| 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 retirement | | | | Taking a rental increase of 5% per annum you |
| pot of around �500,000! | | | | should receive around �4321 pcm or |
| | | | �51,852 per year. |
| Various Friends and Family members have | | | | |
| pensions through work, they pay in around | | | | Now I know that your pension scheme will also |
| �300 per month and this gives you a | | | | increase in value, however, the actual |
| pension of around �108,000 of your own | | | | monthly or annual return is not what |
| money if you work there 30 years. | | | | interests me. |
| | | | |
| Now say the company you work for matches that | | | | The point that interests me is that your |
| money, that's �216,000, after 30 years | | | | retirement fund will decrease as time goes |
| of work and an annual pension of just | | | | on. 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 anymore | | | | Using Buy to Let Property as your pension, |
| than around �300 in… interested? | | | | the property retains its value and you get |
| | | | your income from the rental of that property. |
| The Answer is Property Investment, More | | | | So 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 deals | | | | balanced 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 �1000 pcm. | | | | of your eggs in one basket? |
| | | | |
| Management fee of �100 pcm | | | | In conclusion, the safer bet would seem to be |
| | | | a pension scheme, but I will point out that |
| Take home �900 pcm. | | | | over a historical average, property has |
| | | | doubled every seven years, this is around 5% |
| Buy to Let Mortgage at 5.8% of �200,000 | | | | per annum. The same goes for rentals. |
| = �1,185 repayment pcm. | | | | |
| | | | A friend of mine recently bought his first |
| This will cost you �285 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 worth | | | | made in a year, to which I pointed |
| �864,388 and you will own it outright! | | | | out….imagine if you had 2! |