Tarw Coch
Member
- Location
- Bottom of Wats Dyke
That’s one way of finding the vegans and tea totallers
Pension or property
- Thread starter Grassman
- Start date
glasshouse
Member
- Location
- lothians
Thats not happening
Doubtful but everything ig going up atm, but not that much
glasshouse
Member
- Location
- lothians
The eighties high interest rates made the rich very rich and the most people poorer
- Location
- Scottish Highlands
Pension or property?
My £100k sitting in the business can be turned into £60k-ish cash to put deposit down on a house which will need further mortgage debt (not tax deductible) but return a rent (taxable) every month from now on - wether I want the income (and taxation) or not. The capital might grow though, and be an asset to pass on to Jnr, but with an IHT bill.
My £100k could be turned into £100k of pension fund, with me getting further tax relief on it too - now. In a few years I’ll be able to take 25% of it tax free, and can chose wether to let the rest be drawn down or keep growing as my circumstances and tax thresholds dictate. That means I can likely minimise future tax liability too. Given the last five years have shown double digit fund growth on average too, that’s better than property. Oh, and what’s left in my pension if I die early can be passed on tax free too.
I won’t be having any tenant calls on Christmas Day morning.
My £100k sitting in the business can be turned into £60k-ish cash to put deposit down on a house which will need further mortgage debt (not tax deductible) but return a rent (taxable) every month from now on - wether I want the income (and taxation) or not. The capital might grow though, and be an asset to pass on to Jnr, but with an IHT bill.
My £100k could be turned into £100k of pension fund, with me getting further tax relief on it too - now. In a few years I’ll be able to take 25% of it tax free, and can chose wether to let the rest be drawn down or keep growing as my circumstances and tax thresholds dictate. That means I can likely minimise future tax liability too. Given the last five years have shown double digit fund growth on average too, that’s better than property. Oh, and what’s left in my pension if I die early can be passed on tax free too.
I won’t be having any tenant calls on Christmas Day morning.
"there isn't so much maintenance"!!!! - umm - have you read the postings on fencing costs, then you need lime to keep it in good condition,
what do you do with the grass - rent it out for grazing - go back to fencing costs, cut it for silage/hay - again, plenty of postings about silage
bales being sold for less than cost. I know i'm being cynical, but i call it being a realist.
It's easy to keep things in check with a big topper. Property on the other hand.....got to get in qualified electricians....plumbers....cherry pickers for high stuff....endless decorating and repairs. I know which I'd prefer.
Different asset classes perform differently over time. Farmland was on fire in the 1970s and 2000s yet grew very little. Yields were good in the 1970s and early 1990s. Housing was great in the late 1990s & 2000s while money was cheap and easy to borrow.
www.visualcapitalist.com
Edit: The Balckrock link has a shorter timeline that includes commodities. The link is just to a cookie authorisation page that takes you straight to the chart afterwards. When you see how often commodities lose money, you have to wonder why we bother farming! That does include minerals & oil though.
BlackRock Investment Return Map | BlackRock Investment Institute
Our investment return heat map shows annual returns for selected asset classes across equities, fixed income and alternatives, ranked from best to worst over the last 10-years.
www.blackrock.com
Ranking Asset Classes by Historical Returns (1985-2020)
What are the best-performing investments in 2020, and how do previous years compare? This graphic shows historical returns by asset class.
www.visualcapitalist.com
Edit: The Balckrock link has a shorter timeline that includes commodities. The link is just to a cookie authorisation page that takes you straight to the chart afterwards. When you see how often commodities lose money, you have to wonder why we bother farming! That does include minerals & oil though.
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- Location
- Lincolnshire
It's nice to hear of all your huge pension pots. Looking at the numbers again, I think it's unlikely we are going to be able to afford to put more than £100 a month away. For 20 years, that's not going to amount to much at all. Looking more likely that I'll end up at the mercy of the state. Given I've no intention to live to 90, maybe a better plan is to just enjoy it while we can and get on some decent holidays.
- Location
- Scottish Highlands
Find more. Live more frugally now or get a way to increase your earnings. £100/month will not give you much of a retirement.
GeorgeK
Member
- Location
- Leicestershire
The future pension situation is not looking good in general. UK defined benefit pension schemes are in deficit by about £120bn. The state pension is 'unfunded' meaning there's no money set aside to pay it, the cost must be borne by taxpayers. Government-managed pension schemes have liabilities of £6.4 trillion. The average UK pension pot after a lifetime of saving stands at £61,897. This would provide an income of around £3,000 per year from 67, which added to the state pension, makes just over £12,000 a year and considering the amount of people who rent this isn't close to enough.
Pensions have always worked on the idea that the economy will continue growing forever. With GDP and productivity flat and population growth tailing off it's very hard to see how pensions and care will be provided in 15-20 years time short of a miracle.
Pensions have always worked on the idea that the economy will continue growing forever. With GDP and productivity flat and population growth tailing off it's very hard to see how pensions and care will be provided in 15-20 years time short of a miracle.
