BTL

[Beachpelican]

Not sure what to do. I’m currently 60, have 3 buy to let properties which yield about £2500 pcm after tax. These were inherited and I can’t sell them as would have to pay too much in capital gains.
it seems a long time until 67 when I can claim my state pension. I am single and have paid off my mortgage.
Do you think this is enough to live on until I get my state pension? I have zero cash savings and no private pension.

How much do you spend per month?

If you've got £2.5k coming in on top of a salary yet still have no savings, that suggests £2.5k is not enough for you to live on.

With no savings to fall back on, how would you fund repairs to the BTL properties as your income is not going to cover that AND your living expenses?

From experience I know it is no fun being a landlord so would be tempted to get out.
Would selling one property be an option, it would reduce your income but free up some much needed capital?

Have you actually calculated what you'd raise by selling. Capital gains is only 18% or 24%. How much would the remaining cash give you invested in stocks with a 4% drawdown?

Thanks for your replies, it has given me food for thought. I guess I obviously spend quite a bit more than this and hadn’t considered the long term. I guess I need advice about selling and potential future investment.

Start with a budget.

Incoming, outgoings (be honest, don't guess!), how much of the outgoing is discretionary, planned future spending (fun things like holidays, non-negotiables like renewing the gas and electrical safety certificates on each rental, partially negotiables like replacing/updating old appliances or your car), a realistic contingency fund for emergencies ... At the moment you are clearly short on some of these areas and are spending more than you can afford.

I budget for £2k a month - living comfortably. It's not a question of whether it's possible to live on £2.5k, but whether you personally can do so. Only you can answer that. And you can only do so by comprehensively assessing your situation and options.

£2500 without a mortgage should be more than ample enough to live on - unless you’re planning to go on holiday every month. You should be able to live very comfortably.

I’m a BTL landlord and have 5 properties currently in my portfolio - with a monthly yield of £3800 after tax. I did have 9 at my peak but sold a few off - kids have had some of their inheritance to buy their own houses outright and the plan is continue to rent out until the tenants leave and then we will sell.

I am 62 so just a bit slightly older than you. I have drawn on some of my pension already when we purchased and renovated our forever home last year - wanted to do this whilst salary was coming in.