Nomad
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- Messages
- 1,403
- Location
- North Devon (for how long?)
I was renting my flat out until 6 months ago, reading forums it looks like the government is now hammering small-scale landlords.
New "stamp duty" (SDLT) rules mean you now get charged an extra 3% when you buy a second house.
Buy-to-let mortgages were very popular a few years ago, recent tax changes (read up on "Section 24") makes mortgages on a rental property a lot more expensive than they were. If you can buy for cash (no mortgage) this does not affect you.
One of the forums I follow predicts the changes will see a lot of landlords getting unexpectedly big tax bills April 2019 and then selling properties as they are not profitable.
https://www.propertytribes.com/forumdisplay.php?fid=21&action=latest_posts
It is very easy to miss something simple and find yourself breaking the law.
Either manage the rental yourself (hassle) or let an estate agent manage things (and pay them 10% ?), if managing yourself I'd advise you pay an estate agent to find a tennant as they can check credit references etc.
Even if you get perfect tennants, expect general wear & tear to happen, decoating every few years will cost.
Don't forget you need to declare the rent income to the tax man, the new HMRC computer system tracks who buys a house so you need to do it right.
There is alot more to think about than 5 years ago, do plenty of research before deciding. Good luck
New "stamp duty" (SDLT) rules mean you now get charged an extra 3% when you buy a second house.
Buy-to-let mortgages were very popular a few years ago, recent tax changes (read up on "Section 24") makes mortgages on a rental property a lot more expensive than they were. If you can buy for cash (no mortgage) this does not affect you.
One of the forums I follow predicts the changes will see a lot of landlords getting unexpectedly big tax bills April 2019 and then selling properties as they are not profitable.
https://www.propertytribes.com/forumdisplay.php?fid=21&action=latest_posts
It is very easy to miss something simple and find yourself breaking the law.
Either manage the rental yourself (hassle) or let an estate agent manage things (and pay them 10% ?), if managing yourself I'd advise you pay an estate agent to find a tennant as they can check credit references etc.
Even if you get perfect tennants, expect general wear & tear to happen, decoating every few years will cost.
Don't forget you need to declare the rent income to the tax man, the new HMRC computer system tracks who buys a house so you need to do it right.
There is alot more to think about than 5 years ago, do plenty of research before deciding. Good luck