buy to let mortage,
04 August 2004, 03:10 PM
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buy to let mortage,
looking into getting a house in sutton in ashfield to rent and the house is 3 bedroom terraced and i would be looking at 300- 350 a month rental income, started looking into buy to let mortages and there is so many variations to choose from not sure which ones to keep away from. the house is going to cost 60k and im putting down 10k deposit, Will it be possible to get a mortage which is sub 200 pounds per month? because if the mortage is going to be much higher it won't be worth going into the rental business, any advice will be good.
Borich
Borich
04 August 2004, 03:14 PM
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I sourced this at work (mortgage consultant) and the best deal over 25 years came out at £298 on repayment or £203 interest only.
Hope this helps, ask if you want more info.
Matt
Hope this helps, ask if you want more info.
Matt
04 August 2004, 03:36 PM
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If you take into account a few periods of vacent occupancy, agency fees (unless you are going to rent it yourself), ongoing house repairs, the imminent increase in base rates (That may increase rental revenues) and the fact house prices are leveling and may even dip slightly, you are taking IMHO quite a risk for little return.
Just to add you have to pay income tax on your rental and you will be liable to 40 % capital gains tax when you sell the property.
Just to add you have to pay income tax on your rental and you will be liable to 40 % capital gains tax when you sell the property.
04 August 2004, 03:42 PM
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Originally Posted by Scooby-Doo
If you take into account a few periods of vacent occupancy, agency fees (unless you are going to rent it yourself), ongoing house repairs, the imminent increase in base rates (That may increase rental revenues) and the fact house prices are leveling and may even dip slightly, you are taking IMHO quite a risk for little return.
Just to add you have to pay income tax on your rental and you will be liable to 40 % capital gains tax when you sell the property.
Just to add you have to pay income tax on your rental and you will be liable to 40 % capital gains tax when you sell the property.
Interest costs and repairs etc can be offset against the income tax.
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04 August 2004, 04:11 PM
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Originally Posted by Scooby-Doo
If you take into account a few periods of vacent occupancy, agency fees (unless you are going to rent it yourself), ongoing house repairs, the imminent increase in base rates (That may increase rental revenues) and the fact house prices are leveling and may even dip slightly, you are taking IMHO quite a risk for little return.
Just to add you have to pay income tax on your rental and you will be liable to 40 % capital gains tax when you sell the property.
Just to add you have to pay income tax on your rental and you will be liable to 40 % capital gains tax when you sell the property.
Too many people see this as a one way street, and quite clearly, at the moment it is not. Nice to see this point of view put across.
income tax
04 August 2004, 04:33 PM
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Originally Posted by Patt@firstime
what area is it?
looking into getting a house in sutton in ashfield
04 August 2004, 04:39 PM
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Originally Posted by OllyK
North of Nottingham and on the way to Yorkshire. Apparently the North South divide runs along the Notts / Leics border now
04 August 2004, 06:31 PM
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borich, I remember your thread from last week.
If borrowing £50k, you'd need a fixed rate of 5% or less to get the interest only part to be £208/month. Doesn't matter how long the term is, the interest will ALWAYS be £208 if you are not reducing capital....sounds like you can't afford to repay the capital part.....
Getting a BTL long term fixed rate of 5% will be tough. That's not allowing for voids etc!
If borrowing £50k, you'd need a fixed rate of 5% or less to get the interest only part to be £208/month. Doesn't matter how long the term is, the interest will ALWAYS be £208 if you are not reducing capital....sounds like you can't afford to repay the capital part.....
Getting a BTL long term fixed rate of 5% will be tough. That's not allowing for voids etc!
05 August 2004, 02:35 AM
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thanks for all your replies, it has been a big help. so to make it worth while doing i need to make sure that i get A BTL mortage at around 200 a month which by the sounds of it could be tough going so ill go into town tomororw and try and get soem advice, I have the funds to put down a larger deposit which would help reduce the repayments.
Borich
Borich
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