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  • Refurbish/Develop

    Fresh start with £150k what would you do?

    I would say using ISA Max allowances of 40K about 12 years to be a ISA MILLIONAIR

    You rely very heverly on Capital Growth of 5% I think  with the above I don't think we will see that sort of growth to be honest

    I work now on 3% myself at best

    If I was starting off with 150k and had no other income I would invest in BTL in my own name if

    THE YEILD WAS 8% and I was borrowing money on a long term fixed rate of say 10 years

    I would also factor in more changes in regulation too

    But If  a newbie came into the market today S24 would limit any expansion

    If the same investor used a Company It may work but taking any sort of real income would be taxed quite high

    For myself who is a higher rate tax payer I just don't see value in BTL

    and as I say I am very conservative on Growth and Rent Inflation and Belt and Braces I have opted for long term fixed rate mortgages

    I just don't trust the Govt at present and Interest rates can not stay low for ever

    So I am sticking with Pension and ISA  unless I see a peach of a  deal in property

    Lending is also a key factor its going to get harder to get lending in future years for all investors  and home owners too if you remove the life blood of lending the Property Market can not do well.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    12 years is not that long at all to make a million so thats sounds good

    40K x 12 years  =  a hefty 480K investment in total though in that 12 years 

    By becoming an  ISA millionaire are you meaning after that 12 years you would be worth... 

    a) £1,000,000

    or

    b) 1,480,000

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    Jonathan Clarke. http://www.buytoletmk.com


    My Goal is to create a pot of 1m and then draw income of 50k a year tax free

    My pension Goal is similar But I have already got my Army Pension and I will have the state pension too  so I will not need 50k from my Directors Pension

    Having the above in place allows me to pass down shares from the Family Co to the next generations as I age

    I would like to be in the position if needed when I don't have the health to work as an every day Landlord to have 100k a year to pay for care fees ect ect

    But I hope I live a long healthy life to enjoy wealth and give my family treats while I am still here

    I have built a large business and I just want to make myself and my family financially secure

    If I can do that It will be a life well lived JC

    But the striding and the deal making on the BTL market is now at an end for me The Next generations will have a foundation to build on if they want too.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Your goals are admirable DL but your 1 mil ISA `pot` is made up it seems of a 480K investment of your own funds.

    Many will not be fortunate enough to be able  to set aside 40K pa to invest.

    I am glad that you are in a position to do that and therefore become an ISA  half  millionaire in 12 years :-)

    Personally I think 40K in BTL each year is better spent.

    12 x 150K BTL pa @ 75% LTV gives you at least a  1,8 mil portfolio after 12 years

    Considerably more in fact if buying one a year as the first ones will grow in value on a pro rata scale

    15 years on that would again be at least a  3.6  mil portfolio  with no further investment  

    The 1 mil ISA pot with a 480K personal stake would  reach no where near that level I suspect ?

    Rest assured though that through your hard endeavours in property to date you have already - by the vast majority of measuring tools of wealth -  already made yourself and your family secure for life. and for that I congratulate you 

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    Jonathan Clarke. http://www.buytoletmk.com


    I dont rely on capital growth . I just welcome it when its there

    The 10% growth I had in 2016 cannot be ignored though when planning a BTL geographic strategy

    NE v SE is a positive conscious DD decision to be made when deciding where to  invest.

    We both as individuals are influenced disproportionally by where we live

    It clouds our judgement

    Overseas investors who pile into  the UK do not have our personal baggage

    They are free from the chains of our  nesting instinct

    They simply go where they expect the best returns

    If you have leveraged up over the previous years 10% growth comes into its own.

    The compound effects far far outstrip any ISA return

    The hard work has been done in the past on deciding where to invest in and what

    It may be 3% this year I agree but that still beats ISA`s.

    ISA`s  always have zero capital growth

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    Jonathan Clarke. http://www.buytoletmk.com


    You can have both JC

    I like BTL and Other investments now

    S24 has changed my view on BTL and I think looking forward it will have done me a favour

    I have to plan for Old Age Possible ill health and then IHT

    I have taken a road now I don't think I would have taken if it was not for Mr Osborne

    As I will not be selling any property Capital Growth is not high on my list

    But other avenues of positive cash flow are

    This Govt and Possibly the next Labour Govt will put more nails in the coffin of BTL I am quite sure of that

    I think we are in for stagnation and more tax payable from the BTL Cash Cow in coming years

    BTL is not a Bad investment But the Govt will tax it higher and higher where it will come to the point the profit we make will be worth little after paying so much tax

    You have seen the Young voting now and it will get stronger where the old and the rich in there eyes will be made to pay more and more

    I have a home in Gibraltar and I for the first time have thought of leaving the UK because of the mess we are in

    But Is jumping ship a wise thing to do its a very depressing time in the UK.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    ``I have a home in Gibraltar and I for the first time have thought of leaving the UK because of the mess we are in 

    But Is jumping ship a wise thing to do its a very depressing time in the UK`` 

    This is very much a personal decision for me not a financial one  .

    There is no way on gods green earth that i would go to live abroad

    I am totally happy with England as a country to live in. I don`t see it as a mess at all .

    I see freedom and opportunity and stability. We are very lucky by comparison

    Happiness can only come from within though,  so you must go where your heart takes you.

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    Jonathan Clarke. http://www.buytoletmk.com

    I purchased my gin property when I was single and a plan to avoid IHT

    but I don't see England as a great place. That's why I spend a lot of my time traveling I like options in life hate to be boxed in

    I will just plod along for now and see what happens DL

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    The majority of my non-property money is in SMT - 10yr return is 289%. 3yr return is 103%. I'm up about 10% in the last 6 weeks.


    I personally need the stability of property income for my lifestyle but if I didn't (and could sit out stock market crashes) I'd put all my money into investment trusts. I don't think my property returns can match this.


    https://www.bailliegifford.com/individua...rformance/

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    That`s very good. I am very lazy with my non property money I must admit. I should do more perhaps but my mind switches off .

    My Dad made his money in that kind of stuff and my uncle. I sometimes envied the fact that they could park all their wealth  on a few statements tucked inside  an A4 envelope inside the desk at home. But it wasnt for me.

    I preferred to be more hands on and able to touch and feel my investments and learn and expand and beat the averages through my own endeavours rather than leaving it all to the mercies of the stock market volatility which could crash overnight.

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    Jonathan Clarke. http://www.buytoletmk.com