£10,000 any ideas

kenshaz

Pay your parents more money,because they are keeping you

kenshaz

shimmasok wrote:

Hi everyone, this is my first post on this site so I do apologise if this thread is a little too specific!

My happy dilemma is that I have saved up £10,000 from work as I have and still am living at home and am planning what do do with it. At 20 i'm still not quite ready to move out but I am drawn to the idea of buying to let with the hope that I can save up another £10,000 or so in the next 3 years or so to buy a house of my own thereby giving me one to love in and one as the pension or a nice windfall in 25 years. I am also contemplating a GEB as the market does seem to be on the rise

Does anyone have any good advice for me, all input is greatly appreciated

Thank in advance

Yes fly the nest

innovate

kenshaz wrote:

Pay your parents more money,because they are keeping you

kenshaz wrote:

Yes fly the nest

Whatever happened to constructive advice?

Mr_Mumble

shimmasok wrote:

not massivley keen on risks to be honest.

The, slim but real, possibility of negative equity on two properties by your mid-twenties seems high risk to me!

kenshaz

This constructive advice would certainly assist the parents

lindabea

kenshaz wrote:

This constructive advice would certainly assist the parents

Your contructive advise depends on the financial circumstances of the parents. What is the point in their son giving them money only for it to then become a burden for them due to IHT. Surely, if they don't need the money, it would be better for their son to keep it thereby avoiding their son from inheriting it and possibly incurring IHT.

Be careful how you give constructive advise.

shimmasok

Thanks for all of your help everyone, Parents mortgage is paid off so i'm not too worried about being a financial burden on them I do buy the shopping occasionally and am out fo the house most of the time but i'm sure they will appreciate your concern.

Thanks for the IHT advice but i've actually studied it as part of my training to be a solictor, if anyone is interested yet 275k of taxable assets is the threshold. However, anything that passes to a spouse is exempt and so will not count. Further, if an asset is transferred into my name for example their house but I do not enjoy exclusive possession of it then it will not count as a true transfer for IHT purposes, besides if they did that it would be a capital gain for me in terms of CGT. With regards to gidfts they can make 3k a year to be tax free yes, they can also do one off gifts of 250 whenever they like. If something major is truley transferred to me it will become what is known as a PET or potentially exempt transfer. If they survived 7 years from the transfer then there would be no IHT to pay on it, this would be good for example if they owned a holiday home.

Thanks again for all of your suggestions everyone, I think i'm going to go for a regular saver account and transfer 500 a month from the kitty into it as mock income for now

If anyone wants to ask me anything else about IHT then give me a shout or I may make a thread on it when I have time