We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Help - increased contributions question
Comments
-
Donstonh, what real returns for property and investments were you using for that reply? I don't think it's much of a stretch for the value of residential property to increase by 4.7% a year on average in nominal terms for 15 years and double in value as a result.
Set1, part of the potential of residential property is the leverage from the mortgage, where you end up investing more than the amount you put in yourself. Most people don't do much leveraging when using other investments.0 -
Donstonh, what real returns for property and investments were you using for that reply? I don't think it's much of a stretch for the value of residential property to increase by 4.7% a year on average in nominal terms for 15 years and double in value as a result.
I was working by the lower 10 year period and the op being a higher rate taxpayer so having a 28% CGT liability.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Only my opinion, but I would expect property to double over that time frame - although I accept though it has in the past it may not in the future.
Notwithstanding cgt/leverage, pension or property, which wins generally?0 -
Notwithstanding cgt/leverage, pension or property, which wins generally?
Pension is not an investment. It is a container for investments. Those investments could include property (albeit commercial property or property funds).
Tax is an issue as is the employer contribution.
Lets say the employer matches your contribution, that means for £100 paid in, you get £200 going into the pension. However, you also get 40% tax relief on your contribution. So, that £100 has really only cost you £60. So, for £60 cost, you have £200 going into your pension. Whatever that pension grows to, it is free of tax.Only my opinion, but I would expect property to double over that time frame
It took a credit boom and silly finance to achieve that previously. Going forward, that wont be there.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
pretty hard to turn 60 quid into 200 with property overnight.0
-
Many thanks - I find it rather difficult to understand pensions so that explanation helps!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.1K Reduce Debt & Boost Income
- 455K Spending & Discounts
- 246.6K Work, Benefits & Business
- 602.9K Mortgages, Homes & Bills
- 178K Life & Family
- 260.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards