colleague is talking bollox about the salary thing. Won't make any difference to a lender because all they are likely to see is the wording temporary contract. All it'll do is mean you pay more NI in the long run if you decide to pay a larger salary.

    Of course, salary level is dependent on a number of things anyway but I wouldnt pay a larger salary in the hope of making my income look better to traditional lenders.

    Best bet is to speak to one of the contractor mortgage companies....
    Rhyddid i lofnod psychocandy!!!!

  6. #46

    Super poster


    Join Date
    Feb 2010
    Location
    London, UK
    Posts
    3,996
    Thanks (Given)
    36
    Thanks (Received)
    29
    Likes (Given)
    153
    Likes (Received)
    88

    Default

    Quote Originally Posted by Datalink View Post
    What I want to know is what is the 'best' way for me to buy a house quickly? I've been told by a colleague at work that if I pay myself via the above means then I would find it harder to find a lender due to having a low salary and that I should pay myself a higher salary for a few years and then after 2-3 seek a mortgage. But on the flipside I have been reading a lot online which suggests that there are a lot of brokers out there who are contractor friendly and simply work out deals based on daily rates, work history and CV.
    You might be able to go to a broker because not having much deposit, being self employed and being paid dividends isn't going to compute with some of the high street lenders. Do a search for the word "mortgage" on this forum and you will find lots of discussions of it.

    Probably it will boil down to "save up a 25% deposit and get a year's worth of trading and accounts done then apply through a broker" - though that's not what you want to hear, is it.
    Free advice and opinions - refunds are available if you are not 100% satisfied.

  7. #47

    My post count is Majestic

    northernladuk's Avatar
    Join Date
    Mar 2009
    Posts
    31,696
    Thanks (Given)
    124
    Thanks (Received)
    1090
    Likes (Given)
    1570
    Likes (Received)
    5304

    Default

    You are heading for a problem which could ultimately cost you your new house...

    You haven't mentioned the word warchest yet. If your plan is to save hard and scrape together the deposit for your house you are not going to have a penny to support yourself should when you are out of contract. You are not yet an experienced contractor so still a risk so end to end gigs are not a given. 2 months out of a gig means you can't pay any of your bills and still need a couple of grand to live on.... can't do that and the first thing they will come after is your shiney new house.

    Forget the house, concentrate on getting a 3-6 month warchest and THEN start saving for a house.

    Do not kid yourself that you can use your warchest as deposit. As a contractor you can get walked there and then, and it happens. Many new contractors get in to hopeless situations due to poor future planning, don't be one of them.
    'CUK forum personality of 2011' - Winner - Yes really!!!!

  8. #48

    Nervous Newbie


    Join Date
    Feb 2013
    Posts
    16
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default

    Thanks for the advice all. Yes, I do have an accountant. I'm with SJD and I have been shown the most tax efficient way of working. He has suggested I speak to an IFA but I was going to wait a month or two to let funds build and debt be paid off.

    War chest is my number one priority. I'm thinking of saving personal money on top of that, which I figure should be doable.

  9. #49

    Super poster


    Join Date
    Feb 2010
    Location
    London, UK
    Posts
    3,996
    Thanks (Given)
    36
    Thanks (Received)
    29
    Likes (Given)
    153
    Likes (Received)
    88

    Default

    Quote Originally Posted by Datalink View Post
    Thanks for the advice all. Yes, I do have an accountant. I'm with SJD and I have been shown the most tax efficient way of working. He has suggested I speak to an IFA but I was going to wait a month or two to let funds build and debt be paid off.
    I don't think you will have much chance of getting a 100% mortgage while being newly self employed and having other debts.

    Quote Originally Posted by Datalink View Post
    War chest is my number one priority. I'm thinking of saving personal money on top of that, which I figure should be doable.
    Yep. Also look at flexible mortgages, they will get you a good return on your savings which is great if you have an income which fluctuates.
    Free advice and opinions - refunds are available if you are not 100% satisfied.

  10. #50

    Nervous Newbie


    Join Date
    Feb 2013
    Posts
    16
    Thanks (Given)
    0
    Thanks (Received)
    0
    Likes (Given)
    0
    Likes (Received)
    1

    Default

    Income should be steady till the end of this year *touch wood*. Thanks all, off to read other parts of the forum now to try and get my head round everything. I say debt, but it's 1.6k on two credit cards and a 2k interest free overdraft so nothing substantial, they'll be gone before the new tax year. What will effect me is my previous credit history where I ended up with a default on my file due to a nasty divorce. Long story but that's off within a month or so which should let me build it up nicely over the coming few years.

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Content Relevant URLs by vBSEO 3.6.0 ©2011, Crawlability, Inc.