[deeege]

Recently started looking and taking this a bit more seriously.

I’ve always been self employed so have never paid into a pension. Have just checked and I still have 21 years stamp to pay to qualify for full state pension. (Although that’s not much)

There’s going to be so many people of my generation retiring into poverty. Saying you’ll work in the window cleaning game to the age of 70+ is madness. They’ll be very few fit enough to realistically be able to do that, I doubt I’ll be one of them.

I’m on target to be free of a mortgage by 48-50 so that will give me plenty of options aswell.

why?...lots of fit,healthy 70+year olds knocking about!you look after yourself dont you Danny?running?or whatever else you do.....

window cleaning is easy these days with all the great,light WFP equipment thats on the market......

I do try and look after myself yes, run 3x a week, decent diet, don’t drink too much, don’t smoke. The reality is though that 70 is a good age to even live until, never mind work a physical job.

I don’t know many (if any) 70 year olds that are capable of working this job.

I’m just saying that it’s madness to assume you’ll be able to carry on working this job until you drop dead which is basically what your doing.

What if your body packs up at 60/65 and you can no longer physically do the job? Who’ll pay your rent and bills then?

[KS Cleaning]

Recently started looking and taking this a bit more seriously.

I’ve always been self employed so have never paid into a pension. Have just checked and I still have 21 years stamp to pay to qualify for full state pension. (Although that’s not much)

There’s going to be so many people of my generation retiring into poverty. Saying you’ll work in the window cleaning game to the age of 70+ is madness. They’ll be very few fit enough to realistically be able to do that, I doubt I’ll be one of them.

I’m on target to be free of a mortgage by 48-50 so that will give me plenty of options aswell.

Why don’t you use some equity and put a big deposit down on a buy to let property or two?

[deeege]

Recently started looking and taking this a bit more seriously.

I’ve always been self employed so have never paid into a pension. Have just checked and I still have 21 years stamp to pay to qualify for full state pension. (Although that’s not much)

There’s going to be so many people of my generation retiring into poverty. Saying you’ll work in the window cleaning game to the age of 70+ is madness. They’ll be very few fit enough to realistically be able to do that, I doubt I’ll be one of them.

I’m on target to be free of a mortgage by 48-50 so that will give me plenty of options aswell.

Why don’t you use some equity and put a big deposit down on a buy to let property or two?

I’ve considered it but you get hammered on tax for second properties now don’t you. It’s something I may do in a few years time though once the mortgage is mostly cleared.

[Shrek]

Recently started looking and taking this a bit more seriously.

I’ve always been self employed so have never paid into a pension. Have just checked and I still have 21 years stamp to pay to qualify for full state pension. (Although that’s not much)

There’s going to be so many people of my generation retiring into poverty. Saying you’ll work in the window cleaning game to the age of 70+ is madness. They’ll be very few fit enough to realistically be able to do that, I doubt I’ll be one of them.

I’m on target to be free of a mortgage by 48-50 so that will give me plenty of options aswell.

Why don’t you use some equity and put a big deposit down on a buy to let property or two?

I’ve considered it but you get hammered on tax for second properties now don’t you. It’s something I may do in a few years time though once the mortgage is mostly cleared.

You do but you still make money even if it’s a smaller amount. My accountant said ( I think) that in 2023 , the mortgage on a buy to let won’t be taken into consideration at all. For example your buy to let mortgage payment is £200, rent is £500. Your taxed on £500 instead of £300, so after tax your still taking home £200 a month instead of £240 if they’d have taken into consideration the mortgage payments. Plan to have the mortgage paid off by the time your 65 and then your looking at a nice bonus each month

[deeege]

It’s the initial stamp duty increase on second homes also. It’s 3% of the total cost of the property now. To buy 2 x £100k buy to let’s you’ll need 2 x £25k deposits minimum and also £6k for the stamp duty, not to mention solicitors and other initial costs.

Would also be wise to have a very decent buffer to be able to see you through any periods without tenants too.

[Crystal-clear]

Yep buy to let properties with a low deposit is an absolute false economy. Especially when you take into account the new taxation laws
Previously you were able to deduct the entire intrest element as an expense (not the capital repayment part) but still it was a big chunk I'm pretty sure now it works out that you regularly lose money every month after paying the tax on basically interest which is no longer detectable unless you have 50% deposit.

