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Buying house for CASH from Son-Letting it out to His ex-Subsidized rent.
Comments
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This is a long term investment so I would hope the value of the house goes up.Comms69 said:But will you actually make money on it? Reduced rent + costs generally means less profit.
£180k in cash could easily be better invested. Hell lego sets would be a better investment than the potential drama once she has a partner.
I understand there will be initial costs of SD + solicitors
But they will not have to use an Estate agent, move out
What is the issue with the ex getting a new partner? This is what she hopes to do as does my son, they want to move on but the house is the sticking point as she cannot afford to move out, she cannot buy out my son's half and could not afford the mortgage should that happen.
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The costs of the rental itself - gas safety checks, maintenance, repairs, tax.blindman said:
This is a long term investment so I would hope the value of the house goes up.Comms69 said:But will you actually make money on it? Reduced rent + costs generally means less profit.
£180k in cash could easily be better invested. Hell lego sets would be a better investment than the potential drama once she has a partner.
I understand there will be initial costs of SD + solicitors
But they will not have to use an Estate agent, move out
What is the issue with the ex getting a new partner? This is what she hopes to do as does my son, they want to move on but the house is the sticking point as she cannot afford to move out, she cannot buy out my son's half and could not afford the mortgage should that happen.
Plus - @greatcrested - if the ex remains in situ wouldnt this be a different type of tenancy? I forget, but i'm pretty sure it cant be an AST
As for the drama, that tends to come to a head when someone enters kids lives2 -
OK so I need to look at types of tenancyComms69 said:
The costs of the rental itself - gas safety checks, maintenance, repairs, tax.blindman said:
This is a long term investment so I would hope the value of the house goes up.Comms69 said:But will you actually make money on it? Reduced rent + costs generally means less profit.
£180k in cash could easily be better invested. Hell lego sets would be a better investment than the potential drama once she has a partner.
I understand there will be initial costs of SD + solicitors
But they will not have to use an Estate agent, move out
What is the issue with the ex getting a new partner? This is what she hopes to do as does my son, they want to move on but the house is the sticking point as she cannot afford to move out, she cannot buy out my son's half and could not afford the mortgage should that happen.
Plus - @greatcrested - if the ex remains in situ wouldnt this be a different type of tenancy? I forget, but i'm pretty sure it cant be an AST
As for the drama, that tends to come to a head when someone enters kids lives
Costs of rental can be offset t against tax due.
Wife is non tax payer at the moment.
I leave the dram to the TV soaps.0 -
Sorry that's a question for another poster. I believe this would be a protected tenancy, so you could never evict. I'm hoping that poster can clarify as it's been a while since i've looked at it.blindman said:
OK so I need to look at types of tenancyComms69 said:
The costs of the rental itself - gas safety checks, maintenance, repairs, tax.blindman said:
This is a long term investment so I would hope the value of the house goes up.Comms69 said:But will you actually make money on it? Reduced rent + costs generally means less profit.
£180k in cash could easily be better invested. Hell lego sets would be a better investment than the potential drama once she has a partner.
I understand there will be initial costs of SD + solicitors
But they will not have to use an Estate agent, move out
What is the issue with the ex getting a new partner? This is what she hopes to do as does my son, they want to move on but the house is the sticking point as she cannot afford to move out, she cannot buy out my son's half and could not afford the mortgage should that happen.
Plus - @greatcrested - if the ex remains in situ wouldnt this be a different type of tenancy? I forget, but i'm pretty sure it cant be an AST
As for the drama, that tends to come to a head when someone enters kids lives
Costs of rental can be offset t against tax due.
Wife is non tax payer at the moment.
I leave the dram to the TV soaps.
Youre mistaken though. You cant offset costs against tax code. you still pay them. You deduct costs from your income, to give you a profit, on which tax is paid.
And wife may be a non tax payer at the minute, but that's only for 2 years you said? I would expect an investment property to be bought for in effect life.1 -
How about you buying your son's share of the property, leaving the ex with the other 50% to mortgage?#2 Saving for Christmas 2024 - £1 a day challenge. £325 of £3660
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believe this would be a protected tenancy, so you could never evict.
Interesting
Youre mistaken though. You cant offset costs against tax code. you still pay them. You deduct costs from your income, to give you a profit, on which tax is paid.
That's what I meant, I have rented before about 20 years ago!
And wife may be a non tax payer at the minute, but that's only for 2 years you said? I would expect an investment property to be bought for in effect life.
Yes I understand it's just a point that at the outset there would be little or no tax to pay
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How big is the mortgage on this £180k house?0
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£114 Kgetmore4less said:How big is the mortgage on this £180k house?0 -
Ye just that the saving is basically 20% on your outlays, so between that and subsidised rent you need to look at the profit you'll be making.blindman said:believe this would be a protected tenancy, so you could never evict.
Interesting
Youre mistaken though. You cant offset costs against tax code. you still pay them. You deduct costs from your income, to give you a profit, on which tax is paid.
That's what I meant, I have rented before about 20 years ago!
And wife may be a non tax payer at the minute, but that's only for 2 years you said? I would expect an investment property to be bought for in effect life.
Yes I understand it's just a point that at the outset there would be little or no tax to pay1
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