potentially could go part time and that would be preferred option for now.Can you go part time in your current role? When you say go contracting what sector? Sometimes contracting just means working longer hours for a shorter amount of time i.e. a 3 month contract rather than contracting 2/3 days a week.
My rule of thumb is if you are spending your monthly salary you can't afford it. If you take your salary and take a 1/5th of it to represent going to a 4 day week, if you can live of that you should be grand.
Congrats on being in such a healthy position at 49.
How much is your PPR worth?
Your plan to sell the 500k property to purchase a cheaper one does not make much sense to me as you have a very cheap tracker on it and the transaction costs between buying & selling will be about 20k. You will also have void periods where you will have no rent coming in during the process.
Is there any CGT due on any of the rentals?
What are your household monthly expenses like?
Question about your 60k rental income when you're debt free
That will create a tax bill of say 25k?
Do you have any ideas for how to reduce the tax bill?
You will have to take the rent and put half to the side for the tax man. Maybe you already do this.
I agree completely
The only consolation upon retirement is the income tax hopefully drops
A couple can earn 36k before hitting the tax net and then some more before hitting high rate.
But meanwhile you have 10 years paying government 25k of your rental income.
One suggestion is, before retirement, to renovate the properties. The cost can be offset against tax.
The increase in value will allow you to increase the rental income (and tax unfortunately).
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