Buying a house

[93-DY-SAM]

Depends on lender/valuer but id say majority are just back in action this week chap...

cheers

[screenexile]

Thinking about buying a second house in the near future... thinking maybe Portstewart where you can get a 9 month student rental and then have it for the Summer.

Will probably leave it to the New Year to see how prices are affected.

Has anyone any similar experience? There seem to be a few of these houses for sale at the minute I wonder if you're guaranteed to get it let or not during the year?

[Milltown Row2]

Thinking about buying a second house in the near future... thinking maybe Portstewart where you can get a 9 month student rental and then have it for the Summer.

Will probably leave it to the New Year to see how prices are affected.

Has anyone any similar experience? There seem to be a few of these houses for sale at the minute I wonder if you're guaranteed to get it let or not during the year?

I was told Dion Dublin Could help 

But yeah Portstewart seems practical, I've a friend who has three houses in England and bought one recently in Wales! Rents them out, him and his brother, they have a few quid so can afford it.

[quit yo jibbajabba]

I would say in fairness that post to Screen was about as useful as my Dion Dublin one to you MR2 😂😂

[Maroon Manc]

Thinking about buying a second house in the near future... thinking maybe Portstewart where you can get a 9 month student rental and then have it for the Summer.

Will probably leave it to the New Year to see how prices are affected.

Has anyone any similar experience? There seem to be a few of these houses for sale at the minute I wonder if you're guaranteed to get it let or not during the year?

You might already be aware but worth bearing in mind the tax laws have changed in recent years for those who are higher rate tax payers, obviously buying in a LTD company would eradicate that problem but the interest rate wouldn't be as attractive.

[Milltown Row2]

I would say in fairness that post to Screen was about as useful as my Dion Dublin one to you MR2 😂😂

It's is, as I've no idea, that's why I asked 

[Milltown Row2]

Thinking about buying a second house in the near future... thinking maybe Portstewart where you can get a 9 month student rental and then have it for the Summer.

Will probably leave it to the New Year to see how prices are affected.

Has anyone any similar experience? There seem to be a few of these houses for sale at the minute I wonder if you're guaranteed to get it let or not during the year?

You might already be aware but worth bearing in mind the tax laws have changed in recent years for those who are higher rate tax payers, obviously buying in a LTD company would eradicate that problem but the interest rate wouldn't be as attractive.

What if someone bought it who's not a big tax earner? But just enough to get a bank to lend the money?

[Rois]

Thinking about buying a second house in the near future... thinking maybe Portstewart where you can get a 9 month student rental and then have it for the Summer.

Will probably leave it to the New Year to see how prices are affected.

Has anyone any similar experience? There seem to be a few of these houses for sale at the minute I wonder if you're guaranteed to get it let or not during the year?

You might already be aware but worth bearing in mind the tax laws have changed in recent years for those who are higher rate tax payers, obviously buying in a LTD company would eradicate that problem but the interest rate wouldn't be as attractive.

What's the tax law change for higher rate payers?

[Milltown Row2]

Thinking about buying a second house in the near future... thinking maybe Portstewart where you can get a 9 month student rental and then have it for the Summer.

Will probably leave it to the New Year to see how prices are affected.

Has anyone any similar experience? There seem to be a few of these houses for sale at the minute I wonder if you're guaranteed to get it let or not during the year?

You might already be aware but worth bearing in mind the tax laws have changed in recent years for those who are higher rate tax payers, obviously buying in a LTD company would eradicate that problem but the interest rate wouldn't be as attractive.

What's the tax law change for higher rate payers?

Higher rate or higher tax rate payers?

[imtommygunn]

The only thing I can see on higher rate tax payers is the tax on profits of selling your house? (I couldn't work out if it was second home only but presumably most who makes profits on a first home it will just be put back into the other house anyway so won't be profit?)  Also it would presumably only kick in if you had no mortgage?

*disclaimer I don't know very much on tax of these things but was just interested on the higher rate tax thing

[PMG1]

Thinking about buying a second house in the near future... thinking maybe Portstewart where you can get a 9 month student rental and then have it for the Summer.

Will probably leave it to the New Year to see how prices are affected.

Has anyone any similar experience? There seem to be a few of these houses for sale at the minute I wonder if you're guaranteed to get it let or not during the year?

