FAO Mortgage People!

getmore4less

sparkstertom wrote: »

Hi Thrugelmir - my buy to let, is a zero profit. The monthly payment is met EXACTLY by my tenant, in this case my sister.

Hope that's interest only!

sparkstertom

dimbo61 wrote: »

Do you want to live on a building site?
It can take years to do a property up a bit at a time IF you dont have the cash to get the work done all at once.
So the £200K property needs a total rewire, complete replaster after the new rewire, new central heating, new windows, new floors and other building work ?
After all this you get a building surveyor in to value the property and he/she looks at recent sales !!!!! only sale in the last 18 months was yours for £200K so why is it now worth £250/275!
Better to save up 20/25% deposit and buy a modern house with modern insulation and boiler, double glazing ETC

It's on the market for £260k! I've been informed that the vendor will accept offers in the region of £200k...

Naivety is perhaps the word of the day!

@getmoreforless... no thats full capital and repayment... I don't understand the benefit... you just leave yourself with a MASSIVE shortfall at the end! NO matter what - the mortgage has to be paid... in the short term, I can see the benefit of interest only - but don't forget that I was living in the flat for 8 years before moving out!

Pah - I'm beginning to see that this is a no goer.. shame really, as the house could be fantastic... but hey ho! Modern it is....

Leon_W

@getmoreforless... no thats full capital and repayment....


Most BTLs are interest only. A) You really don't want to own the property as you'll be clobbered for CG Tax when selling. The interest can be offset against income for tax purposes, capital repayments cannot. C) It would be nice to have a surplus of rent over mortgage payment !

I've been living in my "doer upper" for ten years and it's still a faded shadow of it's former glory due to lack of funds. Wouldn't have it any other way though !

Neilhmtn

Leon_W wrote: »

Most BTLs are interest only. A) You really don't want to own the property as you'll be clobbered for CG Tax when selling.

Maybe I've misunderstood what you were saying here, but what difference does it make if a BTL is interest-only or not, as far as CGT goes? You own the property regardless of the kind of mortgage you have.

grey_gym_sock

the bad thing about your BTL being capital repayment isn't that it's capital repayment, it's that if the rent is equal to the mortgage payments, and the mortgage payments include capital repayments, then you're losing money unless the house(/flat) price goes up.