Back up income - Buy to Let, Let out to Serco.
edited 11 December 2022 at 11:03PM in Savings & investments
22 replies 1.4K views
It seems like Serco (via their contract with the Home Office) are in absolute desperate and dire need for additional housing to home new arrivals. Any mid terrace in sought after locations to fit their requirements (Midlands, SW etc) and these are relatively cheap to buy. Not here to get into the politics of it here, but I hear they cover the property refurbishment, council tax, bills and provide a guaranteed fixed rent of about 18k per year. Not a huge amount of money of course, but I would benefit from the appreciation of the asset as well as having a second income ideas which I want to provide some security should I get made redundant, develop serious illness etc.
However, for tax reasons I'd look to set up a company to hold the income rather than paying myself directly and having to declare this on my self assessment as taxable income. Or perhaps I should just put the rent into my pension.
In terms of my own situation, I currently don't own. Would be a FTB so call me mad all you want. I know the prevailing wisdom is just buy a house and move into it. Yes and no - based on past experience the properties that I could afford to buy aren't what I like and aren't in the best locations but that's probably me being too fussy. Whereas, it always seems the ones I can afford to rent are usually fairly decent. Probably no coincidence....
Any thoughts? Good/bad?
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