Landlord TAX Relief - Repayment Mortgage

theartfullodger

Is this Scotland - you mention Factor.

soapstar88

theartfullodger said:

Is this Scotland - you mention Factor.

Yes in Scotland, sorry should of said. Does this change anything? I assume my calculations are correct given no one has commented 🤔

[Deleted User]

AdrianC said:

soapstar88 said:

I will be totally honest I know deep down that selling is probably the way to go, however when you have an identical property up for sale next to you which hasn't had a viewing for 6 months you cant blame us for going down the rental path...as much as a headache it may be.

Do you mind sharing the link, and we'll see if we can figure out why it's not selling?

Clue: Probably price.

I guessed in my previous post that this property is in Aberdeen. Whilst property prices in other parts of the UK are increasing the !!!!!! fell out the Aberdeen property market when the oil price plummeted in 2015 and with the introduction of the ADS for LBTT and the new PRT I noticed supply increased whilst demand remained low as landlords started to exit the market and put their properties up for sale in an already saturated market. Things were starting to look up again and then covid hit. 

The property market in Aberdeen isn’t really like the rest of the country as property prices are very much tied to the oil industry. Letting the property to ride out this dip isn’t necessarily a bad thing for the OP rather than crystallising a loss now if the OP can at least break even. 

If the property is in a good location and in good condition it should let relatively easily. 

soapstar88

Lover_of_Lycra said:

AdrianC said:

soapstar88 said:

I will be totally honest I know deep down that selling is probably the way to go, however when you have an identical property up for sale next to you which hasn't had a viewing for 6 months you cant blame us for going down the rental path...as much as a headache it may be.

Do you mind sharing the link, and we'll see if we can figure out why it's not selling?

Clue: Probably price.

I guessed in my previous post that this property is in Aberdeen. Whilst property prices in other parts of the UK are increasing the !!!!!! fell out the Aberdeen property market when the oil price plummeted in 2015 and with the introduction of the ADS for LBTT and the new PRT I noticed supply increased whilst demand remained low as landlords started to exit the market and put their properties up for sale in an already saturated market. Things were starting to look up again and then covid hit. 

The property market in Aberdeen isn’t really like the rest of the country as property prices are very much tied to the oil industry. Letting the property to ride out this dip isn’t necessarily a bad thing for the OP rather than crystallising a loss now if the OP can at least break even. 

If the property is in a good location and in good condition it should let relatively easily. 

You are bang on with your assumption, the property is located in the Aberdeen area. For privacy reasons I would rather not disclose the exact location if that’s ok.

We plan to do exactly that, ride out the dip and see if property will start to rise again. Although it doesn’t look like that will be anytime soon in Aberdeen unfortunately.

soapstar88

soapstar88 said:

I have been doing some sums from the information I have gathered here, if anyone can clarify If I am correct that would be great. I realise my assumptions on expenses may be off but lets take it as an example..
Mortgage interest is assumed at £385/month.

theartfullodger said:

soapstar88 said:

theartfullodger .

??? Don't think this plan would be viewed positively by many but, hey, free country!

OK so what would you recommend? The property wont sell, so how would you proceed? Just leave it and pay a mortgage on it until the market picks up again? We are only trying to cut our losses, I am not exactly planning on going to the Dragons Den with this proposal...

Property usually only not sell if price, description or condition/presentation isn't up to it.

Why expect to make a loss going forward rather than take a hit now and be shot.

Just trying to be realistic , apologies for any bluntness.

Good luck whatever you do.

I will be totally honest I know deep down that selling is probably the way to go, however when you have an identical property up for sale next to you which hasn't had a viewing for 6 months you cant blame us for going down the rental path...as much as a headache it may be.

Bump! Sorry can anyone be kind enough to confirm my calculations above are correct? Would hate to continue on thinking I have it all worked out

resk

soapstar88 said:

Bump! Sorry can anyone be kind enough to confirm my calculations above are correct? Would hate to continue on thinking I have it all worked out

Not so much the calculations, but I wonder if £1170 per year is enough to cover voids, maintenance (bearing in mind tenants will most likely demand a more stringent and quicker resolution to problems than you might be happy with as an owner occupier...), plus all the added on recurring costs for stuff you need by law as a landlord in Scotland - gas safety cert, carbon monoxide detector, smoke and heat alarms (hard wired I think), EPC, legionella risk assessment, electrical installation condition report, annual PAT testing, landlord registration.  

If it was me, I'd drop the price and get it sold.  I don't think the hoose prices are bouncing back any time soon (mind you I have a slightly apocalyptic view of the oil industry....).