Early-retirement wannabe

woolly_wombat

shinytop wrote: »

I suspect if you are gifted or inherit a £couple of hundred k that someone else has paid tax on already then buying BTL property might, in some circumstances, be better that putting it in a pension.

I know a couple who did just that. They both worked like dogs doing up a place prior to renting out (he is in the building trade, she has the business nouse plus very good with a paintbrush etc).

The project gave them much-needed additional income over several years.

They have just sold up and are moving overseas - perfect timing!

Pennysmakepounds

AnotherJoe wrote: »

It doesn't actually work for you since you'll be much worse off even on your own figures.

But since you dont realise that, or more likely are unwilling to understand, since it will mean you have to acknowledge to yourself you've been chucking money away for years, and could have 1.5x the capital and income in retirement than you will have (or your descendants should you get hit by that bus), thats an unpleasant thing to try and take on board.

So better to blithely say "it works for me". Maybe thats good for you in self imposed blissful ignorance but please dont try and persuade anyone else that 53% is better than 100% as a base to start a retirement plan.

You're all trying to push Pensions down my thought, like i've made a HUGE mistake not having one.

I’m not disagreeing with you that Pensions work for people who have been contributing a little since day ZERO or have the means to pump HUGE amounts into them late in life, but since i've never had one and don't currently plan on getting one i think differently.

Let’s just agree to disagree on this one.

Everyone is different and has their way of doing things rightly or wrongly, it’s their preferred method and IF it works for them, then that’s all that matters.

If I was someone who had one property and no pension to fall back on then I would be worried that when I finally retire or am no longer able to work ill be scr**ed.

However, in my opinion. When someone has a property portfolio of around a million (IN CASH not mortgaged) and liquid cash (Bonds/saving etc.) of around 1/4/ to 1/2 mill, (By the point of retirement) One partners pension and whatever they get from the state pension - when it kicks in.

We are going to be ok Jack

Having a regular income NOW, (Rather than the delayed gratification as some put it earlier) also allows me (NO gives me the OPTION) to take a more relaxed approach to work at aws much younger age and the option to take 6 months off here and there to enjoy life whilst I’m still relatively young.

Pennysmakepounds

woolly_wombat wrote: »

I know a couple who did just that. They both worked like dogs doing up a place prior to renting out (he is in the building trade, she has the business nouse plus very good with a paintbrush etc).

The project gave them much-needed additional income over several years.

They have just sold up and are moving overseas - perfect timing!

LOL, funny you should mention that. That EXACTLY my plan.


I want to retire in a nicer climate.

Pennysmakepounds

mgdavid wrote: »

No chance - because your position would be entirely self-inflicted.

Thanks, that's exactly what I should have said to the guy I bought lunch for recently, that I found sitting in a shop doorway. LOL

bugslett

Pennysmakepounds wrote: »

You're all trying to push Pensions down my thought, like i've made a HUGE mistake not having one.

.

You did come on a pensions board and tell people who are interested in pensions that pensions are/can be poor in relation to renting houses. Well, of course they are going to push pensions. I can't see the point you were trying to make by coming on this board if not to have exactly this reaction.

If you don't like the fact that people posting on pension boards are interested in pensions as a vehicle for their retirement and believe that to be the way forward, then why keep on posting and thereby getting further replies?

Anonymous101

Pennysmakepounds wrote: »

You're all trying to push Pensions down my thought, like i've made a HUGE mistake not having one.

You have made a huge mistake but you don't seem willing to recognise it.

Pennysmakepounds wrote: »

I’m not disagreeing with you that Pensions work for people who have been contributing a little since day ZERO or have the means to pump HUGE amounts into them late in life, but since i've never had one and don't currently plan on getting one i think differently.

You're missing the point entirely. They don't just work for people like you're describing. They work for everyone in almost every situation. They could work very well for someone like you too in a mixed asset investment approach splitting your income from rentals into pension contributions and reinvestment into further property.

Pennysmakepounds wrote: »

Having a regular income NOW, (Rather than the delayed gratification as some put it earlier) also allows me (NO gives me the OPTION) to take a more relaxed approach to work at aws much younger age and the option to take 6 months off here and there to enjoy life whilst I’m still relatively young.

Your reason's are great. Being flexible is a fantastic goal and you've done very well to achieve it. The point everyone is trying to make is that you could have done even better and could still do better by utilising pensions as part of your Financial Independence plan. It would enable you to be more flexible at a younger age but you seem totally closed to the possibilities. You are absolutely making a mistake not considering it fully.

Pennysmakepounds

bugslett wrote: »

You did come on a pensions board and tell people who are interested in pensions that pensions are/can be poor in relation to renting houses. Well, of course they are going to push pensions. I can't see the point you were trying to make by coming on this board if not to have exactly this reaction.

If you don't like the fact that people posting on pension boards are interested in pensions as a vehicle for their retirement and believe that to be the way forward, then why keep on posting and thereby getting further replies?

My mistake, I thought this was the 'Early-retirement wannabe' board.


How you get there is your problem .


However, if this is a Pensions ONLY discussion, then i'll go back to my quite place .

Johnnyboy11

I don't think there is a business case for BTL anymore, if you are honest and factor in all costs associated with owning and disposing of the asset.


Take for example a £300,000 BTL property, the Stamp Duty alone (SDLT) is £14k. I reckon that will become £20k by the time you add survey fees, legal fees, mandatory upgrades and certification(s) before renting out. Then you have the associated costs on selling:surveys, estate agent, legal etc. I reckon you'd be 7% underwater before your first tennant turned the key in the front door.



Then there's the general direction of political travel, and property owners, in particularly BTL property owners, are a sitting duck. Labour are already on record with firm plans to introduce an annual 3% 'garden tax'.


BTL is not for me, not in the UK anyway.

Sara21

I'm only 30 (and really enjoy my job) but MSE has got me thinking about planning my retirement already! I already put a % into my pension each month (matched by employer) but I'm following this thread for tips

itm2

Interesting discussion re. pension freedoms. I was wondering....these freedoms are quite a new thing - until a few years ago annual pension drawdowns were limited to a state-dictated GAD rate. What are the chances that future governments will withdraw the current freedoms and return to controlling drawdown rates? - e.g. if public behaviour changes and large numbers of people start drawing down their entire pension pots and blowing it all on Caribbean cruises?