Reply to: Opinions on Paying Off Mortgage Vs Good Lifestyle.

[shaunbhoy]

I'm happy to sit on the main residence which is in a rundown Somalian/Bangladeshi area (Hackney) and let that rise in value.
Later we will upsize to somewhere pretentious but not quite so overpriced in Surrey, say, and use the freed up cash to buy 1 or 2 more virtual motorbikes and a big old Eco-Shed for my train set

FTFY

[sasguru]

I reckon now is the time to buy in central London (note this does NOT apply to the rest of the UK, which is like a completely different market). Money from wealthy foreigners is pouring into London assets, and that is going to trickle down to smaller properties, rents are going to follow inflation.

I'd leverage and use your cash as a small deposit to take out a BTL mortgage, but get a Z1 property if you can, the bigger the better.

I don't think the sort of properties in areas where foreigners are buying really adds up in terms of rental yield (although I haven't done my sums on this for a while)
I'm happy to sit on the main residence which is in a wealthy foreigners/bankers area and let that rise in value.
Later we will upsize to somewhere nice in Surrey, say, and use the freed up cash to buy 1 or 2 high yield properties (yes we can upsize and still pay less, London is so expensive)

[DimPrawn]

Well some of the money is going to a conventional pension pot.
Some to mixed assets fund.
Some will go to London BTL (bought with cash), when the time is right, so that there is a steady rental income stream.
Going to Portugal in May to scope out retirement homes - I like Oporto (nice wines, mild weather, few chav brits)

I reckon now is the time to buy in central London (note this does NOT apply to the rest of the UK, which is like a completely different market). Money from wealthy foreigners is pouring into London assets, and that is going to trickle down to smaller properties, rents are going to follow inflation.

I'd leverage and use your cash as a small deposit to take out a BTL mortgage, but get a Z1 property if you can, the bigger the better.

[sasguru]

Do you have a good income source for your retirement?

Where will you retire to?

Well some of the money is going to conventional pension pots (free money from firms).
Some to mixed assets fund.
Some will go to London BTLs (bought with cash), when the time is right, so that there is a steady rental income stream.
Going to Portugal in May to scope out retirement homes - I like Oporto (nice wines, mild weather, few chav brits)

[DimPrawn]

Indeed it does.
You have so much money coming out of your ears you worry about where to put it.
Although I'd rather have that worry than the opposite.

Do you have a good income source for your retirement?

Where will you retire to?

[sasguru]

Ahem, paying off the mortgage leads to it's own problems ...

.

Indeed it does.
You have so much money coming out of your ears you worry about where to put it.
Although I'd rather have that worry than the opposite.

[DimPrawn]

While I have been in the past accused of being a on here for it, my sig says it all.

I maintained the same level of lifestyle I had before I was a contractor and put the rest into my mortgage.

I don't like risk so having no debts really appeals to me.
After the mortgage I will focus on ensuring a comfortable retiral.

That said, it depends on your circumstances - I have a family to think about, if I were young free and single I would think differently.

Indeed.

It all depends on whether you think you will need to buy a bigger house in the future anyway, your attitude to risk, how near to retirement you think you are etc.

If you are young and living in a bedsit, but have a good income and like taking risk for big rewards it would make more sense to take any savings and buy a BTL in central London (Zone 1 if possible), taking on as big a mortgage as you can.

With unrest around the world growing, the rich are going to be looking at buying hard assets like property in safe places. You can't get safer than London for your assets.

If you are nearer retirement age, already have a big house and a not likely to move, like to sleep at night, pay off the mortgage. With any spare cash buy gold and shares in oil producers and food producers etc.

[al_cam]

While I have been in the past accused of being a on here for it, my sig says it all.

I maintained the same level of lifestyle I had before I was a contractor and put the rest into my mortgage.

I don't like risk so having no debts really appeals to me.
After the mortgage I will focus on ensuring a comfortable retiral.

That said, it depends on your circumstances - I have a family to think about, if I were young free and single I would think differently.

[ChimpMaster]

Ahem, paying off the mortgage leads to it's own problems ...

http://forums.contractoruk.com/gener...-now-what.html

The point being: it never ends. So you pay off your mortgage, then what? You buy an investment property, put some money in high dividend paying stocks, or into emerging market funds, or gold or what? It never ends. There will always be someone richer than you. You'll never have enough money. It never ends. It never ends!

If it's not too much hassle, pay off most of the mortgage and then just put some away and enjoy your life. After all, that's one thing which will end one day.

[DimPrawn]

"Vibrant Ethnic and Cultural mix"

Violent

[shaunbhoy]

House is worth £1 million +, average for London.

Hey sas? Which one is yours, and when did you take up the "Discounted Purchase" option?

"Vibrant Ethnic and Cultural mix"

[shaunbhoy]

Which bit of my claim do you think is bollux.
The fact that my mortgage-free house is worth more than a £1 mill?
And if so why do you think its bollux?

Your propensity for talking bollox preceding you I suppose.

[sasguru]

Still worth more than sas's compact and bijou Lower Wandsworth Broom cupboard.

Wrong. Next!

[sasguru]

That's because he's in the Talking Complete Bollocks Premiership League.

Which bit of my claim do you think is bollux.
The fact that my mortgage-free house is worth more than a £1 mill?
And if so why do you think its bollux?

[shaunbhoy]

Would that be the house with the extensive front drive with all the tulip seeping up through the extensive front drive?

Problem sorted. Marginally defective Victorian Interceptor. As Old Greg said..........design feature.

Where there's muck there's brass................apparently.



Still worth more than sas's compact and bijou Lower Wandsworth Broom cupboard.