RetireJapan

Wales4rugbyWC23 wrote: ↑Sun Oct 01, 2023 4:27 am I would buy a buy to let flat in the UK, although 150k won't go that far down south, anywhere north of Brimingham would get a two-bedroom flat for that price. I don't think you would pay stamp duty either, if it is your first purchase. Ideal passive income for retirement.

I saw a video a while back about how BTL has become increasingly more difficult in the UK. I don't do it personally so not sure how useful the video is. But I think anyone who's considering it should at least watch the video first:
https://www.youtube.com/watch?v=NtVk3ERt66w

Personally I would like to spend some of it on an Aston Martin That would be an interesting discussion with the wife for sure! But seeing how much care homes cost in the UK (£1000 per week?) there probably won't be much left.

Beaglehound wrote: ↑Sun Oct 01, 2023 3:42 am An excellent consideration. It has been on my mind that we need to do the things money can facilitate while we are still able to.

That has been a major focus for me this year. It is surprisingly hard to switch from the saving mindset to the spending mindset after a decade or two

northSaver wrote: ↑Sun Oct 01, 2023 6:18 am

Wales4rugbyWC23 wrote: ↑Sun Oct 01, 2023 4:27 am I would buy a buy to let flat in the UK, although 150k won't go that far down south, anywhere north of Brimingham would get a two-bedroom flat for that price. I don't think you would pay stamp duty either, if it is your first purchase. Ideal passive income for retirement.

I saw a video a while back about how BTL has become increasingly more difficult in the UK. I don't do it personally so not sure how useful the video is. But I think anyone who's considering it should at least watch the video first:
https://www.youtube.com/watch?v=NtVk3ERt66w

Personally I would like to spend some of it on an Aston Martin That would be an interesting discussion with the wife for sure! But seeing how much care homes cost in the UK (£1000 per week?) there probably won't be much left.

Yes, it has been made more difficult in the UK mortgage interest tax relief and stamp duty, but regular rents are a great form of passive income and are probably higher yield than you would either get from saving's interest or dividends. Also, a lot of the rental expenses that are not tax deductible in the UK, are on your Japanese tax return, stamp duty, mortgage interest tax relief and depreciation, although the Japanese tax office closed down that nice little tax perk a couple of years ago.

Wales4rugbyWC23 wrote: ↑Sun Oct 01, 2023 4:27 am I would buy a buy to let flat in the UK, although 150k won't go that far down south, anywhere north of Brimingham would get a two-bedroom flat for that price. I don't think you would pay stamp duty either, if it is your first purchase. Ideal passive income for retirement.

Wouldn’t be my first purchase as I previously owned a flat in the UK but sold up when we moved here. At that time I did toy with the idea of keeping and renting it out, but decided against it for a few reasons, all of which still apply. I get that BTL works for some though. I think if I had designs on moving back to the UK at any point it would make sense for me to have a foothold in the housing market, but I don’t.

RetireJapan wrote: ↑Sun Oct 01, 2023 6:53 am

Beaglehound wrote: ↑Sun Oct 01, 2023 3:42 am An excellent consideration. It has been on my mind that we need to do the things money can facilitate while we are still able to.

That has been a major focus for me this year. It is surprisingly hard to switch from the saving mindset to the spending mindset after a decade or two

I had no trouble maintaining a spending mindset until the age of 35, at which point a likely future of poverty became clear…I agree that such mindset shifts are tough, this windfall should help me to do it ‘guilt-free’ though. Even spending some leaves some, and it isn’t money I have already ‘accounted for’.

RetireJapan wrote: ↑Sun Oct 01, 2023 6:53 am

Beaglehound wrote: ↑Sun Oct 01, 2023 3:42 am An excellent consideration. It has been on my mind that we need to do the things money can facilitate while we are still able to.

That has been a major focus for me this year. It is surprisingly hard to switch from the saving mindset to the spending mindset after a decade or two

A friend of mine (not in Japan) has just retired and is currently doing the Santiago Camino thing. I've been following his adventures and it has made me realise just how important it is to do things while you can. I've had a wee bit off a health issue this year and it's made me realise we have to do things while we can! I'd say enjoy a bit of the cash now or, if it will get you to a retirement date significantly earlier, throw it into the retirement pot and buy yourself a few extra years of freedom.

Wales4rugbyWC23 wrote: ↑Sun Oct 01, 2023 7:09 am Yes, it has been made more difficult in the UK mortgage interest tax relief and stamp duty, but regular rents are a great form of passive income and are probably higher yield than you would either get from saving's interest or dividends. Also, a lot of the rental expenses that are not tax deductible in the UK, are on your Japanese tax return, stamp duty, mortgage interest tax relief and depreciation, although the Japanese tax office closed down that nice little tax perk a couple of years ago.

Currently you get better net yields from savings than BTL, at least I do on my savings vs my BTL's. 5.55% on savings, about 4-5% on BTL (depending on yearly expenses). And savings accounts are an order of magnitude easier to set up than buying from abroad which is do-able but time consuming and tedious.

I am considering selling the BTL's and sticking the proceeds into long duration gilts, just as its so much less hassle. Even though I use agents to manage the properties, all the decisions come over for approval and it still consumes some hours a month to deal with.

Have you properly grieved and had a break from the stress of dealing with everything?

I’d spend some of it on a bloomin’ good holiday

Gareth wrote: ↑Sun Oct 01, 2023 1:00 pm Have you properly grieved and had a break from the stress of dealing with everything?

I’d spend some of it on a bloomin’ good holiday

Good advice. I am lucky that my sister is in the UK and has been able to deal with the lion’s share of the hassle. My Dad had also been dealing with dementia for a while so it came as no shock. But this thread has helped me to clarify that it is unnecessary and probably counterproductive to do anything in haste. Apart from that holiday perhaps!

Sure--enjoy spending it. Like why not throw a big weekend-long party...

...for all the people posting here?