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  • Entrepreneurs

    Leaving the day Job - Becoming a fulltime landlord

    Thanks for the first hand comments Joanna. Very helpful. Well done for what you have achieved!!

    Couple of new threads related to this topic:

    Do you really need an office to run a property business?

    Creating an additional property-related income stream
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    I wasn't given a choice about leaving my full time job, but I had received an inheritance shortly before being sacked.
    My technical skills are near obsolete, and most of the jobs I was qualified for looked really boring as well as paying less than half my former salary.
    I decided to take some time and look at investing my inheritance and savings somewhere where they would earn more than a pittance.
    I had to start with cash purchases as I could not get a mortgage for 6 months.
    After 2 years I now have 5 residential lets, one commercial property and a mortgage free home.
    This is gives me an income of about £22,000 p.a. before tax.
    Not riches but enough to live on and I am still buying. I am current;y on 40% LTV overall.
    I am not really a full time landlord as I use letting agents to manage my properties.

    Maybe you want more money, but my point is that if you really wanted to or were forced to give up the day job you already have enough.

    You are in a great position. If you can decide what an ideal likestyle for you would be you are young enough and financially secure enough to go for it.
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    I know its not my thread but I find it very interesting reading other landlords points of views and what their doing on their investments! I was always worried that I would be a little bored giving up full time employment to manage my property, hence why I started my own letting agency. I guess it's all down to preference and would say I am a workaholic though Smile
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    Aaron Cambden Director at Fairview Estates Residential Lettings & Sales. Property Investment. Letting Agents Nottingham

    We recently recorded a video on this topic, so just adding it here:




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    Hi Sam,

    Just wondering how you are getting on with your decision? Did you reach one?

    Has Clause 24 impacted on your thoughts in this regard?
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    (17-01-2016 11:06 AM)Vanessa Warwick Wrote:  Hi Sam,

    Just wondering how you are getting on with your decision? Did you reach one?

    Has Clause 24 impacted on your thoughts in this regard?

    Exactly! As it may be more beneficial to pay down debt rather than buy more properties on a mortgage!
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    Hi Vanessa,

    I still haven’t taken the leap.

    I have given myself a goal of leaving on/before my 40th Birthday.

    Financially I can leave now – but I have always been ambitious and want some sense of achievement so its not necessarily all down to how much money I can earn – the money in a sense is the scorecard of the game we are playing. I am just trying to get a few big deals under my belt which will lessen the blow of losing the “day job “ income.

    I have started looking at larger blocks of apartments or on going portfolios’ which hopefully will be easier to manage in the short & long term

    So if anyone is selling on here – im looking!

    Clause 24 not sure if im taking it too lighlty but if a slight tax change instigates people selling up etc... then they were too highly leveraged.

    I have been over paying alot of the last 10 years however im actually taking a little of Jonathans advice and not over paying anymore. If I am looking to expand I can never get the same amount of money out of my properties of which ive overpaid. For every £1 I overpay I will only realistically get £0.60- £0.70 back out if I needed to release the money.

    To this end im trying to hold onto as much cash as possible,

    Would be interested to hear everyones thought.

    Thanks

    Sam
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    (27-01-2016 10:14 AM)samg_3500 Wrote:  Clause 24 not sure if im taking it too lighlty but if a slight tax change instigates people selling up etc... then they were too highly leveraged.

    I have been over paying alot of the last 10 years however im actually taking a little of Jonathans advice and not over paying anymore.

    Good choice re not overpaying....

    But I have to disagree about Clause 24 being a slight tax change and also your conclusion about this meaning that one must have been too highly leveraged .

    Thats like saying the government suddenly deciding that I don`t need a 4 bed house and coming along and demolishing 2 of the bedrooms and blaming me because I should have known what the consequences were of buying a 4 bed before i bought it.

    If it was only a slight tax change I could factor that in to my high leverage model and stomach it. Being high leveraged isnt a problem to me at all with my model. I could happily borrow at 100% LTV and still make money.

    But this tax change is not slight its a fundamentally MASSIVE unprecedented and potentially unlawful tax change . Hence the major reaction by landlords and the subsequent support for a judicial review .
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    Jonathan Clarke. http://www.buytoletmk.com