Money Making Schemes

Nagesh answers:

Well, the problem that arrises is “title” of the property, and property ownership rights. If all 5 of your friends were to try and purchase a house, you would need financing. Assuming that you all have outstanding credit, great income to show, and ability to pay the monthly payment as a percentage lower than 28% of your monthly income, there should be no problem.

The problem with that, is that all 5 of you are probably not in that rosey situation for some reason or an other. This will make the transaction nearly impossible. The suggestions with advises that one of you be the owner of the property, while the other 4 invest their money but hold no legal claim on the title of the property, is a bad suggestion. Suppose one of your friends leaves, suppose it is you! What guarantee do you have that you earn your money back? What part of the property you paid money for do you own? NONE!

The alternative to this, is that you do not purchase the house as 5 seperate legal entities. You can instead chose to purchase the house as a joint and single business entity. Namely, a Partnership. That is in effect what all 5 of you plan to be, partners in crime so to speak.

You will need to get chartered, think of a name, draft up an agreement that allocates equal shares of profits and losses according to initial investment of each partner, and what can take place in the event one partner leaves..

The bank or any other lending institution will be more willing to give you a loan, and the title or ownership of the property will be in the name of the partnership. Keep in mind, under common law legal theory, which includes the UK, when one partner leaves, the partnership agreement resolves, which means the partnership resolves, which means that the house will not be owned by a non-existant entity anymore! Beware of this! In the event a partner leaves, you should allocate that partner’s interest to the other partner’s equally in the same ratio they shared profits and losses. You may find a new partner some time in the future, which can hopefully buy a portion of the partnership interest the rest of the 4 of you will hold.

The important thing is that you caution yourself and be prepared in the event that a partner exits (either by choice or death), and that the partnership is not allowed to dissolve and have no bearing or claim on the ownership of the house.

Talk with a lawyer on this one. I’m not familiar with UK laws, but it would be what I would recommend to someone in the states..

Good day then,

Nagesh answers:

There are two types of Pension scheme in UK – Money Purchase and Final Salary.

Normally all the Pension contributions are invested (usually in the stock market) by some outside experts. In the case of a Money Purchase pension, the pension payment depends on how well the Investments perform, whilst for Final Salary the payments depend only on length of service and final salary.

The term ‘annuity’ is normally associated with the Money Purchase type, and in this case I would think there is no additional liability for the Employer (because the annuity will be purchased by ‘cashing in’ the investments and provided by an outside Insurance Company).

However if we are talking about a Final Salary Pension, then the Employer is required to make whatever additional contributions are needed so that the Pension (based on service/salary) can continue to be paid whatever the state of the stock market. These Company contributions are an allowable expense (at least in UK), so no tax to pay …

Nagesh answers:

I don’t like it because I know that info will be used for Obama care and also to make judges do what is wanted for them and perhaps to even blackmail a President etc–and by the way I dont like Governors telling me the size of my soft drink either!!

Nagesh answers:

This is a very good question, I have also seen quite a few answers to questions about benefits which are completely wrong and sometimes quite alarmingly wrong.
I have worked in Housing and Council Tax Benefits (or Council Tax Support as it is now) for 11 years, 5 of which I was a senior officer and some of the answers given here are very inaccurate. There is a large amount of legislation which surrounds UK Benefits and there is no way that these people can claim to know it as it is very complex and the government make regular changes to it, even with my 11 years experience I am not going to claim that I know all of it and I don’t think it would be an easy task to find anyone who does.
My advice to anyone with a question about benefit would be to contact your local benefit office as they are the ones who are qualified to give you the correct advice, this is not really the right place for these questions, especially housing benefit as it will vary considerably due to different Local Housing Allowance rates and now that Council Tax Support is a local scheme it will also differ from council to council.
I think the reasons people answer these questions may be because they have or are either a landlord or tenant who has recieved housing benefit and think they know all of it, or they are just doing it to score points on Yahoo Answers, as I said if in doubt its best to check with your local benefits office, if they don’t know the answer to your question they will be able to check the legislation and get back to you

Nagesh answers:

New ConDem Treasury Chief David Laws In £40,000 Housing ‘Benefit’ Expenses Scandal
http://thescotsman.scotsman.com/news/New-Treasury-chief-David-Laws.6328505.jp

Some other facts and figures for you to peruse at your leisure. 2007/08
UK bad debt liability bailouts / taxpayer money to banks = £1,000 billion +
UK quantitative easing needed so far as result of banking incompetence = £275 billion
Estimated UK tax revenue lost from tax evasion by the rich = £200 billion
Housing Benefit landlords pocket to house those below = £17.181 billion
Disability Benefit for those unwanted by private employers = £16.218 billion
Income Support for the low paid or part time employees = £8.687 billion
Council Tax benefit for those in need = £4.23 billion
Job Seekers Allowance for those in need = £2.881 billion
Benefit and tax credit fraud = £1.5 billion
Cost of tracking down benefit and tax credit fraud = £ 1 billion
Total saved by tracking down benefit and tax credit fraud = £ 0.5 billion

Govt Public Spending Bubble Chart Link – Can anyone spot the big Red Elephant in the top right hand corner of the room that has had it’s spending increased by 49,891%? (yes, that is supposed to be nearly fifty thousand per cent )
http://image.guardian.co.uk/sys-files/Guardian/documents/2009/09/16/Public_spending_160909.pdf
http://www.guardian.co.uk/news/datablog/2010/may/17/uk-public-spending-departments-money-cuts

There is an alternative: The case against cuts in public services
http://www.pcs.org.uk/download.cfm?docid=23E6E0DF-0C3D-4AB1-A78C815E8CBC4771

Cuts, cuts, cuts: which government department will be hardest hit?
Http://www.guardian.co.uk/politics/blog/interactive/2010/oct/01/government-department-cuts

UK Quantitative Easing £275bn + “the over £1 trillion of bailed out banks bad debt liabilities”
http://www.marketoracle.co.uk/Article16333.html

Comparing the U.S.( or the UK ) to Russia and Argentina
http://www.salon.com/news/opinion/glenn_greenwald/2009/03/26/comparisions

Benefit cheat ‘hit squads’ planned
http://www.bbc.co.uk/news/uk-politics-11559463

UK Employment Rate History
http://www.statistics4u-uk.com/html/employment_rate.html

Who’s at fault? Who’s mugging who? – You decide.

(c;

PS : If someone can supply me a single link to a good list or breakdown of total banking bonuses, I’d be very grateful. I can’t find one anywhere. I can find out individual bonus announcements but to list them all together takes too many links.