Buy to Let - How I made £100 @ month

realwildone

I would encourage anyone to look at Realwildones other posts on related matters.

He seems to be a bit upset about things!.

Im not upset. Im livid. This country is losing all it's intelligence to other countries and importing morans and statements like "Ive made £100 per month" on a £60k investment.

People have become so obsessed with house prices it seems all we do in this country is buy and sell houses.

Houses are peoples homes. Why not use the £60k and invent something, manufacture something but don't gamble with our young peoples futures.

So yes I am LIVID

greencat_2

Two points.

I have an internet venture which took a day of programming and marketing and a £10 domain (I use a free hosting service). It requires no further outlay either money or effort and makes £50 a month. If I wasn't so lazy to market it (it started as learning practice in PHP/experiment in internet marketing) - it could probably make a lot more.

My savings (which are considerably less than £60K) make more than £1200/year.

Good luck to OP - but it seems like a lot of hassle for little return.

nmiah786

greencat wrote:

Two points.

I have an internet venture which took a day of programming and marketing and a £10 domain (I use a free hosting service). It requires no further outlay either money or effort and makes £50 a month. If I wasn't so lazy to market it (it started as learning practice in PHP/experiment in internet marketing) - it could probably make a lot more.

My savings (which are considerably less than £60K) make more than £1200/year.

Good luck to OP - but it seems like a lot of hassle for little return.

Care to share what this internet idea is to us. I'd love to make £50 a month for sitting on my backside!!!

---

Some people work really hard and make small amounts of money, other people make huge money with very little effort. Its what they are able, comfortable and happy with.

If someone is happy about putting in a lot of effort, hassle,debt, etc and make what some perceive as ONLY £1200, thats their choice. Let it be.

Everyone has different skill sets, experience and opportunity. Let them use it for what they feel is best for THEM. Thats why we have "rich" people and "poor" people, apparently.

dunstonh

If someone is happy about putting in a lot of effort, hassle,debt, etc and make what some perceive as ONLY £1200, thats their choice. Let it be.

It isnt only £1200 though. It is going to be much lower than that. Tax and costs will reduce that. Redecoration, repairs, damage, gas/electric testing will all lower that down and could easily wipe it out.

missk_ensington

Pennywise- I'm not sure exactly how she goes about this, but I don't think the company owns the companies, (it isn't a Ltd company or anything) she owns the properties in her name, but they are collectively a business and therefore the income and expenditure is assessed collectively on her self assessment tax returns.

Her main residence has no mortgage on it, but she is thinking of moving into one of her other properties and renting her Penthouse out as it is too big for just her and my brother. She isn't doing this for tax reasons, but just because she fancies living somewhere else. I'm fairly sure that if she moved into one of the properties and lived there a while and decided to sell it, it would be regarded as her main residence.

In relation to me living in my properties whilst developing them, how would anyone know its being done as a profit making business? It is quite feasible that for one reason or another someone might move on a regular basis either beacause of work or family or splitting with a partner.

Also with regard to the 2 years you have to live somewhere before paying CGT, what about those people who buy a house, move in and then have to sell up and move because they lost their job and their new job is 100 miles away, or some other real and genuine reason??? Would you still have to pay CGT?

lowis

QUOTE from REALWILDONE: Im not upset. Im livid. This country is losing all it's intelligence to other countries and importing morans

i bet the 'morans' can spell though - better go back and edit, the only definition of moran I could find was as follows from wikipedia:

noun: a person of sub-moronic* intelligence; one so moronic** as not to know the proper spelling of the word "moron"
en.wikipedia.org/wiki/Moran

Tassotti

missk_ensington wrote:

Her main residence has no mortgage on it, but she is thinking of moving into one of her other properties and renting her Penthouse out as it is too big for just her and my brother. She isn't doing this for tax reasons, but just because she fancies living somewhere else. I'm fairly sure that if she moved into one of the properties and lived there a while and decided to sell it, it would be regarded as her main residence.

Also with regard to the 2 years you have to live somewhere before paying CGT, what about those people who buy a house, move in and then have to sell up and move because they lost their job and their new job is 100 miles away, or some other real and genuine reason??? Would you still have to pay CGT?

If she moves out of 1 property into another, then rthe original property will have CGT applied to it (if rented for more than 3 years)

You cannot rent out a property for 10 years, then move in and claim it as your main residence without paying CGT.

There will be some relief, but the 10 years it was rented out will be subject to CGT.

Hmmm..not very good explanation there, but I am not a tax accountant.

missk_ensington

Okay then , well what if a person has 2 properties, their own, and a rental. After say 5 years of renting one out they decide that their main residence is too big now the kids have left and decide to sell main residence and live in rental property, what happens here?

You may be right in what you're saying, but I know a huge lot of people who move into their rental for 2 years before selling and have not paid CGT. Perhaps proving CGT is owed is not something HMRC is too hot on?

Tassotti

It is called tax fraud/evasion and can lead to a prison sentence. If they are prepared to take the risk, that is up to them.

dunstonh

Perhaps proving CGT is owed is not something HMRC is too hot on?

It is something that they have raised the stakes on and they are spending more resources into investigating. Its going to be a big income provider to them in future. With computerised land registry it makes their job a lot easier as well.

In April, a 39 year old landord who did not declare rental income on his tax returns from 1999 onwards was sentenced to 12 months imprisonment.

Another issue to contend with is the Tenancy Deposit Protection Scheme being introduced in October this year. This mandatory scheme will see many landlords having to use the services of letting agents. A further drain on the rental income.