43 Properties And Ready To Retire

43 Properties And Ready To Retire

13:58 PM, 22nd January 2018, About 6 years ago 21

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To say that I’m jaded with how the property rental business has been vilified and increasingly taxed, legislated against and reviled by public opinion over recent years is an understatement. I’ve had my fill and need to get out.

I’ve been following Mark Alexander and his wife both here, and on Facebook, growing increasingly envious of their lifestyle now they have left the UK. In fact I’m planning to do pretty much the same thing as they have done and emigrate to Malta.

I met with Mark and his wife in Malta a few months after they first went over there. I paid for a few hours of consultation time and realised that wasn’t really enough. Mark has so much experience and knowledge I wanted to suck as much information out him as possible. Therefore, I came up with a cunning plan and took them to a nice restaurant and had a good three or four hours getting to know them both a lot better. That was a great investment, although it might have been cheaper to pay for the extra consultancy than the amount of food and drink we managed to consume!

I purchased most of my properties in the mid 90’s though to the mid naughties and I haven’t yet decided whether to sell up. However, if I do I might as well pay CGT on gains since April 2015 as opposed to paying CGT on gains from when they were first purchased! Apparently, this is automatic as soon as I become resident in Malta, providing I stay out of the UK (except for holidays) for at least five years.

The other idea I’m toying with is handing over the management of my portfolio to LettingSupermarket.com, as Mark did before he went to Malta. I appreciate this is very different to selling up, because decisions still need to be made and work still needs to be done. However, it seems a decent half way house if I am am able to work say 20 hours a week as opposed to the 60+ I spend running my business and managing everything myself. I predict my income will probably drop by about 20% if I do this. I arrived at this figure on the basis that I will have to pay other people to do things I could do better myself. If I’m over-rating the value of my own abilities then so be it and I will be much better off. I’ve crunched the numbers and I think I’ve thought this all through very deeply, perhaps even too deeply. I hope to be on my way to Malta by the end of next month and if you’re reading this Mark, it would be great to meet up for a few beers when I get settled in.

I’ve been to Malta several times since, and have just got back. The grand opening of the Valletta 2018 City of Culture event was spectacular. You missed it Mark, but it seems you are having a good time in the Russian snow. I am very pleased to see from Facebook that you are feeling better following your health scare a few weeks ago. On that note, I’ve heard the hospitals in Malta are very good but I have private medical cover here and would probably do the same there.

Apart from having to endure family and friends wanting to visit me all the time for a free holiday, and having 300 days of sunshine every year, am I missing anything?

Les

Note Added By Mark Alexander

It will be great to meet up when you’re settled Les, the first round is on me 🙂

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Comments

NW Landlord

9:11 AM, 25th January 2018, About 6 years ago

I have a similar strategy the only issue is an 8 10 and 12 year old ha. Over the next 5 / 7 years I’m trimming down to buy in Portugal leaving all my high yield smaller houses for income plus my development business which is quite hands off on a day to day basis. This is due to government interference and lifestyle choice you are right mark life’s to short to be constantly chasing the dollar life passes u by just glad I’ve seen the light at 40.

CazT

9:32 AM, 25th January 2018, About 6 years ago

Reply to the comment left by Martin Dance at 23/01/2018 - 11:50
I’ve been with Lettingsupermarket for a couple of years now and can highly recommend them. The rent comes in to my account immediately, they deal with my questions etc efficiently and are worth every penny to me. I left UK for Spain in September and won’t ever go back. 😎🇪🇸

Anne Nixon

10:17 AM, 25th January 2018, About 6 years ago

Reply to the comment left by Martin Dance at 23/01/2018 - 11:50Letting Supermarket are highly recommended by me! Excellent people to deal with, always on the ball with everything and with a personal touch which is nice.

Ken Smith

10:47 AM, 25th January 2018, About 6 years ago

Interesting to read the very positive comments about Lettings Supermarket.

