I have £40,000 to start a new business. Ideas welcome!

MBE2017

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    If you have any tips for the best direction for this i would appreciate it? To de-risk i would probably start with one. Looking to drive best ROI over say a 7-10 year window.

    FWIW, this is just general advice. Getting into Property is a big thing atm, based on 10 very good years of incredibly low interest rates and huge demand, it was almost impossible not to make money.

    There are hundreds of so called experts willing to relieve you of your money, who will convey a handful of interesting things, but not teach you a lot of important things. Some ask over £1000 per day, and there seems plenty willing to pay.

    Personally, I would recommend save your money, self teach yourself, take your time, read and watch as much as you can, join local groups, talk to real people, always aware the sharks are looking to prey on the newbies, as in most industries.

    There are several ways to make money in property, you need to decide what version you prefer to follow, or maybe several of them. As with most things, the most important step is buying at the right price to begin with. Buy too high and you will always struggle to make good returns.

    Finally, the next 7-10 year window, no one truly knows. Property could continue to rise in value in some areas, or crash since it is now at the limit of affordability for most. The world is changing faster than ever in the unusual circumstances of high inflation and high interest rates, with huge debt plaguing most Western countries.

    My advice, take three to six months and learn what you can, and make a plan.
     
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    m4hmo

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    This is a real interesting thread to me, especially the posts from @m4hmo who clearly has experience in the game and prepared to share experience of same here which is very decent of them and helpful.

    I was thinking about this but on a smaller scale, diversifying about £600k into property locally in Staffordshire area. If you look on Rightmove within 10 miles of Stafford on average i'm looking at a 3 bed semi detached for £200k. So in principle i could look to buy 3 of them to start a portfolio off.

    Mortgage rates are not a consideration as i'm a cash buyer, My only concerns would be a) I'm not a hands on tradesman like @m4hmo is so i would be using eternal for building works at cost b) i don't fancy the hassle of chasing rent etc so would probably prefer to outsource to local property agents albeit lose 10-15% in handling costs.

    If you have any tips for the best direction for this i would appreciate it? To de-risk i would probably start with one. Looking to drive best ROI over say a 7-10 year window.

    Thanks in advance
    Thank you. If you are seeking 3 houses, pick a road and try to get 3 in a row. Aim for BIG gardens. The long term goal would be to demolish one house or half a house to make a road to the back where you can make a development. (We are attempting this in London as well on the side - however the whole road and local labour councillors objected by way of petition).

    And/or pick houses where the garden backs onto another road so you have some rear access and the potential to build a house at the back. (You can see this happening in some places on some roads already). You could even try to buy the gardens off a few houses in a row where their gardens back onto a road.

    Pick houses on the corner. Pick houses with space to the side. Pick houses side by side, 2 semi detached houses side by side can become one large HMO.

    You may not get all of the above, but the above is what I look out for. I don't do flats, I'd rather build the block one day.

    Correct, management will take 10% off you. Tradesmen will cost you labour everywhere. But since you are a cash buyer you should be ok, you won't have the worry of the mortgage.

    Look for REAL potential, look at HOW you can add value.

    I look out for the above generally speaking especially sticking to the same road so it's easier to manage.

    Added:

    Would you consider say one house in London for £500k (not easy to find), then use the other 150k to develop, so you have a decent return straight away?

    Also when I get the time I will have a look at the area you are searching. Generally speaking I dislike the online adverts, mostly full of retailers over valuing their assets. The only value I cared about was the surveyors valuation after which it's upto you how much more you are willing to pay.
     
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    andys06

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    Hi all - I am due to return back to my full-time admin role in a couple of months after my maternity leave and I would really like to start looking at ideas now to start up my own business.

    I'm not new to the game - I've got 4 properties that I rent out and previously had a successful ebay shop selling liquidation goods. That worked for me at the time, because I had a few good opportunities of stock to buy - but I struggle to find those sort of deals nowadays, so I'm not convinced that's the way forward for me.

    I have the opportunity to sell one of my properties, to allow me to invest around £40,000... but I am struggling for ideas. I don't do things by halves, but have never had the funds or the confidence to really go for it. However, my kids are all the motivation I need now to get serious about it.

