[darkbrowneggs]

Thanks Ellied - Why until this year?

[AndynJ]

Hi,
If you rent a property out in the UK and you live abroad your agent has to deduct tax at source so you will lose 23% 40% of turnover not profit if you are uk resident you only pay tax on profit.
There's no short term profit in property rental you need to be in it 10 years minimum really, the people making the money are the agents and the people maintaining it for you.
You could lend your money out on a mortgage style loan, we borrow privately not from the banks, been doing it privately for 27 years. We currently offer 4.2% fixed rate on terms of 5 years upto 10 years, interest paid monthly. Minimum capital £70k our maximum requirements at the moment are £600k loans are secured against a property with a first charge.
Just to give you something to think about 
 

[darkbrowneggs]

Thank AJ that's useful. 


So if I am uk resident and let out property I can put all expenses against rental income and pay my normal tax rate on the profit?

[ellied]

Thanks Ellied - Why until this year?

Long story with several factors - less ties to the Trossachs/West Coast since last winter, but more here; less mobility for long distance trekking or voluntary work in physically demanding environments, and less interest in some of the alternate income forms I'd trained for and set up than when I did that plan!

Plan V I think it is now  is getting the holding looking a bit better and thinking of renting it for a year or two to someone that could take on chooks and cats and doesn't have dogs or cats of their own but wants to try smallholding based living for a while before buying, or while acquiring skills or work in this area.  If they could keep some of the "just grazing" older ponies and have space for their own sheep or whatever, so much the better, but I have a friend who'd take a few to ride and sell on once they had more space, or I might get a few sales or breeding loans or persuade someone where I used to keep 4 ponies when I had only 4(!) to let me lease a hill field and check it or have another friend check it for me while I'm away so I can test NOT having this all before selling up, and someone can test HAVING  it all to do before changing their life permanently too.

I'm 48 and mostly feel 84 but I can't help wondering what else I'd do with my life if  not this, yet getting a break might let me do it better if I come back, or know I was right to give up if I did that.  So, waiting for various things to point the way and trying to be more flexible and get some of what I need sooner than waiting for it all to fall into place and then be a mistake!

[EcoGypsy]

We are moving everything on the continent - very eastern Poland, near Bielarussian border, where everything is cheaper, soil is good and there's a sense of freedom... Our old timber house got already new thatched roof (a straw one!) and horses will live in over 100 year old timber barn, also with thatch. Apart from livestock business we are setting up an eco-holidays. I can't wait!

[AndynJ]

Hi DBE, the question regarding take all expenses out and pay tax on profit yep that's correct, I think it was Shygirl whom said you can earn £8-10k before tax I would double check this as property rental is classed as unearned income. (I actually don't know the answer to this one) Shygirl doesn't agree with my statement of not worthwhile may I point out that it would be extremely rare to be able to purchase a property at £100k and earn £80k in 10 years, I have looked at one of mine that cost approx. 100k in 2003 it's now worth approx. £150k rental in 03 £5400 rent today £6300, turnover approx. £60k repairs/Ins £8k, tenancy voids/non payment £6k, gross profit £46k 100k sat in an investment at 4.2% fixed would earn £50,895 over 10 years I agree you may gain the 50k capital value though you do have capital gains tax at 40% plus will property rise the same in the next 10 years I have one house bought in 06 for £190 now worth  £215 take into account stamp duty buying costs sales costs and void period whilst selling there's no capital gain there then in 7 years. that's all assuming no agents involved. Currently nationally 59% of tenants have rent arrears, I have some really bad stories but I do have some really good ones as well. tread carefully. Being abroad with no agent is probably a disaster waiting to happen, i'm sure that will get other opinions, I have been renting property since 1986 I still buy as I seem to get it right most of the time bought one in 2008 for £270 +£65 in repairs valued at £850 last year, bought one in August this year spent £2k on it rented it out from day 1 we have received 10% of the purchase price in rents in the first 6 weeks (holiday let) we will do 40% return on investment per annum which is out of this world, we own 2 blocks of flats, a block of offices, some houses, a holiday park, a couple of log cabins some agri land and a 6 acre clinical landfill site, 3 building plots and a barn with planning to convert. I am an associate member of the national landlords association, I sit on the housing board for 2 councils, I took the inland revenue to court in 1994 with reference to taxation of property rental and won and had the taxation of property changed from that date on. I wrote a book (a bestseller in category) on buy to let  back in 2007. It can be worthwhile just tread carefully. Yes we live in a £500 caravan by choice.

[EcoGypsy]

Currently nationally 59% of tenants have rent arrears, I have some really bad stories but I do have some really good ones as well.

Our friend - the landlord - had to kick someone out today. Again.