Latin America guide


Property Portfolio - Who Needs a Pension Scheme?

How  much  do  you  need  to  retire?
As  far  as  rental  income  is  concerned.
Does around £25,000a year sound about
right; this means you will need a retirementTaking a rental increase of 5% per annum you
pot  of  around  ï¿½500,000!should receive around �4321 pcm or
�51,852  per  year.
Various Friends and Family members have
pensions through work, they pay in aroundNow I know that your pension scheme will also
�300 per month and this gives you aincrease in value, however, the actual
pension of around �108,000 of your ownmonthly or annual return is not what
money  if  you  work  there  30  years.interests  me.
Now say the company you work for matches thatThe point that interests me is that your
money, that's �216,000, after 30 yearsretirement fund will decrease as time goes
of work and an annual pension of juston. Say you manage to save up �500,000,
�10,800!in 20 years time, taking an annual income of
�25,000  all  the  money  is  gone!
Ok, say I can show you how to have a decent
sized pension and you needn't put anymoreUsing Buy to Let Property as your pension,
than  around  ï¿½300 in… interested?the property retains its value and you get
your income from the rental of that property.
The Answer is Property Investment, MoreSo not only do you have a property worth
specifically  Buy  to  Let.�864,388 which you can draw on whenever
you need, you also have a yearly income of
Take a �200,000 flat in�51,852.
Manchester…
Saying that, I would like to end up with a
Buy at a 15% discount (lots of these dealsbalanced portfolio, I have some money in
around!)Shares and would like to add to my portfolio
as well, perhaps the secret is not to put all
Rent  at  ï¿½1000  pcm.of  your  eggs  in  one  basket?
Management  fee  of  ï¿½100  pcmIn conclusion, the safer bet would seem to be
a pension scheme, but I will point out that
Take  home  ï¿½900  pcm.over a historical average, property has
doubled every seven years, this is around 5%
Buy to Let Mortgage at 5.8% of �200,000per  annum.  The  same  goes  for  rentals.
=  ï¿½1,185  repayment  pcm.
A friend of mine recently bought his first
This  will  cost  you  ï¿½285  per  month.house and was amazed a year later when he
came to remortgage, that it had risen
Say property goes up a conservative 5% per�30,000.
annum  over  the  next  30  years.
He pointed out that this was more than he
In 2037 that same property should be worthmade in a year, to which I pointed
�864,388  and  you will own it outright!out….imagine if you had 2!



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