Forget pension reform, what should 'young' earners be doing with their money?

Delaying pension makes sense if you have shorter-term priorities – like getting a house, or paying off debt. Not sure why you don’t think delaying contributions until a higher rate tax payer makes sense – perhaps only for those who’s salary will increase rapidly in early years. Getting 40% tax back is nice.

footflaps – Member

Not a lot, probably a few £100 a year if that.

What did the shed cost you?

good luck finding a rental with a shed like that to suit your needs

good luck building a shed like that to suit your needs at a rental.

that was another huge deciding factor in buying a house….. needed workshop space.

good luck finding a rental with a shed like that to suit your needs

good luck building a shed like that to suit your needs at a rental.
Found a great one with a double garage and more with heaps of workshop space, had a choice of 3 with that sort of deal going on. It’s very area dependant, in the areas I was living in it worked.

What did the shed cost you?

That’s not maintenance nor was it needed, I chose to build it and I chose an ‘expensive’ option as it will more than add it’s build cost to the value of the house, so if I ever move I’ll get the money back with considerable interest.

no you didnt footflaps you must be lying ….. , clearly on here the minimum cost for a bathroom or a kitchen is 15 grand……maybe thats why maintainance costs are assumed so high.

Total kitchen cost was £3.5k, fitted that myself as well over a BH weekend, not that anyone would believe it..

Kitchen by brf[/url], on Flickr

The angles look a bit off

The angles look a bit off

Probably why it was so cheap 😉

Yeah I moved rentals and got a much nicer kitchen and massive double garage with loft conversion. Didn’t cost me £3.5k.

Yeah I moved rentals and got a much nicer kitchen and massive double garage with loft conversion. Didn’t cost me £3.5k.

And I’m more than happy for you. As the owners of two other properties we need renters like you to pay their mortgages for us 🙂

enjoy , you obviously worked in one of the less in demand areas.

a quick look on the region rental site shows 9 x 3 bedroom houses for rent – not one of them cheaper than my mortgage – most at 2-300 more than my mortgage and the odd one with a single attached garage – all in housing estates bar one and thats next to a busy road.

so its definitely area and life style dependant although i certainly wouldnt be rushing out to buy right now with the election coming up , not much up for sale and whats decent coming on the market is snapped up quick and the stuff on the market seems to have either a high price or major flaws.

mudshark – Member

Even as a basic rate tax payer paying into a pension makes sense

Only if not planning to be a higher rate tax payer as would save more tax by waiting – obviously using the money for something else such as ISA or property deposit.[/quote]

If only it were that simple. Look at the people who made responsible and sound pension decisions in previous decades, only to have their finds plundered by Gordon Brown.

Confiscation is the order of the day, especially if we remain shackled to the debt-machine that is the EU.

Well done glad you can afford it. For me renting is a much better option. for a lot of people it might be if the obsession with home ownership was broken. It seems like renting is looked down upon despite it coming to the point where unless houses continue to accelerate past earnings at a good rate the returns that most of the “buying is best” crowd report will never happen. There is some sound economic research going into the area and in reality unless I could see 10-15 years in one place I’d not consider buying a house. telling people buying is great is not the best thing in the world, there is a degree of personal circumstances to consider and in and unstable economy being tied to one location is a disadvantage.

I know I’m in the minority on this one but I’ve looked at the facts and numbers of my situation.

what should ‘young’ earners be doing with their money?

Whatever they do, they should keep their assets under their own direct control.

Anything that gets locked into a scheme or arrangement is a sitting duck. At some stage the pot will get big enough for the govt, the taxman or a banker to come along and clean them out.

Basic advice is never ever borrow money for an unproductive asset or consumer toy or experience.

If only it were that simple. Look at the people who made responsible and sound pension decisions in previous decades, only to have their finds plundered by Gordon Brown.

Ah that old chestnut. That particular “raid” was I believe started by Nigel Lawson, although it could have been earlier, and generally extended by subsequent chancellors. It was by no means all down to Gordon Browns.

It’s seems to be going down the rent/buy argument. Which the poster didn’t ask.
Forgetting rent/buy, property IMO is a good investment if you make the right choices, I’ve effectively had my mortgage on my own house paid for the last 8 years, as well as having a surplus amount left.
Not bad for 44. But I do all maintenance myself (it’s not that much tbh) and manage them also (no agent fees to pay) so fees are zero.
Hopefully by the time I hit 55, my house will be paid for, I’ll sell half of my rentals, (they are on a repayment mortgage) pay the mortgage off on the other half (interest only) and the rent coming in will be my pension and will probably be passed on to my daughter when I die.
Unless I sell up and do the coke and hookers thing later in life.

Ah that old chestnut. That particular “raid” was I believe started by Nigel Lawson, although it could have been earlier, and generally extended by subsequent chancellors. It was by no means all down to Gordon Browns.

http://www.theguardian.com/money/2004/jul/10/pensions.jobsandmoney

Old article, but still relevant.