However perhapes a small Glimmer of hope one way around this is purchasing the property via a limited company the new rules do not affect limited companies only individuals.. but then any property rental profits wont be an easy 20% (under 50k) extracting profits will be classed as salary or dividend payments and will be subject to National Insurance or corp tax basically the income brackets will likely be already be taken up if youre already paye-Div. Now If you are self-employed you will be at an advantage at this route as you
You could pay out the rental profits as PAYE and you wont pay Corp tax or even national insurance under £8632 (next april £9500) some other complications though you don't own it the company does and it could get really complicated if you want to  swap things around and live in it..

Another setback will be your personal CGT allowance if you owned it yourself you would be able to dispose of your asset and have around 12k tax free profits! That's in addition to your income allowance the 12500 that is.

So for retirement if you're thinking about property

Potentially still decent route to go on just need some careful planning to choose which path suites best. If it's something you're serious about generally I think you do need to have a pretty decent deposit I don't think 25% will cut it either option you buy via. laws are also toughening up all the time residential property is starting to become such a burden and responsibility example you would still need to maintain your house even if your tenants aren't paying rent and you're going through eviction it can actually bankrupt you if not careful ( if you're retired this sort of stress is the last thing you need mental and also financial )
Retirement needs to be fun and relaxing so careful!
 
That's not the case with commercial property though but then they cost!

[KS Cleaning]

Recently started looking and taking this a bit more seriously.

I’ve always been self employed so have never paid into a pension. Have just checked and I still have 21 years stamp to pay to qualify for full state pension. (Although that’s not much)

There’s going to be so many people of my generation retiring into poverty. Saying you’ll work in the window cleaning game to the age of 70+ is madness. They’ll be very few fit enough to realistically be able to do that, I doubt I’ll be one of them.

I’m on target to be free of a mortgage by 48-50 so that will give me plenty of options aswell.

Why don’t you use some equity and put a big deposit down on a buy to let property or two?

I’ve considered it but you get hammered on tax for second properties now don’t you. It’s something I may do in a few years time though once the mortgage is mostly cleared.

Yes you do, I was lucky in that I bought two properties  just before they brought in the additional 3% LBTT on second properties, if I had been 2 months later it would have cost me an additional 5K.  Another downside is I crept into the 41% tax band last year because of the additional income, however with interest rates being so low it is still a good long term investment.

[Shrek]

Yep buy to let properties with a low deposit is an absolute false economy. Especially when you take into account the new taxation laws
Previously you were able to deduct the entire intrest element as an expense (not the capital repayment part) but still it was a big chunk I'm pretty sure now it works out that you regularly lose money every month after paying the tax on basically interest which is no longer detectable unless you have 50% deposit.

However perhapes a small Glimmer of hope one way around this is purchasing the property via a limited company the new rules do not affect limited companies only individuals.. but then any property rental profits wont be an easy 20% (under 50k) extracting profits will be classed as salary or dividend payments and will be subject to National Insurance or corp tax basically the income brackets will likely be already be taken up if youre already paye-Div. Now If you are self-employed you will be at an advantage at this route as you
You could pay out the rental profits as PAYE and you wont pay Corp tax or even national insurance under £8632 (next april £9500) some other complications though you don't own it the company does and it could get really complicated if you want to  swap things around and live in it..

Another setback will be your personal CGT allowance if you owned it yourself you would be able to dispose of your asset and have around 12k tax free profits! That's in addition to your income allowance the 12500 that is.

So for retirement if you're thinking about property

Potentially still decent route to go on just need some careful planning to choose which path suites best. If it's something you're serious about generally I think you do need to have a pretty decent deposit I don't think 25% will cut it either option you buy via. laws are also toughening up all the time residential property is starting to become such a burden and responsibility example you would still need to maintain your house even if your tenants aren't paying rent and you're going through eviction it can actually bankrupt you if not careful ( if you're retired this sort of stress is the last thing you need mental and also financial )
Retirement needs to be fun and relaxing so careful!
 
That's not the case with commercial property though but then they cost!

