Urban Myths of Contracting?

[too_many_details]

Hi,

now I know this is all hear say and a bit vague, but I would really like to know whether this is possible or something highly dodgy:

1. Being able to pay off your mortgage in a matter of a few years (a guy I worked with almost 10 years ago was a contractor and said he did this).
2. A friend of a friend was able to put down a large deposit for a house with his accountants blessing even though he receives about 80-90k gross into his PSC. This is recent.

I've been contracting for 6 months now and I can't see how this can be done. I can't just move the balance in my business account into my mortgage and back again (off setting), can I?

R

[SueEllen]

1. Being able to pay off your mortgage in a matter of a few years (a guy I worked with almost 10 years ago was a contractor and said he did this).

I know people who are in the process of doing this and they are well paid permies.

2. A friend of a friend was able to put down a large deposit for a house with his accountants blessing even though he receives about 80-90k gross into his PSC. This is recent.

What is a PSC? Legally there is no such thing.

And no you can't do this.

[chicane]

1. Being able to pay off your mortgage in a matter of a few years (a guy I worked with almost 10 years ago was a contractor and said he did this).

If you've got a modest house (preferably bought more than 5 years ago), no dependants and a degree of financial discipline, you shouldn't have any problem paying off your mortgage in 2-3 years. Unless you're a support monkey on 12/hour of course.

[DimPrawn]

If you are a well paid contractor and the other half has a well paid job, you can keep probably save £50K a year and pay off a £500K mortgage in 10 years.

Well you could before the cost of living went up 10x under Labour.

[Rantor]

Hi,

now I know this is all hear say and a bit vague, but I would really like to know whether this is possible or something highly dodgy:

1. Being able to pay off your mortgage in a matter of a few years (a guy I worked with almost 10 years ago was a contractor and said he did this).
2. A friend of a friend was able to put down a large deposit for a house with his accountants blessing even though he receives about 80-90k gross into his PSC. This is recent.

I've been contracting for 6 months now and I can't see how this can be done. I can't just move the balance in my business account into my mortgage and back again (off setting), can I?

R

Another one - start up a LTD Co, charge VAT and do not pass said VAT onto Gov. Close Ltd Co. after 1 yr and repeat process ad infinitium.

I knew one guy who insisted that this was what real in-the-know contractors did and only mugs paid the VAT. They came mob-handed and hauled him away one Saturday morining. Mind you, that was in 98 so I'm sure he'll be out by now.

[tay]

The wife and I have saved 75k a year for the last 5 years... and paid off 3 mortgages (in NZ pesos). So yeah it is possible.

[Torran]

Hi,

now I know this is all hear say and a bit vague, but I would really like to know whether this is possible or something highly dodgy:

1. Being able to pay off your mortgage in a matter of a few years (a guy I worked with almost 10 years ago was a contractor and said he did this).

bit of a strange question. Its not just contractors who earn good money, plenty of permies out there have paid their mortgage off.

However I did once know a husband and wife team of contractors who were both on £650 a day and had been for a good few years.

Needless to say they had no mortgage and numerous other properties on their portfolio. This was in 2000 so I'd hate to think what they made by selling up at the right time

[hugebrain]

Hi,
1. Being able to pay off your mortgage in a matter of a few years (a guy I worked with almost 10 years ago was a contractor and said he did this).

Traditionally mortgages were never needed by contractors. For example I bought a house by simply saving up seven weeks money and writing a cheque (admittedly it was oop North).

It's only after the New Labour assault on us that we have had to work for a few years to get a house (low rates, IR35, tripling of house prices, high taxes high inflation etc.). Still should be doable though.

[oracleslave]

For example I bought a house by simply saving up seven weeks money and writing a cheque

hovel

[rootsnall]

I bought my first house for cash on about 3 years contractor savings. Since then houses have gone up about 2.5 times, my rate is about 75% of what is was 10 years ago and I've acquired a wife and 2 kids. It would probably take me 10 years to pay it off now !

Oh and to keep the dim one happy new liebour have been in for 10 years and inflation has been 2% per annum