Investment strategy for a 55 year old?

Reply to the comment left by "stuart edwards" at "19/01/2016 - 22:06":

I'm not an accountant or tax expert but, from what I've read elsewhere, I doubt it.

Also, having discussed buy/renovate/sell briefly with an accountant the concern did arise in her mind that doing it once as an individual might be fine but doing it repreatedly as an individual might be seen by the tax man as a business and thus may not qualify for any CGT relief.

I would qualify that statement by saying it was just a quick off the cuff assessment from her and she has gone away to consider the implications in more detail.

Some good balance of viewpoints given here.

My experience is buy, renovate, sell has always been most lucrative. It also allows exit from the market should your circumstances change.

Being a LL is a position I hold because I have bought faster than I have sold. But a working debt is one thing if you an employee earning a sizeable wage - like me. But when retired those debts can creep up on you as can legislation changes.

Recognise the risk you are taking. Only thing worse than an empty property is one that is let and the tenant not paying.

I would do something that absolutely makes you bounce in a morning, something that makes you embrace everyday with a gasp of enjoyment. For me that renovations and architecture. If it were something else.....then 'that something else' is what I would be doing.

Reply to the comment left by "adam prospect" at "20/01/2016 - 19:30":

I am looking at buy renovate and sell now. But main concern is how feasible is it whilst holding down a full time job and secondly the new stamp duty changes will eat significantly into margins. With regards to cgt ...yes I am aware I would not qualify for relief.

Your age is not the issue.. Finance can be obtained as already outlined. Every strategy has its merits. Mine was buy low add value remortgage release equity and buy another. I`ve sourced 15 properties for a client investor . He started at age 60 and done very nicely.

Your mind set is the only real variable whether you are you are 25 or 55 . Put your heart and soul into it for 10 years and by the time you are 65 you can take your foot of the pedal and enjoy the fruits of your labour for the next 35 years.

Good Luck
.

Reply to the comment left by "Jonathan Clarke" at "20/01/2016 - 23:37":

Without wishing to sound overly philosophical (and this differs dependant on people's age, current viewpoint and assets) - my view was I start enjoying myself today.

Work out what you need to live on and make sure you don't waste time earning more than you need. And when working out the number - don't start with "what I earn and spend today is.....". It is amazing how little real net difference there is in a £60k salary and a £17k pension.

At 47 I already realised I need to spend the capital I have, not accrue more. Happy to have blown it all by 70 - if I am well enough I will go back to work then.

And if I am not well enough to work I will be thankful I didn't wait until then before I decided to enjoy the fruits of my labour.

Reply to the comment left by "adam prospect" at "21/01/2016 - 07:55":

That is philosophical but I like that as it goes to the very core of what all of us are trying to actually achieve and what motivates us on a day to day basis. And of course everyone will have an individual answer. Financial wealth does not necessarily equal emotional wealth as we know . The likes of Branson and Buffet do not need to `work` but they still do. Why?

But I don`t like that phrase work. I often replace it with the word hobby or even sport. I enjoy business per se and would miss it if I didn't do it. Its work and a hobby combined . Professional Premier League footballers get paid for scoring goals. They combine the two very effectively Making money is a key side effect of course of the property business but business enjoyment doesn't necessarily have to make money

20 years ago I initiated and helped set up a charitable community bus for the elderly. It needed a business mindset but we didn't aim to make money out of it but it was enjoyable nevertheless

I have made my money but don`t get as much joy as others do out of spending it. Its almost the opposite with me. I appreciate though that others are more spenders than savers. The world needs all types.

When i hit 70 i want 100% the option not to work or do anything if i choose not to or indeed are not physically able to . The choice to do nothing can be intoxicating but also could be debilitating to some who need a focus and a structure to their day

I therefore either at 70 want to have a shed load of money in the bank or/and a healthy passive secure income stream to see me through from 70 to 100.

But everyone is different thank goodness and I agree with you Adam anyone at 55 who starts out needs to consider what investment strategy yes but also what their real end goal is.

The infamous Brian Tracy said something once that made me change my thinking.
He said start at the end of your life with how you actually perceive you really WANT that to be and work back towards the current day. The answers will fall into place.

I like many others had a vague view idea of what i wanted my life to be at 100 but never gave it any real thought I was far to busy with the here and now ..... Buy a property make some money buy a car . Buy another property make some more money eat at a nicer restaurant .Get promotion at work get a nicer kitchen and build a conservatory etc etc.

But when i delved into the end game I actually really wanted....
I was surprised at what i saw.

When i worked backwards towards the current day i was able to adapt my strategy quite significantly and then had a much clearer idea of what I was actually trying to achieve. And of course everyone will have their own route map to success and happiness

Reply to the comment left by "Jonathan Clarke" at "21/01/2016 - 09:01":

I once read a quote from a millionaire.....the sign of a successful life is to die in debt.....as that means you have enjoyed the last year's of your life on someone else's money

Reply to the comment left by "stuart edwards" at "21/01/2016 - 09:18":

He may have to answer to his maker! Not what he might want on his epitaph. I came, I saw, I wasted!

He must have been a Tory councillor. I was a Tory voter until Alice, Devine and this geezer were exposed:

https://www.landlordtoday.co.uk/breaking-news/2016/1/rogue-tory-landlord-prosecuted-by-his-own-council

With reference to the discussion about finance for buy to let properties after retirement age:

I'm 66 years old and having real problems with re-mortgaging my buy-to-let properties. Already one of them has reverted to the standard rate (4.79%) at the end of a two year fix. The main problem is that I no longer have a salary, although my income from rental profits plus some consultancy work and state and occupational pension is pretty similiar to the income I had from full time work. Most lenders won't take much of this into account. So whilst I can still get buy2let mortgages to take me up to 75 or 80 years of age, it means hanging in with the same mortgage company I was already with, rather than re-mortgaging and getting the good deals. (not all, e.g. Virgin, have alternative products for borrowers coming off a fixed deal)The Mortgage Works seems to be the best for oldies, but unfortunately won't finance adjoining properties. I have a great mortgage adviser but he is really struggling with this at the moment, and frustrated at the lack of flexibility in B2L lending because, as he says, there are a lot of retired people who own properties that they rent out.

Reply to the comment left by "Tricia Forrester" at "23/01/2016 - 14:38":

People often disagree with my "pay 'em off quick" philosophy, but concerns about being stuck with a lot of costly high interest mortgages post-retirement are amongst my drivers. Your experience has just gone to reinforce those concerns. I very much hope lenders come to reassess this as it seems ridiculous not to take overall income into account.