Buy to Let now...or wait a year??

Dithering_Dad

shellbell63 wrote: »

Cause hubby has been badly burned with pensions & is very 'anti'. I believe theres a place for both though.
And bricks & mortar can be passed on from generation to generation.

Are you trying to provide a pension for yourself, or fund the lifestyle of your children and grandchildren?

My kids will have had a good childhood and will be funded through university. I'll have prepared them for life and to stand on their own two feet, just like my parents did for me. Why we suddenly have to provide 'cradle to grave' financial support for our children is beyond me. We're not landed gentry who are leaving the estate for the descendants.

If you want to retire, then get a retirement package that will provide you with the best retirement, not the one that will further feather the nest of the next generation.

As far as 'badly burned' with pensions. How badly are you being burned at the moment in regard to the falling value of your current BTL's?

HammersFan

Dithering_Dad wrote: »

If you want a pension then why not get a 'pension'? With those, the government puts in 20% or 40% for high rate tax payers and when you retire you get an income without the hassles of finding tenants, legal costs to get rid of bad tenants, void rental periods, electrical and gas checks, building insurance, building repairs and decorating, agent fees or capital gains tax when/if you come to sell.

You missed the bit about the stock market taking a nose dive just when you need your pension. Most pension funds have done so poorly that they eat into that bit the Gov ggives back. If the housing market dives, but you bought wisely, the property can be tenanted to provide an income. I'd say a mix of both. And to be fair, keeping a number of BTLs on the go would give you something to do in retirment.

mrstinchcombe

Bloody hell, its you BTL landlords that contributed to houseprices spiralling out of control in the first place.

Stop being so selfish and leave the market alone

geoffky

shellbell63 wrote: »

Thanks all.

Truth is though, while we're all waiting.........recovery won't come. Its when we all go out & start buying, that there may be that little light at the end of the tunnel......

When are people going to realize that this pyramid scam has run out of mugs....forget those magical numbers.they are gone and will not return in a very very long time..and as for btl in the near future you are going to be taxed to hell..second home owners will be taxed that bad it will become uneconomical...

shellbell63

Dithering_Dad wrote: »

Are you trying to provide a pension for yourself, or fund the lifestyle of your children and grandchildren?

My kids will have had a good childhood and will be funded through university. I'll have prepared them for life and to stand on their own two feet, just like my parents did for me. Why we suddenly have to provide 'cradle to grave' financial support for our children is beyond me. We're not landed gentry who are leaving the estate for the descendants.

If you want to retire, then get a retirement package that will provide you with the best retirement, not the one that will further feather the nest of the next generation.

As far as 'badly burned' with pensions. How badly are you being burned at the moment in regard to the falling value of your current BTL's?

You seem to be missing my point. I'm not looking to provide for great great grandchildren....BUT you've got to admit if I get a great retirement & I still manage to pass something on, then thats a big plus - surely.
Burned by BTL? Well no - not unless I want or need to sell up. As long as property is being paid for by a tenant, costs covered etc, it isn't costing me anything. And when I retire, if house is worth a pound but someones paying £600pm to live there, I've got £600 quid in my pocket - so who cares??
The point is it'll keep on producing an income as long as I keep it.
However if I'd put money I used to buy house into a pension, that invested in stocks & shares that nosedive - then I do have a problem in retirement....

geoffky

you are a very very greedy person....

brit1234

shellbell63 wrote: »

Cause hubby has been badly burned with pensions & is very 'anti'. I believe theres a place for both though.
And bricks & mortar can be passed on from generation to generation.

Be very sure you want to use buy to let as a pension it can be very dangerous. Below is a link to a tv program where 45:40 mins through they go into the sums for this.

http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7400000/newsid_7400000?redirect=7400024.stm&news=1&bbram=1&nbwm=1&bbwm=1&nbram=1

Dithering_Dad

HammersFan wrote: »

You missed the bit about the stock market taking a nose dive just when you need your pension. Most pension funds have done so poorly that they eat into that bit the Gov ggives back. If the housing market dives, but you bought wisely, the property can be tenanted to provide an income. I'd say a mix of both. And to be fair, keeping a number of BTLs on the go would give you something to do in retirment.

I don't wish to be mean, but you're showing a lack of understanding of investing. You don't have to invest your pension into the stockmarket (equities) at all, you can put it into property funds, commercial property, government bonds (index linked and fixed), etc. Even within equities there are risk levels, and you simply choose yours and invest accordingly.

If you are worried about poor fund management, then invest in an index, then you get the average of good and bad funds.

As far as retirement is concerned, about 5 years prior to retirement I'll start moving my pension from equities and into less volatile investments such as cash. This means that if there is a crash in the stockmarket when I retire, it wont impact me.

Over time, the stockmarket has proven to have a better return than property and I can guarantee it will recover much faster than the housing market.

Imagine 2 people, both have pension pots of 200k.

Person 1 can have his pension portfolio spread across cash, index linked government bonds, property funds, and in equities split into geographical (UK, EU, US, JP, etc.) and industry (Oil, Gold, Banks, Manufacturing, Service, etc.) sectors.

Person 2 has his money in 3 BTL properties.

Right now, who will be the the better off - the one who diversified his pension pot or the one who has all his eggs in one basket?

shellbell63

geoffky wrote: »

you are a very very greedy person....

Uncalled for!

Just trying to provide for retirement as we all are. No company pension scheme, no income if business fails etc etc.
For what its worth - we never fight with FTB - if we know they're interested in something, we'll bow out.
And as I said before - not everyone wants/needs/can own their own place. So if we're so greedy & selfish - & pull out altogether - where will they live???
Certainly not enough council housing is there!!

shellbell63

Dithering_Dad wrote: »

You don't have to invest your pension into the stockmarket (equities) at all, you can put it into property funds, commercial property, government bonds (index linked and fixed), etc. Even within equities there are risk levels, and you simply choose yours and invest accordingly.

If you are worried about poor fund management, then invest in an index, then you get the average of good and bad funds.

I agree that diversity is best. I think a spread of BTL & pensions is optimum. Unfortunately hubby isn't coming round just yet.