I have a few properties that I rent out, my experience with renting to students (I have on in the holy lands) is not great, generally have a lot of money to spend each time they leave but maybe I just got the wrong ones and I don't think Portstewart would be as bad party wise as the holy lands. I gave up after 3 years and decided to rent to a family of Romanians, I would be afraid to see the state of the house when they leave but they have been in it for 7 years and I haven't had one bit of bother with them.

Overall the key to buy tickets is to not worry about the house value in two or five years time, take a long term view and just get the mortgage paid off as hassle free as possible then think that in 10/15years time you have a nice wee income every month as an early pension. If you are putting students in don't put expensive furniture in for them, keep everything basic and as unbreakable as possible.

[delgany]

Thinking about buying a second house in the near future... thinking maybe Portstewart where you can get a 9 month student rental and then have it for the Summer.

Will probably leave it to the New Year to see how prices are affected.

Has anyone any similar experience? There seem to be a few of these houses for sale at the minute I wonder if you're guaranteed to get it let or not during the year?

I have a few properties that I rent out, my experience with renting to students (I have on in the holy lands) is not great, generally have a lot of money to spend each time they leave but maybe I just got the wrong ones and I don't think Portstewart would be as bad party wise as the holy lands. I gave up after 3 years and decided to rent to a family of Romanians, I would be afraid to see the state of the house when they leave but they have been in it for 7 years and I haven't had one bit of bother with them.

Overall the key to buy tickets is to not worry about the house value in two or five years time, take a long term view and just get the mortgage paid off as hassle free as possible then think that in 10/15years time you have a nice wee income every month as an early pension. If you are putting students in don't put expensive furniture in for them, keep everything basic and as unbreakable as possible.

I'd leave it to next year,  students unlikely to be back in university till Jan 21.

[Taylor]

The only thing I can see on higher rate tax payers is the tax on profits of selling your house? (I couldn't work out if it was second home only but presumably most who makes profits on a first home it will just be put back into the other house anyway so won't be profit?)  Also it would presumably only kick in if you had no mortgage?

*disclaimer I don't know very much on tax of these things but was just interested on the higher rate tax thing

I had thought you would have to pay a higher tax rate when you sell it on as it isnt your primary residence?

[TabClear]

The only thing I can see on higher rate tax payers is the tax on profits of selling your house? (I couldn't work out if it was second home only but presumably most who makes profits on a first home it will just be put back into the other house anyway so won't be profit?)  Also it would presumably only kick in if you had no mortgage?

*disclaimer I don't know very much on tax of these things but was just interested on the higher rate tax thing

I had thought you would have to pay a higher tax rate when you sell it on as it isnt your primary residence?

I know the law is a lot less favourable now in terms of interest deductibility. You used to be able to deduct all mortgage interest against taxable profits, thats no longer the case.

[93-DY-SAM]

The only thing I can see on higher rate tax payers is the tax on profits of selling your house? (I couldn't work out if it was second home only but presumably most who makes profits on a first home it will just be put back into the other house anyway so won't be profit?)  Also it would presumably only kick in if you had no mortgage?

*disclaimer I don't know very much on tax of these things but was just interested on the higher rate tax thing

I had thought you would have to pay a higher tax rate when you sell it on as it isnt your primary residence?

I know the law is a lot less favourable now in terms of interest deductibility. You used to be able to deduct all mortgage interest against taxable profits, thats no longer the case.

In the North you'd be subject to CGT when you go to sell a property that isn't your primary residence. But you can mitigate this to a certain extent. A good accountant will advise you.

I don't know what the higher tax is about. Because this isn't your primary residence and you are earning income on it you have to pay tax on that income. That all gets included in your overall income declared in your tax return. You might find the rental income pushes you into the higher earners tax band. That is what you need to watch for. It is not that you have to pay any specific higher tax because of the house isn't your primary residence.

Once you also add in the fact that mortgage interest relief was ditched in April this year it means you now can't write that off as tax deductible. This alone is pushing many landlords into the higher tax bracket. All explained here better than I can:

https://www.which.co.uk/money/tax/income-tax/tax-on-property-and-rental-income/buy-to-let-mortgage-tax-relief-changes-explained-atnsv0j6j782


Many landlords with one property are getting out of it as an investment because in a lot of cases the return is just not worth it any more. You'd need to be in it for the long haul and that introduces other costs. The longer you have a property the more likelihood you'll have some major maintenance to do at some point. If your rent is just about covering the mortgage and a few ongoing regular costs then you will be digging into your own pocket to pay for that.