brett555

Wondering if anyone can help. Can someone please explain to me regarding the following situation.

Basically how is profit (actual money that can used etc..) worked out from selling a house that the value has increased by about 70% ?

if it not a simple answer or more info is needed then please say. my knowledge of this is limited.

thanks
brett

Mark Miwurdz

The profit is the increase in price less anything you owe - like a mortgage.

e.g. You paid £50,000 originally and it increases in value by £25,000 with no mortgage on it you've got £75K to play with. Same figure with a £40K loan means you've got £35K left.

Cheers
Kav

DavidLewis

If this is to work out any tax payable on the 'profit', it isn't that simple. If not, ignore the rest of this post

If you ever lived in the house, then those years count towards relief in a very complex way (theres a book to work it out) After that, you can deduct your capital gains allowances for each year you've owned the property.
All this only applies if this property has at some point not been your primary residence.

[Edited by DavidLewis - 1/25/2003 8:53:31 PM]

fast bloke

If those two haven't answered your question then you might be talking about real profit as opposed to monetary profit. The difference between these is that with monetary profiy you may have made a million quid on your 2 bedroom terrace, but all you can buy in the area is a two bedroom terrace. Real profit is when you develop the property so that you can now buy a better property in the same area, or similar property in a better area for the selling price.


Doesh that maek any sensh?