Saving to avoid a mortgage

ajdj

mizmir wrote: »

Sorry ajdj - missed this great post yesterday.

No probs, you seem to have thought things through well from the sounds of it. The pension lump sum and additional income will certainly help!

I think your BIL will be able to offer the right advice regarding investments. Don't forget to factor in your tax position as well. You could utilise S&S ISA to start your investing but bear in mind you might want a plan to reduce the level of risk you are exposed to as you approach the end of your 10 year timescale. 4% seems a realistic return without overexposing yourselves.

The tax situation may be the deciding factor in choosing to buy another property sooner if you intend to rent it out as a holiday home. Not only will this require a higher deposit, it will also mean income tax on rental income. Plus all the hassle of having an extra business!

I'm following with interest as I have 2 buy to let properties with combined mortgages of £200,000. These give me a healthy yield based on rentals but it's not tax efficient to overpay as I can offset the mortgage interest against tax. I'm looking to use an investment strategy via S&S ISA to have enough to cover the mortgages by 2024 when I'm 40.

Do let us know what your BIL suggests and I'll see you over on the 'save in 2014' thread too

mizmir

Good point about the tax situation - and with OH paying higher rate tax that is something to consider very carefully. Will definitely let you all know what BIL recommends for us.

mizmir

Went to see some sheep today and looks like we can get a couple to keep the grass down on the farm - much cheaper than a mower and much more fun. They are little shetlands - very, very cute.

Budget all in hand and looking healthy for November!

Karmacat

Your own sheep! Brilliant

Ali-OK

Ahhh here you are A new home for your new chapter, perfect and I shall be following...and hopefully here too by next summer.

Good luck with your exam today and the sheep! Subscribed.

Greying_Pilgrim

mizmir wrote: »

Nowhere near Sedona I'm afraid - heading to Wisconsin and Michigan!

oooh, oooh, ooh - Greying hops from one foot to the other in excitement - which bits? which bits??? Are you flying into Chicago or Detroit?

Greying wanders off, musing on happy memories.......

Greying

mizmir

Milwaukee and Chicago. Flying in via Minneapolis and out via Detroit (to Milwaukee). Will be taking train along the lake to Chicago.

Karmacat

:j:j:j Loved Chicago, loved it. Frank Lloyd Wright ... the Dearborn terminus of the Santa Fe railroad ... sailing ships ... and, um, I got carded, at age 40 they do it to everyone, but I did tell the bartender I loved him

mizmir

Just checking in before heading off on our jaunt (we have to leave at 3.30 am so no point in going to bed! Good to have a break that is budgeted for - will be great to be able to relax and enjoy it without worrying.

Had a productive day getting things moving with preparing the land for my training work in the spring. There is going to be some rubble to move and reseeding - but now have someone who will take care of it all and for a reasonable price.

Managed to save £400 off our car insurance from taking a multi car policy so that was a bonus. And had the cash back and interest on the 123 accounts - we've earned £54 in two months from them - better than paying £20 a month for the overdraft! Plus I sold a course place out of the blue! So all good.

BIL booked in for when we get back to get going with the investment plans. Will see you all in a week or so.

Karmacat

Have a lovely, lovely time miz, I'm sure it will be wonderful