    I have looked into a couple of ideas, but one thing or another has put me off. My strengths are online selling, customer service, I have a bookkeeping qualification.

    Ideas I have considered but talked myself out of - bouncy castle hire, photo booth hire, soft-play.

    Any ideas welcome!
    Hi

    Have you thought about investing in an already established business rather than starting from scratch?
     
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    JEREMY HAWKE

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    As a right wing capitalist I have a strange outlook on this subject albeit one that I think is a poor medium term investment
    I would not like to prey on those that have less than me and simply use them in some sort of attempt to run a so called business

    As a capitalist I think that our society should be able to offer most people on average incomes the opportunity to buy their own home not fill the market with BTL landlords and obliterate the housing market in a period of 20 years To say that what is going on capitalism at its best is too simple so don't demonstrate that you are a simpleton by saying it

    Hopefully the landlords on here wont reply to this post with " Oh but I , I , I and I do this because there is too much of landlord me me me going on in these lands at the moment!
    You feckers have recked the housing market and then you have the nerve to complin that you have to pay tax because you borrowed some money
    You borrowed the money in the first place :)
    DIY landlords they are menace and a joke
     
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    m4hmo

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    As a right wing capitalist I have a strange outlook on this subject albeit one that I think is a poor medium term investment
    I would not like to prey on those that have less than me and simply use them in some sort of attempt to run a so called business

    As a capitalist I think that our society should be able to offer most people on average incomes the opportunity to buy their own home not fill the market with BTL landlords and obliterate the housing market in a period of 20 years To say that what is going on capitalism at its best is too simple so don't demonstrate that you are a simpleton by saying it

    Hopefully the landlords on here wont reply to this post with " Oh but I , I , I and I do this because there is too much of landlord me me me going on in these lands at the moment!
    You feckers have recked the housing market and then you have the nerve to complin that you have to pay tax because you borrowed some money
    You borrowed the money in the first place :)
    DIY landlords they are menace and a joke
    You have no idea what you are talking about. I have a different way of looking at it.

    It's actuall the retail market, first time buyers, making the prices go up. They over pay for everything. If THEY stopped buying, what do you think would happen with prices? Go down no?

    Landlords/investors want to pay the surveyors valuation ideally. In fact we are more patient and willing to wait for a good deal. Not pay the stupid over inflated retail prices especially last summer, all caused by over excited retail buyers competing on a house. It's them driving the prices up IMO.

    To add, best time for investors to buy is end of the year, especially December when retailers are skint. Worst time is summer. You should thank the investors for buying the shit holes and bringing them up to standard instead of moan at them.
     
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    MBE2017

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    You feckers have recked the housing market and then you have the nerve to complin that you have to pay tax because you borrowed some money
    You borrowed the money in the first place :)
    DIY landlords they are menace and a joke

    Well I am in property, but I am not a Landlord, so I tread a middle path.

    I think it is an easy simplistic argument to blame private landlords, and I will explain why.
    Firstly, looking as an investor or business person, landlords DO NOT OVER PAY FOR PROPERTY. The two easiest ways to make money in property is buying it at the right price, and adding value to it.

    I would agree that many landlords are complaining about interest rates, I liken it to a courier moaning about fuel prices going up way past inflation.

    Where private individual landlords have been treated unfairly is S24, where they can no longer claim the interest payments as a business cost. This change means many are paying tax, even when they have made a loss, a totally unique treatment of a single sector of the economy.

    As for being a menace and a joke, yeah, whatever floats your boat. Most landlords I know are providing top quality housing, way better than council and social housing groups could ever offer, because it makes money.

    The Government is using landlords as scapegoats for successive Governments failures to build enough houses. Before anyone tries to convince myself there are plenty of houses, my last refurbishment had 125 families view it and forty two offers in less than two weeks. It also sold for more than the asking price.
     
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    MBE2017

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    Just to add to the above, all private rental properties have to be brought up to a C rated EPC by 2028, but councils are exempt from this legislation. Things might change when tens of thousands of renters are thrown onto the streets since many properties will not make this level, and it is expected to cost £15k per property to do.

