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Renting out my one bed flat yay or nay?

13

Comments

  • Crashy_Time
    Crashy_Time Posts: 13,386
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    economic wrote: »
    to inform others who dont know about you. if people listened to you, they would be much worse off financially. no one wants to be a loser like you crashy.


    So you would advise people to fill their boots with debt at 400-500k a pop for London new-builds in dodgy soulless areas then?
  • economic
    economic Posts: 3,002 Forumite
    So you would advise people to fill their boots with debt at 400-500k a pop for London new-builds in dodgy soulless areas then?

    i wouldnt no, and i said this before. but then you have said for years not to buy int this supposive bubble and people listened to you they would have lost out. simple fact. funny thing is you have lost out massively. hence you are what people would call a loser.
  • Crashy_Time
    Crashy_Time Posts: 13,386
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    economic wrote: »
    i wouldnt no, and i said this before. but then you have said for years not to buy int this supposive bubble and people listened to you they would have lost out. simple fact. funny thing is you have lost out massively. hence you are what people would call a loser.


    You bought back into the London bubble at peak prices hoping/believing prices would keep going up didn`t you?
  • economic
    economic Posts: 3,002 Forumite
    You bought back into the London bubble at peak prices hoping/believing prices would keep going up didn`t you?

    nope, i told you already why i bought. why do you sound like a broken record?

    i bought because i dont want to waste money on rent. i have the money to buy. i am earning 4% income a year on my capital invested in my home. tax free. even if prices fall i would still be better off long term. i hate the idea of renting. i have other invesments as well and my LTV is 50%.
  • agrinnall
    agrinnall Posts: 23,344
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    But you didn`t say that, you said sell it now and "bank the tax free profit". In response I said that tax on buyers could make this difficult.

    It's implied, it's tax free profit now because there is no tax to pay when selling ones main home, if the OP goes ahead with their plan profit may well be liable for CGT in the future. As I'm sure you know but ignore so that you can spout nonsense. The SDLT paid by a buyer has no impact on the profit made by the seller or on any CGT that the seller is or is not liable to pay.
  • Crashy_Time
    Crashy_Time Posts: 13,386
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    agrinnall wrote: »
    It's implied, it's tax free profit now because there is no tax to pay when selling ones main home, if the OP goes ahead with their plan profit may well be liable for CGT in the future. As I'm sure you know but ignore so that you can spout nonsense. The SDLT paid by a buyer has no impact on the profit made by the seller or on any CGT that the seller is or is not liable to pay.


    It does if the tax makes them more cautious about buying, it could mean less, or even no profit for the seller.
  • Crashy_Time
    Crashy_Time Posts: 13,386
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    economic wrote: »
    nope, i told you already why i bought. why do you sound like a broken record?

    i bought because i dont want to waste money on rent. i have the money to buy. i am earning 4% income a year on my capital invested in my home. tax free. even if prices fall i would still be better off long term. i hate the idea of renting. i have other invesments as well and my LTV is 50%.


    Safe to say that you have more at stake than me if the London property bubble pops though?
  • Robomb
    Robomb Posts: 4 Newbie
    boliston wrote: »
    I would imagine you would need freeholder subletting consent (check your lease) which might involve fees. Also you might get charged a higher rate by your mortgage company. Don't forget about rules regarding registering the deposit as penalties can be high otherwise. Most laws also favour tenants rather than landlords.

    Thanks this is useful advice. I will contact my freeholder today. I just spoke to the bank and luckily they will grant me a consent to let for just a one off fee of £100 which is great, no mortgage increase. I will definitely register the tenants' deposit lawfully. Thanks again.
  • G_M
    G_M Posts: 51,977
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    If you have not yet done so, please read the links I gave you in my post 10 above. It's not just the mortgage lender's consent you need to learn about/sort.

    I fear you may have been distracted by the 'online debate' (to be polite) in the intervening posts........
  • I also bought a two bed house in 2012 (not Londinium tho) and am selling. Rented to friends for two years and if I hadn't got them out sharpish then the house would be in bits....agent looking after it or not...you get dirty lazy people in you're knackered. How much did you buy for in 2012 ? Let's guess £200k....its probably gone up £70k...sell it !!
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