average age
Joined: Jan 2003
Posts: 405
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From: Emirates Living - The Meadows
Hmmmmm!
Alternatively he could just release the equity by getting a loan secured against it like vast majority who own a house had to do to fund our training!!!It is hardly illegal to pass on assets in order to avoid paying Inheritance tax (IHT) the property is still going to give the government money for unless he intends to live with his folks until they pass away.
If not he will likely get another house. This other house will become his principal private residence (PPR) and as such the 1st property when it is sold will be a capital asset that he is liquidating and as such he will have to pay Capital Gains Tax (CGT) on it. Unless of course he elects to rent the property out spend all the equity and leave the problem for his children to sort out!!!
This all assumes of course that his parents survive the next 7 years becuase if not it will all have been in vain as he will be liable to IHT anyway.
VT
Last edited by Vortex Thing; 6th December 2006 at 01:00. Reason: typos again!!!
Worldstratospherecitizen
Joined: Jan 2006
Posts: 94
Likes: 0
From: UUEE & LFPB
Today I am Half way over the ATPL and after that I will need to make a licence conversion to get my JAR FCL CPL IR MEP .
That's it
Regards
JB
Joined: Jul 2006
Posts: 829
Likes: 0
From: South Wales
I have to make a sacrifice of not getting on the property ladder yet in order to do my training. It's a risk and if it all goes wrong then
£50k wasted and 18 months of not earning anything and 4 years of not being on the property ladder (take into consideration the cost of houses in 4 years time).Think I like many others fall into the 'If you want it bad enough you will work hard and make sacrifices to get there'.
You should do the same, I am sure you'll feel a lot better for it when your fully qualified - and what a story to tell them in the airline interview when they ask 'How did you fund your training? and what sacrifices did you make to get here?'
Joined: Sep 2005
Posts: 66
Likes: 0
From: Europe
Agree 100%
I heard some airline recruitment managers complain that new pilots lack motivation. Perhaps they should start looking at what sacrifices and hard work people have done to get where they are rather than go to Oxford and pick a load of rich kids who have spent mummy & daddies cash.
Still cannot believe this kid is thinking of raising cash through a house his parents have worked hard to give him unemcumbered, while they are alive.
Headline- Parents forced onto street by child who mortgaged it to the max in order for personal gain but cannot keep up the repayments because he has no job! (no job while training and no guarantee of a job at the end!)
I heard some airline recruitment managers complain that new pilots lack motivation. Perhaps they should start looking at what sacrifices and hard work people have done to get where they are rather than go to Oxford and pick a load of rich kids who have spent mummy & daddies cash.
Still cannot believe this kid is thinking of raising cash through a house his parents have worked hard to give him unemcumbered, while they are alive.
Headline- Parents forced onto street by child who mortgaged it to the max in order for personal gain but cannot keep up the repayments because he has no job! (no job while training and no guarantee of a job at the end!)
Last edited by Stpaul; 6th December 2006 at 17:34. Reason: spelling
Joined: Mar 2006
Posts: 228
Likes: 0
From: UK
I heard some airline recruitment managers complain that new pilots lack motivation. Perhaps they should start looking at what sacrifices and hard work people have done to get where they are rather than go to Oxford and pick a load of rich kids who have spent mummy & daddies cash.
I chose not to go to Uni (due to debts) as flying has always been my goal. Many individuals at work have just graduated from Uni with debts, and on a much lower wage. My advice to someone would be to work your ass off on saving up the cash, working your way up the ladder at work (better wage), while saving for flight training and keeping out of debt.
I now have a well paid job and some life experience behind me, instead of jumping straight out of college.
Companies don't just look at qualifications, they look at the whole person and whether they will blend in - life experience helps a great deal with this, as well as having a greater sense of the risks involved and money.
I could get a loan on flight training tomorrow if I really wanted, instead I'm dealing with this sensibly, using savings now and then use a loan when I really need it.
Oh btw, I have heard the average age range for pilots is 26-35, there are only a very few individuals who are in a position to start training while quite young (with a helping hand from someone).
.. that's my opinion.
Last edited by Cirrus_Clouds; 6th December 2006 at 19:57.
Joined: Dec 2005
Posts: 644
Likes: 1
From: UK
Very true who has £10's of thousands at the naive age of 18 the money normally has another source. However with willing parents/relatives it's no problem, I would also be equally supportive if I had the money in life.
