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[Doctor Gollum]

Ah, but what if they split the income into two pension pots, and then they get divorced?

</eternal pessimist>

They'll do that anyway if they get divorced. Starting point is a 50-50 split of all assets including pensions.

This has been discussed as a useful way to move pension savings ( and avoid3% stamp on a second house if the rules don't Change),

Divorce? That seems extreme!

Until death or income tax...

[LC0112G]

Fortunately I took the advice of an employer when very young, " make sure you have a good pension"so have forces pension NHS pension ,+ civil service pension from HMPS so will be fine wifey has her state pension + her one from 30 years in education, my advice nowadays would be put your money into property nowadays rather than into a private pension, we did this with an inheritance in 1987 & have never been better off financially.

Common mistake. Illiquid asset, high running costs, heavily taxed, lower returns than the stock market.

You need somewhere to live, so yes buy a house you're happy to live in. But there are better, safer ways of making more money.

. 

Not my experience, but maybe I am just lucky mortgage free by 33 years of age & in the process of buying our 5th property for cash..

Mortgage free? Borrowing money at sub 2% interest rates for the past 10 years, and investing it into the stock market which has averaged 7.2% growth per year over the past 30 years?

More than 1 Property. So 6% Stamp Duty and Solicitors fees on the way in, Council tax and Insurance running costs, Rental income taxed @ 40%,  and CGT @ 20% on the way out. Plus tenants, and probably letting agent fees.

I'll pass thanks.

[LC0112G]

Ah, but what if they split the income into two pension pots, and then they get divorced?

</eternal pessimist>

They'll do that anyway if they get divorced. Starting point is a 50-50 split of all assets including pensions.

This has been discussed as a useful way to move pension savings ( and avoid3% stamp on a second house if the rules don't Change),

Divorce? That seems extreme!

HMRC can challenge this kind of contrived tax evasion. Divorce is expensive enough without fighting off HMRC.

[aaronjb]

All started by moving from South London to Norfolk in 1987 all simple sell high buy low improve & sell again did everything at the right time made a lot of cash but could have done even better looking back, but still in a very good position now. It just gave a buzz making a profit so easily & still does our latest one needs around £15,000 spending on it will easily be worth £40- £45,000 more within months but it has my dream double garage at last so may stay put maybe 😉

Definitely sounds like you started at the right time ('87, pre crash IIRC?).. and buying power in Lincs is immense; there was a property that tempted me (four garages, lots of land) but the fact that it was in the arse end of nowhere and had <2Mbit internet put me off

It was dirt cheap, though.

More than 1 Property. So 6% Stamp Duty and Solicitors fees on the way in, Council tax and Insurance running costs, Rental income taxed @ 40%,  and CGT @ 20% on the way out. Plus tenants, and probably letting agent fees.

I'll pass thanks.

Must admit I'm tempted to get out of the game - I have one property ("accidental landlord") and a high income so I am prime for a kicking by the tax man at every turn, and it's going to start costing me money in real terms (~£7k p/a in tax) as the income (£1750/mo) less mortgage (£1150/mo) doesn't cover the tax liability.
It has gone up in value, though, and I'm still at the point where I won't get bent over too badly on CGT (only let for part of ownership), so I could realise enough cash to clear half our mortgage on the property we live in.. which would make things much more comfortable.

[2boxerdogs]

Fortunately I took the advice of an employer when very young, " make sure you have a good pension"so have forces pension NHS pension ,+ civil service pension from HMPS so will be fine wifey has her state pension + her one from 30 years in education, my advice nowadays would be put your money into property nowadays rather than into a private pension, we did this with an inheritance in 1987 & have never been better off financially.

Common mistake. Illiquid asset, high running costs, heavily taxed, lower returns than the stock market.

You need somewhere to live, so yes buy a house you're happy to live in. But there are better, safer ways of making more money.

. 

Not my experience, but maybe I am just lucky mortgage free by 33 years of age & in the process of buying our 5th property for cash..

Mortgage free? Borrowing money at sub 2% interest rates for the past 10 years, and investing it into the stock market which has averaged 7.2% growth per year over the past 30 years?

More than 1 Property. So 6% Stamp Duty and Solicitors fees on the way in, Council tax and Insurance running costs, Rental income taxed @ 40%,  and CGT @ 20% on the way out. Plus tenants, and probably letting agent fees.

I'll pass thanks.

.



And I will live very comfortably glad I took a chance when I was young.

[STEMO]

She's a 'transition member' so I think my first assumption was right.

She's 47 now, BTW.

