I’ve been an avid reader of Property 118 for a few years now and I’m frequently amazed at the wealth of information freely shared by its contributors. Long may it continue.
One question which surfaces from time to time asks “when do you start to enjoy what you’ve built up?”
This usually refers to landlords who have spent years creating something which they hope will fund their chosen lifestyle and allow them to enjoy a comfortable retirement.
Well, after 22 years as a landlord, approaching my 63rd birthday, I find its now my turn to ask that question.
The raft of Central and Local Government initiatives over the past two years designed to discourage the Private Rental Sector has finally taken its toll. I thought the introduction of Section 24 was a step too far but the possibility of being asked to pay the missing duty on my tenants illicit tobacco sales just blew me away.
I’ve spent considerable time pondering the implications of selling up and I’ve asked myself numerous questions such as:
- Would I miss the regular income?
- Would I kick myself if property prices greatly increased after I sold up?
- How much Capital Gains Tax would I be liable for?
- Do I really want to give away 000’s of £’s to a Government who are doing their best to make my life so difficult?
- Where would I invest the net proceeds of the sale?
I could probably fill a page with questions I have considered over the past 18 months, but I never seem to arrive at a definitive conclusion. There are always pluses and minuses for whatever decision I arrive at.
My current thinking is to reduce my portfolio to a level where the income derived keeps me in the 20% tax bracket. I think I could just about stomach that. But how do I go about this?
I read, so often, of these illusive Southern based investors who are keen to put their funds to work in the profitable North. I’m based just North of Manchester so how do I find them?
Where is the best place to advertise my properties?
Can I trust them?
Would they look after my tenants the way I do?
How do I ensure I won’t fall victim to some scam merchant?
If anyone can provide some insightful information, you would, as they say “make an old man very happy”.