I self manage and am very efficient with good systems in place. However I want to spend more time abroad (not more than 6 months) and relax more here too. I see with LS that essentially you pay £10 per month per tenant for a rent guarantee on top of the management fee.

Can anyone comment as to the value of this cover based on past experiences please.

I have never ever needed rent guarantees, and I put this down to my rigorous vetting processes and empathetic people-skills. I also always insist on solid, vetted guarantors too. I have always suspected that a letting agent would not have the same forensic approach as mine (based on my previous experiences of them).

The irony of changing being that a ham fisted letting agent could antagonise a tenant to the point where a rent guarantee is a good thing! In other words you could easily in effect be insuring against the outcomes of actions by a bad agent.

I really do need selling on letting agents generally - hence my attention being aroused with these people.

Thanks in advance

Mark Alexander - Founder of Property118

10:59 AM, 25th January 2018, About 6 years ago

Reply to the comment left by Ken Smith at 25/01/2018 - 10:47
Hi Ken

I pay the extra £10 pcm for the RGI for absolute peace of mind. I have never needed to claim on it. The reason I have it is that I did have a tenant once who cost me £18,000. The money lost was bad but the hassle was worse

My thinking is that for the referencing company to provide RGI at that price they must be very confident about their referencing. Would the referencing be so diligent if I didn’t want RGI insurance? [rhetorical question]

Ken Smith

13:22 PM, 25th January 2018, About 6 years ago

Good points Mark. I can imagine that the insurers would demand a very tough vetting process than the ones they did if insurance wasn't required?

So in a typical 2 tenant property it would be just £20 per month - which to be blunt, I would add on to the rent at the start so that the tenants paid it.

The one good thing about the the way Landlords are being bashed is that it is making us behave more ruthlessly and in a more business-like fashion than maybe previously. Putting ourselves first - whilst obvioulsy respecting tenants etc.

Because the shortage in available property (because of landlords being forced out of the business) means that tenants have less strength than ever. So I would charge them the £20 via a rent 'uplift' - sorry but George Osborne - you made me do it!

Unintended consequences can work both ways eh?

Finally Mark, have you ever had to claim on the SL rent guarantee policies?

Thanks for your help all of on this by the way.

Mark Alexander - Founder of Property118

13:27 PM, 25th January 2018, About 6 years ago

Reply to the comment left by Ken Smith at 25/01/2018 - 13:22
Hi Ken

No I have never had to claim.

Two tenants doesn’t always mean two RGI policies either. If one tenants annual income is 30 or more times the monthly rent that usually suffices for the RGI companies to underwrite the whole rent guarantee on the one tenants income.

20:11 PM, 25th January 2018, About 6 years ago

Reply to the comment left by Martin Dance at 23/01/2018 - 11:50we use them - Mark can put you in touch with us (it is all good)

Martin Dance

9:43 AM, 26th January 2018, About 6 years ago

Thank you all for your feedback. As landlord i just need to make sure I choose the right letting agents. At the moment I use local agents who I pay for a full managemnet service and unfortunately it is very poor service I receive. It is all ok collecting the rent and passing on to me ... the easy part, but when any issues arise ( renewal of tenancy, any maintence issue )I have to fully get involved and resolve.
I have good tenants and at the last renewal they were going to leave due to the poor behaviou of my letting agent and I have to step in to resolve. Why have a void period/ change if not required. They actually told me they would perfer to deal with me directly but I am stuck with the agents and need to pay them every year if the tenants stay.
I have never felt comfortable and it is always at the back of my mind that any think could happen at any time. I have to prompt the agents for all the key dates. Not good. I actually did my du-dilligence berfore appoint them so am being ultra carefull now. Not easy being a landlord.

Ken Smith

10:29 AM, 26th January 2018, About 6 years ago

Reply to the comment left by Mark Alexander at 25/01/2018 - 13:27
Hi Mark
Thanks that's good to know.

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