Idle hans, Golfaddick, Rob7Lee thanks for this info.
So as has been said, save for retirement and cross your fingers that you don’t need to go into care.Alternatively don’t save and if you need to go into care you get it for free.
If you've got money though you've might have a choice of a better care home.
Yes mate until the money runs out.
i would rather my family enjoy it. If I have to go into a home I would like to think I won’t know or care.
Bloody hell was depressed enough after Saturday this isn’t really cheering me up.
Are you thinking of BTL as an additional investment after using your £20k ISA allowance, or instead?
It would be taking the cash out of ISAs and going down that route instead.
In answer to @golfaddick's question, not really interested in an income, would probably just use the cash to buy more BTLs. I've watched lots of the bad tenant programmes!!!
The aim would be capital growth in the long term, I understand it's all illiquid, but illiquid assets should come with a premium as a consequence.
And thanks @Rob7Lee I think you've probably all managed to talk me out of it.
Probably one for consideration once all other tax efficient schemes have been rinsed through, and definitely not worth pulling cash out of an ISA to do this with.
Annoyingly I've also seen that the entire rental income counts as contributing to your income, meaning I would step over into the dreaded 60% marginal tax bracket.
I wouldn't rule out buy-to-let, as it diversifies your investments, but I wouldn't do it by taking money from my ISA.
Someone mentioned charging fair rent. Your tenants, if chosen well, will appreciate it. This is my experience anyway. But I agree one bad tenant could wipe out months of income. Ask for a good deposit that covers at least six weeks, ideally three months worth of rent, as it may take you that long to kick them out.
If you like DIY and know good trades people for stuff you can't do, it's a big advantage.
I wouldn't start with three houses, buy only one to test it out. I would buy somewhere I would like to live myself, rather than second guess what tenants would like, but that's just my preference.
Finally, at some point you could sell your main residence tax free, move to your rental property, note the capital appreciation at that point, and take the leverage from then on.
Comments
Someone mentioned charging fair rent. Your tenants, if chosen well, will appreciate it. This is my experience anyway. But I agree one bad tenant could wipe out months of income. Ask for a good deposit that covers at least six weeks, ideally three months worth of rent, as it may take you that long to kick them out.
If you like DIY and know good trades people for stuff you can't do, it's a big advantage.
I wouldn't start with three houses, buy only one to test it out. I would buy somewhere I would like to live myself, rather than second guess what tenants would like, but that's just my preference.
Finally, at some point you could sell your main residence tax free, move to your rental property, note the capital appreciation at that point, and take the leverage from then on.