house paid off and money in shares-what next-property or more shares?
28 March 2005, 10:27 AM
#31
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no but i can live of a lot less then 50k a year
Originally Posted by ProperCharlie
With either property or stocks, the income yield is likely to be about 5%, if you buy carefully. It could easily be less. With property you also have to factor in voids, maintenance, insurance etc. If you are looking to live off the money for the long term, capital appreciation doesn't really help you that much, unless you are planning on a trading strategy (in either property or stocks), which will be more risky. So anyway, assuming a 5% yield, you will need £1M of investments to generate you an income of £50k p.a., before tax. Have your numbers come up?
28 March 2005, 10:42 AM
#32
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It's the income thing that is going to be by far the biggest factor if you're retiring, IMHO. Capital gains (through property, ISA's or whatever else) will give you short term cash gains, but ultimately will run out - and you might be talking 50-60 years to subsidise.
If over the next couple of years you can genuinely afford to buy a couple of properties partially or outright, that is likely to give a strady income stream you could potentially live off. Two or three smaller ones gives more security than one large. Cheap purchase price would offset any mortgage costs (and give potential for more capital gain). This is where buying in the right location might come in - probably cheaper but upcoming areas of Europe or America, rather than the UK; IF you can be sure of good letting agents etc.
If over the next couple of years you can genuinely afford to buy a couple of properties partially or outright, that is likely to give a strady income stream you could potentially live off. Two or three smaller ones gives more security than one large. Cheap purchase price would offset any mortgage costs (and give potential for more capital gain). This is where buying in the right location might come in - probably cheaper but upcoming areas of Europe or America, rather than the UK; IF you can be sure of good letting agents etc.
28 March 2005, 10:57 AM
#33
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Originally Posted by ^OPM^
no but i can live of a lot less then 50k a year
Last edited by ProperCharlie; 28 March 2005 at 09:16 PM.
28 March 2005, 04:42 PM
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Originally Posted by turboman786
Property should never be boguht as a short term investment..in the long run, you simply cannot lose IMHO.
Chip
28 March 2005, 06:50 PM
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Originally Posted by Petem95
And buying them with an interest only mortgage? Financial suicide doing that in the current property market where prices will sooner or later fall significantly - as history tells us, asset booms ALWAYS end in bust - thats just the way the cycle works.
If it's a full on business than I'm sure it makes sense to reduce a debt that costs money (!), but part of the equation for smaller one or two property lets is that it can be quite tax efficient...?
D
PS funny its those buying that says its all gonna 'doom&gloom' crash and those selling mortgages or owning saying 'dont be silly'
[PPS there remains a property shortage ...
BUY!!!!!!]
29 March 2005, 01:12 AM
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Originally Posted by GCollier
You'll need a fair wedge of cash - possibly more than you might think - to retire at 40 and enjoy a good standard of living.
You need less to retire than many people think, IMO. Don't forget a whole bunch of expenses will go DOWN when you stop working. Having a job is expensive
29 March 2005, 11:43 PM
#38
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i will and can live off a lot less then 50 grand a year-and as to why i need to retire early-quite simple-i dont have no intentions of dying at work and since i will die early 50's i would like to retire at 40 so i have say 10-15 years of not being a wage slave before i die-ok i mite have to live of rental income of another house to live but at least i wont be a wage slave to some boss-quite simple-not being rude neither
Originally Posted by ProperCharlie
How much do you think that you need to live off? Is it just you on your own, or do you have or intend to have a family? If it's just you, what are going to spend all your time doing once retired? What about occasional expenses like having to buy a car, or travelling? I can't really see the point in retiring if your income is going to be so limited that you can't afford to live well. I'm not saying that you need £50k p.a. to live well, but you do need a reasonable income.
Last edited by ^OPM^; 30 March 2005 at 02:55 PM.
30 March 2005, 02:32 PM
#40
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Bear in mind you only have to finance yourself to 78 years old. Statistics say you should be dead by then, and if not then you'll just be sitting in a chair smelling of wee, not needing much money to get by
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