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Warwick

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About Warwick

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  1. When I was working in a bank (quite a few years ago), one customer did actually offer to do this!
  2. I was surprised that the withdrawal of HIPs was given as the main reason for the flood of properties to the market. As the cost of a HIP was only ~ £400, it means that a lot of vendors do not even have that amount spare at the end of the month. If correct, the housing market is in an even worse position that I thought.
  3. Yes, except most (all?) BTL lenders require confirmation that the tenant(s) will not be members of the directors/shareholders family. Usually not a good option tax-wise.
  4. For the comparison to be valid, your mortgage would have to equal the value of your property.
  5. I suspect you may be erroneously paraphrasing what HMRC said - if not he/she was not entirely accurate. Current legislation permits the last 36 months of OWNERSHIP (irrespective of the use in this period) to be treated as exempt from CGT, if the property has been one's residence at ANY TIME (not merely the last 3 years). So it is better if ownership occurs early in the ownership cycle, rather than the last 3 years (assuming ownership exceeds 3 years in total). Lettings Relief would be available also (maximum of £40,000 per owner), if PPR (Principal Private Residence) relief applies. There are other additional reliefs that might apply, so your advice to take professional advice for one's individual's circumstances is very sound.
  6. Your "short while" is likely to quite a few months (without marketing the property) to convince HMRC that is your home and not a mechanism to circumvent CGT.
  7. And economic forecasting is even bigger rubbish. Remember the Long Term Capital Management disaster when the (mad economic) scientists blew up the financial laboratory in 1998? LTCM was founded by not one but two Nobel prize winning Economists!
  8. Stop & reconsider. If you were using your own money and not someone else's, would you still be going ahead with this purchase?
  9. And Registrations are not the same as Sales.
  10. When I studied Economics (quite a few years ago). I thought it was mostly rubbish. After the 2 (mad)Nobel Economic Scientists (Scholes and Merton) blew up the LTCM laboratory in 1998, I KNEW it was rubbish.
  11. I assume you only want to pay 1/3rd of the 3 night price? If so, most places won't do it, as the cleaning, paperwork, hassle and tax are not likely to be worth it. And it might screw up a more profitable booking.
  12. This is a common mis-conception and is obviously wrong. If the monthly payment is equal to the monthly interest, this is an IO mortgage. If the monthly payment is greater than the monthly interest, the loan MUST decrease. The amount of capital repaid can be small in the first 2-3 years - depending on the term and interest rate. For a 25 year mortgage at 6.00% p.a., the amount repaid after 2 years and years is ~ 3.5% and ~5.5% of the loan respectively. With an interest rate of 3.00% p.a., the amounts repaid become ~5.3% and ~ 8.2% respectively.
  13. The scheme does not make much financial sense except for cars around £5000, as the depreciation on more expensive cars is likely to be more than £2000.
  14. I assume you will be referencing the Landlord? And you can charge him/her accordingly.
  15. They are still trying to maintain the pretence that a new (say) £20k car is worth the money, when the reality the value nearer to £10k. Check out the price of nearly-new, auctions etc.
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