Possible sale of BTL - am I missing anything?

[Granfondo]

ex1 said:

Granfondo said:

The average mortgage in this country is around £600pm so you would need an investment that would generate over £7k to be as well off as having no mortgage!

Another way to look at it would be £100k over 18 years at 3% = £600pm on a repayment mortgage.

£100k invested with a 7% return = £7kpa. If you take away the income tax element that investment will pay your mortgage repayments and keep on giving long after that mortgage has been paid off. In 18 years you could be mortgage free and still have £7kpa, plus any increases for inflation + capital growth on your investment + capital growth main property.

If you get a bit smarter and make investments that aren't as passive then a return over 7% is easily achievable.

All depends where you are in life and what you are looking to achieve, but paying off your mortgage early isn't always the panacea some people think.

I would like to know where you can get 7% after tax "easily" ?

[walm]

ex1 said:

If you want to put it into an account and sit back with no risk then yes 7% would be more difficult. If you are prepared to put some effort in then getting £600pm from £100k pot is really not that difficult.

I spend all day every day attempting to maximise risk-weighted returns.
It would essentially be almost impossible to put more "effort" in than I do.
Please explain where you can reliably put in "effort" to improve returns well above the FTSE, the SXXP, the DOW and the NASDAQ?

[ex1]

walm said:

I spend all day every day attempting to maximise risk-weighted returns.
It would essentially be almost impossible to put more "effort" in than I do.
Please explain where you can reliably put in "effort" to improve returns well above the FTSE, the SXXP, the DOW and the NASDAQ?

I am reluctant to take this thread any more off piste but all those investments are passive are they not? You really can't influence or add value to them can you? I mentioned above that if the op is happy to look at investments that require a little more effort then £600pm from £100k is easily achievable.

OP - Sell the flat use the £100k to start a business/trade something/import something/add value to something/buy something people want to rent etc and use that income to pay off your remaining mortgage.

Alternatively invest the money into financial markets which you have no control over and gamble that a myriad of circumstances no one fully understands will go in your favour and return you a little more than you started with.

Or just pay off your morgage.

[throt]

Sparks, first thing you need to address is the shortish lease.

And secondly, any profits you make should be used on a nice overpayment on your living residential..

Jmo..