    Those nasty private landlords eh?
     
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    m4hmo

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    Just to add to the above, all private rental properties have to be brought up to a C rated EPC by 2028, but councils are exempt from this legislation. Things might change when tens of thousands of renters are thrown onto the streets since many properties will not make this level, and it is expected to cost £15k per property to do.

    Those nasty private landlords eh?
    Was thinking about this - I recon the first thing we might have to do is insulate the roofs with a good 120mm pir in between the rafters, and 62.5mm insulated plasterboard on top. Excessive but effective - the above is actually a requirement for new garage conversions now. That should help with u values.

    The rest is the usual double glazing, draft proofing, trv valves, A rated boiler, led lighting.

    Maybe add solar panels? If it helps?!

    Either way a C is not too difficult to achieve. I have a house with horrible single glazed sash windows still rated D i think (will check online when i can be arsed). Will also ask the EPC guy next time I have one to do and see what else can be done.
     
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    JEREMY HAWKE

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    It's actuall the retail market, first time buyers, making the prices go up. They over pay for everything. If THEY stopped buying, what do you think would happen with prices? Go down no?
    There are less first time buyers than since the 1960s They are not fueling increases as there are not enough of them to create a demand
     
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    MBE2017

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    There are less first time buyers than since the 1960s They are not fueling increases as there are not enough of them to create a demand
    In 2022 there was 204530 new houses built in the UK, with 370,000 new home buyers.
    The country is not building enough homes, the Private sector is helping out a lot but planning laws need amending urgently, and as importantly Government policy needs to be known.

    Sorry Jeremy, normally you speak a lot of sense, but not this time.
     
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    MBE2017

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    Either way a C is not too difficult to achieve. I have a house with horrible single glazed sash windows still rated D i think (will check online when i can be arsed). Will also ask the EPC guy next time I have one to do and see what else can be done.

    C rating can be achieved on most properties, it is for many Victorian terrace type properties very difficult, and expensive. There has to be a sensible economic case to do this work, which is why Councils are exempt from the same rules.

    The point is, people rant at the private sector, most do not realise there are very different rules, and seem to think Council and Housing Associations have quality homes. Anyone who saw Panorama this week should realise they have the worst quality property in the market. One reason private renting cost more is the quality is much higher overall.
     
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    Newchodge

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    In 2022 there was 204530 new houses built in the UK, with 370,000 new home buyers.
    Isn't that a fairly meaningless set of statistics without including also how many people stopped owning homes and how many homes were destroyed?
     
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    MBE2017

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    Isn't that a fairly meaningless set of statistics without including also how many people stopped owning homes and how many homes were destroyed?

    As a statistic it is fine, it shows there are more buyers than new houses being built, hence the huge demand. Anyway, everyone who works in property knows the truth, why so many seem to wish to argue the facts is beyond myself.
     
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    m4hmo

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    As a statistic it is fine, it shows there are more buyers than new houses being built, hence the huge demand. Anyway, everyone who works in property knows the truth, why so many seem to wish to argue the facts is beyond myself.
    Not sure about outside London but all I see is blocks of flats and apartments popping up on all high streets and major cross roads, all within the M25. They are not staying empty. Bristol is going in the same direction from the centre outwards. I live in both cities 50/50 pretty much.

    Guessing these comments are from rural areas. Sometimes when you stay out in the sticks you miss out on what's really happening to the rest of the country.

    The hmo game allowed multiple households to stay in one house, it's basically normalised lodging on a bigger scale. I tell my tenants you shouldn't be renting, you should stay home, live with your parents, save a deposit, and then move out when you can buy. Will anyone listen? Nope. They demand this housing, and others will supply it. It's cheaper than renting a 1 bed flat in their eyes.
     
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    m4hmo

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    Isn't that a fairly meaningless set of statistics without including also how many people stopped owning homes and how many homes were destroyed?
    What you think is irrelevant. Look at what people want, not what you THINK. Got to be objective here and take your own personal opinions out of the equation. I learnt this 20 years ago when selling on eBay, what you think sells well does not always sell well, what people want is a whole different matter. So I used to advertise the whole catalogue from the supplier to find out for myself.
     
