old age

[Doggit]

you dont sell give to the the kids live seven years they dont pay tax they pay you an income

The taxman closed this loophole. You'll pay CGT at the point you give it to the kids, but it'll reduce you're Inheritance tax bill, so you're taking the hit (and paying the tax now) so the kids get to keep more when you're gone. They'd get taxed on the rental income they receive, and they'd then give you the balance, but the taxman would then try and tax you on it as well (assuming they find out of course), because they'd view it as a way of avoiding some sort of tax.

This is where trust advice is needed. You can put the property into a trust for the kids, and still receive the income from the property, but they're complicated, and you need someone with specialsed knowledge to set it up.

Osborne buggered up the buy to rent sector (also known as the self employeds pension plans) by adding 3% to any 2nd house purchase, so on a £250K property, you now need to find £20K for stamp duty.

 

[hmtiling]

The taxman closed this loophole. You'll pay CGT at the point you give it to the kids, but it'll reduce you're Inheritance tax bill, so you're taking the hit (and paying the tax now) so the kids get to keep more when you're gone. They'd get taxed on the rental income they receive, and they'd then give you the balance, but the taxman would then try and tax you on it as well (assuming they find out of course), because they'd view it as a way of avoiding some sort of tax.

This is where trust advice is needed. You can put the property into a trust for the kids, and still receive the income from the property, but they're complicated, and you need someone with specialsed knowledge to set it up.

Osborne buggered up the buy to rent sector (also known as the self employeds pension plans) by adding 3% to any 2nd house purchase, so on a £250K property, you now need to find £20K for stamp duty.

I got stung with the higher rate stamp duty 2 weeks after it came into force.

 

[widler]

Taxman = tosser
We get taxed on everything , everything bloody everything .
We are going to get stung again now us with rentals, upping the tax on any profit we make on rents.
So cos i saved big deposit, bought a wrecker, spent a lot on it , rent out and make more on the rent after ive paid , mortgage and ins, im gonna get stung more.
Taxman=tosser

 

[widler]

Have i mentioned my brother inlaw is a taxman

 

[Andy Allen]

The reason your getting stung on rentals is because everyone is jumping on the bandwagon. With savings at an all time low people are looking elsewhere to invest there money this in turn is hiking up the price of houses, supply and demand, which in turn means people have to spend more for a roof over there heads and have less money in there pockets to spend, this effects the economy and forces the government to up the tax system on rentals to try and brake the cycle, kick start the economy and stop us falling into recession.
So in a nutshell if we go into recession it's Graigs fault...

 

[widler]

true, its all my fault

 

[Wishiwasatoptiler]

I got a pension statement through the post this week from a job years ago. Probably stuck it for six months. It's worth £4 a year...! Cost them 63p to tell me that! Lol.

 

[Doggit]

Now don't go blaming Craig for our politicians stupidity. Blair let in loads of migrants, Cameron started the Help to Buy, and then Osborne let people get at their pensions to reinvest, and to spend them - which helpd expand the economy. But in the end, successive governments haven't increased housebuilding, so supply and demand has caused the real problem.

 

[John Benton]

I was asked at 18 if you want a lump sum when you retire at 65 of say £150k then get yourself a pension. Turn that on its head, someone gives you a wad of £150k and says go in the bookies and place a bet that you'll reach your 65th birthday, what would you have done? Exactly!!!

When I bought my first house a friend had bought one opposite only 1 year prior and I paid £10k more than he had, and mine only cost £26k. So, I thought long and hard back in the late 80's, bricks and mortar will, long term, be a winner.

So 27 years later I own 19 houses, still owing small mortgages on 3 of them. In 5 years time thats me done, all paid up and should be able to rake in between £80-90k a year in rent and not even have to tile a splash back again.

 

[widler]

Good man john, wish id of started earlier but i liked weeing it up against the wall to much in my younger years

 

[John Benton]

Good man john, wish id of started earlier but i liked weeing it up against the wall to much in my younger years

So do I Craig, but that's hindsight for you, I've actually got 1 rental but should've done it years ago and had a portfolio of properties that could have seen me retired this year. I bitterly regret not doing this as I had the chance not to have to sell my first house to buy my second, so it all went downhill from there.

A friend of mine did exactly that and he has 32 properties averaging £500 pcm and he got them on 10 year mortgages, so he's already raking in £190k a year on top of owning a profitable business that turns over £7m a year!!

 

[Rizzle from the Portizzle]

well depends were you live today in london forget it its to late for tilers to buy in but the likes of Dover gillanham graves end still good margins up the other end Bradford derby wigan still offer great returns
look out for hmo will double your return

 

[Flintstone]

I have been paying into a private pension for about 5 years. I'm 32. I don't pay a lot in at all really. Less than a days wage per month. I started it to get the ball rolling, not sure what to do for the best really. I wouldn't mind buy if another property but it's finding the deposit!