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Buy to Let and Stamp Duty
RT87
Posts: 1 Newbie
Hi,
I have been lucky enough to build up a desposit of £150k from savings and inheritance.
I currently rent a flat, and I'm looking to start a buy-to-let to generate some extra income.
I understand from my research that the best buy to let interest rates are around the 40 / 50% deposit mark.
With consideration to buying fees etc. that would mean I could be looking at properties at around the £300k mark.
Frustratingly this would be just inside the 3% stamp duty band. (Why can't it be a sliding scale?!)
Is this worth it? Or should I just try to find something for £250k?
Any help would be greatly appreciated.
I have been lucky enough to build up a desposit of £150k from savings and inheritance.
I currently rent a flat, and I'm looking to start a buy-to-let to generate some extra income.
I understand from my research that the best buy to let interest rates are around the 40 / 50% deposit mark.
With consideration to buying fees etc. that would mean I could be looking at properties at around the £300k mark.
Frustratingly this would be just inside the 3% stamp duty band. (Why can't it be a sliding scale?!)
Is this worth it? Or should I just try to find something for £250k?
Any help would be greatly appreciated.
0
Comments
-
Is the stamp duty tax deductible on the income of the property?0
-
No.
Nor is the purchase price!
How much rent can you get from the property below the SDLT threshold?
How much rent can you get from the property above the SDLT threshold?
Have you read:
http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=120 -
IME with 300K to spend you should be looking to buy 2 (or even 3) properties
you will get a much better yield and less risk from voids
YMMV
tim0 -
No.
Nor is the purchase price!
How much rent can you get from the property below the SDLT threshold?
How much rent can you get from the property above the SDLT threshold?
Have you read:
http://forums.moneysavingexpert.com/showpost.php?p=41160642&postcount=12
BUT all the fees of the purchase and the SDLT are deductable as a capital expense when you come to sell the house (in the CGT calculation).
SO KEEP ALL THE DOCUMENTATION0
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