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I_hate_Sheffield_EAs

Ok You Guys Do You Fancy Some Sport?

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I love this:

people who say buy-to-let is dead are simply wrong. they're wrong because i'm doing very well through it and i started less than 3 years ago, but i'm very careful and i don't look to make a profit out of my rental income so i can charge low rent which makes it easy for me to avoid voids. make my profit out of remorgaging......you don't pay tax on debt which makes it ideal

This guy will have serious cash flow or equity problems as soon as things turn.

T&T

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And that chap continues...

: Originally Posted by letting

Rocketpig whats this dont pay tax on debt idea?

Thanks

for example... buy a property for 100k, 15k deposit 85k mortgage. spend 10k developing property (this includes financial costs and lead times), value increases to 130k most people would sell now, i don't i'll now let the property and remortgage keeping 85% LTV. release 25.5k less 10k gives profit of 15.5k. what have i sold to make this profit of 15.5k? nothing....this money is debt, it's called good debt and i don't pay a penny in tax on it. if i actually sold the property i'd pay tax on the profit and selling is i right pain in the neck because you have to deal with incompetant idiots. the only time i have sold is when i've made a bad buy.....just got to have the balls to accept a loss. done this twice 1 time a came out 2k up, the other 9k down, completely my mistake.......but i won't do it again

i don't look to make a penny on the 15k i have invested through rental income, i can't my mortages are so high and i charge low rent so its easy to get tenants. i'll maintain the property and i guess in a few years i'll remortgage. shortterm falls in value do not bother me as i'm confident in the medium/long term the value will rise.

all i need to do now is have the balls to give up my teaching job and do this full time

insidetrack will charge you 3k for this info!!!!!!!!!

Edited by Jason

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So hes got 15 k debt and made minus £7000 on the other 2

F*cking genious

And, if he goes into negative cashflow he's caught in a capital gains tax trap.... he's potentially insolvent when capital gains tax is taken into account.

T&T

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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