lenders warn low-deposit mortgages are over

Thrugelmir

shortchanged wrote: »

Has QE2 actually had any effect?

QE2 hasn't been fully implemented yet.

The BOE looks further ahead than tomorrow.

IveSeenTheLight

Thrugelmir wrote: »

Can only be offset against income from a similar source.

I must admit, I'm not 100% sure as my rental properties have not run at a loss, however I am aware that losses can be carried forward to profitable years.

shortchanged_2

Thrugelmir wrote: »

QE2 hasn't been fully implemented yet.

The BOE looks further ahead than tomorrow.

Thank god for that. I thought they had just pi**ed another £75 billion down the toilet.

Pimperne1

Thrugelmir wrote: »

Can only be offset against income from a similar source.

What's the problem here? Submit a tax return showing mortgage interest (excluding repayment element) of £12k and rental income of £11.5k.

Thrugelmir

Pimperne1 wrote: »

What's the problem here? Submit a tax return showing mortgage interest (excluding repayment element) of £12k and rental income of £11.5k.

And the loss is carried forward against future years profits. If the let never makes a profit during the period of ownership then the relief will be lost.

IveSeenTheLight

Thrugelmir wrote: »

And the loss is carried forward against future years profits. If the let never makes a profit during the period of ownership then the relief will be lost.

What's the likelyhood of never making a profit?

I've been leasing for almost 5 years now and never carried a loss, not even in the first year.

My profits are lower this year after I replaced a properties windows last summer, but still there is a profit overall.

andybenw

IveSeenTheLight wrote: »

What's the likelyhood of never making a profit?

I've been leasing for almost 5 years now and never carried a loss, not even in the first year.

My profits are lower this year after I replaced a properties windows last summer, but still there is a profit overall.

I'm not a Buy to Let landlord yet, but at present I aim to be in a couple of years buying cash. Of course at any stage in the next two years I might dive in and purchase utilising a mortgage. It's nice to hear of profits being made.

2 Questions.

1. Have you bought recently.
2. Do you think it is worth waiting out these current european troubles before buying.

IveSeenTheLight

andybenw wrote: »

I'm not a Buy to Let landlord yet, but at present I aim to be in a couple of years buying cash. Of course at any stage in the next two years I might dive in and purchase utilising a mortgage. It's nice to hear of profits being made.

2 Questions.

1. Have you bought recently.
2. Do you think it is worth waiting out these current european troubles before buying.

I bought my last BTL in Jan 2007.
I'm in process of concludin on another property.

So I am not waiting.

You simply have to make a risk assessment on the investment.

I managed to procure the current property at a 7.5% off valuation.
I'm also expected to get a RY of 6.48% on the property purchase price and profit of 12.05% of my deposit.

The key is to get the right property, for the right price, in a strong rental market.

Not all property in all areas are right for BTL, but there are opportunities out there.

Jimmy_31

Cleaver wrote: »

Exactly, which is the point I'm trying to make. Other people are willing to pay an extra £50k for that area, hence why houses cost an extra £50k in that area.

And the point im trying to make is that I would gain nothing except debt by spending an extra 50k on a house in a different location.

Yes i understand that some people are willing to pay more for a house because it has better schools near it.

Cleaver

Jimmy_31 wrote: »

And the point im trying to make is that I would gain nothing except debt by spending an extra 50k on a house in a different location.

Indeed. Which is exactly the same as me and the houses I loved in the area I loved - I wasn't willing to take on more debt than I was comfortable with. But obviously there are people who have more money than me and do want them, because they still sell at that price. Just simple supply and demand.