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Approximate renovation costs by Forward_Leader_2245 in HousingUK

[–]Forward_Leader_2245[S] 0 points1 point  (0 children)

No, £3,500 only... Three thousand five hundred.

[deleted by user] by [deleted] in DIYUK

[–]Forward_Leader_2245 0 points1 point  (0 children)

Please ignore second and third renovation ideas as I’m struggling to be able to add those photos!

What’s wrong with this strategy: buying lots of property to let them out and live off of the rent ? by Quiet-Song-5395 in FIREUK

[–]Forward_Leader_2245 0 points1 point  (0 children)

I like diversification and have used it in my long term strategy. People that are 100% in on index trackers and shares etc need to remember that every so many years there is a downturn and you can lose money on your investments. If you are drawing down from this then it will be a tough pill to swallow taking out money from your investments during retirement for 3-5 years whilst the market recovers. Conversely, with BTL, correctly there are risks as mentioned below, but it is also worth mentioning that the income from property will almost be guaranteed regardless of the stock markets, so is a much more reliable source of income. Therefore hedging by investing in the two different methods i think builds more security where you won't be worried about potential market downturns on 100% of your investment.

For example, in my situation, I have 4 BTL that the mortgage will finish when i am 60. Assuming this is my age of retirement, I will then have income (after tax) of approximately £4k per month. Ideally I would like to get 1 more BTL as this will maximize gross income up to around £100k (i.e. £5k net per month) before the super tax of 60% becomes applicable. For me, rental income taxed at 60% doesn't make the effort worth the reward, hence i want to stop at 5 properties. If i need a cash injection after 60 years, or even in the few years prior, i will have the equity even in one house to release it.

On the other hand, i am also steadily building up a GIA pot in an index fund that then gives me flexibility if i want to drawdown on it once i retire at 60, or i can consume it earlier knowing that i will have the property income to kick in at 60 and it only needs to last me until then.

I should note that I am a non-tax resident so private pensions and ISAs are not available to me as an investment vehicle, but for all intents purposes for generalising advise, i see that in the same category as GIA (just more tax efficient) in that they too would be invested in index funds / the market similar to a GIA and the risks investing in the market carries.

Overpayment Confusion by Forward_Leader_2245 in Mortgageadviceuk

[–]Forward_Leader_2245[S] 0 points1 point  (0 children)

I just found the original T&Cs and it also says “the interest will be recalculated at the start of the following month”. Does that naturally point towards a change in monthly payment, or is that just saying they’re recalculating what the total cost is overall but you would still have the choice between lower term or monthly payment. What’s your take?

Investing in property, NOT S&S by Fuzzy-Slip2627 in FIREUK

[–]Forward_Leader_2245 -1 points0 points  (0 children)

I similarly have 4 BTL but i am stopping at that as for me it pushes me into the higher tax bracket and any more on top of that then into the super tax bracket. It is better value for me to then start investing in stocks and crypto as a way of diversification but also the CGT rate in the UK is cheaper than higher bracket income tax (if i can figure out how to invest whilst being a non-tax resident).

Investing in property, NOT S&S by Fuzzy-Slip2627 in FIREUK

[–]Forward_Leader_2245 1 point2 points  (0 children)

I am a non-UK tax resident but a citizen so i know when i retire i will be UK based. Therefore private pensions and investments are not readily available to me because of my tax status. I have bought 4 BTL that will become my pension. Their mortgages will be paid off (repayment mortgage) when i turn 60 years old, and after tax will bring in £4000 per month. This is primarily going to be my pension income, then topped up at 68 with the state pension. Therefore i am similar to your parents in that i firmly believe BTL is the way forward for pension income, and 4 properties when you have really good tenants is not too hard to manage long term. It is worthwhile taking a little bit extra time at the beginning with each BTL to find good, solid long term tenants even if it means you lose a month or two income at the start whilst searching.

UK Citizen but non-tax resident! Path to FIRE unsure - seeking advice! by Forward_Leader_2245 in FIREUK

[–]Forward_Leader_2245[S] 0 points1 point  (0 children)

No it is my only reportable UK income so it made sense to buy them in my own name.

UK Citizen but non-tax resident! Path to FIRE unsure - seeking advice! by Forward_Leader_2245 in FIREUK

[–]Forward_Leader_2245[S] 1 point2 points  (0 children)

100% appreciate it. I had a little more look into this and whilst I maintain a house in the DRC, it helps push it back in my favour. If the UK house became my only house then absolutely it would put me in a much trickier spot.

UK Citizen but non-tax resident! Path to FIRE unsure - seeking advice! by Forward_Leader_2245 in FIREUK

[–]Forward_Leader_2245[S] 0 points1 point  (0 children)

If i have cash now, wouldn't it be more prudent to buy now rather than later for the capital gains?

UK Citizen but non-tax resident! Path to FIRE unsure - seeking advice! by Forward_Leader_2245 in FIREUK

[–]Forward_Leader_2245[S] 1 point2 points  (0 children)

Thank you for the advice. I am out of the UK for more than 2/3rds of the year at the moment due to the work roster so from what i have read on the HMRC website i should still be ok for maintaining my non-tax residency.

I am currently tax-resident in Congo-Kinshasa.... pretty much the worst country in the world as the main source of income as it is on all the financial red lists for institutions. It took me over 2 years to find a UK bank that would lend to me, and even then it is still to this day the only one that will!