Becoming an LL for Student Lettings

Fuzzyness

Bufger wrote: »

OP was originally saying per week.

£300-£350 per month is average

I'm 5 minutes from Warwick Uni

oops. spotted that now. a fellow cov resident.

JQ.

Some great advice on here, which is nice to see.

I'd love to know where you can buy a 4 bedroomed house for £80,000 that rents out at £1,400 per month?

Fuzzyness

JQ. wrote: »

Some great advice on here, which is nice to see.

I'd love to know where you can buy a 4 bedroomed house for £80,000 that rents out at £1,400 per month?

most of them around here are three bed terraces, where they use the front reception room downstairs as the fourth bedroom. not quite as cheap as 80k but not far off 125k ish.

Mark.Gates7

Fuzzyness wrote: »

most of them around here are three bed terraces, where they use the front reception room downstairs as the fourth bedroom. not quite as cheap as 80k but not far off 125k ish.

3 Bed House with Large enough down stairs reception room to convert as Fuzzyness has mentioned for 68K and it is located 1000ft from the University.

Owain_Moneysaver

tbs624 wrote: »

Note the HMRC rules on holiday lets:

To make sure your property qualifies as a furnished holiday letting, it must be:

• in the UK or EEA
• furnished
• available for commercial letting to the public, as holiday accommodation, for at least 140 days a year (210 days for 2012-13)
• commercially let as holiday accommodation for at least 70 days a year (105 days for 2012-13) - the rent must be charged at market rate and not at cheap rates to friends and family
• a short term letting of no more than 31 days
  

My bolding

Yes, but

If your property doesn't qualify as a furnished holiday letting - for example you own a holiday villa outside of the EEA or you don't let it out for enough days - you'll be taxed under the residential property lettings rules. HMRC

which the OP would be anyway, as he's letting residential property.

00ec25

Owain_Moneysaver wrote: »

Yes, but



which the OP would be anyway, as he's letting residential property.

sorry but the point tbs was emphasising is there are significant differences to being FHL in terms of how allowances are treated for tax purposes - that's why HMRC have tightened up on it so much

- you can claim capital allowances against income tax laibility. (Residential property cannot and so much of its expenditure will not be relieved until the property is sold and CGT liability is accounted)
- you get the benefit of some favourable Capital Gains Tax rules when you sell or 'otherwise dispose' of the property (possibility of roll over relief to defer CGT - on residential property CGT must be settled at point of sale in all cases)

tbs624

Fuzzyness wrote: »

.... not quite as cheap as 80k but not far off 125k ish.

My bolding.

... not much difference between 80k and 125k then? A Lender would say otherwise, as would anyone advising you on the respective potential profitability.

JQ.

What's 56% extra between friends.