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Any mortgage free home owner can retire on either a smaller pension than a person paying rent - or alternatively of course retire earlier.
Semi retirement per se (if you are on PAYE) assumes employer is amenable to you working a 2/3/4 day week.
So the goal has to first be to acquire your forever family home and get to mortgage free status.
I agree with that statement 100%, however I strongly disagree that the solution is direct home ownership. As a care worker I have witnessed many elderly people lose their savings and assets to pay for care fees, and some younger people. There are alternative strategies available for those who wish to pass their assets on to their heirs, but these ideally need to be considered prior to retirement, and certainly prior to any care requirement being identified.
A good teacher must know the rules; a good pupil, the exceptions.
Martin H. Fischer
Yes IHT planning is fraught with practical problems - GIV of family home to offspring of course needs 7 complete yrs to elapse before totally free of clawback for IHT - and in wanting to remain in situ a commercial rent needs to be paid to the recipient(s) of the gift failing which HMRC deems it a gift with reservation.
That said less than 5% of all pensioners are in care homes - though 90% are over age 75 where that cohort reduces from c.12 million to 3.7 million hence 14% are in care by that stage - and one does not need to be a pensioner to need care.
The 5% of pensioners in care homes figure is accurate but is always misleading. Approximately 33% of pensioners receive care at home, either funded by their own assets or by the local authority. A further 33% (approx) receive care from family, friends and/or community, although they would likely qualify for funded care if voluntary care was not available.
The amount able to be invested by a non home owner/buyer though would be significantly reduced by paying rent - esp in PRS.
A typical Home Counties 3 bed semi is now over 17 x average wage - whereas 40 yrs ago was just 5 x average wage.- or 30 yrs ago around 8 x average wage (just prior to crash).
From a pension planning viewpoint - worth noting that to buy a commercial annuity paying out an indexed £169 weekly (eg the Flat Rate State Pension equivalent) would need a pot of £265k at age 65 and massively more at a younger age as payable for longer.
I am sure others will confirm that BTL is almost never a "passive income".
I don't know your area or how much you have to invest (its best not to share that info), but it could well be achievable. I don't consider BTL as a passive income, but that's relative.
I've purchased a commercial unit for cash (I would have struggled to secure a mortgage on it) and this is close to passive and provides an income of £12k pa.
If expanding on the lodger strategy its difficult to avoid the cumbersome legislation of HMOs, but there are limited options. I also considered a B&B, not a radical change from lodgers, but there is a significant commitment to work. A hostel or a lodging house offer a good compromise on income/effort/legislation and holiday lets are another option.
There are also commercial properties sometimes available that are only commercial in terms of planning usage. Some surgeries, beauticians/hairdressers, offices, etc. are basically residential properties with a change of use and may provide an alternative option for a residential investment subject to due diligence.
Lenders like vanilla BTL and AST lets and borrowing becomes limited and more expensive as you move away from the 'safer' strategies. However, its difficult to significantly increase wealth without leveraging. Its also worth noting that there are around 200 pieces of legislation relating to landlords - many, if not most of these relate to ASTs, BTL mortgages and HMOs.