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bimlam

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  1. Hi I am reading los of confusing things about the future of BTL. Can someone tell me once and for all if it is true that tax will be applied to income, rather than profit, from 202? Various online articles claim that after 2020 everyone's tax bills will go up because they will have to pay tax on the entire rent received. However my tax adviser keeps telling me that there are no changes planned and I will still be able to claim relief and only pay tax on net profit! Which is correct? Also, if my advisor is wrong and I will have to pay tax on full rental income, my plan would be to switch from an interest only mortgage to a full repayment mortgage as there would be no point of using the interest to offset tax and then I can just get on with paying off the capital. Does that sound logical? Thanks Bimlam.
  2. Hi I am reading los of confusing things about the future of BTL. Can someone tell me once and for all if it is true that tax will be applied to income, rather than profit, from 202? Various online articles claim that after 2020 everyone's tax bills will go up because they will have to pay tax on the entire rent received. However my tax adviser keeps telling me that there are no changes planned and I will still be able to claim relief and only pay tax on net profit! Which is correct? Also, if my advisor is wrong and I will have to pay tax on full rental income, my plan would be to switch from an interest only mortgage to a full repayment mortgage as there would be no point of using the interest to offset tax and then I can just get on with paying off the capital. Does that sound logical? Thanks Bimlam.
  3. Hello

    So I ended up not going travelling and moved to London in 2012 then bought a lovely two bedroom flat in Dalston at the end of 2013 and now I am riddled in debt but I love where I live.

  4. Thanks for the replies, my worry is that interest rates will go up at some point and the London market is unlikely to go down in line with the rest of the UK. If I go travelling and come back and rates are significantly higher I will not be able to afford a mortgage for London and I will be locked out of the market all over again.
  5. Hi everyone I have been following HPC for about five years now. During that time I have saved up for a deposit to buy a house. However, the money is also for me to go travelling for a year. To own my own house and to go round the world are my main two ambitions right now and I am close to realising them which is exciting. My plan is to secure a 5 year fixed mortgage for under 5% (I have a 20% deposit) and buy a one bedroom house in zone 2 somewhere in London, rent this out for £1050 per month, which would cover the repayment mortgage, then in December quit my job and go travelling for a year. When I return I will find a job and assuming it pays enough for me to afford the repayments I will move into the house. My only worry is that something might go wrong with the house and I will be out of the country. So if I rented it out via an agent that would mean they could look after it but then they would want a cut of the rent. I want to buy soon in London because interest rates are still low and if I leave it until I get back from travelling I may not get a job which pays as high a salary as what I am on now, because I am lucky enough to be paid significantly higher than the industry average for what I do. Most people I have discussed this with say it sounds logical, but they are not reading this website every day. Any thoughts? Am I bonkers? Or does it sound logical?
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