property portfolio: when to retire?

[myxo]

Hi, I'm 26yrs old and have often wondered when i could retire or have a better, more enjoyable lifestyle. It's more about lifetstyle than money for me. I have one house at the minute that i am renting out to a young couple and for the past few months i have had to add around £200 a month to the rent coming in as i re-mortgaged to release some of my equity/profit. With this profit made i have put deposits down for another 2 properties (off-plan) and am looking at a very good return as they are good properties. Its taken me just over a year to do this and i plan to continue at this rate.

If anyone is going the same route or has experience in the past, when could i look at changing my lifestyle of not sitting behind a desk/computer everyday!

much appreciated and thanks.

[brian]

Got to admit, I'm keeping a careful eye out for property investment - but the kicker to me is the state of world property prices - I'm very concerned they're going to see correction in the shorter term, and low growth over the mid-term, so I'm not jumping in yet.

[Mansel]

Well as house prices are slowing down and stopping now is the time to buy. I have a portfolio of properties and I do not have to work but I do work with my properties not in them but always looking for a good deal. I am buying three properties at the moment and have got good deals on all of them. Try to make money when youBUY not when you SELL. If yuo make money when you buy you do not have to worry when you sell. Buy below the market price talk to vendors and use your powers of persuasion!

[In Disbelief]

Are you kidding me? You still see the UK property market as a good investment? You think house prices are slowing to a stop? What magical economic fairy is preventing prices dropping through the floor, do you not remember the previous "slow down"? I hope for your sakes that you have bought solid 3-4 beds with a whopping deposit, not these ropey 1-2 bed appts that are starting to slide very quickly. There is no fix, no get rich quick scheme, no free lunch. You have to toil and work your butt off for what you want. Dump your portfolio, exit in an orderly que, try and minimize your losses. (Or buy buy buy - LMFAO)

[carmella]

subsidising mortgages already????

someone is paying rent cheaper than your interest? with capital reduction very likely.

its like attacking your artery with a rusty blade.

[reg smith]

Hi,

We all know what happens in the property market, and it is a proven fact. That UK property prices always goes up and down. The inexperienced are in a panic at the moment, and they are not taking advantage of the market at the moment.

I believe the best time to purchase property new build or resale will be in the next 12 months, while everyone is reducing their prices.

There is still a massive demand for property in this country, there is only so much land. Especially now with the mortgage lenders being very fussy about lending at the moment. The First time buyer can not afford to deposit for mortgage, let alone the mortgage it self! so what will they do RENT! the same with the influx of immgration in to the UK, they of course need property to rent. Buy to let is safe as long as you always have enough funds for approx 2/3 voids periods per property per year. And the property offers the min of 105% interest cover between the mortgage and rental income per month.

Investing in property is a long term investment and show only be view in this way.

The best way for you to retire is to work out a cashflow forecast over the next 20 years,. For example if you had a freehold property (no service Charges or ground rent)

Price £100K Mortgage £85K Mortgage £410 p/m@5.75% £450 rent income
It would take 10 years before you receive 91% return on capital employed orignally.

However if you re-mortgage the property every 2/3 years (when the fixed rate stops) and did not pull out the equity. The property market increased Just 3% per year you would have the following equity -
Year 2 £6,090, Year 3 £9,273, Year 5 £15,927 Year 10 £34,392

I would recommend that you just sit back and now wait for the capital growth. This way you can wait for equity to build up pay off the mortgage and keep the profits to retire on!

I hope you find this helpful

Thanks
Reg

[reg smith]

When was the last time you increased the rental income per month?

Have you tried to get a corporate rent in the property?
(contact hospitals and large companies near by)

Do you manage the property yourself, or are you paying a letting agent a % each month?

contact the local college see they need student accomadation, for 2 shares it normally works out you receive more rental income.

I would have a look at comparables in that area to check the average rental figures.

If you pulled out the equity from the property, why did you not take this into account when working out you figures?

[wood1e]

The UK property market has always been good...the trouble is people, thinking they can make a fortune in 2 years. Everyone needs to start looking long term, and I don't mean 5 years...