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    @Gasgas125 Maybe speak to these people?

     
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    JEREMY HAWKE

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    Guessing these comments are from rural areas. Sometimes when you stay out in the sticks you miss out on what's really happening to the rest of the country.
    It must be a lot better living here in the sticks than it is where ever you live because when you people finally can afford to live here you always relocate down here :):):)
    Do you really think that we are missing out on living in a city
    What are we missing out on exactly. You and your crammed rented conditions and poor tenants that don't have a pot to pis in like something out of a dickens novel?

    Of course what would I know about any off it I'm from Devon and and obviously the furthest I have ever been from my cottage is up up to the next village and don't talk to me about money and finances as the most amount of money I have ever seen in my life was a few shillings of course
    I am only a member on this site as the usual suspects help me with the pricing of carrots and turnips on market days
     
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    simon field

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    It must be a lot better living here in the sticks than it is where ever you live because when you people finally can afford to live here you always relocate down here :):):)
    Do you really think that we are missing out on living in a city
    What are we missing out on exactly. You and your crammed rented conditions and poor tenants that don't have a pot to pis in like something out of a dickens novel?

    Of course what would I know about any off it I'm from Devon and and obviously the furthest I have ever been from my cottage is up up to the next village and don't talk to me about money and finances as the most amount of money I have ever seen in my life was a few shillings of course
    I am only a member on this site as the usual suspects help me with the pricing of carrots and turnips on market days
    I asked my wife and my sister about what you’ve said and she agreed.
     
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    m4hmo

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    It must be a lot better living here in the sticks than it is where ever you live because when you people finally can afford to live here you always relocate down here :):):)
    Do you really think that we are missing out on living in a city
    What are we missing out on exactly. You and your crammed rented conditions and poor tenants that don't have a pot to pis in like something out of a dickens novel?

    Of course what would I know about any off it I'm from Devon and and obviously the furthest I have ever been from my cottage is up up to the next village and don't talk to me about money and finances as the most amount of money I have ever seen in my life was a few shillings of course
    I am only a member on this site as the usual suspects help me with the pricing of carrots and turnips on market days
    This is a business forum, the city is better for work, business and education - Nothing else. I didn't say anything about where the better quality of life is. So yes, you are missing out on what's happening in places where the pace is FAST. You may not be seeing how some sectors are progressing ahead of where you are.

    Again nothing to do with quality of life/scenery etc, of which rural areas win hands down.
     
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    JEREMY HAWKE

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    This is a business forum, the city is better for work, business and education - Nothing else. I didn't say anything about where the better quality of life is. So yes, you are missing out on what's happening in places where the pace is FAST. You may not be seeing how some sectors are progressing ahead of where you are.

    Again nothing to do with quality of life/scenery etc, of which rural areas win hands down.
    Ok I live in a cottage in a one horse town true but!
    "We take your rural business to your customers" What does this mean?
    Where are our customers customers?
    What is the bi product of 30 years of taking your rural business to your customers?
    Why do I have two vans in London most days?

    I'm not wasting anymore time on this thread but having been doing business in London for 30 years with many businesses contacts and getting to know and meet a lot of them I may be in the position where I'm starting to learn a bit

    I have not mentioned just how well I know London! I I don't need a sat nav if I go there!
    We have a London transport bill each month much higher than yours!

    It is foolish to look at someone and make an assumption based on where they come from. A bloke lives in a cottage in Devon well he won't know much!
    London business coming through our books has paid for a lot of things in my life and is also funding my ultimate project that I expect my business to realise for me
    Thank you for your interest
     
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    m4hmo

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    Ok I live in a cottage in a one horse town true but!
    "We take your rural business to your customers" What does this mean?
    Where are our customers customers?
    What is the bi product of 30 years of taking your rural business to your customers?
    Why do I have two vans in London most days?

    I'm not wasting anymore time on this thread but having been doing business in London for 30 years with many businesses contacts and getting to know and meet a lot of them I may be in the position where I'm starting to learn a bit

    I have not mentioned just how well I know London! I I don't need a sat nav if I go there!
    We have a London transport bill each month much higher than yours!

