I Could Be Mortgage Free

getmore4less

I would look carefully at the letting cashflow and how much of that income you will be dependent on.

The mortgage interest(£200pm) is not the big risk it is voids and costs.

A 5% gross yield will give around £1400pm after mortgage,

depending on the investment income this is probably going to be UK tax free after costs.

a change of tenant could wipe out £200pm for a year.

Popgirl

Hi GMFL - thank you for you wise words, we have tried to do the sums taking into account all eventualities and yes in some situations we maybe a little short some months but I am hoping good months and the use of some of our savings outweighs these situations. We have some improvements to our BTL recently (new windows, garden fence, gate) while we are still earning so I am not expecting any large bills for house 2 anytime soon...fingers crossed!

Over the last year when visiting our home aboard we have lived on the amount of money we are expecting to have each month as a trial run and we have managed comfortably even managed to eat out 2/3 times a week which we don't do in UK now so not expecting to do that either when we are there full time. One thing we won't be having is ice-creams could buy a big tub for the cost of 1 at the local ice cream parlour!

The first letting agent came today and I had a pleasant surprise as they say the rent would be £75 pm more then I estimated ,will hold back the excitement until I hear what the others say. Plus they said it would rent easily as demand exceeds supply, which is very reassuring. We have long term tenants in our BTL who are a lovely family so I am hoping we are lucky when we rent out house 1.

getmore4less

Good idea get both places in tip top condition,

if possible have someone more local to do some management unless it is easy/cheap to get back for.

I asume you have checke the tax position in the country of residence which will probably change when ytou become more permanent.


Since your job finish seems to be waiting for a bit of redundancy money why is hubby finishing early any way to sycronise?

I guess if he has long notice it makes that less desirable and he can get on with the lets get ready to leave jobs.

You don't say how close the houses are but If you have a good tenant in your current house might they be a candidate for your home.

Popgirl

getmore4less wrote: »

Good idea get both places in tip top condition,

if possible have someone more local to do some management unless it is easy/cheap to get back for.

We are looking to use a local agent and have a full managed service unfortunately the current BTL is in a different part of the country so we are unable to use the same agent, pity as we are really happy how their manage it for us

I asume you have checke the tax position in the country of residence which will probably change when ytou become more permanent.

Yes checked the tax position!


Since your job finish seems to be waiting for a bit of redundancy money why is hubby finishing early any way to sycronise?

I guess if he has long notice it makes that less desirable and he can get on with the lets get ready to leave jobs.

Yes that is what we think, we will have a lot of things that we will need to sort before we go so makes sense for OH to finish while I carry on and keep the money rolling in for as long as we can. I am the higher earning plus OH really dislikes his job for many reasons so the quicker he can go the better. To be honest he would hand his notice in tomorrow but he has a company share plan that matures later this year and we would be bonkers if we gave that up that's why he will wait until Nov/Dec.

You don't say how close the houses are but If you have a good tenant in your current house might they be a candidate for your home.

Houses are 55miles apart !

Popgirl

Sorry my reply didn't turn out like I expected:( expecting the quotes to be separated with my response below each question. Will need to read up on how to do that

Very busy weekend as we had family visiting.
Ordered replacement car on Friday now need to wait until October to get it!
Had a NSD yesterday, I guess most of the population did as the weather was so bad and people stayed in doors. for weather :) for NSD

Pay day Friday so will plan tonight how much will go in each pot, £100 OP definitely!

Have a lovely day xx

Khrisjun

Good Luck Popgirl, this is the position i want to get to in the next 20 years, long timescale for me but im only at the start of my career with no children around yet so anything can change for me!

Popgirl

Payday today so made a small £100 OP to the mortgage and put £1k into investment bond. Claimed £13.15 from TCB so will us this to make another OP when it hits my bank. Did a lot of "robbing Peter to pay Paul" last month making our CC bills higher than normal so after paying these off "in full" :money: I don't think we will be able to make any more OP or add to the savings. From next month we are going to try and not use the CC's we are going to start to use cash only so we get use to doing that as this is how we plan to live when we move abroad. We have tried before not using CC but failed miserably! This time DH and I are determined:) cards are now removed from my handbag and locked away.

The letting agents visits have now completed they all said around the same amount of ££ for the rent so we are pleased with that. I like one agent in particular so we think we will go with them when the time comes. All of them said there is a shortage in the area of our type of house so should rent really quickly, great news.

I have had a reoccurrence of a health problem this week saw GP Wednesday, seeing consultant today and expect to be in hospital in the next week or so for an operation:(. Times like this my private health care is a welcome bonus as I imagine I would have waited months to get to this stage via the NHS route. I love the NHS don't get me wrong I have had great service from them over the years but the speed of diagnosis and resolution going private is great when the problem isn't life threatening but damn hard to live with, but I guess that's what I am paying for.

Have a lovely weekend everyone xx

Popgirl

Saw consultant, mixed feelings about what he said, he doesn't think the problem I am having is the same as before but he would like a 2nd opinion from another consultant who specialises in my condition. The consultant he would like me to see is now on holiday for 3 weeks so will need to wait until he comes back, which is fine as I have meet him before. Had a lovely evening with friends yesterday BBQ and a few glasses of wine. Did spend money yesterday on food shopping, £45 in total, food should last all week apart from topping up on milk we usually run out by Wed. I paid cash, normally I would use CC just to get CB but CC is safely locked away so I don't use it. I am willing to sacrifice the cashback as I think in the long term I will save more by not using the CC than CB would ever be. NSD today, spent the day washing all of the bed, duvet and pillow protectors as it was a great drying day
Going away with work for a few days so early start tomorrow so better go off to bed. Nite nite x

Popgirl

£13.15 from TCB hit my bank today so OP made. No more OP's this month any spare money will go into savings. Back home after a few days away with work, never have good MSE days when I am away usually to busy to think about it , need to get better, spent £20 on nothing really a few coffees, some lunch. Evening meal, hotel I can claim back but the £20 is lost forever! WFH today so will be a NSD, DH takes own lunch to work so he will have a NSD too. DH is very good most of his working week are NSD unless I send him to the shops to get something.
Decided to do a car boot this Saturday we haven't done one for a long time, don't really like them, I get really grumpy with people coming and looking through our items while we are setting up! Little moan over... On the positive side hopefully we will make some money to add to the FIRE fund and get rid of unwanted items. Better get back to work...have a great day everyone PG

gallygirl

Mr GG just pointed me to your thread .

Plans are coming along well aren't they? My only disquiet would be that with only two BTL's you're at a greater risk if one is empty - we have five so risk is spread (very cheap area, your two are probably worth what our five are :rotfl:), however you have a good cushion of savings if necessary. The only other thing would be we've found living in an apartment a bit limiting.

As GoldieGirl said, early retirement rocks (except when it's 40 degrees outside :eek:), no regrets here either :T.

Hope health issue is easily resolved.