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Buy to Let??Advice please
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stoneroses89
Posts: 21 Forumite
Hello,
I am basically seeking advice as i have seen a property for 220K which attracts approx 26 k per year rental.(students)
i have around 60K to put down for the deposit,and after working out the sums i should make a healthy return.
however this to me looks good on paper,but there must be pitfalls?also i have no idea on tax etc and mortgages really??any advice please
I am basically seeking advice as i have seen a property for 220K which attracts approx 26 k per year rental.(students)
i have around 60K to put down for the deposit,and after working out the sums i should make a healthy return.
however this to me looks good on paper,but there must be pitfalls?also i have no idea on tax etc and mortgages really??any advice please
0
Comments
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What you describe isnt a bad yield, however!! there are loads and loads of pitfalls.
It's not impossible that you'd get really nice students who'd look after the place, but that's not very likely!
The income is taxable (less a small ammount for maintenance and the interest on a BTL mortgage), so if you pay 40% tax now, you will also pay that on this new income, you might get pushed into the 40% bracket which complicates things for some people.
You will need to do a self assessment tax return for your entire income to include this.0
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