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  • Tax

    More taxes take effect in 2018

    It would not require much lobbying since it is also in the governments interest. Pensions savings both reduce the governments long term liabilities but also some will be invested in government bonds improving finances in the short term.

    Of the little person is unaffect by S24, unless he wants to become big. But the City would not mind that. The savings of the typical little person are not woth their effort to manage.


    Yes but lots of little people and their savings etc cumulatively adds up to a lot of money.

    There are many avenues for the little person to invest

    For me BTL outperforms the City any day but if you have S24 etc then it makes sense returning to the City.

    But with the risk of losing everything.

    Something that doesn't occur with BTL.

    Even in a depression rental accommodation  will still be paid for.

    My properties reduced in value

    Didn't make a blind bit of difference

    I still received rent.

    My properties have since substantially increased in value.

    With property I can easily and confidently hold my nerve.

    Crashes don't bother me.

    Though of course it could be a bit tricky and very inconvenient if you wish to exit and you are in a crash period.

    But one accepts there can be no guarantees.

    But for me rental property is about as much a guarantee as I will ever expect to achieve.

    No way would I have invested what I have in property into the City.

    My nerves simply couldn't take the risk!!!


    If a crash happens in stocks and shares you have to do the same as BTL and that's hold your nerve

    lets say you have 250k invested and the crash happened the first thing I would do is buy more funds

    the second thing I would do is take out no more than I had before a crash

    ie you stick to a draw down plan if it was 5% before the crash its 5% after the crash

    after every crash there is a rebound

    But why not invest in both pensions and BTL

    its not one or the other its both

    You can never time a market but its the time in the market which counts

    the ones who lose are the ones who sell in any market


    Learn Change and Adapt ?????

    I know what you are saying but property has a physical form which cannot easily be made to disappear!

    For that reason alone property for me wins every time.

    Yes with perhaps spare funds then a little bit of City investing.

    Effectively  I did this for 31 years by paying 11.75 of my gross income into a Govt pension scheme.

    So I was invested in two markets  though I didn't have much choice with the pension contributions.

    I resisted the siren calls to convert my pension into a private one.

    Best decision I never made.

    S24 has now changed the property investment dynamic

    Though if I was starting out again I would do so within a corporate  entity accepting that income would be reduced and I'd have to wait 30 odd years to get at the full income.

    That would be acceptable rather than invest everything in the City.

    The major thing that traditionally had prevented the little person from investing in property was that mortgages needed to be supported  by personal income.

    So property was a rich persons game.

    1997 changed that when lenders allowed mortgages on the basis of rental income.

    This had the effect of effectively increasing the income of a normal wage slave.

    It immediately  put the poorer person on the same footing as a rich one

    S24 is effectively  reversing this situation.

    So the little person will struggle to achieve anymore than 2 or 3 properties in a lifetime.

    For most little people it means remaining a wage slave until pay day 30 odd years later.

    Still better than nothing I suppose.

    But massively disheartening.

    Of course there will be the LL  haters that would say that this S24 etc will force investment into other economic activity.

    It won't!

    Funds will just be parked in savings accounts where it will remain socially useless.

    Whereas such funds could have provided quality rental accommodation.

    But Govt has decided it doesn't want the little person involved in rental property if it involves borrowing.

    Where the tenants will live according  to the Govt is known only to them!?

    Govt must know something we don't.

    With the increasing evident homelessness I remain unconvinced that Govt has a clue about what it is doing in the PRS.

    I guess we shall see as the negative effects of S24 continue.