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The Property Podcast

TPP204: The best exit strategies for property investment

The Property Podcast

Rob Bence & Rob Dix

Business News, News, Business, Education, Investing

4.82K Ratings

🗓️ 9 February 2017

⏱️ 22 minutes

🧾️ Download transcript

Summary

In this episode we're looking at something pretty different for us - how to exit property! A lot of our listeners are at the start of their property journey but it's easy to not consider how you will wrap up your portfolio when that time comes around. If you're considering this, then here are some of your options... Never Let Go First up is Rob B's current plan - never exit.  If you have no mortgages, can just hold forever for income then pass them on.If you do have mortgages, you can get mortgages until much later in life than people think. Or if the properties are in a company, as long as there’s another director they can keep the mortgages going.Advantage: Keeps the income stream going and gives you something to pass onDisadvantage: Maybe you don’t want to be worrying about interest rates if you have mortgages, or don’t want the hassle of holding property at all Sell some You could instead sell enough properties to pay off the mortgage balances on the rest, then revert to the first option of holding on. If you’ve had a long period of growth you might only need to sell one property to pay off everything else.Advantage: You’re debt-free and keep an incomeDisadvantage: CGT Sell the lot  Liquidate everything and use the proceeds to invest in other asset classesAdvantage: You get more diversification - can take the money and allocate it across a global portfolio. No hassle from property.Disadvantage: CGT, nothing to pass on. A mix of the above Sell one to pay down debts on the rest, sell a couple more to give you a lump of income to diversify across other asset classes, keep the rest for income with low mortgages. You might even want to buy different types of property at this point, e.g. if you’ve been focusing on capital growth but now what matters most is a strong income. Could you be a refurb case study in The Property Hub Magazine? If you've got a refurb story then we want to know. It's easy to let us know you're interested in the possibility of being featured in the magazine, just send us an email to hello@thepropertyhub.net and Vicky will get back to you. Barclays unveils 10-year fix buy-to-let mortgage at 2.99% This is a heck of a rate if you do want that security. It wont be for everyone, but it will definitely be of interest to some. A note of caution though: There are some hefty penalties if you think you may want to move away from that mortgage or sell before the end of that term. Check out more on this here.  Resource of the week This week's resource of the week will allow you to speed up, slow down, advance and rewind any HTML5 video with quick shortcuts. Download this Chrome extension here. If you enjoyed The Property Podcast, please leave a review on iTunes Reviews are really important in helping other people to find the show, so by way of thanks we read out every single review we receive on air. If you’d like to hear your name on the show, leave us a review on iTunes here. Not sure how to leave a review? This video shows you how to review and subscribe on iTunes. See omnystudio.com/listener for privacy information.

Transcript

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0:00.0

Hello everyone and welcome to the property podcast it's episode

0:03.4

2004 and I'm Rob B of course joined by Rob D and this week we're looking at

0:07.7

how to get out of property different for us. We're talking about

0:14.0

Yeah, we spend a lot of time talking about how to get started in property,

0:22.0

but how to finish is important as well.

0:23.7

We're talking about exit strategies. It's something we had a few questions about recently

0:28.0

so we thought it would be good to dive into this sometimes overlooked aspect of property. So we'll be doing that in just a sec and

0:34.8

we've got a very interesting news story as well. But first, as we're recording

0:39.7

this, we are just back from February's meetups. First Thursday of the month means that it is

0:44.9

meet up day. We both got out and about Rob where did you go and how was it for you?

0:48.9

I went to lovely Richmond. I do like Richmond. Great meetup. Rock sands an awesome host great crowd as well really good numbers there sorry for those that didn't get to speak to because obviously quite a lot of people there great venue if you've not been by the way right on the river.

1:03.7

I'm not saying wait till summer, but in the summer that meet up will be a really good one

1:08.8

but Roxanne will kill me.

1:09.9

So make sure you go in the winter as well.

1:11.7

But really good me to Rob. Had lots of fun, good to be to lots of people,

1:15.1

about loads of different things, all related to property of course.

1:18.2

And I hear you got yourself off to Stratford, one of our new meetups.

1:22.2

I did, one of the newer ones but what a

1:24.3

turnout there are something like 80-odd people down at Stratford which is

1:28.2

absolutely massive that is going to be a popular meet-up they've got a nice venue in a brilliant location. Some great

1:34.5

leaders, shout out to Jethro, who I saw down there. Really good crowd. Tax a

1:39.7

hot topic as ever, but lots of different things being discussed. A couple of mentions in

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