- Location
- Northumberland
BTL has been a good moneyspinner in the past, but maybe less so in the future. There are currently two common ways to evict tenants; S8 (when they are behind on rent) and S21 (‘no-fault’ eviction). S21 is by far the most popular route because it‘s not contestable; if you go down the S8 route because your tenants owe several months worth of rent, your case will fail if your tenants pay you so they owe you a penny less than 2-months rent on the day of the court case.
All rented houses have to have an energy rating of C or better by 2025 - don’t go buying a bargain house that needs 100K worth of work before its lettable!
My situation is that I have 2 farm cottages, let out at modest rents. They’re farm cottages;they have low EPCs! One set of tenants are fine, the others we have not seen eye to eye with for a few years. I gave an S21 to the ‘odd‘ tenants in oct’19, but due to everything that’s happened in the past year I’m still waiting for the bailiffs to arrive. My initial idea was to move them out, assess the house and Do a full refurb (internal insulation on walls, rip floors up and insulate, ceilings etc), then move the good tenants over and repeat. Given everything in the past year I don’t want to spend all the family money on that now. Better to demolish and rebuild as something solid from the start and let it to holidaymakers so I don’t have the difficulty regaining possession in the future.
S21 will be abolished in England. All parties have agreed so it’s only a matter of time. Your BTL investment will take a haircut if you want to cash it in to retire but your sitting tenant won’t leave.
All rented houses have to have an energy rating of C or better by 2025 - don’t go buying a bargain house that needs 100K worth of work before its lettable!
My situation is that I have 2 farm cottages, let out at modest rents. They’re farm cottages;they have low EPCs! One set of tenants are fine, the others we have not seen eye to eye with for a few years. I gave an S21 to the ‘odd‘ tenants in oct’19, but due to everything that’s happened in the past year I’m still waiting for the bailiffs to arrive. My initial idea was to move them out, assess the house and Do a full refurb (internal insulation on walls, rip floors up and insulate, ceilings etc), then move the good tenants over and repeat. Given everything in the past year I don’t want to spend all the family money on that now. Better to demolish and rebuild as something solid from the start and let it to holidaymakers so I don’t have the difficulty regaining possession in the future.
S21 will be abolished in England. All parties have agreed so it’s only a matter of time. Your BTL investment will take a haircut if you want to cash it in to retire but your sitting tenant won’t leave.
- Location
- South Wales UK
If you ever been Employed and paid into a pension then you can draw at 55 years old or defer it untill your 65 and then get state Pension also.
Trouble is this date is going up and up and could be 70 when we get there?
Not sure if PPP personal pension plans can be drawn early, and these would be the type most self employed persons possibly have?
Trouble is this date is going up and up and could be 70 when we get there?
Not sure if PPP personal pension plans can be drawn early, and these would be the type most self employed persons possibly have?
- Location
- Chezvegas (chesterfield)
I'm very lucky as I moved out of the farm and bought a nice house in a nice area with the Mrs.
In the long run it was one of the best decisions I have made, we had bills to pay i had to commute back to the farm and I missed part of my kids growing up.
But we now live back at the farm with a easy life and a house worth £180k that we rent out.
We both have small private pension funds that will help, but there may be no state pension when we retire. Hopefully the house will continue to contribute.
In the long run it was one of the best decisions I have made, we had bills to pay i had to commute back to the farm and I missed part of my kids growing up.
But we now live back at the farm with a easy life and a house worth £180k that we rent out.
We both have small private pension funds that will help, but there may be no state pension when we retire. Hopefully the house will continue to contribute.
GeorgeK
Member
- Location
- Leicestershire
Yes I think government will increasingly use private landlords as providers of free or below cost state housing
- Location
- South Wales UK
As long as you got money in ANY form that's the most important thing be it old Tractors, cars property ,shares ,etc etc all often did or do better than any pension plan with the deduction the middle people get.
But saying that all the wasters around here that have had all for nothing, never worked ,rented their council house ,always drawn benefits for themselves and family, disability cars, pension credits always had and got everything compared to the genuine hard working never beg ,borrow ,steal , savings minded lot that get EXCLUDED from ALL HELP as a few pennies over a certain level all doors closed for them.
Untill this is looked at the Country is stuffed.
It gives NO incentive to progress and Millions know it .
But saying that all the wasters around here that have had all for nothing, never worked ,rented their council house ,always drawn benefits for themselves and family, disability cars, pension credits always had and got everything compared to the genuine hard working never beg ,borrow ,steal , savings minded lot that get EXCLUDED from ALL HELP as a few pennies over a certain level all doors closed for them.
Untill this is looked at the Country is stuffed.
It gives NO incentive to progress and Millions know it .
SilliamWhale
Member
I figured to be satisifed with retirement you need a pension pot of about £300k.
Dave6170
Member
- Location
- Watten, caithness
I assume alot of people live off the farm till the day they die? Hardly know any farmers who have fully retired.
- Location
- Northumberland
It just depends on succession. If my kids want to farm, they can have the farm but they will have to keep me also (and I’ll help out where possible). If they’re not interested then I will sell up and enjoy my retirement.
I would not want to be one of these farmers continuing into their 70s, 80s while failing health makes the work more difficult and the rules become ever more Byzantine. More to life than that.
Dave6170
Member
- Location
- Watten, caithness
How much would the taxman take if you sold up to retire? Is there retirement relief?