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Have You Thought of Trying This ???
Mustbeananswer??
Posts: 548 Forumite
Are there any potential pitfalls to doing this....please.:eek:
Buying some properties from auctions (property very cheap up here) renovating them and reselling afterwards.Is Tax an issue please??There seems to be a ready market for rental properties here.What is the percentage that keeps getting quoted as far as this goes....how do I calculate it and what is a good average percentage.
Your help would be appreciated.Thank You.
Buying some properties from auctions (property very cheap up here) renovating them and reselling afterwards.Is Tax an issue please??There seems to be a ready market for rental properties here.What is the percentage that keeps getting quoted as far as this goes....how do I calculate it and what is a good average percentage.
Your help would be appreciated.Thank You.
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Comments
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What do you mean by "Is tax an issue please??" You'll be running a business so any profits you make will be subject to (income) tax.0
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It wouldn't feel like a business......I have a dj business that I pay tax on and a job with the Government that I pay tax on at source.....have I got to pay it on this as well??0
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google "capital gains tax" that should answer your questionsANURADHA KOIRALA ??? go on throw it in google.0
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Flipping eck....
They get you every way don't they....
What happened to encouraging enterprise...0 -
Mustbeananswer?? wrote: »Flipping eck....
They get you every way don't they....
What happened to encouraging enterprise...
Back to the drawing board eh :rotfl:ANURADHA KOIRALA ??? go on throw it in google.0 -
PLEASE tell me this thread is a wind up?
(and not a very good one)0 -
Mustbeananswer?? wrote: »Buying some properties from auctions (property very cheap up here) renovating them and reselling afterwards.
If the property is cheap for you to buy at auction, then it's not exactly going to be expensive for somebody else to buy off you. And don't forget that a 25% gain on a £50k property is a LOT less money than a 25% gain on a £250k property. Which means that you have a MUCH smaller budget to work with on your renovation, whilst many of the costs are unchanged.Is Tax an issue please??
Only if you make a profit.There seems to be a ready market for rental properties here.What is the percentage that keeps getting quoted as far as this goes....how do I calculate it and what is a good average percentage.
Rental yield? It's the proportion of the value of the property which is covered by the rent each year, before any of the costs of renting the property.
So a £100k property getting £500/pcm rent = £6k/year = 6%.
A £60k property getting £500/pcm = 10%.
It'll vary by area as to what's acceptable to local investors, but a little basic research will give you a clue.
If you're aiming your resale at professional landlords, then you really ARE heading into shark-infested waters... For your own sake, do some PROPER numbers, based on pessimistic estimates.0 -
Mustbeananswer?? wrote: »It wouldn't feel like a business......I have a dj business that I pay tax on and a job with the Government that I pay tax on at source.....have I got to pay it on this as well??
A job with the Government, you say? Umm, where do you think the money comes from to pay that salary...?Mustbeananswer?? wrote: »Flipping eck....
They get you every way don't they....
What happened to encouraging enterprise...0 -
A DJ that gets up early for the first time and has just seen an episode homes under the hammer.0
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