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I'm about to continue my property journey, I have completed 5 renovations to date to a high standard but at the same time have lived in all of these. I'm currently sat on approximately 240K worth of equity and also have a job which enables me to have a very good amount of "home time" for good work life balance.My conundrum is that being in the higher 40% income tax band, it would grieve me to have to pay 40% on selling and the effort / reward ratio makes hard reading. I'm considering equity release for a small property that I can add value to rent and sit....Again I realise I would be paying 40% on rental income minus delectable costs, however looking at the long game I'm figuring the only sensible option would be to sit on the property and sell when the time is right, probably during retirement.
Other than that, sell & buy again as my main residence and go down the stocks and shares investment route with some hard cash, how can life be fun without some element of risk.
Any thoughts would be greatly appreciated.
Hi Jon,I really think that now is the time to take a step back and consider what you want to achieve from investing in property.You have done very well moving up the ladder by buying and selling, however that is akin to a job in its own right - although you have been living there and, and that makes everything a lot more forgiving in terms of turning a profit.I would start by sitting down and envisaging where you wish to be in 10 years time, or whichever timeframe feels appropriate for where you are in life right now.Start with the end in mind and work backwards. Without a goal/target, you have nothing to aim for.Once you have an idea of the above, then speak with reputable mortgage brokers and tax advisors and get their input about what you can achieve with your circumstances in a tax efficient manner.In my mind, Buy to Let is a better long term strategy than Buy to Sell.See - Buy to let vs. Buy to sell - trying to compare an apple to an orange.We also have this useful curated resource:Growing a property portfolio - resources I believe you need to create a very clear route-map forwards to take you towards your goal, otherwise you will end up scatter-gunning around, and, with the current market conditions, the risks in doing that are greatly amplified imho.I hope that helps for starters?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
That's great advice. Thanks Vanessa.