Discussing the new rental rules last night with some friends. Mostly what was posted on this site about it in the last few days. Its clear that most sensible people want out now and the straw has indeed broken the camels back. Even the powers that be are issuing letters to landlords asking them to stay in the market, while being economical with the truths that we now know.
So I was saying that we have decided to sell up once we get our property back and buy an apartment in Spain to use as a holiday destination and also to AIrBnb when we arent using it. I thought that was a great idea, but one of my friends had an even better plan.
He will have 250k after taxes and charges etc when he sells his rental property. Also he will then have no mortgage on the investment property either that he is paying now. No repair bills, taxes, rtb fees, management fees and all the nice costs and hassle that comes with being a landlord.
He is 56 and is planning to retire in the next few years.
He is lucky enough to have a pension fund where he can take the max amount of tax free cash on retirement.
So his plan :
Sell the property, pay all taxes. Pocket €250k after taxes and selling costs.
Instead of taking his €200k tax free lump sum from his pension fund just leave it to grow tax free inside the pension until he draws it out. He assumes this will stay in line with the average growth he has seen in his pension over the last 30 years of about 8% plus.
So then he has no costs, hassles, work that comes with being a landlord going forward.
He was going to take €200k tax free lump sum out of his pension, but instead takes €250k cash from the property sale and leaves the €200k in the pension instead of taking his tax free lump sum to grow tax free and get used as needed in future. He still has cash (now 250k instead of 200k) he has to invest somewhere, or spend, but thats a first world problem at this point.
Now I think I like this idea better than mine and might do this instead, but it crossed my mind that I dont know all of the alternatives of what to do with the money once we sell the investment property. Any other thoughts on what people could do to invest the money on exiting property investment in the next year or so?
Id like to get some more ideas, since clearly I wasnt thinking hard enough about it the other investment options myself.
Property is now off the table as an investment for me. The stick, constantly moving goal posts, and the constant lies and ignoring of facts from the RTB, government, "experts", "journalists" have worn me out. Ive had enough. A bigger fool than me can provide rental property from now on. They are welcome to it.
Mainly a query to try and figure out if property investment is still viable and of not what is better to do with any money locked up in property now. Since im sure im not alone in reassessing whether property investment is still a good idea to have money locked up in. Directly related to "property investment and tenants rights" as that is what exactly what is driving this question and nothing else. Are the new tenants rights now making alternative strategies better than your current property investment strategy.
So I was saying that we have decided to sell up once we get our property back and buy an apartment in Spain to use as a holiday destination and also to AIrBnb when we arent using it. I thought that was a great idea, but one of my friends had an even better plan.
He will have 250k after taxes and charges etc when he sells his rental property. Also he will then have no mortgage on the investment property either that he is paying now. No repair bills, taxes, rtb fees, management fees and all the nice costs and hassle that comes with being a landlord.
He is 56 and is planning to retire in the next few years.
He is lucky enough to have a pension fund where he can take the max amount of tax free cash on retirement.
So his plan :
Sell the property, pay all taxes. Pocket €250k after taxes and selling costs.
Instead of taking his €200k tax free lump sum from his pension fund just leave it to grow tax free inside the pension until he draws it out. He assumes this will stay in line with the average growth he has seen in his pension over the last 30 years of about 8% plus.
So then he has no costs, hassles, work that comes with being a landlord going forward.
He was going to take €200k tax free lump sum out of his pension, but instead takes €250k cash from the property sale and leaves the €200k in the pension instead of taking his tax free lump sum to grow tax free and get used as needed in future. He still has cash (now 250k instead of 200k) he has to invest somewhere, or spend, but thats a first world problem at this point.
Now I think I like this idea better than mine and might do this instead, but it crossed my mind that I dont know all of the alternatives of what to do with the money once we sell the investment property. Any other thoughts on what people could do to invest the money on exiting property investment in the next year or so?
Id like to get some more ideas, since clearly I wasnt thinking hard enough about it the other investment options myself.
Property is now off the table as an investment for me. The stick, constantly moving goal posts, and the constant lies and ignoring of facts from the RTB, government, "experts", "journalists" have worn me out. Ive had enough. A bigger fool than me can provide rental property from now on. They are welcome to it.
Mainly a query to try and figure out if property investment is still viable and of not what is better to do with any money locked up in property now. Since im sure im not alone in reassessing whether property investment is still a good idea to have money locked up in. Directly related to "property investment and tenants rights" as that is what exactly what is driving this question and nothing else. Are the new tenants rights now making alternative strategies better than your current property investment strategy.
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