Life after contracting

[lukemg]

Hang on folks, not sure BTL is the perfect answer here.
When you read some of the discussion threads elsewhere there is plenty of grief filling them, stopping people trashing them or not paying rent or having to constantly fix stuff.
Yes you can pay people to manage this to some extent which takes a big chunk out.
There are plenty of people paying mortgages on properties they can't get tenents for/can't get enough in rent for, who are not getting much sleep at the moment.
Careful examination of the demand and returns with a realistic view of occupancy and other costs is required.
Personally, I am plying the ISA and SIPP furrow. Taken a kicking recently but still hopeful of reasonable performance over the long term and tax free too. They don't require much maintenance and although it is very tempting to cut the lower returners, they often end up among the best the following year. Use money you won't need for at least 5 yrs, get a good foundation in less ambitous funds, keep investing during the dips, avoid individual shares, pray....

[alreadypacked]

I came to contracting so I could work 6 -8 months of the year and spend the winter in the sun

I don't think I would ever have enought money to retire early. I will keep contacting as long as I can.

Current contract finished in October, start looking for new contract next March online from somewhere sunny.

Dignitas at the end.

[threaded]

The reality is - while you are still healty enough to enjoy your money - do so -for no-one knows what the future holds and no financial investment return is guaranteed.

If today is joyful why be concerned for the future which never arrrives ?


Some of you appear to live in the Age of Anxiety - but thats not for me .


For it is written :

"Therefore do not worry about tomorrow,for tomorrow will worry about itself.

Each day has enough trouble of its own.

Do not dwell in the past,
do not dream of the future,
concentrate the mind
on the present moment.

[expat]

Do not dwell in the past,
do not dream of the future,
concentrate the mind
on the present moment.

That, as I said a little while ago, is the problem.

[threaded]

That, as I said a little while ago, is the problem.

The root of your problems vanish when you cherish others.

[Fred Bloggs]

Hang on folks, not sure BTL is the perfect answer here.
When you read some of the discussion threads elsewhere there is plenty of grief filling them, stopping people trashing them or not paying rent or having to constantly fix stuff.
Yes you can pay people to manage this to some extent which takes a big chunk out.
There are plenty of people paying mortgages on properties they can't get tenents for/can't get enough in rent for, who are not getting much sleep at the moment.
Careful examination of the demand and returns with a realistic view of occupancy and other costs is required.
Personally, I am plying the ISA and SIPP furrow. Taken a kicking recently but still hopeful of reasonable performance over the long term and tax free too. They don't require much maintenance and although it is very tempting to cut the lower returners, they often end up among the best the following year. Use money you won't need for at least 5 yrs, get a good foundation in less ambitous funds, keep investing during the dips, avoid individual shares, pray....

Pretty much my plan too.

[ChimpMaster]

I thought I had something to add to this discussion, but perhaps the following is not new seeing what I've read here already.

BTL has been argued already: I would go along with Milan's ideas about index-linked rises in values and rents. This has always been the case with property over the longer term.

To extend on the other point - there's no need to have £750k to allow a £2k 'withdrawal' each month. Better to buy 5 BTLs at £150k, which can yield £700 a month, i.e. £3500 index-linked return. Or diversify as you require aka Lukemg - perhaps buy a couple of BTLs, have a private pension and some ISAs.

I have some ISAs, some BTLs, my own house etc. I would like £5k a month before I retire ... but I have kids to bring up and parents I would like to help out. Not quite there but I've got a few years in me yet.

[bobhope]

I thought I had something to add to this discussion, but perhaps the following is not new seeing what I've read here already.

BTL has been argued already: I would go along with Milan's ideas about index-linked rises in values and rents. This has always been the case with property over the longer term.

To extend on the other point - there's no need to have £750k to allow a £2k 'withdrawal' each month. Better to buy 5 BTLs at £150k, which can yield £700 a month, i.e. £3500 index-linked return. Or diversify as you require aka Lukemg - perhaps buy a couple of BTLs, have a private pension and some ISAs.

I have some ISAs, some BTLs, my own house etc. I would like £5k a month before I retire ... but I have kids to bring up and parents I would like to help out. Not quite there but I've got a few years in me yet.

You've been fooled by 10 years of ever increasing house prices.

BTL only makes sense if yield > ~1.5 * interest rates. Which hasn't been the case in London/South East for most of this decade.

BTL can make sense, but like lots of things, timing is everything.

[Fred Bloggs]

Btl?

An interesting read from Tom Stevenson who I rate very highly as an economic commentator-

Tom Stevenson Comment.

[ChimpMaster]

You've been fooled by 10 years of ever increasing house prices.

BTL only makes sense if yield > ~1.5 * interest rates. Which hasn't been the case in London/South East for most of this decade.

BTL can make sense, but like lots of things, timing is everything.

Interest rates? By which you mean savings interest rates? Which are what - 1%, 2% at this time? Or 4% if you're willing to fix a lump sum for 5 years? From my example above, which is from real life experience, that amounts to a 5.6% yield. In fact, you can get more now - 7% is easy, and by easy I mean buy the house and give it on a contract to the local council.

I'm not saying this is the right time (in fact I'm stopping my wife from buying another BTL at this time), but you need to view property over the long term and not as a 'decade' long event.