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  • Entrepreneurs

    Income needed to retire from day job

    What ballpark btl income would everybody consider was appropriate before jacking in the day job completely?

    I currently make between 35-40k from BTL with a LTV of about 31%. I'm 52 , married,  have no other debts , money in the bank and live in Yorkshire.

    I would love to quit work and write novels full time but the wife won't let me.

    A close friend has just suffered a major heart attack and needed an emergency quadruple heart bypass, so I'm feeling a bit reflective.

    Would anyone jack the job in yet?

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    Hi Flynn,

    The fact your debt ratio is so low is promising given the majority, but i suppose everybody wants different things so its a very subjective question.
    Some people i feel would be more then happy on the 35-40K but then this also depends on your lifestyle - house, cars, holidays etc.

    If you can comfortably live if your BTL then as they say - you only live once!   But you say have money in the bank so why not invest in more BTL to increase the income?

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    The tax and regulation aspects of being a landlord are moving and shaping as we speak - and, thowing Brexit into the mix, I think it's going to remain a very fluid situation for at least another 12 months until things stabilise enough for us to be able to sit back, evaluate, take stock and react. 

    In the meantime, my advice to you would be to sit down with your wife and work out what you both want from life and then calculate how much you'd need to net per month to achieve that lifestyle.

    With that magic bottom-line figure, you'd then need to work backwards to see how regulatory costs and S.24's incremental increases etc affect the profitability of your business and the net earnings from your day job.

    Then, a-la Dislexic Landlord, you might seek and find some clever ways of combining incorporation and a pension and other investment vehicles or whatever to create the most tax-efficient way of achieving your utopia, which, by the way, needn't be measured up against anything other that your own wants and needs. Maybe even the Portugal or Malta tax breaks could come into the equation or equity-release later on down the line?

    Just throw it all into the mix and see what eventually comes out - and I'm sure you're going to get loads of varying and interesting suggestions from the more learned contributors on here.


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    I would consider leaving full time employment on half of that income if I had some money in the bank.

    There's nothing more valuable than time so I want to leave employment as soon as I possibly can without leaving myself in a difficult financial position.


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    I'm 50 and divorced and you're probably already beyond my aim. I believe I can live very comfortably on 12k disposable income, even if I don't remain single. Hopefully, reinvesting what I already have will achieve this.

    I hope your friend makes a quick recovery.

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    May be worth considering part time initially.

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    Have you considered changing some of the BTL to holiday let’s (or sell the BTL and buy holiday let’s in tourist destinations) if you have any in areas that would attract tourists/visitors to the area. I did this with 2 of mine (rent through homeaway and Airbnb) as the income is much  higher and there are certain tax breaks aswell for holiday let’s but I’m not entirely sure what the tax breaks are.

    That’s a question I was going to ask my accountant at the next visit! Granted they take a lot more management as such high turn around but if you give up work then you will have more time anyway or you could hand them to a managing agent if the properties are not local to you. Just another option for you ponder over.

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    There are certain tax breaks as well for holiday let’s but I’m not entirely sure what the tax breaks are.

    Holiday lets are not subject to Section 24.

    See - Holiday let - every portfolio should have one


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    I'd second same responses you've been getting and then add - if you had more time and money (equity release) how much can you make from the funds.

    How would you invest it? how well can you buy (yield and below value)? How much would that push up your income?  how much value can you add to existing assets? Do you add this gain you make on capital value/growth to your income? you can (buy and) sell some per year using capital gains allowances too.

    (*Moderator note: Content soliciting funds for property JVs removed*).

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    regards Andrew Peers - property investor / sourcer - 07912674181

    a.peers@seamlessproperty.co.uk

    Property Redress Scheme Number 011436     NLA member 174404


    Your question is a just a distraction  in your search for  happiness

    And I am sure you are aware of that really  . You could quit work tomorrow on your current income

    But like 1000`s of other disillusioned 52 yr olds  you are looking for a trigger

    You  think the trigger is novel writing .  But that is probably just  an excuse for indecision

    You could have written a novel already in your 52 years on this planet

    Have you ?

    Its a plausible excuse / reason of course,  one of many that people  put forward like

     spending more time with the kids, ageing parents , going fishing , sorting the garden out etc

    We need these excuses to justify the once unthinkable

    My mate wants to write novels too

    He quit work 3 years ago @ 60 but hasnt written one yet

    He quit his partner of 40 years but hasnt written one yet

    He has 3 unencumbered BTL`s and lives a frugal life but hasnt written one yet

    For 10 years he has been saying  he wants to write a novel but hasn`t written one yet

    Look at yourself in a mirror and focus on what is actually stopping you giving up work

    When you have exhausted your soul and shed some tears and felt the fear you will find the answer

    That answer is always and invariably  the same - Nothing 

    ...............................................................................

    PS....   I quit work at 52 -  I considered quitting though at  45  - but I procrastinated

    Procrastination is the thief of time  - Edward Young (1683–1765).

    Good Luck

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