    It is foolish to look at someone and make an assumption based on where they come from. A bloke lives in a cottage in Devon well he won't know much!
    London business coming through our books has paid for a lot of things in my life and is also funding my ultimate project that I expect my business to realise for me
    Thank you for your interest
    Just had a look at your website, I can't take you seriously. After 30 years I hope you have a massive freight forwarding site with containers moving left and right.

    But you speak of 2 vans floating around London. After 30 years?!

    Yea ok.
     
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    MBE2017

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    Just had a look at your website, I can't take you seriously. After 30 years I hope you have a massive freight forwarding site with containers moving left and right.

    But you speak of 2 vans floating around London. After 30 years?!

    Yea ok.

    Common guys, seriously? This is meant to be a business forum, so no need for childish insults.

    The outer appearance of any company means nothing. Rolls Royce have gone bankrupt in the past, size means nothing. I would rather be profitable and small than large and losing money.
     
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    m4hmo

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    Common guys, seriously? This is meant to be a business forum, so no need for childish insults.

    The outer appearance of any company means nothing. Rolls Royce have gone bankrupt in the past, size means nothing. I would rather be profitable and small than large and losing money.
    Funny thing is all I said was how things can move really quickly in the city, and you can be unaware when not around. I personally look at my competitors marketing and then try to do better (I used to make websites - last one was for structural engineering services in London for my Dad). Here he is promoting a van without signage on a website that looks like it was designed back in 1998 on Dreamweaver. This is what I mean by missing out on how things progress. He can't even progress a brand on a basic level. A 16 year old could sort that website out from a freelancer site for a few hundred pounds if that. Point proven imo. Fix the site/your branding before you talk about the next level mate.
     
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    JEREMY HAWKE

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    Common guys, seriously? This is meant to be a business forum, so no need for childish insults.

    The outer appearance of any company means nothing. Rolls Royce have gone bankrupt in the past, size means nothing. I would rather be profitable and small than large and losing money.
    Your absolutely right and this is all my fault for getting involved with these unverified accounts .This site has always been a reference in this country for those seeking business help and advice. Since the Boss man reacquisitioned this site it has become even more popular and has attracted many new users and maybe not always businesses that carry any proof of trading or evidence of their existence.

    In the past I have had many a fruitful debate on here with the usual suspects who we all know and promote their firms or have contact details on the site however some of the new batch of members you just don't know who they are . You don't know if you are actually debating with people that do what they say they do or if they are just dreaming about running a business .

    Luckily for the members on here I am fully transparent but when your honest about your business it is easy to find weaknesses and use that to attack in a debate . I have no problem with this provided the other member is able to offer the same transparency of their operation that I display

    I do like it when people take the time to investigate me because they are obviously very busy living a high life in the fast lane at 9 oclock on a Friday evening and myself being of little importance would not attract the attention of such high value individuals but its the clicks on the site that I like because there is no such thing as a bad click
    All clicks are good clicks :)

    9 o'clock on a Friday evening WTF DOG!

    If was @m4hmo in London and his age and doing big numbers I would not be checking out Jeremy Hawke at 9 PM on a Friday evening
    I would be in a Mayfair club drinking dope and smoking Hennessey
    :):):):cool::cool::cool:
     
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    m4hmo

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    Your absolutely right and this is all my fault for getting involved with these unverified accounts .This site has always been a reference in this country for those seeking business help and advice. Since the Boss man reacquisitioned this site it has become even more popular and has attracted many new users and maybe not always businesses that carry any proof of trading or evidence of their existence.

    In the past I have had many a fruitful debate on here with the usual suspects who we all know and promote their firms or have contact details on the site however some of the new batch of members you just don't know who they are . You don't know if you are actually debating with people that do what they say they do or if they are just dreaming about running a business .

    Luckily for the members on here I am fully transparent but when your honest about your business it is easy to find weaknesses and use that to attack in a debate . I have no problem with this provided the other member is able to offer the same transparency of their operation that I display

    I do like it when people take the time to investigate me because they are obviously very busy living a high life in the fast lane at 9 oclock on a Friday evening and myself being of little importance would not attract the attention of such high value individuals but its the clicks on the site that I like because there is no such thing as a bad click
    All clicks are good clicks :)

    9 o'clock on a Friday evening WTF DOG!

