You spend years building your property portfolio, but have you ever stopped to think about your endgame? In today’s episode, Rob & Rob are talking exit strategies, walking you through a typical investor scenario and exploring the different options you can take when it comes time to cash in, scale down, or pass it on.
(0:55) News story of the week.
(3:14) What’s your property endgame?
(4:12) A typical investor scenario and exit options…
(5:55) Option 1: Keep all the properties.
(7:45) Option 2: What happens if you sell everything?
(9:20) Option 3: What if you pay off all the debt?
(11:05) The more advanced options…
(18:25) What would Rob & Rob do?
(23:40) Hub Extra.
Links mentioned:
The eviction heavies stoking the fires of Spain’s property crisis
The Choir Of Man
The scenario:
You’re hitting retirement age with a £3 million portfolio and £1 million of debt. Your properties have doubled in value since you bought them, and your leverage has halved. For simplicity, let’s say that’s 10 properties at £300K each.
You’re generating pre-tax:
£210K income (7% yield)
£50K mortgage costs (5% rate)
£42K other costs (20%)
£118K profit
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