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50 and panicking
Comments
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BTL is a much higher return that a pension* (assuming you are looking at annuities)
No it isnt. In general. As it is taxed on both income and gains (unlike pensions) and has no tax relief unlike pensions.
So 80 into property is 80- all expenses. 80 into a pension is 100- no expenses.
And most people dont buy an annuity these days0 -
Gains have allowance which would not be taxed so on many occasions there would be no CGTThe word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0 -
I wouldn't sell the rental property. I would look to the three small pension funds you have and make sure that they are well invested. This may require you to consolidate the funds and move them to a provider that charges less. If you have to move them, chose a provider that you would be happy to save more with.
Then see what you can afford to save into your pension. Make sure you are maximising your income, and paying your pension first. So basically what bostonerimus said.
This may not help you to stop panicking, but if you make a budget of what you expenses will be in retirement you may find that you need less than you think to live on. The mortgage might be paid and your child should need a lot less from you; they might even be able to get a part-time job to buy their luxuries with.The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.0 -
The BTL is basically cash in the bank. Ask yourself this question - Where can I invest the money from a sale to give me at least the same income? My eldest son has a property which he rented out for seven years, when the tenant left he was undecided what to do, does not need the money (mortgage free) but looking at what it would fetch and interest rates renting still brings a better rate so he has kept it for now. His son rents it at present whilst looking for a house to buy. Remember it is an assett - once you sell it its gone.0
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A property gain at or less than the allowance is a poor outcome from such an illiquid investment
1.Investment is for income ( rent) so has does not depend on capital appreciation
2. Even not accounting for the above 11 k annual growth on a house costing 150 k (7-8%) is poor ?The word "dilemma" comes from Greek where "di" means two and "lemma" means premise. Refers usually to difficult choice between two undesirable options.
Often people seem to use this word mistakenly where "quandary" would fit better.0
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