Sunday Mirror (Northern Ireland)
Five things to sort before a house move
Consider pros and cons of government incentive
Spending money is not bad, spending other people’s money is! Be money smart, spend the money you can afford and get the best deal you can. What has dipped in price this week? ✤ Fitness clothing – 17% cheaper on average than last week
✤ PS4 games – 7% cheaper on average than last week
✤ Perfumes – 35% cheaper on average than last week
✤ Speakers – 9% cheaper on average than last week ✤ Curtains – 15% cheaper on average than last week ✤ Beard & hair trimmers – 9% cheaper on average than last week
Not only does it make sense to buy a new school bag in August but it’s also the cheapest month of the year to do so.
If your child’s backpack or bag is due an update, start looking in early August because there will be higher demand and less choice towards the end of the month.
That said, don’t just assume that because it’s a new term, your child needs a new bag.
Given that last year’s school bags only did two terms of service, they’re probably still in good condition so you could save yourself some money.
There’s very little rhyme or reason to this one but August is the cheapest month of the year to buy an electric toothbrush. If your pearly whites need some TLC, then now might be a good time to make the switch from a manual.
The Government’s latest push to get the nation more active has received an overwhelming response, with the first batch of £50 Fix Your Bike vouchers being snapped up straight away.
No doubt this will have sparked further interest in new bike purchases – a trend that began at the start of lockdown in March.
Many retailers had to stop selling bikes as manufacturers couldn’t meet the demand!
For those looking to take their cycling hobby to a more serious level, bear in mind that August is the cheapest month of the year to buy a road bike. Data provided by price comparison site, idealo.co.uk
The current Stamp Duty holiday isn’t a reason to overstretch yourself
Property prices move based on supply and demand, and the demand that drives up prices often comes from “cheap” mortgages and a booming economy. But while we may have low interest rates, we don’t have a stable economy, never mind a booming one.
That’s why Rishi Sunak introduced the Stamp Duty holiday on property up to £500,000 until March 2021.
He wants to encourage us to make our moves sooner rather than later and get the housing market and its associated services going.
So should you be taking advantage of it? If you were already planning – or had already agreed – your next move, then this scheme is literally giving you free money.
And I like people to own their homes, in part because it gives you the option to downsize and release tax-free capital when you retire.
You get to enjoy the property while raising your family, then benefit from some of its value when you retire which, for many, is a vital part of funding their future plans.
But before you rush in to moving, make sure you’re in the right position to do so. Consider the bigger picture carefully with your eyes wide open.
While saving thousands on Stamp Duty is an attractive prospect, bringing a move forward could end up costing you much more.
Only do it when you’ve got at least three months of expenses behind you – preferably six – even if it means
Not only have we been paying off more of our debts during lockdown, we’ve been withdrawing less of our pensions too.
Year-on-year data for April showed 42 per cent fewer of us taking flexible pension income and 53 per cent fewer taking just a tax-free lump sum, according to the Association of British Insurers.
However, it expects withdrawal rates to increase as lockdown eases. waiting and missing the Stamp Duty holiday altogether. Unemployment will be rising for some time, with redundancy announcements arriving daily.
Job forecasts for the end of 2020 make for pretty grim reading and – between local lockdowns and Brexit – we’re going to be in a period of economic instability for a while.
With the furlough scheme winding down, that all adds up to less job security so you will need cash in reserve to carry you through a rough patch, just in case. At best, a missed payment or Administering a lasting power of attorney is also getting simpler after the recent launch of an online portal by the Office of Public Guardian.
The digital development makes it easier for solicitors to contact banks and healthcare providers, meaning they can make decisions on things like property and care more quickly.
Note that the portal doesn’t digitise the process of arranging an LPA in the first place, though. two will hit your credit rating. At worst, you could lose your home.
However attractive the Stamp Duty saving looks, I urge you not to max yourself out and leave nothing back – and don’t take on a mortgage that leaves you zero wiggle room with your monthly payments.
You just don’t know when you might need some spare cash.
As they say in the investment world, “Don’t let the tax tail wag the dog”.
Don’t move just because the Government has offered you an incentive. It’s only a good deal if you planned to move anyway.
Get yourself organised before you up sticks. Here are five things you should do before any house move.
Ensure you will have more income than expenditure the move as your bills will change.
Save six months’ household expenses in Premium Bonds so the money is safe and accessible in an emergency. Review your spending and ask yourself if you need each item, want it or if it can be bought for less.
Sort out your utilities as soon as you can. Shop around and save, rather than just keeping the existing provider.
Consider any extra expenses involved in your move, from the removals firm to cleaning.
My mother kindly left me the family home in her will and, for the past couple of months, the property has been on the market.
I’m keen to sell but am aware things could potentially take a very negative turn by the end of October once most people are taken off furlough.
The property does need modernising but if I am unable to sell it, should I rent it out?
And when I do sell, will I be liable for Capital Gains Tax?
WARREN: If the house is not selling, a rental makes sense but don’t borrow against it. And don’t worry about CGT in the short-term – your “purchase” price will cover the probate value and I can’t see house prices increasing much any time soon. Do I need a will? WARREN: The short answer is yes. Far too many of us don’t have one and, if nothing else, having one makes the administration of your estate easier for the people you leave behind. If you have young children, it’s absolutely essential to have one so you can name your preferred guardians.