Buying a Flat to Rent Out

Comms69

newlandlord555 said:

Its that BLOKE again ...Really pathetic replies from you money people ...grow up childen !

Welcome back 🙂

Hannimal

It is entirely baffling to me that someone'd be willing to spend £90 000 on something and not do any research into it before asking on a forum if it is feasible. 

macman

newlandlord555 said:

No . This bloke joined yesterday. Got zero useful information and left the next day .

If so,why are you back? Don't throw your toys out of the pram because you didn't get the answer you wanted.

hazyjo

newlandlord555 said:

I will NOT waste any more valuable time with this lousy site.

From page 6.

Yet here you are again 🙄

Bored? In need of attention?

newlandlord555

Sorry . My " slow " cousin got onto my computer this morning and typed that nonsense into the box .. His idea of a joke . Apologies again please dont be offended . 

Grumpy_chap

Did you get the flat you were after near the Scottish University?  Have you got students lined up for the coming academic year?  If not, you will soon have missed the boat for this year and risk having the flat empty for 12 months.

oldbikebloke

newlandlord555 said:

Its that BLOKE again ...Really pathetic replies from you money people ...grow up childen !

finally you hit the nail on the head.
we ARE the money people, you are not, yet you don't want to listen to those who learned before you, and are happy to pass on their knowledge to those in need of education.

newlandlord555

WEll Thank God I didnt listen to you " experts" . ! A lot of fake fearmongers you are.
I bought a flat and have been renting out for welll over  a year raking in 600 quid profit a month. No thanks to your awful advice.

hazyjo

Nobody calls themselves an expert, we're all just Joe Blogs on the Internet, here to point out the risks and pitfalls.

Good for you. Long may it continue problem-free.

I see you decided to return despite 'leaving'. How lovely to have you back. Always a pleasure...

woahsoah

macman said:

OP, it's already been demonstrated to you in great detail that the best return you are likely to get will be around 4%. Furthermore, your £500pm gross rental will not all be paid to you. Since you live outside the UK, basic rate income tax will be deducted either by the tenant or agent and paid direct to HMRC under the Non-Resident Landlord Scheme. So that's 20% of your gross income gone already. Secondly, you say that eventually you will return to the UK and want to live in the property. Have you any idea how long this might take? Tenants in Scotland have more security of tenure than in England, and the minimum notice you'd need to give would be 84 days. If the tenant sits tight, then you have to evict them, which could easily take as long again (at present, all evictions are suspended in the UK for whatever cause).
Finally, where do you get the idea that you can only earn 0.25% in the bank? Plenty of fixed rate savings accounts pay 1%, National Savings Income Bonds pay 1.16%. But you'd be much better off just putting your £90K into the stock market using low-risk investments that should yield about 3%. £20K pa of this can be saved in an ISA wrapper, every year, so tax-free. The hassle that you would put yourself through to earn that extra 1% (maybe) is just not worth it. 

This is some really odd advice.

Filing a NRL1 (non resident landlord) form means you are paid gross. No tax is removed at source. As the rental income is so low and op appears to be a UK citizen they will have an unused UK personal allowance. Their rental income will be tax free. But may be assessed in their host country. Mine was not living in Hong Kong, so was mostly tax free in the UK (I went over the UK personal allowance)

Op is also not entitled to use ISAs as a non resident.