Pension or property

[Highland Mule]

Can pension pots be transferred 100% to next generation,I believe when I first started one this wasnt the case and put me off pensions from day one

They are liable for IHT if you make it past 75, or free from it if you don’t. But yes, the money isn’t “lost” like the old annuity fund would have been.

 

[bobajob]

But my BTL property have done both . Grown and given income which has been used to purchase more BTL which have also grown .
Just as an example . house bought in 1994 for £61000 produced an ave rent over 20 yrs of £675 mth (started at £475 mth to 800 in yr 20 . That property has produced income of around £162000 in 20 yrs from rental . The property increased in value from 61k to approx 150k in 2014 which is an increase of 89k . This equates to £4450 yr or £370 mth.
Put the two totals together that brings a total income of £1045 mth over 20 yrs from 1994 to 2014 . We have spent around twenty K on the property to date (up to present day ) plus insurance .
My point is I really can't see any pension performing that well .......this particular house is now worth around one seventy five K .

I would agree with hfd.
It might be OK in some cases where you have a good managed pension fund where returns are good and could work out better than property.
But I think sometimes it's not all down to the absolute most that can be earned.
I think we as farmers like to look at our assests/ investments rather than give our hard earned to someone else to invest and have a bit of paper to look at.
Just have to look outside the farmhouse window and see what we own/ or a drive through the local town to see the house you rent out.
Whether that's a bit of snobbery I don't know! - but I think it's part of our culture!
End of the day do what you like! .

 

[it's not over]

If I'm going to loose money in an investment, I'm more comfortable losing it myself than paying someone a large fee to loose it for me

 

[Highland Mule]

If I'm going to loose money in an investment, I'm more comfortable losing it myself than paying someone a large fee to loose it for me

Agreed. But I wouldn’t ask the little old lady along the road to pick my lambs, so why think I’ll be able to pick the stocks as good myself as a professional would do. The right advisor will more than pay their fee.

 

[it's not over]

I've money in a nfu shrewd investment isa, it made 1800 last year they took 1333 in fees, that less than 0.5% return. I could of made that with less than 1/10 of the money and gave them 3.5% to invest with them in the first place,its made 2k in 4 years.if I'd bought a house it would of risen at least 10% and produced over 25k in rent

 

[SRRC]

Well I have done, now getting over £1300/ week from them, makes me very relaxed about actually doing any farming, buy the right ones and get the right tenants and its very easy, not been called to any problems on over half of them in the last year, and the odd bits i have done wont come to £400, the gas and electric Certs are the main cost.

A big worry about BTL is the forthcoming rising EPC requirements. Any property that's not up to scratch will need substantial investment before it can be let.

 

[SRRC]

Bought a a bungalow 2002 for £60k just accepted an offer for £171K.

Haven't seen the magic of compound interest mentioned yet.
Start a pension when you first start work and compound interest works wonders.
If you had put that bungalow £60k in a pension it would compound up after 20 years at 6% return to about £192,000, leave it another 5 years and it's magically grown to £252,000.
Leave it for 49 years and you are a millionaire!
Over 20 years that bungalow would need to have generated £800 clear every month to match a typical 6% return pension.

 

[Highland Mule]

I've money in a nfu shrewd investment isa, it made 1800 last year they took 1333 in fees, that less than 0.5% return. I could of made that with less than 1/10 of the money and gave them 3.5% to invest with them in the first place,its made 2k in 4 years.if I'd bought a house it would of risen at least 10% and produced over 25k in rent

Sounds like you picked the wrong fund manager - why NFU and not an independent, and what risk profile did you select? I’ve written up thread that my ten year average is double digit growth, right through Corona and Brexit - that’s why I’m happy to pay an advisor to pick my funds for me.

 

[Highland Mule]

Haven't seen the magic of compound interest mentioned yet.

Post 238.

It’s scary - just put 1.06 x^y 20 into a calculator !

 

[SRRC]

Have acquired 2 properties in the last 3 yrs . Both have increased in value and both brining in good rents . Previous properties acquired in Barking 20 yrs ago have more than doubled in value and bring in significant rent . Got houses bought in Ross On Wye and Newent about 9 yrs ago around 90 grand now worth 140 to 150 ....no pension will match that .

Yes it will!
Your £90k at 6% over 9 years compounded up is £152,000.
A pension performance of 6% is quite ordinary, 7% will give you £165,000

 

[Netherfield]

Maybe, but he Mother in law would not have had such a nice place to live in.

 

[it's not over]

Sounds like you picked the wrong fund manager - why NFU and not an independent, and what risk profile did you select? I’ve written up thread that my ten year average is double digit growth, right through Corona and Brexit - that’s why I’m happy to pay an advisor to pick my funds for me.

Reckon I was in save hands,I know very little about investments other than those I can see

 

[czechmate]

Best thing that’s happened to me.

Stork got lost

 

[czechmate]

Houses are like cattle , make your money the day you buy them

Do people buy cattle?
Mine just arrive

 

[einstein]

But my BTL property have done both . Grown and given income which has been used to purchase more BTL which have also grown .
Just as an example . house bought in 1994 for £61000 produced an ave rent over 20 yrs of £675 mth (started at £475 mth to 800 in yr 20 . That property has produced income of around £162000 in 20 yrs from rental . The property increased in value from 61k to approx 150k in 2014 which is an increase of 89k . This equates to £4450 yr or £370 mth.
Put the two totals together that brings a total income of £1045 mth over 20 yrs from 1994 to 2014 . We have spent around twenty K on the property to date (up to present day ) plus insurance .
My point is I really can't see any pension performing that well .......this particular house is now worth around one seventy five K .

what about the capital gains tax if and when you come to sell?

 

[bobk]

Do people buy cattle?
Mine just arrive

Land's too expensive here for 1 cow and 1 calf

 

[czechmate]

Land's too expensive here for 1 cow and 1 calf

Whole suckler thing seems a bit mad to me

 

[czechmate]

what about the capital gains tax if and when you come to sell?

Family living in them all

 

[bobk]

Whole suckler thing seems a bit mad to me

My dad never could see the sense in it , unless you owned a mountain

 

[Hfd Cattle]

what about the capital gains tax if and when you come to sell?

Hopefully won't be selling any . Just live off the income when I need to .