Reply to: House prices

[SueEllen]

Why anyone goes to university now (apart from protected highly paid careers, like politics, medicine and law) rather than learning a trade and building a property empire is beyond me. No amount of IT contracting can match someone who has accumulated a dozen prime properties in the SE in their a lifetime. The leverage and house price gains means millionaire wealth just arrives over time.

Because people need to have some fun in their life and a period of limited responsibility before they become a proper adult working until retirement (or death).

[d000hg]

Why anyone goes to university now (apart from protected highly paid careers, like politics, medicine and law) rather than learning a trade and building a property empire is beyond me. No amount of IT contracting can match someone who has accumulated a dozen prime properties in the SE in their a lifetime. The leverage and house price gains means millionaire wealth just arrives over time.

Because lots of people want to do something they find interesting, not just make the most money. My dad always argued that as a halfway bright lad, I would do well entering the police or armed forces with an interest in science/tech because the promotion prospects into a specialism were very good once you got going.
Equally, I knew at uni that applying for graduate roles with big London firms was where the real money was rather than getting a job on £18k in the northeast. But I didn't want to.

Not to mention, you're drawing on decades of life experience to give advice from hindsight, people at 18 haven't got.

[eek]

This is true if you buy something with a juicy yield and don’t get stung by cladding shared ownership nonsense

and stay away from buying in undeserianle areas.

how long it continues remains to be seen. It’s a house of cards and policy changes can make this asset class wholly unattractive overnight.

and finally it contracting was a real way to generate true wealth. Where else could you get £750 ++ a day for messing about in an office drinking coffee and sending the odd email

Nope software (especially software as a service) is where the real money is.

And the best bit is when we up sticks and move to Italy / Portugal. For 10 years all our none Italian / Portuguese income will be utterly tax free.

[NowPermOutsideUK]

This is true if you buy something with a juicy yield and don’t get stung by cladding shared ownership nonsense

and stay away from buying in undeserianle areas.

how long it continues remains to be seen. It’s a house of cards and policy changes can make this asset class wholly unattractive overnight.

and finally it contracting was a real way to generate true wealth. Where else could you get £750 ++ a day for messing about in an office drinking coffee and sending the odd email

[_V_]

Here in Essex there are plenty of people with decent property empires acquired whilst I was skint during/just after university in the early/mid 90s.

I earn many many times what some of my friends do but my net worth will never exceed theres unless property prices tank.

Why anyone goes to university now (apart from protected highly paid careers, like politics, medicine and law) rather than learning a trade and building a property empire is beyond me. No amount of IT contracting can match someone who has accumulated a dozen prime properties in the SE in their a lifetime. The leverage and house price gains means millionaire wealth just arrives over time.

[NowPermOutsideUK]

Nah the properties are combined worth probably about £800K. The profit on them at the moment gives me about £40k after costs and taxes etc. So not really at a retirement level. As I say its a pension play. If I can get some more properites the will provide a pretty healthy top up to my pension. But I've been working as a contractor for years and I've developed a fairly expensive lifestyle with a fair chunk left to pay on my mortage as well as all my other costs so the moneys not there to retire at least not at the income I'd like to. Still fairly young so have a good few years work in me before I'd even consider chucking it.

That's pretty decent - 40K after costs and tax implies 80K gross and if the portfolio is worth 800K would imply a return of 10% - Certainly not shabby so well done to you .

A lot of people on here will tell you that 40K after tax is a kings ransom and they can get by on 12K a year... Dont let that demotivate you

How times have changed that once upon a time contractor forums was littered with people earning 20K a MONTH as programme managers plus their stocks and other investments generating massive PnL

[TheDude]

Here in Essex there are plenty of people with decent property empires acquired whilst I was skint during/just after university in the early/mid 90s.

I earn many many times what some of my friends do but my net worth will never exceed theres unless property prices tank.

[northernladuk]

an no longer legal tender Grandad!

Indeed but the value of them still appears to be over the marked price so worth even more! Think of it like bitcoin for old people. Not legal tender but still has a value that far exceeds it's physical worth and still fundamentally useless.

[vetran]

6" of crisp oncers is about £1,380.

an no longer legal tender Grandad!

[northernladuk]

Except in London when you whine like a little b*tch

<LM drops Mic>

Hardcore Pwnage right there.

[WTFH]

stop talking in mm, you need to be thinking in inches...

6" of crisp oncers is about £1,380.

[Mordac]

I think its called conversation...

Where one party listens to teh views of the others and assesses whether their views on life need to be calibrated

For example if the poster said 2MM is my cut off and someone else has already broken through 3MM then that might give them the encouragement to also stop working

Equally if the poster says that 3MM is not enough and I need 6MM because then that same 3MM forum viewer might be motivated to continue

Its the same reason people go the pub - To talk share ideas and collaborate ideas with one another to either have their understanding reaffirmed or be persuaded to look at things from a different angle

stop talking in mm, you need to be thinking in inches...

[d000hg]

So basically you are the pub bore, only interested in money and absolutely nowt else.

He's the one suggesting the other guy should retire. Which seems a fair point.

[pjt]

Ok but those 8 properties must give you a net worth of at least 1.5MM and more likely 3MM.

At what point do you say thats enough and the flood of Noah would not wipe me out?!

Nah the properties are combined worth probably about £800K. The profit on them at the moment gives me about £40k after costs and taxes etc. So not really at a retirement level. As I say its a pension play. If I can get some more properites the will provide a pretty healthy top up to my pension. But I've been working as a contractor for years and I've developed a fairly expensive lifestyle with a fair chunk left to pay on my mortage as well as all my other costs so the moneys not there to retire at least not at the income I'd like to. Still fairly young so have a good few years work in me before I'd even consider chucking it.

[ladymuck]

Maybe but I always insist on paying for the drinks !

Except in London when you whine like a little b*tch