tax on rent? reinvesting

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    tax on rent? reinvesting

    hi all, new to the game with 2 high spec student lets from sept 2011, not spoke to accountant yet.. so i will have a rental income of 22k can i reinvest this as a deposit and avoid tax or will i have to pay tax anyway?

    thanks

    #2
    You still need to pay your income tax liability.

    You of course will have all of your allowable rental expenses to deduct from your rental income to arrive at your rental profits chargeable to income tax.

    High spec student lets - great way to invest, that's exactly what we do too.

    Am guessing from your numbers that you have 2 x 3 bed student lets? Or did rental income actually mean rental profit?
    I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

    That also means I cannot share in any profits from any decisions made!

    Comment


      #3
      hi, they are 2x4bed lets, no borrowing on them giving me just under £11440 each one im paying bills one, the other they are paying gas and elec, brings me to another question,

      Im thinking instead of charging £65 a week charge £80 bills inc, not a problem filling at that rate im sure, just what are the likley costs of gas and elec for a year, obviously setting usage limits on them? i set £120 limit each month on the bills inclusive house ( special late deal as better filled than empty)
      im keeping my eye on what they use this year but will not know till july when they leave for a average of the two houses, taking into account the boilers one old and one new, and the mentality of included and non included bills...

      any knowledge of what they spend in a year on bills?

      Comment


        #4
        The knowledge is that you never know!

        I especially can't give any insight as I do not know anything about the efficieny or size of your properties.

        Where are your student lets? The rental income seems low.... looks like you do 44 week lets. Are you covering the council tax in the 8 week downtime? If they are high spec, why are you so concerned about voids and only achieving 44 week lets? What do you mean by 'high spec'?

        We tend to exclude bills but instead offer to manage them - slightly different concept.
        I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

        That also means I cannot share in any profits from any decisions made!

        Comment


          #5
          im learning a lot in the last 12 months, after three years of on and off research, (wish i had done it sooner) i threw every penny and my home at it, and thought id achived pretty good rates, now im wondering...

          preston, uclan, moor park area of deepdale

          high spec, i mean propertys are taken back to brick and walls and doors moved to create most efficent use of space, new bathroom and kitchen laminate floors new furniture, 4" small double beds, spot lights and a high standard of work and finnish as im a builder and do it or oversee it myself

          room sizes 7"4x13.4" or 2.2mx4m looking about 9m2 per room min(im asuming they have a minimum room size they will live in)

          44 weeks is what i aimed for (asuming this is what is the norm) as the main lettings man does 43 weeks they have over 100 houses so the rumor goes and i can believe it as they all have the same doors blinds paint etc (bellvuestudents.co.uk)i believe he lets his rooms out at £73 per week (all filled by mid jan according to theyre website) they have 19" flat tvs in every bed room, i did set up for them but didnt have the time or money to fit them,

          council tax over summer- well i spoke to council tax a few weeks ago and was told if they are rented for next summer i have to take a summer retainer payment and this will remove my liability for council tax.

          also i've today just agreed a price to buy my third property for rental next summer 3 bed 2 rec terraced and its larger than my other two, more spacey rooms by far, so looikg to do loft conversion adding 2 rooms in the loft and assuming a small wc room and maybe shower cubicle (will six use one bathroom or will i benifit from a extra shower room or just a toilet) having thoughts about having water inc rads with leaks etc?(thinking electric radiators on third floor after a visit to travel inn a few weeks back)

          do you have any experiance of letting loft rooms and the permissons or licence issues i will come across?

          Comment


            #6
            Originally posted by Phlash View Post

            High spec student lets - great way to invest, that's exactly what we do too.
            Hi,

            What do you mean by high spec student lets?

            What sort of students do you aim for? MSc? mature students? Phd researchers?

            Thanks

            Comment


              #7
              Originally posted by werted View Post
              Hi,

              What do you mean by high spec student lets?

              What sort of students do you aim for? MSc? mature students? Phd researchers?

              Thanks
              It's not about the student, but the property. I believe the property can influence the behaviour of the student. Give them rubbish and they'll treat it that way, give them a home and they'll treat it like home (generally treat it with care and respect). The behaviour of the tenant is also influenced by the agent or landlord, and I stay quite close and on hand with my tenants - that forms part of 'high-spec' too, effective management.

              A lot of people here know what my properties are like, an example:

              http://www.comfortlettings.co.uk/pro...scalford-drive
              I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

              That also means I cannot share in any profits from any decisions made!

              Comment


                #8
                Pintman - On the loft room. If you do convert, you will then need a mandatory HMO license as your premises will be over 3 floors and have 5 people (likely unrelated).

                Make some enquiries with your local Council about going about obtaining a license before letting the property, Councils are sometimes useful...
                I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

                That also means I cannot share in any profits from any decisions made!

                Comment


                  #9
                  Originally posted by Phlash View Post
                  It's not about the student, but the property. I believe the property can influence the behaviour of the student. Give them rubbish and they'll treat it that way, give them a home and they'll treat it like home (generally treat it with care and respect). The behaviour of the tenant is also influenced by the agent or landlord, and I stay quite close and on hand with my tenants - that forms part of 'high-spec' too, effective management.

                  A lot of people here know what my properties are like, an example:

                  http://www.comfortlettings.co.uk/pro...scalford-drive
                  Your properties look great.
                  I can imagine what your mansion must look like

                  Just one question, where do you purchase the furniture for such properties?

                  Comment


                    #10
                    Originally posted by werted View Post
                    Your properties look great.
                    I can imagine what your mansion must look like

                    Just one question, where do you purchase the furniture for such properties?
                    I'm a bit young for a mansion!

                    Take a look at the photos again - and tell me what isn't from a certain swedish furniture company!

                    Answers on a postcard...
                    I can take no responsibility for the use of any free comments given, any actions taken are the sole decision of the individual in question after consideration of my free comments.

                    That also means I cannot share in any profits from any decisions made!

                    Comment


                      #11
                      Originally posted by pintman View Post
                      having thoughts about having water inc rads with leaks etc?(thinking electric radiators on third floor after a visit to travel inn a few weeks back)
                      On the water filled electric radiators, we have them in a couple of properties. Far better than storage heaters, but still expensive to run at between 20 -30 pence per hour depending on size. I'll let you do the maths..

                      Comment

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