Buy to Let - How I made £100 @ month

Tassotti

you are confused missk

moving in for 2 years would make no difference to the CGT position.

Anyway, where would the bedroom be...in the shop window :rotfl:

missk_ensington

Tassotti- many of her properties are ordeinary domestic rentals and other half Commercial (she only went into Commercial in the last eyar or so).

If I am not mistaken you don't pay CGT on your own home that you live in, hence why I intend living in all my developments (as difficult and depressing as that often is when you find brick dust in your cornflakes!!!)

Pennywise

missk_ensington wrote:

Tassotti- many of her properties are ordeinary domestic rentals and other half Commercial (she only went into Commercial in the last eyar or so).

If I am not mistaken you don't pay CGT on your own home that you live in, hence why I intend living in all my developments (as difficult and depressing as that often is when you find brick dust in your cornflakes!!!)

I think the point that Tassotti is making is that since the company owns the properties, there is no principal private residence (PPR) relief - companies are not entitled to that relief nor the letting relief nor taper relief. Worse still, if she moved into a house owned by her company, there would be quite a large tax/NIC bill as it would be a taxable benefit in kind unless she paid the company a market rent for the property. The only way she could get PPR relief would be to buy the property from the company - but that has to be at market value, so the company would pay tax on its full profit, and mother would not make much, if any, profit as its value would not rise much in the two years.

As for your own idea of living in the properties as you do them up - a good idea in theory, but HMRC can refuse PPR relief and tax the profit as trading profit (with no CGT gains) if your intention was profit - so a chain of houses you buy, live in, do up and then sell, would not guarantee you tax exemption - in fact probably more tax/nic as the profits would be trading profits not capital gains.

Tassotti

missk_ensington wrote:

Tassotti- many of her properties are ordeinary domestic rentals and other half Commercial (she only went into Commercial in the last eyar or so).

In that case, it may be better to move the commercial loans to BTL mortgages on the residential properties and make a bit more money on the rental income.

See above for the tax situation

robwend

realwildone wrote:

This has got to be the worst investment ever. Are you that thick that you cannot make more money for your investment than 1200 a year.

Oh my god. I cannot believe the insanity out there.

is a personal attack a vaild post? i think not . how rude are you mr!.if you cant be pleasant shut the duck up

clutton_2

ignore him robwend - he's just a wind-up merchant and not worth it.

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.