Finance Advice - am I ok or not?
Discussion
With having no pension so to speak off, I want to ask the collective if i am ok or should I be worried about finances. Here is a breakdown of what we have:
Current house: £1.5m, mortgage £500k.
Mortgage monthly - £3000
4 BTL Properties: £2m, mortgages £500k
Monthly profit £3000
No ISA
No savings
No credit card debit
No car fiance's or loan payments
As this is PH, current cars are 458, 997, Outlander.
My plan, is basically pay down the mortgages before retirement and then live off what comes in.
The alternative plan, is to rent out the current home and buy something in Dubai
Been working as software developer for the last 30yrs, no idea how I've ended up were I am and wheather I could have been more tax efficient.
Current house: £1.5m, mortgage £500k.
Mortgage monthly - £3000
4 BTL Properties: £2m, mortgages £500k
Monthly profit £3000
No ISA
No savings
No credit card debit
No car fiance's or loan payments
As this is PH, current cars are 458, 997, Outlander.
My plan, is basically pay down the mortgages before retirement and then live off what comes in.
The alternative plan, is to rent out the current home and buy something in Dubai
Been working as software developer for the last 30yrs, no idea how I've ended up were I am and wheather I could have been more tax efficient.
£36k pa on 1.5M of cleared BTL is a absolutely w
k return. Are you letting people stay for free?
You may want to look at your IHT position with those BTL's too, not an issue with transfer between you and a spouse, but any subsequent owner looks like they'll have to sell some stuff just to satisfy Reeves, esp if the intent is to also have a cleared 1.5M main res. That would seem a crying shame.
Anyway you have a 458 so all is well.
k return. Are you letting people stay for free?You may want to look at your IHT position with those BTL's too, not an issue with transfer between you and a spouse, but any subsequent owner looks like they'll have to sell some stuff just to satisfy Reeves, esp if the intent is to also have a cleared 1.5M main res. That would seem a crying shame.
Anyway you have a 458 so all is well.
_kitt_ said:
You're doing well on the face of it but all your eggs are in one basket - the property market. Diversify between now and retirement would be my take, but i am just an average joe not a financial advisor.
I never spent any time investigating anything tbh. I normally opt out of the company pension. Somehow I nearly always up spending more than others for items.Now that I am thinking about retirement, I thought I'd better take stock.
Reading the threads about having another 10yrs of working life, I am begining to think about my options tbh. The thought about working for that long fills me with dread. The kids have moved out and it's just me and the wife in this big, old house.
INeedAHero said:
With having no pension so to speak off, I want to ask the collective if i am ok or should I be worried about finances. Here is a breakdown of what we have:
Current house: £1.5m, mortgage £500k.
Mortgage monthly - £3000
4 BTL Properties: £2m, mortgages £500k
Monthly profit £3000
No ISA
No savings
No credit card debit
No car fiance's or loan payments
As this is PH, current cars are 458, 997, Outlander.
My plan, is basically pay down the mortgages before retirement and then live off what comes in.
The alternative plan, is to rent out the current home and buy something in Dubai
Been working as software developer for the last 30yrs, no idea how I've ended up were I am and whether I could have been more tax efficient.
Sell the BTL's Pay off both your mortgages. Retire. You'll have £1m cash which even at 4% would generate £40k per year. But should be able to get much better returns and capital growth with some investment advice.Current house: £1.5m, mortgage £500k.
Mortgage monthly - £3000
4 BTL Properties: £2m, mortgages £500k
Monthly profit £3000
No ISA
No savings
No credit card debit
No car fiance's or loan payments
As this is PH, current cars are 458, 997, Outlander.
My plan, is basically pay down the mortgages before retirement and then live off what comes in.
The alternative plan, is to rent out the current home and buy something in Dubai
Been working as software developer for the last 30yrs, no idea how I've ended up were I am and whether I could have been more tax efficient.
If £1m isn't enough, then downsize too and release a bit more cash.
£2.50m in assets assuming all houses sold less of course any taxes then due on the BTL’s.
Ignore car values for a second.
“ Usual “ drawdown from a Pension would be circa 4% pa so depending on your age/s and more importantly your current annual outgo that will quickly give you an equation.
The other way to look at is is the income as you say from the BTL’s assuming that doesn’t cover the total outgoings is then to look at the main house and see what might work as a smaller house whilst then keeping the equity released from the lack of mortgage currently and seeing if there is a balance there.
Or just work out the total value of all assets and reverse engineer what you need or want as a future income and then make some decisions.
Ignore car values for a second.
“ Usual “ drawdown from a Pension would be circa 4% pa so depending on your age/s and more importantly your current annual outgo that will quickly give you an equation.
The other way to look at is is the income as you say from the BTL’s assuming that doesn’t cover the total outgoings is then to look at the main house and see what might work as a smaller house whilst then keeping the equity released from the lack of mortgage currently and seeing if there is a balance there.
Or just work out the total value of all assets and reverse engineer what you need or want as a future income and then make some decisions.
To clarify, the current house has a mortgage and so do the BTLs. We are clearing the mortgage payments and costs and left with £3500 to be more exact from the BTLs. This covers the mortgage on the current house.
Although it may seem like a lot, it's not cash. It's all what it's worth on paper.
The reason why there are no savings is because we have spent everything to get the house into a decent standard. We bought in 2015 and moved in 2020 during COVID.
This is real. This is my life.
Although it may seem like a lot, it's not cash. It's all what it's worth on paper.
The reason why there are no savings is because we have spent everything to get the house into a decent standard. We bought in 2015 and moved in 2020 during COVID.
This is real. This is my life.
JagYouAre said:
"I have no savings but I have got £2.5m property equity, a Ferrari and a Porsche, will I survive?"
Surely this has to be one of those wind-up threads??
You'd like to hope so. It's PH though so who knows. Either way, OP needs to read the room, realise that some people will never see the likes of that kind of wealth in their entire lifetimes, and keep that sSurely this has to be one of those wind-up threads??
t to himself. FFS. Absolutely cringe.
shtu said:
JagYouAre said:
"I have no savings but I have got £2.5m property equity, a Ferrari and a Porsche, will I survive?"
Surely this has to be one of those wind-up threads??
Racehorse back under yet another new identity, with some new schtick?Surely this has to be one of those wind-up threads??
ETA To be fair WB had "five fictional BTLs (2 of which were abroad)" not 4 as in the OP's case
although I guess he could have sold one?
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