How good/bad is this plan?

Pixie5740

bluefukurou wrote: »

My plans are in line with those three points. I'm looking for a freehold, good old fashioned terraced house in not posh, but decent area of Sheffield. When I say decent I mean relatively crime free, near schools and with good transport links.

Sow thing like this:

http://www.rightmove.co.uk/property-for-sale/property-65266054.html

I wonder if that is a proper loft conversion and can you even fit a bed in that room shown in picture 10?

What kind of HMO licensing does Sheffield City Council require?

bluefukurou

Pixie5740 wrote: »

I wonder if that is a proper loft conversion and can you even fit a bed in that room shown in picture 10?

What kind of HMO licensing does Sheffield City Council require?

I see your point. '3 bedroom' might be stretching it a bit.

What's wrong with the loft? The houses I've been looking at often seem to have that kind of room at the top.

I dont know the exact requirements, but my target market would not be students for this house and area, so I doubt I'll have to worry too much about HMO.

Pixie5740

bluefukurou wrote: »

I see your point. '3 bedroom' might be stretching it a bit.

What's wrong with the loft? The houses I've been looking at often seem to have that kind of room at the top.

I dont know the exact requirements, but my target market would not be students for this house and area, so I doubt I'll have to worry too much about HMO.

I don't know what's right or wrong with the loft. It might have met the building regulations at the time it was converted and therefore have the appropriate certificates and sign offs. I just think it's interesting that the floor plan calls it a "loft room" rather than a bedroom.

bluefukurou

Quizzical_Squirrel wrote: »

I would never let a property from abroad again.
It's the perfect situation in which to be ripped off. I was shocked at how blatantly dishonest tradesmen can be when they learn you're out of the way.

Would you care to elaborate? I’d be very keen to hear what kind of things can go wrong. The reason I’m so curious is that I have colleagues who have two or three UK properties which they let out, and they say that although it’s not all a bed of roses (isn’t the the same true of most investing?), the positives far outweigh the negatives. I’d like to get an alternative viewpoint.

theoretica

bluefukurou wrote: »

Thankfully stamp duty is something I don't have to worry about,

To get stamp duty relief you need to be buying your own home, not a rental property.


https://www.moneyadviceservice.org.uk/blog/stamp-duty-for-first-time-buyers-your-questions-answered

bluefukurou

theoretica wrote: »

To get stamp duty relief you need to be buying your own home, not a rental property.


https://www.moneyadviceservice.org.uk/blog/stamp-duty-for-first-time-buyers-your-questions-answered

Are you sure about that? I just found this:

‘Stamp duty tax liability for anyone purchasing an additional property has increased from April 2016.

This means the majority of buy to let purchases now attract an additional 3% stamp duty surcharge. There is a lower starting threshold of £40,000 which means nearly all buy to let transactions will now be subject to SDLT.

Above the £40k threshold, the higher stamp duty rate will apply to all buy to let purchases unless total individual ownership is limited to a single dwelling, ie the purchaser does not already own other residential property........

First Time Buyers

If someone decides to purchase a buy to let investment as their first property, the higher SDLT rate should not apply. This is because they will only own one property.

That all comes from here:

https://www.stampdutycalculator.org.uk/stamp-duty-buy-to-let.htm

theoretica

bluefukurou wrote: »

Are you sure about that? I just found this:

‘Stamp duty tax liability for anyone purchasing an additional property has increased from April 2016.

This means the majority of buy to let purchases now attract an additional 3% stamp duty surcharge. There is a lower starting threshold of £40,000 which means nearly all buy to let transactions will now be subject to SDLT.

Above the £40k threshold, the higher stamp duty rate will apply to all buy to let purchases unless total individual ownership is limited to a single dwelling, ie the purchaser does not already own other residential property........

First Time Buyers

If someone decides to purchase a buy to let investment as their first property, the higher SDLT rate should not apply. This is because they will only own one property.

That all comes from here:

https://www.stampdutycalculator.org.uk/stamp-duty-buy-to-let.htm

That is the additional, higher stamp duty rate. The link I sent was for paying the normal rate rather than the first time buyer discount rate.



What did you mean by not needing to worry about stamp duty? Not paying any up to £300k or only paying the normal 'only property' amount and not the higher rate?

seven-day-weekend

brentcloning wrote: »

Sorry to derail the thread, but please try and not believe everything the Daily Mail tells you. Not everyone left of centre automatically becomes a Marxist.

But if Corbyn wins a GE then we WILL have a Marxist Government, no matter what ordinary left-of-centre voters may want . I think the poster was quite right to point out the risks in this area when considering property as an investment.

bluefukurou

theoretica wrote: »

That is the additional, higher stamp duty rate. The link I sent was for paying the normal rate rather than the first time buyer discount rate.

What did you mean by not needing to worry about stamp duty? Not paying any up to £300k or only paying the normal 'only property' amount and not the higher rate?

Fair enough, the stamp duty rates weren’t clear to me.

I mentioned not needing to worry because I mistakenly thought that as a FTB, I would be exempt. As it is my first property, but not my main residence, you’re correct.

However, I don’t actually think I have to worry about stamp duty now because, having revised my original plan and ditched the idea of a student house with a mortgage, the house price will in all likelihood be less than £125k.