Am I right to tell him he is mad?

Running_Horse

You asked the question Am I right to tell him he is mad?

I can't help it and don't care if you don't like the answer, but you did ask a bunch of strangers if you should poke your big nose into your friend's private business. The answer is still no.

You should also think twice about accepting advice from political extremists on the Internet with their own agenda.

brixham

Gosh how rude !

GDB2222

chewmylegoff wrote: »

the amount chargeable to CGT will be calculated as the difference between the net sale proceeds (after selling fees) minus the original cost to buy (i can't remember if you can add the stamp duty on to this cost - probably not).

you are allowed to make something like £8k (maybe more these days) of gain a year before getting taxed. any capital gain after that incurs an 18% charge (i think this is just the flat rate now regardless of how long you have owned the asset which used to make a difference).

Stamp Duty is allowed for.

The £8k tax free gain is allowed just once, in the year of sale, and is aggregated with any other gains realised that year.

Debt_Free_Chick

Running_Horse wrote: »

You asked the question Am I right to tell him he is mad?

I can't help it and don't care if you don't like the answer, but you did ask a bunch of strangers if you should poke your big nose into your friend's private business. The answer is still no.

You should also think twice about accepting advice from political extremists on the Internet with their own agenda.

Blunt but, personally, I think you have a point.

Annpan

Running_Horse wrote: »

You asked the question Am I right to tell him he is mad?

I can't help it and don't care if you don't like the answer, but you did ask a bunch of strangers if you should poke your big nose into your friend's private business. The answer is still no.

You should also think twice about accepting advice from political extremists on the Internet with their own agenda.

Good advice Runninghorse, just as long as people realise you're speaking for yourself. Kindly don't include us as political extremists. As if.

mlz1413

Back to original question I agree with others better to sell now at a 'low' price than chase the market down.

BUT has your friend thought about guaranteed rental income schemes - as he has 40% equity it could be worth looking into. Check how long they take the house on for before paying rent, who is liable for the bills and when the rent gets paid into the bank. Also check the company out - how long have they been trading, is it a member of any governing body, is it part of a chain (ie if the branch closes is there someone else to contact)

Debt_Free_Chick

Perhaps he's naff at vetting potential tenants?

I think he needs to assess whether the property is in a good area for rentals; whether it's in good order to let; whether he's targetting the right market. There's no point in marketing a one-bed flat to a family with three kids and a dog, with no off-road parking.

Not enough info, IMHO, for us to really suggest the right course of action.

..... IMHO

vigesimal

Running_Horse wrote: »

Or, you could always mind your own business.

Perhaps you should take your own advice and mind your business too. You didn't have to put nasty comments about the op, but you just couldn't resist it.

Ignore people like this brixham.

Bean_Counter

brixham wrote: »

Also would he have to pay capital gains tax as I don't think he would of thought of this

Depending on the size of any potential gain, your friend might wish to transfer half the property to his wife (if he has one) to double up on the annual CGT exemption.

sooz

brixham wrote: »

Sorry Squat .............Yes the place is empty and has been for a few weeks now

Please consider that you have just told someone with that username that your friend's flat is empty. Would you like to give him directions too?

BTW - I don't think you should tell your friend he is mad. If he's that bad a judge of character & LL, perhaps it's best if he does sell.