Your wife is 20 years younger than you ? !! You old devil you. 

18 years younger! What do you think I am? Some kind of paedophile? 

[LC0112G]

Must admit I'm tempted to get out of the game - I have one property ("accidental landlord") and a high income so I am prime for a kicking by the tax man at every turn, and it's going to start costing me money in real terms (~£7k p/a in tax) as the income (£1750/mo) less mortgage (£1150/mo) doesn't cover the tax liability.
It has gone up in value, though, and I'm still at the point where I won't get bent over too badly on CGT (only let for part of ownership), so I could realise enough cash to clear half our mortgage on the property we live in.. which would make things much more comfortable.

Best read this then :
 
https://www.which.co.uk/money/tax/income-tax/tax-on-property-and-rental-income/buy-to-let-mortgage-tax-relief-changes-explained-atnsv0j6j782

You won't be able to deduct mortgage costs soon either.

[STEMO]

Reading this thread has made me realise one thing, at least. A decent accountant a very good investment.

[aaronjb]

Must admit I'm tempted to get out of the game - I have one property ("accidental landlord") and a high income so I am prime for a kicking by the tax man at every turn, and it's going to start costing me money in real terms (~£7k p/a in tax) as the income (£1750/mo) less mortgage (£1150/mo) doesn't cover the tax liability.
It has gone up in value, though, and I'm still at the point where I won't get bent over too badly on CGT (only let for part of ownership), so I could realise enough cash to clear half our mortgage on the property we live in.. which would make things much more comfortable.

Best read this then :
 
https://www.which.co.uk/money/tax/income-tax/tax-on-property-and-rental-income/buy-to-let-mortgage-tax-relief-changes-explained-atnsv0j6j782

You won't be able to deduct mortgage costs soon either.

Already aware of that one - that's why it'll start costing £7k p/a in tax Right now it just about covers it's own tax liability (75% offset for last tax year).. actually it should be just less than £7k due to the tax credit, but even so, it'll still cost money in real terms which makes it a worthless investment (besides capital increase, which I suspect is going to stagnate now)

[STEMO]

Must admit I'm tempted to get out of the game - I have one property ("accidental landlord") and a high income so I am prime for a kicking by the tax man at every turn, and it's going to start costing me money in real terms (~£7k p/a in tax) as the income (£1750/mo) less mortgage (£1150/mo) doesn't cover the tax liability.
It has gone up in value, though, and I'm still at the point where I won't get bent over too badly on CGT (only let for part of ownership), so I could realise enough cash to clear half our mortgage on the property we live in.. which would make things much more comfortable.

Best read this then :
 
https://www.which.co.uk/money/tax/income-tax/tax-on-property-and-rental-income/buy-to-let-mortgage-tax-relief-changes-explained-atnsv0j6j782

You won't be able to deduct mortgage costs soon either.

Already aware of that one - that's why it'll start costing £7k p/a in tax Right now it just about covers it's own tax liability (75% offset for last tax year).. actually it should be just less than £7k due to the tax credit, but even so, it'll still cost money in real terms which makes it a worthless investment (besides capital increase, which I suspect is going to stagnate now)

It's yours once the mortgage is paid, though.

[aaronjb]

It's yours once the mortgage is paid, though.

Ah, did I not mention the BTL is on an interest only mortgage? 

[Doctor Gollum]

It's yours once the mortgage is paid, though.

Ah, did I not mention the BTL is on an interest only mortgage? 

Might be a while then... 

[Viral_Jim]

It's yours once the mortgage is paid, though.

Ah, did I not mention the BTL is on an interest only mortgage? 

A friend of mine has a few flats on BTL interest only. His mortgage is 0.25% over base for the lifetime of the mortgage. Funnily enough, he's never short of a mortgage advisor offering him a "better deal".

Divorce? That seems extreme!

I prefer the word, efficient

HMRC can challenge this kind of contrived tax evasion. Divorce is expensive enough without fighting off HMRC.

We don't mention that particular e-word. And I would imagine its rather hard to challenge, hypothetically speaking. Unless the people involved were really rather stupid in the way they conducted their affairs. 

[2boxerdogs]

Reading this thread has made me realise one thing, at least. A decent accountant a very good investment.

. 



Another very good piece of advice I took at an early age, had two Jewish employers when I first got part time jobs around 15 years of age, two extremely wise & wealthy men.

[STEMO]

It's yours once the mortgage is paid, though.

Ah, did I not mention the BTL is on an interest only mortgage? 

I see.........
As you were, chaps.