However it's equally true motivation is a big factor and is distinctive from enthusiasm, these are all too commonly confused.
When you work for or towards something the sense of purpose, progress and achievement helps condition you apprropriately for the job/task at the end of it.
However it's equally true motivation is a big factor and is distinctive from enthusiasm, these are all too commonly confused.
When you work for or towards something the sense of purpose, progress and achievement helps condition you apprropriately for the job/task at the end of it.
Joined: Jan 2004
Posts: 63
Likes: 0
From: Dublin, Ireland.
Funding
If your determined enough the money can be got ....
I dont have rich parents or any rich relations who may croak and leave me millions. I work as much as i can doing 2 Jobs.
2 years ago (at 23) i brought a house. Now it has gained over 100,000 and i can borrow off the equity. Over the last 3 yrs i have saved and paid for a PPL, building to 125 hrs and now im about to start a full time atpl study course and i have not had to remortgage YET!
I work a normal airport job and still go out every now and then on the beer with my mates and drive a decent car!! Its a good route to go because if you borrow that kind of money BEFORE you get on the property ladder, it will be damn hard to get a mortgage with a loan like that over your head!
Also the house is a good safety net if you do ever hit financial ruin, you can always sell it or rent out out to cover the mortgage! Worst case of course!
I dont have rich parents or any rich relations who may croak and leave me millions. I work as much as i can doing 2 Jobs.
2 years ago (at 23) i brought a house. Now it has gained over 100,000 and i can borrow off the equity. Over the last 3 yrs i have saved and paid for a PPL, building to 125 hrs and now im about to start a full time atpl study course and i have not had to remortgage YET!
I work a normal airport job and still go out every now and then on the beer with my mates and drive a decent car!! Its a good route to go because if you borrow that kind of money BEFORE you get on the property ladder, it will be damn hard to get a mortgage with a loan like that over your head!
Also the house is a good safety net if you do ever hit financial ruin, you can always sell it or rent out out to cover the mortgage! Worst case of course!
Joined: Dec 2006
Posts: 1
Likes: 0
From: I can't believe this field gives a description of the word 'location'
Man It would be so much easier if my parents would just hand me the money.
I have to make a sacrifice of not getting on the property ladder yet in order to do my training. It's a risk and if it all goes wrong then £50k wasted and 18 months of not earning anything and 4 years of not being on the property ladder (take into consideration the cost of houses in 4 years time).
Think I like many others fall into the 'If you want it bad enough you will work hard and make sacrifices to get there'.
You should do the same, I am sure you'll feel a lot better for it when your fully qualified - and what a story to tell them in the airline interview when they ask 'How did you fund your training? and what sacrifices did you make to get here?'
I have to make a sacrifice of not getting on the property ladder yet in order to do my training. It's a risk and if it all goes wrong then
£50k wasted and 18 months of not earning anything and 4 years of not being on the property ladder (take into consideration the cost of houses in 4 years time).Think I like many others fall into the 'If you want it bad enough you will work hard and make sacrifices to get there'.
You should do the same, I am sure you'll feel a lot better for it when your fully qualified - and what a story to tell them in the airline interview when they ask 'How did you fund your training? and what sacrifices did you make to get here?'
Though I am quite worried because there is absolutely nothing else I can imagine myself doing as a profession and while I have a Class 1 medical now (I had one purely so I wasn't following some pipe-dream) if my legs should fall off I'm well and truly buggered!
Sorry, what a completely pointless ramble that was!
Lee
Joined: Oct 2005
Posts: 16
Likes: 0
From: Sutton
IHT
Just a note regarging the IHT if a parent were to gift a child the property and still occupy the property then this is what is known as a gift with reservasion.
Your parents estate would still have to pay IHT on the property. The IHT payable would be based on the market value at death - not when the transfer took place.
One way to get around this would be for your parents to remorgage the property and gift you that money for your flight training. Your parents would have to be responsable for the morgage repayments.
If they survive seven years from the date of the gift then it will not be subject to IHT.
Your parents estate would still have to pay IHT on the property. The IHT payable would be based on the market value at death - not when the transfer took place.
One way to get around this would be for your parents to remorgage the property and gift you that money for your flight training. Your parents would have to be responsable for the morgage repayments.
If they survive seven years from the date of the gift then it will not be subject to IHT.
