To let out or sell?

[Rifte]

I'm assuming this would take the place of my regular buildings and contents policy? Just done a quick quote and with rental protection and accidental buildings cover and legal cover its coming in at the same price as what I pay now for buildings and contents so not too bad really.

Yes buddy it does. You can bolt additional coverage on (e.g wilful tenant damage etc) if you like.

I usually switch between Direct Line and Morethan and pick up the quidco bonuses every year of around £80 to £100 quid in cash back as well.

Some of the other landlord insurances out there (unbelievably) dont cover for non UK resident landlords, so be careful with that one and read the policy carefully before you click and buy.

 

[tom_nieto]

If you're planning to return to that particular house when you get back to the UK then keep hold of it. If you're not too bothered then selling and putting the equity into a bond might be a more trouble free way of keeping your cash. It's also much easier to get cash out of a bond than sell a property.

Renting a property can be an almighty pain in the arse even with a fully managed service. Being on the other side of the world will mean that decisions are delayed and problematic situations aren't resolved as quickly as they should be. A good letting agent can help ease some of the pain of course but it's never a guarantee.

Have you looked into the property prices in the area and the trends? In reality most of the profit you'll be making will be on capital gain rather than monthly income.

 

[Rifte]

Have you looked into the property prices in the area and the trends? In reality most of the profit you'll be making will be on capital gain rather than monthly income.

This 100% I make nothing in cash, its all in capital gains and house price increases. In fact in respect of cash one of my properties has cost me over the past two years.

Fortunately the agencies I use are pretty good (touch wood) and seem to deal with things quickly and effectively. I do not believe that me being on the other side of the world (India) delays my decision making if need be, a quick email or a whatsapp and I can contact the agency as quick as I could if I was UK resident.

If you can keep your property. Taking into account capital gains and house price increases my properties earn me a lot more than the dividend I take from my business.

 

[LeeUK]

When all these have-a-go landlords rent their home or second home out, does it become a business where you declare the income or is it just all folding money straight in the back pocket?

 

[Street]

When all these have-a-go landlords rent their home or second home out, does it become a business where you declare the income or is it just all folding money straight in the back pocket?

It's all declared in the self assessment every year. Supposedly HMRC clamp down hard on landlords not declaring, so it's not worth not just paying your tax.

 

[R.O.S.S.I]

Do I have to declare the entire rental amount per month on the self assessment or is it purely anything over and above what the mortgage payment is? I read you can deduct expenses like letting agent fees and things like that too?

 

[Street]

You have to declare the full rental amount then offset the interest from the mortgage against it. You can't offset the capital repayment against it. You can deduct pretty much anything you spend on the house, agency fees, gas safety cert, repairs, insurance etc. Any time I pay out for something I keep the invoice and note it down in my spreadsheet ready for self assessment time.

 

[martin363]

Read up about Section 24 too, if you haven't already. Mortgage interest tax relief is being reduced and effectively you will be taxed on turnover, not profit by 2020, with a 20% rebate for the mortgage interest. It will hit higher rate tax payers hard.