Numbers just not stacking up anymore on my BTL - thoughts?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    #16
    Have you considered remortgaging it so that you can keep the property but also get some money out of it to invest in a better yielding property or alternative investments?

    Comment


      #17
      Yeah I have - Even if i buy another I just think with the 40% tax its probably not worth it. I need to change my own residence in a year or so too so will taking out a BTL mortgage effect the amount I can borrow? I think it will ?

      Comment


        #18
        The problem with a BTL mortgage is that you're taxed on the rental income at 40% and the relief on the mortgage costs is capped at 20%.
        So you'll just get another hit.

        What you have there is an investment that's failed to date.
        But it's still delivering more income than most low risk passive investments could do.

        You either need to bite the bullet and see what happens over the next decade or so (in which case you're basically parking it in the hope of some capital growth).
        Or sell it and take the loss and move on.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #19
          I think the purchase in 2008 has sunk the project-too few people paid attention to the downside risks involved in speculation .With 40 pc tax I would seek to reinvest rents in repairs and seek to take your reward when selling-at least you have a CGT allowance to shield a little of your gains

          Comment


            #20
            Given the significant drop in value , can I please ask if this Development was heavily promoted by Investment Clubs and the like? Just curious?

            Comment


              #21
              OP bought the property as brand new. So if the property price has not risen , the problem may be due to adverse location such as no off-street parking space..

              Comment

              Latest Activity

              Collapse

              Working...
              X