    If was @m4hmo in London and his age and doing big numbers I would not be checking out Jeremy Hawke at 9 PM on a Friday evening
    I would be in a Mayfair club drinking dope and smoking Hennessey
    :):):):cool::cool::cool:

    If you worked on Friday nights you might have gone further in life. If you worked double time you definitely might have got somewhere.

    What you call big numbers/high life is actually middle class in London. Anyone under £10million total asset value is still middle class here. Big to me is £20 million plus. When the average house is £600k here for a basic 3 bed, every other person is already a property millionaire.

    You are proving my point with every post. You're missing out/unaware of what's happening in places where the pace is faster.
     
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    Newchodge

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    If you worked on Friday nights you might have gone further in life. If you worked double time you definitely might have got somewhere.

    What you call big numbers/high life is actually middle class in London. Anyone under £10million total asset value is still middle class here. Big to me is £20 million plus. When the average house is £600k here for a basic 3 bed, every other person is already a property millionaire.

    You are proving my point with every post. You're missing out/unaware of what's happening in places where the pace is faster.
    I so wish I had your knowledge, experience and humility.
     
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    JEREMY HAWKE

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    If you worked on Friday nights you might have gone further in life. If you worked double time you definitely might have got somewhere.

    What you call big numbers/high life is actually middle class in London. Anyone under £10million total asset value is still middle class here. Big to me is £20 million plus. When the average house is £600k here for a basic 3 bed, every other person is already a property millionaire.

    You are proving my point with every post. You're missing out/unaware of what's happening in places where the pace is faster.
    Fake news Donald
    You will have more content to put on here now . Andrew Tate is out

    You are absolutely full of sh£t with nothing to support your claims

    If I was your manager in McDonalds I would not let you use your phone when your supposed to be burger flippin!
     
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    Newchodge

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    What you think is irrelevant. Look at what people want, not what you THINK. Got to be objective here and take your own personal opinions out of the equation. I learnt this 20 years ago when selling on eBay, what you think sells well does not always sell well, what people want is a whole different matter. So I used to advertise the whole catalogue from the supplier to find out for myself.
    Sorry I missed this when it first came out. What the hell has your comment to do with mine?
     
    Upvote 0

    bodgitt&scarperLTD

    Free Member
    Nov 26, 2018
    815
    475
    Where private individual landlords have been treated unfairly is S24, where they can no longer claim the interest payments as a business cost. This change means many are paying tax, even when they have made a loss, a totally unique treatment of a single sector of the economy.
    Disagree. Name me one other investment where you can use somebody elses income as a repayment vehicle?
     
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    MBE2017

    Free Member
  • Feb 16, 2017
    4,739
    1
    2,423
    Disagree. Name me one other investment where you can use somebody elses income as a repayment vehicle?

    Literally every shares value is judged on the performance of the company, new assets, sales, profitability. Where does providing housing and making a living differ from say a factory making widgets?

    Both provide a service for payment from others, and those payments pay for the mortgages on their premises? Or do you pay for your mortgage from another source other than income made off others?
     
    Upvote 0

    JEREMY HAWKE

    Business Member
  • Business Listing
    Mar 4, 2008
    8,569
    1
    4,026
    EXETER DEVON
    www.jeremyhawkecourier.co.uk
    Here to help, not derail threads. Mods may want to delete some comments.
    Lets hope not
    Its very important that new members and start up businesses are able to judge the level of integrity, experience and proven background that those giving advice have
     
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    Upvote 0

    m4hmo

    Free Member
  • Dec 11, 2022
    145
    46
    London & Bristol
    Lets hope not
    Its very important that new members and start up businesses are able to judge the level of integrity, experience and proven background that those giving advice have
    I have given nothing but good advice in terms of adding value to property. I don't want anything in return because, yea, I am comfortable, so the purpose of money is gone, and replaced with the purpose of helping others whilst I continue to grow.
     
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