Year 12s: what will be the first way you research your future options? >>

I inherit a 450,00 house when I turn 21 ama

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jon2016

Just rent it out to a young professional. It'll probably fetch over £1000+ month in rent.

I spoke to an IFA when I was 18 and he said if I invested in a combination of bonds and shares, I would get a minimum of 20,000 a year which would increase above inflation most years

Reply 61

JoeTSR

Original post by jon2016

Well its complicated because someone of the property belongs to my Dad, but my dad promised to give me his share when I turn 21. So I dont think I have to pay inheritance tax

I think I will pay capital gains tax on any rental income ? not sure but around 20%

Make sure the both of you see an accountant (the sooner the better). You'll probably have to pay CGT on the transfer. If you'd prefer to live somewhere smaller and have the money, set up a company, and see if the accountant can find the most cost-effective way for him to transfer it into that. Then rent it for a year or two through the company. You won't pay CGT, any income above the income tax threshold you can take as a dividend (and expenses can be written off) which you don't pay tax on for the first £5k, then pay 7.5% for the rest.

After a couple of years, you then sell the company, rather than the house itself (though the house is included). Entrepreneur's relief means you'll only pay 10% tax on that sale, rather than CGT.

Reply 62

PlGLET

You're sat there with almost half a million whilst your friends are on a baked bean diet? :'D

Good luck whatever you choose to do. The price could inflate & it might be worth keeping/renting out for a few years? I wouldn't know, I'm no Phil Spencer ;-)

PlGLET

Reply 63

jon2016

Original post by PlGLET

lol im asset rich but cash poor :/ didnt even get a student loan so had to get a part time job and work during Summer.

Also that friend was just bad at managing his finances

Yes I do have alot to weigh up, I could just move to Panama open up a surf shop and live on the beach for ever

Reply 64

jon2016

one in ten households in Britain are worth seven-figures

http://www.thisismoney.co.uk/money/news/article-2630293/ONS-wealth-report-reveals-10-Brits-millionaires.html

So that means one in ten of you reading this is richer than me

Reply 65

BristolFresher15

Original post by jon2016

nah they live in a 5 bedroom detached house with a double garage. You should come over some time to clean the garden or something, we pay living wage dw

I'm more adept at kitchen work.

Reply 66

jon2016

Original post by BristolFresher15

I'm more adept at kitchen work.

sorry dont let strangers inside the property

Reply 67

jamesthehustler

Original post by jon2016

Only a few people know this my parents and one of my flatmates

I cant wait till the day, going to be one huge pay day

Edit : meant to say £450,000

i remember one of my friend inherited his grans house when he was 15 and he had the floor redone turned out there were safes full of old white fivers, gold bars and loose gemstones under the boards he gave me a few bits which i still mostly have

Reply 68

jon2016

Original post by jamesthehustler

LOL is this real ?

I will prob search the shed and attic before I sell it

Reply 69

jamesthehustler

Original post by jon2016

LOL is this real ?

I will prob search the shed and attic before I sell it

totally it all totalled out at about £6,000,000

Reply 70

jon2016

Original post by jamesthehustler

totally it all totalled out at about £6,000,000

sounds like a great story, must have sucked when you realised it was a dream

Reply 71

PlGLET

Original post by jon2016

lol im asset rich but cash poor :/

Spoiler

Original post by jon2016

Yes I do have alot to weigh up, I could just move to Panama open up a surf shop and live on the beach for ever

Spoiler

:-)

PlGLET

Reply 72

jon2016

Probs hire 2 prostitutes and have a threesome aswell

Reply 73

jon2016

Original post by Mathemagicien

No such thing as 'low risk' on the stock market :tongue:

Well, maybe German bonds... but they get very low returns

haha I know but apparently if you buy negative correlated stocks you can reduce your risk by quite alot

Low Risk as in, a less than 5% chance I would loose more than 45,000 in a single years trading

Reply 74

jon2016

Original post by Mathemagicien

No such thing as 'low risk' on the stock market :tongue:

Well, maybe German bonds... but they get very low returns

My dad has shares Blackrock's Energy portfolio and oil companies are doing really bad at the moment but he only lost like 10% or something this year but still up 25% from 5 years ago.

StockMarket does go up and down but overall trend is up

Reply 75

username2371841

you gunna invite me to your house parties or else i will rip your neck just like they do in twilight

:smile:

Reply 76

jon2016

Original post by sfaraj

you gunna invite me to your house parties or else i will rip your neck just like they do in twilight

:smile:

We can party right now, DM me your digits

Reply 77

Bill_Gates

Original post by jon2016

Probs hire 2 prostitutes and have a threesome aswell

stuff of legends mate

you have a good time, you earned it!

Reply 78

jamesthehustler

Original post by jon2016

sounds like a great story, must have sucked when you realised it was a dream

admittedly he had to split it with his 2 siblings and his father but he's moved to dubai where he bought a 2009 CCX and a studio apartment

Reply 79

VeniViciVidi

Original post by jon2016

I think I will sell it ? Landlords have too much responsibility

Gives me more freedom to pursue a career I want knowing I have a cushion of 20,000 a year.
Prob go into Journalism or something.

You don't strike me as the journalist-type. I don't think you'd be able to cut it.