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house investment
aamadami
Posts: 56 Forumite
Hello everyone,
This post is regarding house investment. I have few questions so instead of creating separate threads I thought include all questions in one.
Background.
Last year I purchased house for £132k for investment purpose. Did not get buy to let mortgage because of the age so went for first time buyer's mortgage. Luckily from day one I got tenant so after rent i am adding £35 from my pocket to pay mortgage. Apart from that I am also paying around £30 for British gas insurance, £34 home and life insurance. Total I am paying around £100 extra.
Questions and problems:
I received my annual mortgage statement for last year and I have only paid £300 capital, rest of the money around 6k is gone toward interest. I took the mortgage for 39 years.
1) How do people make money on property? if I sell my property after 5 years and make £15k still I will make a loss. after 5 years I will pay around 30k in interest and only made £15k from the original price. I know I can get money from rent but not sure if I will get tenants every time.
2) I let my property to my friend from day one so did not tell my mortgage company or declare this to tax office. my friend is planning to move out soon. Do you think I should declare this to my mortgage company?
3) I am also not sure how tax system works but I will Google it later on. if anyone has information or link please send me. I heard that if I keep showing loss then I don't have to pay capital gain tax.
This post is regarding house investment. I have few questions so instead of creating separate threads I thought include all questions in one.
Background.
Last year I purchased house for £132k for investment purpose. Did not get buy to let mortgage because of the age so went for first time buyer's mortgage. Luckily from day one I got tenant so after rent i am adding £35 from my pocket to pay mortgage. Apart from that I am also paying around £30 for British gas insurance, £34 home and life insurance. Total I am paying around £100 extra.
Questions and problems:
I received my annual mortgage statement for last year and I have only paid £300 capital, rest of the money around 6k is gone toward interest. I took the mortgage for 39 years.
1) How do people make money on property? if I sell my property after 5 years and make £15k still I will make a loss. after 5 years I will pay around 30k in interest and only made £15k from the original price. I know I can get money from rent but not sure if I will get tenants every time.
2) I let my property to my friend from day one so did not tell my mortgage company or declare this to tax office. my friend is planning to move out soon. Do you think I should declare this to my mortgage company?
3) I am also not sure how tax system works but I will Google it later on. if anyone has information or link please send me. I heard that if I keep showing loss then I don't have to pay capital gain tax.
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Comments
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This must be a windup.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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You've got to declare everything that you've done to the mortgage company, the tax office and your local priest/vicar/rabbi.
If you don't then the Fraud Squad will take your house off you and you'll have to pay them twice the amount you paid for it as a penalty. I know for a fact that the Fraud Squad use this website as a vital source of information. You've stitched yourself up a kipper here I'm afraid pal.
Good luck, you'll probably never own another property as long as you live now.0 -
'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0
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The OP just broke my trolldar by forcing it off the scale
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