The Two Builders Story | BuildROI

The Two Builders Story

Why homeownership changes everything

👨‍🔧 Same Age. Same Skills. Different Choices.

Meet two 30-year-old builders. Both earn similar amounts. But their financial strategies lead to dramatically different futures.

Subsidy Sid

Age 30, Self-Employed Builder
The "Smart" Grey Builder

The Setup
Quality jobs (declared) £18,000/year
Cash jobs (undeclared) £45,000/year
Total real income £63,000/year
What He Declares to HMRC
Turnover £18,000
"Expenses" (inflated) £6,000
Taxable profit £12,000/year
His Tax Bill
Income tax £0
Class 2 & 4 NI ~£180

Total tax paid: £180/year

Effective tax rate: 0.2% on £63,000 real income

What He Claims
Universal Credit £14,400/year
Child Benefit (2 kids) £2,074/year
Council Tax & Housing £5,400/year

Total benefits: ~£22,000/year

£85,000 Annual Total Package
Life Timeline
Age 30-50 (20 years)
Total package £1,700,000
Rent paid -£300,000
Savings by 50 ~£100,000
Age 50-67

Body failing • Can't do heavy work • Still renting

Savings by 67 ~£150,000
Age 67+ Retirement
State pension £11,502/year
Pension Credit £4,500/year
Housing Benefit ~£24,000/year

Total: ~£42,000/year equivalent

Still renting • Benefit-dependent • Assets: £150,000

Roy

Age 30, BuildROI Verified Builder
The Honest Path

The Setup
All declared properly £60,000/year
Small cash favours £3-5k (realistic)
Declared income £60,000/year
His Tax Bill
Income tax £9,432
Class 2 & 4 NI £4,019

Total tax: £13,451/year

Effective tax rate: 22%

His Investments
Pension contribution £2,400/year
Child benefit +£2,074/year
£46,223 Annual Take-Home

Roy has £39,000 LESS per year than Sid

"It's frustrating but I can't argue Subsidy Sid is crushing it!"

But Here's What Happens...
Age 32

Gets mortgage: £180,000 for fixer-upper

Mortgage payment £1,100/month

Adds £60k value for £20k materials + hard graft

Age 35
House worth £260,000

Remortgages • Releases equity • Moves to better area

Age 35-50

Continues adding value • Property appreciates • Pension growing

Age 50
House worth £450,000
Equity £350,000
Pension pot £140,000

Transitions to BuildROI Mentor

3 days/week • £33k/year • Body thanks him

Age 67 Retirement
House (owned outright) £600,000
Pension pot £250,000
Total income £24,000/year

Total assets: £850,000

NO RENT • Independence • Dignity • Legacy

📊 THE BRUTAL COMPARISON

Total Lifetime Value (Age 30-67)

Subsidy Sid

Total cash: £1,700,000 over 20 peak years

Rent paid: ~£600,000 over 37 years

£150,000

Net Lifetime Wealth Created

Roy (BuildROI Builder)

Take-home: Lower year-by-year (£46k vs £85k)

But built: £600k home + £250k pension

£850,000

Net Lifetime Wealth Created

Subsidy Sid had £400,000 MORE spending money

vs

Roy created £700,000 MORE actual wealth

⚠️ THE MOMENT SUBSIDY SID REALIZES

Age 55: Subsidy Sid has spent £1.5 million through his hands over 25 years. He has £120k in savings. He still rents. His knees are shot. He can't get a mortgage now even if he wanted to.

Age 55: Roy has "only" taken home £1.1 million over 25 years. But he has £400k equity + £180k pension. From age 50 he has only been working 3 days a week in comfort. He owns his future.

Perception vs Reality

There is a case for both options:

  • Subsidy Sid pays virtually no tax (0.2% vs Roy's 22%)
  • Subsidy Sid has way more cash to spend year-to-year
  • Subsidy Sid's quality of life FEELS better for years 30-45

Because:

  • Wealth isn't what you spend, it's what you BUILD
  • £400k extra spending vs £700k extra assets = Roy wins by £300k
  • Subsidy Sid's £85k/year turns into £16k/year retirement poverty
  • Roy's £46k/year turns into £24k/year retirement wealth + owned home

The Bottom Line

"Subsidy Sid will have spent £400,000 more than Roy over 25 years... but will have £700,000 LESS to show for it. Subsidy Sid's money went through his hands. Roy's money went into bricks and mortar he owns."

💷 Society's Cost

What does supporting Subsidy Sid cost taxpayers?

Benefits during working years (37 years) £814,000
Lost tax revenue (37 years) £481,000
Total cost per Subsidy Sid ~£1,295,000

How many Subsidy Sids are out there?