Which should be the right position to be inSorry I might have put a confused message I get 2/3 of my gross salary but then commute 25% of that so end up with half my gross, once my mortgage is paid off I end up more cash in my pocket per month to blow than I did when working, so I’m happy with that.
Cheers. so as long as I'm above 2/3rds of net (including state pension) then I should be OK. - No mortgage, no rent, no kids etc and will probably cut down on long distance away games.Where as I'd say net if you're not renting
In general, people lose 25ish percent of their gross salary in tax and NIC contributions and then there are all the saving policies (mortgage, pension etc) to deduct.
So if you're a home owner then two thirds of your net salary SHOULD leave you comfortable
Gift and survive 7 years.I have leveraged like fuck all my life and as soon as i possibly can from an early age. Interest rates being so low and property price increases since 1996 when i bought my first one. Basically other people renting have paid my mortgages for me. Issue now is the Capital gains tax bills and inheritance tax planning.
Then there’s the issue of tenants that refuse to pay rent. My folks got hit with that, the tenant was the eldest child of a close friend, she was a mother and worked as a nurse (so respectable one would imagine) but she stopped paying rent and it took 9 months to get her out through the courts and when they did, she’d trashed the place in his last week and they had to spend £20k on a new kitchen, bathroom and redecorating. They took her to county court for that and managed to get a court order saying she’d pay back £50 per month as it was all she could afford.Subject to CGT though and will you have an agent run your BTL or will you take on the hassle yourself? You need to factor in periodic redecorating and for periods without tenants. Also, there’s a big question mark about future house values once we get the post covid shake out.
Surely the most accurate way to determine annual spending is to just add up the money that leaves bank accounts annually? Most bills are paid by direct debit or credit card. You could look at your statements online for the last couple of years, copy to a spreadsheet and then add it all up?Reading this had made me want to retire early or get a part time job, just been thinking in my head what bills need to be paid was thinking
100 council tax
110 gas , elec n water
80 sky
50 gym
80 Man City
50 car insurance
160 food
so roughly 600 a month for essentials
roughly 3k a year for holidays
around 7 k for leisure
so roughly 16 k a year does this sound about right