Retirement planning using different property strategies
We would initially sit down with you to establish your retirement goals.
We would then go ahead to formulate the criteria for that suits your retirement goal and schedule.
This would lead on to talks about specific property values, potential rental incomes and the return on your investment.
Outside of just the figures we would also go into what differing types of property investment actually entail.
A FIJI HOMES AND PROPERTIES SAMPLE INVESTORS RETIREMENT PLAN
All figures mentions are for illustrative purposes only.
Please seek financial advice from your financial advisor.
WORKING BACKWARDS
ASSUMING £10,000 per month Is a good figure to plan with as an income for retirement
Working with trying to achieve this in 5- 6 years
Potentially 10 years
To achieve this
The goal will be to achieve £1000 per month per year as profit to achieve the goal in 10 years
And £2,000 per month per year if we were to achieve the goal in 5 years.
To achieve £1000 per month
We aim to achieve £1500 and give room for lapses
To achieve £1500
We would need to achieve between £2500 and £3000 per month before bills, mortgage payments and taxes.
To achieve £2500- £3,000 per month
We need
5 tenants to pay at least £550 = £2750
6 tenants to pay £500 feels safer= £3000
Either way we give an allowance of £1250- £1500 for voids, bills, mortgage payments and taxes.
Leaving a clear profit of £1500 per month
To achieve the above we need to purchase
Buying a house between 140,000 – 160,000 within 1 mile of the train station
Renovate with £50,000 to include a loft extension.
Making a total investment of £200,000
If £2500 is achieved as a minimum per months that’s
2500x12= 30,000 per year
Refinancing comes as a bonus.
If refinanced at a high figure majority if not all of the income is pulled out.
Having analysed if its valuable doing a loft conversion.
Does Saving £20,000 on a loft extension make a difference
This makes a difference
1 At refinance
2 From a rental income of losing 1 room rental income of £500 per month (£6000 per annum)
If finance is leveraged to buy
Purchasing price- £160,000
Buying cost £ 5,000
Deposit @ 25%= £40,000
Renovation cost £50,000
Total cash required £100,000