Does this make me a millionaire or not?

booksurr

yummycheese wrote: »

I pay the council bills and taxes for house so get little bit less then 54k

yummycheese wrote: »

That's fine I have an accountant so all taxes will be paid. I own my own flat I live in. I was told to use them a rental income and then I can still sell them in future .

then your accountant is not very good otherwise they would not have allowed you to pay the council tax when it is not your legitimate cost to claim


as for your question "does this make me a millionaire"? I assume you can add 1 + 1 and get the answer 2 so why ask the question in the first place or are you really unable to count?

Pixie5740

More importantly, do you understand your responsibilities as a landlord? Possibly not if you've been paying the council tax...

Read GM's guide for Tenancies in England & Wales. It has advice for new landlords, deposits, repairing obligations, and how to select/sack letting agents.

AlexMac

If I was you I'd keep em and rent em out, after giving myself a crash course in "Landlording for dummies".

On gross income of £90k, and assuming you might lay out up to £5-10k a year on management agent's and accountants' fees, repairs and replacing the odd boiler, etc, you'll pay only about £20k in tax and as the properties are in London, I'd gamble of steady continued Capital appreciation.

So sack and replace your accountant, and come back in 5 years to tell us if it's going to plane...

Oh, and to ensure luck shines on you, and on the principle that waht goes aroun comes around, give a big wad to charity - maybe MSF and "gift aid" it.

CIS

I'd agree - it would be a poor accountant if they let you just go ahead and pay the council tax without clarification. Most accountants (in my experience) know sod all about council tax liability etc.

Are you named as liable on the council tax demand notice or are you just paying on the tenants behalf due to the agreement you have with them - if you have agreed to make payment for them the actual council tax liability determination must still be made in line with legislation.

Craig

G_M

Does this make me a millionaire or not?

My definition of a millionaire is having assets greater than or equal to £1m.

So yes, you are a millionaire. Now, are you also a member of the Mile High Club?

As for the council tax, it depends:

* yes, if the council tax went into arrears, the council would chase the tenants first as they are the resident occupants.

* but if the tenancy agreement you granted them says that you will be responsible for the CT, then it's easier for you to pay it, than for the tenants to pay and then claim it back from you (either directly, or by deducting it from their rent).

But presumably you factored all this into the rent when you agreed the tenancy agreement?