Housing Boom on the Way....

chucknorris

Crashy_Time wrote: »

Or meeting "friends" :rotfl: I clocked chucky boy as the wind up/borrowed up that he is on day one, I only respond to the posts for the amusement value.

This is pitiful, what is it about you, foxy and hpifever? I can't quite decide what the saddest thing about you all is, whether it is that you don't believe that people can have friends, do sports, or that other people might just be worth a few quid. What is so unbelievable about someone having a few quid, who likes doing sports (I'm not even particularly good at them, I only do them to keep myself fit) and having friends. I would have thought that everyone had friends, maybe dysfunctional people like yourself don't? So I'm going for not believing that people have friends, it says a lot about how sad your lives must be. But I must admit that being wound up by someone else having money, to the extent where you convince yourself that they must be making it up, is also very sad too. On top of all that, you are not only well into your 40's and still renting, but it looks as if that won't change soon either.

wotsthat

Crashy_Time wrote: »

If it is tenants just like me you can`t be charging very much for your gaffs :rotfl:

Your landlord is making a better yield that most in London/ South-East.

chucknorris

wotsthat wrote: »

Your landlord is making a better yield that most in London/ South-East.

Due to the prices rocketing (so it isn't a bad thing for existing landlords) yields are quite low in London. I've just rented a flat yesterday for £1,800/month and it is worth about £500k (although I would need to do about £12 to 15k's worth of work prior to selling), so only a 4.2% yield. This ETF:

http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0000YWPH

pays dividend income of about 4% (with the tax advantage for higher rate tax payers, that is worth 5% on an equivalent basis). Even with my low margin tracker mortgage compensating, by increasing the real income, I am getting close to thinking about selling up.

purch

Don't do it Chuckster

Keep the faith :eek:

wotsthat

chucknorris wrote: »

Due to the prices rocketing (so it isn't a bad thing for existing landlords) yields are quite low in London. I've just rented a flat yesterday for £1,800/month and it is worth about £500k (although I would need to do about £12 to 15k's worth of work prior to selling), so only a 4.2% yield.

Crashy's paying £5400 every year in rent. We can only speculate about the value of his flat but his (mug ) landlord must be making North of a 7% yield.

chucknorris wrote: »

This ETF:

http://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0000YWPH

pays dividend income of about 4% (with the tax advantage for higher rate tax payers, that is worth 5% on an equivalent basis). Even with my low margin tracker mortgage compensating, by increasing the real income, I am getting close to thinking about selling up.

I've been in and out of IUKD (a UK focused dividend ETF) and it's done really well for me. There are dangers though - as banks were good dividend payers before the crash they made up a large part of the index and it was particularly heavily hit by the banking crisis. It's still heavily reliant on the financial sector for yield (35% of holdings) so still not very well diversified. I actually use it because I hold a lot of utility shares and want to diversify out of them without stock picking and I'm as exposed as I want to be to housing.

purch

wotsthat wrote: »

Crashy's paying £5400 every year in rent.

You missed out the winking smilie

chucknorris

purch wrote: »

Don't do it Chuckster

Keep the faith :eek:

I am not selling just yet, but the numbers are moving towards selling, it is the capital gains tax that skews the numbers against selling (i.e. the return on the equity released after CGT isn't as good as staying in). But I'll have to sell in about 10 years anyway as I am 57 years old, and there is a fair bit equity to spend, no point planning on being the richest guy in the graveyard.

buglawton

Because you get a £10,000 free CGT allowance (double that if property is jointly owned) the system is skewed to buying and selling cheap properties every few years - keep on a low Stamp Duty level, renew your CGT allowance before too much of the profit gets swallowed by CGT.

chucknorris

buglawton wrote: »

Because you get a £10,000 free CGT allowance (double that if property is jointly owned) the system is skewed to buying and selling cheap properties every few years - keep on a low Stamp Duty level, renew your CGT allowance before too much of the profit gets swallowed by CGT.

The CGT allowance is actually £11,100, but it isn't feasible to bed and breakfast it on property due to the fees and the amount that my properties have increased (about 7 fold on average). I have lived in 3 of my properties so not only will I get a pro-rata relief for the years that I lived there, I will also get a £40k letting relief too. One thing that I am going to look into is whether we should put the property in joint names and move back into one or a few of them. I did a quick analysis and there are 3 properties that we own where the combined tax saving in tax would be about £100k. But I'm not sure if we want to live in London again, we really enjoy living in a rural environment now. Right now it seems a big upheaval for £100k, but if we extend our house, we would probably move while the work was done, and if you add a 3 month winter holiday in Spain, we wouldn't have to stay that much longer for the house to qualify as a main residence.

I do bed and breakfast my shares to mitigate CGT, in fact I have just done so this tax year a few days ago. So about £9k done, just another £2k to do.

mystic_trev

wotsthat wrote: »

Crashy's paying £5400 every year in rent. We can only speculate about the value of his flat but his (mug ) landlord must be making North of a 7% yield.

I thought Crashy's Landlord paid him to live in his Apartment?

Here's the link….

https://www.youtube.com/watch?v=3P_API6N4oA