Tag: personal-finance

June 2025: Show times

FIRE v LondonLeave a comment

I really want to stop mentioning Trump.

Even when he sends troops into LA, one of my favourite cities.

But when he launches 30kt bombs on Iran, it is very hard to avoid talking about him.

In the context of what Trump’s been up to, the welfare reform screw-ups by the Labour government seem almost laughably trivial. Even though they make my blood boil and, I think, will have more impact on our economy than Trump’s militarism will have on the USA’s.

We’ve had some lovely weather in June, with the lovely long evenings to enjoy too. I’ve had some memorable London experiences, including a visit to Parliament, some high altitude fun and two (very different) shows – one of which even saw me on stage in the Barbican Theatre! I’ve also had some fun on the coast – including a very memorable evening in Poole harbour.

Continue reading “June 2025: Show times” →

Swapping a rental property for a share portfolio

FIRE v London11 Comments

Having sold my London rental flat, what was I to do next?

I’ve paid the £20k+ transaction fees. I have paid off the mortgage. I set aside the amount to pay my Capital Gains Tax, a liability which needs to be settled within 60 days. I moved some of the remaining equity into other investments and portfolios.

However, one thing is missing. The property rental income. I used to use my property rental income to help pay for household costs; rent was received into my joint household account and was swallowed up there by miscellaneous household bills, cleaning costs, gardening expenses etc. Until I sold the flat, the flat’s service charge and occasional running costs would have come out of that account too. These days, only my Dream Home in London is paid for out of this account – I have opened a different account for the Coastal Folly which I run separately (and is funded separately).

So, I decided to ringfence £500k of the equity that I released for a ‘property proxy’ portfolio. This portfolio will be a worked example of the argument that a stocks/bonds portfolio can be a valid, and better, alternative to a property investment. I will report on progress occasionally on this blog. The portfolio will essentially be an income portfolio, designed for somebody is used to having regular property rental income coming in, and wanting inflation protection.

Continue reading “Swapping a rental property for a share portfolio” →

A stupid decision to sell my rental property

FIRE v London6 Comments

I sold my rental property last year, after owning it over 20 years. It’s a lovely property, worth around £1m, right in the heart of London – near the middle of the map below. I used to live in it, I travel past it regularly, I know its neighbourhood well. The Modern Flat has genuinely been part of my life – in a way I can’t say for most assets I own.

Central London – roughly corresponding to the Circle Line area

As most readers would I think agree, I am a pretty numerate, analytical person. Yet looking back on the sale of the Modern Flat, in my decision to sell I made two stupid mistakes. I got two of the big numbers wrong. Not just a bit wrong, but properly, materially wrong.

There are lessons here about investing, about selling, and about property vs stocks/shares. Let’s take a look.

Continue reading “A stupid decision to sell my rental property” →