How do you lose money every month ?

[deeege]

Also owning a second property would mean that if I decided to sell my current home and upsize that I’d be liable to pay 3% stamp duty on the full purchase. If say buying a £400k property it would be an additional £12k stamp duty on top of the current £10k.

It starts making things really expensive the more I look into it.

[Simon Trapani]

So what’s the answer? I have no pension or second property.

[jonboywalton75]

So what’s the answer? I have no pension or second property.

Fake an injury or illness and Live off the state like quite a few ive known over the years 

[Status Check]

Build up your window cleaning company to be a stand alone successful, profitable  limited business.
Choose good people to manage the business on a daily basis, pay your staff above the industry standard. Make sure the company gives a great service and has great reviews. Build a company that is trustworthy and has an enviable track record in customer service.

Once all this is in place you can then retire as a non exec director and take dividends when required whilst sipping on your cerveza at the side of the pool at a destination of your choosing.

This is my plan.

[KS Cleaning]

Also owning a second property would mean that if I decided to sell my current home and upsize that I’d be liable to pay 3% stamp duty on the full purchase. If say buying a £400k property it would be an additional £12k stamp duty on top of the current £10k.

It starts making things really expensive the more I look into it.

You don’t pay the extra 3% stamp duty when buying your main residence, as long as you sell the house you were in.

[Simon Trapani]

Build up your window cleaning company to be a stand alone successful, profitable  limited business.
Choose good people to manage the business on a daily basis, pay your staff above the industry standard. Make sure the company gives a great service and has great reviews. Build a company that is trustworthy and has an enviable track record in customer service.

Once all this is in place you can then retire as a non exec director and take dividends when required whilst sipping on your cerveza at the side of the pool at a destination of your choosing.

This is my plan.

Wow. Sounds easy!

[deeege]

Also owning a second property would mean that if I decided to sell my current home and upsize that I’d be liable to pay 3% stamp duty on the full purchase. If say buying a £400k property it would be an additional £12k stamp duty on top of the current £10k.

It starts making things really expensive the more I look into it.

You don’t pay the extra 3% stamp duty when buying your main residence, as long as you sell the house you were in.

Is that correct? I was told that selling the main residence and buying a new main residence would be effected if you also own a second property.

Edit: seems you are correct KS, below taken from .gov website

If you’re replacing your main residence
You will not pay the extra 3% SDLT if the property you’re buying is replacing your main residence and that has already been sold.

If there’s a delay selling your main residence and it has not been sold on the day you complete your new purchase:

you’ll have to pay higher rates because you own 2 properties
you may be able to get a refund if you sell your previous main home within 36 months

[Missing Link]

I’m on target to be free of a mortgage by 48-50 so that will give me plenty of options aswell.

So when you've got Alzheimers in your 60s the gov can force you to sell it to pay for your care.

[Missing Link]

So what’s the answer? I have no pension or second property.

Die young?

[Missing Link]

if your tenants aren't paying rent and you're going through eviction it can actually bankrupt you if not careful

I've a nurse friend in AA who owned a small flat - she was still paying a mortgage on it - while renting it out.  Her tenant stopped paying the rent.

She was that desperate she asked me and another guy I know if we'd 'put the frighters on him' to help get him out.  She couldn't afford to pay the two mortgages (her own property and the flat) and was desperate.

Neither I or the other guy obliged for obvious reasons.

[Don Kee]

She was that desperate she asked me and another guy I know if we'd 'put the frighters on him' to help get him out.  She couldn't afford to pay the two mortgages (her own property and the flat) and was desperate.

Neither I or the other guy obliged for obvious reasons.

No one would be frightened?

[dazmond]

if your tenants aren't paying rent and you're going through eviction it can actually bankrupt you if not careful

I've a nurse friend in AA who owned a small flat - she was still paying a mortgage on it - while renting it out.  Her tenant stopped paying the rent.

She was that desperate she asked me and another guy I know if we'd 'put the frighters on him' to help get him out.  She couldn't afford to pay the two mortgages (her own property and the flat) and was desperate.

Neither I or the other guy obliged for obvious reasons.

couldnt she serve  the tenant with a section 21?