Rental property savings

atush

I have no idea where you got the debt figure from. But ALWAYS pay off debt before saving except lower interest debt such as mtg.

Cherryjack

*Chattie* wrote: »

As you have £19k debts paying only £1 a month why on earth aren't you paying them off rather than saving this money in a current account?

ive only just started renting the property... and obviously will have the extra money now i am not paying out for 2 properties to pay the debts :money: Thanks :beer:

longleggedhair

*Chattie* wrote: »

As you have £19k debts paying only £1 a month why on earth aren't you paying them off rather than saving this money in a current account?

What has his debt situation got to do with you?? He asked for advice on his rental property !!!!!!.

jimjames

longleggedhair wrote: »

What has his debt situation got to do with you?? He asked for advice on his rental property !!!!!!.

He actually asked for advice on what to do with the profits. Paying off debts would seem to be sensible advice. Why put money into a savings account at a few percent interest when you are paying out for debt at a much higher rate?

Seems to be pretty sensible suggestion to me

Cherryjack

longleggedhair wrote: »

What has his debt situation got to do with you?? He asked for advice on his rental property !!!!!!.

Thanks longle :-) i agree.. i think they may have stalked my previous posts on my profile lol xx

Cherryjack

jimjames wrote: »

He actually asked for advice on what to do with the profits. Paying off debts would seem to be sensible advice. Why put money into a savings account at a few percent interest when you are paying out for debt at a much higher rate?

Seems to be pretty sensible suggestion to me

Hello,

Thank you, but i wont have any debts by time the tax is worked out on the property.. hence i didnt mention any debt problem in my post.. the person had been checking thru my previous posts and assuming:beer:

*Chattie*

I see you have now edited your OP to change your question totally.

I didn't assume anything. You posted you have 19k of debt and are paying only £1 nominal payment to several creditors as advised by CCCS. In your original post you asked about opening an ISA as rental money was already building up in an ordinary current account hence the suggestion to use it to pay your debts.

Now you are talking about saving the amount of money you will need to pay in tax in an ISA, very laudable as you don't want to be in debt to the inland revenue.

Even more laudable is the fact you will have reduced your 19k debts to zero by April. Well done.

Have a read of Martin's article about using savings to pay debts.

http://www.moneysavingexpert.com/savings/pay-off-debts

atush

Well I answered the OP's original unedited Q in good faith where no debt is mentionned.

Always pay off debt incurring interest before saving anywhere as interest incurred on debt (other than my 1% mtg ;-) is alwasy more than anthing you can get via savings.

I am assuming there is a sale of property coming up that will clear the 19K and the remaining will be income from a rental?

Cherryjack

*Chattie* wrote: »

I see you have now edited your OP to change your question totally.

I didn't assume anything. You posted you have 19k of debt and are paying only £1 nominal payment to several creditors as advised by CCCS. In your original post you asked about opening an ISA as rental money was already building up in an ordinary current account hence the suggestion to use it to pay your debts.

Now you are talking about saving the amount of money you will need to pay in tax in an ISA, very laudable as you don't want to be in debt to the inland revenue.

Even more laudable is the fact you will have reduced your 19k debts to zero by April. Well done.

Have a read of Martin's article about using savings to pay debts.

http://www.moneysavingexpert.com/savings/pay-off-debts

The debts were mentioned in another post.. not in this one .. I am unable to put any rental money against any debts as ive only just started renting the property out.. it has not been taxed and if something goes wrong like the boiler in that house breaks down i need to keep at least 2 months rent aside for problems.. i would certainly not be in a situation to put it towards debts (yet) as i would have no back up money to sort anything. I will have money once it has been taxed and there is a build up..thank you tho.. I am at planning stages so finding out my options for when things are on the up :beer:

Cherryjack

atush wrote: »

Well I answered the OP's original unedited Q in good faith where no debt is mentionned.

Always pay off debt incurring interest before saving anywhere as interest incurred on debt (other than my 1% mtg ;-) is alwasy more than anthing you can get via savings.

I am assuming there is a sale of property coming up that will clear the 19K and the remaining will be income from a rental?

Thank you :-) i have a property in my name.. and that will go into savings .. it will take a little while to build up due to costs etc nothing much there at the moment after paying for that house to be rewired, new carpets etc ..

Me and my partner have a house and those debts are both of ours so we will be able to get debt free sooner rather than later as we have not got to pay for two lots of mortgages now and all the double bills etc :beer: