r.soleofsalford
Well-Known Member
Been part-time for last ten years or so now and it's given me the immense pleasure of seeing my grandkids grow and develop. Priceless.
It was the best thing I`ve ever did.
8-)
Been part-time for last ten years or so now and it's given me the immense pleasure of seeing my grandkids grow and develop. Priceless.
I'd ask yourself whether you honestly want to become a landlord.
I've asked myself that question previously and thought:
- the property industry seems to be chasing landlords out through taxes and better rights for tenants (Is it really a safe bet for the future?).
- Could I really be arsed being on the end of the phone at any hour to angry tenants?
- Are the tax implications worth it? You either pay tax on it personally or have to set up a limited company which comes with accounting costs and the like.
I'm sure there's still plenty of money to be made (especially if you do it at scale and build a large portfolio), but I'm not sure it's worth all the hassle. My view on becoming a Landlord is that you're buying yourself a job. It might be a very well paying job in some cases, but more often than not I think it's a lot of work, with more stress, for less money than what people think.
If I were you I'd chuck any spare money in your ISA until you hit the annual limit, then have a bit more of a think at that point.
It was mentioned earlier in the thread and seems a fair way of raising capitalJust to throw cat amongst the pigeons - has anybody any views/experience on the current spate of 'lifetime mortgages or equity release schemes' as a way of funding retirement.
It seems to me the major downside is the possibilitiy that offspring won't be getting full inheritance but my kids seem to be doing better than me anyway, so in 25 years time (hopefully!!!) it won't matter to them so much
Or are such products going to be the future 'PPI' scandal?
You're viewing it at the end of the savings plan though. That £500k house on a 25yr 90% LTV mortgage attracts interest of £13k pa but if the saver was to put the mortgage payments of £2000 pm into such funds that would gain just £1700 max in year 1. So they need to first get that mortgage down to nearer 60% to avail the best rates (60% mortgage would currently reduce payments to £14k from £24k, interest would be nearer £5k pa).Yes, when I first read about the subject it blew my mind. I think we're hard-wired to consider 'all debt is bad' and that one of your major financial milestones is to become mortgage-free.
I can completely understand people wanting their house paid off, but there are so many better (in my opinion) arguments against it.
If you offered most people an option of owning a house worth £500k or having £500k invested in index funds whilst living in a house with a £500k mortgage, people tend to go for the former. But when you tell people that they should expect to earn around £35k pa from the later option, they start to change their tune! :P
A lifetime interest only mortgage was the best thing my mother in law ever did.Just to throw cat amongst the pigeons - has anybody any views/experience on the current spate of 'lifetime mortgages or equity release schemes' as a way of funding retirement.
It seems to me the major downside is the possibilitiy that offspring won't be getting full inheritance but my kids seem to be doing better than me anyway, so in 25 years time (hopefully!!!) it won't matter to them so much
Or are such products going to be the future 'PPI' scandal?
You're viewing it at the end of the savings plan though. That £500k house on a 25yr 90% LTV mortgage attracts interest of £13k pa but if the saver was to put the mortgage payments of £2000 pm into such funds that would gain just £1700 max in year 1. So they need to first get that mortgage down to nearer 60% to avail the best rates (60% mortgage would currently reduce payments to £14k from £24k, interest would be nearer £5k pa).
Obviously it's different if you suddenly have £500k to spend/invest, but then if the housing market crashes and you have a £400k house on a £450k (90% LTV) mortgage, perhaps not so good.
Gross salary for me I get 2/3rdsQuick question: people often talk about wanting a pension of 2/3 final salary. Are they referring to 2/3 of final gross salary or 2/3 final take-home pay?
I know everybody has different requirements in retirement and both, one or neither might be suitable but which are they usually referring to?
Cheers for the info: I thought that would be the case.Gross salary for me I get 2/3rds
Where as I'd say net if you're not rentingGross salary for me I get 2/3rds