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  #21  
Old 27.12.2019, 20:07
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Re: Buying house in UK to rent out

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I rent out 3 houses in the UK, 2 of them for more than 13 years. They generate cash and have doubled in value. 2 are mortgage free, which friends tell me makes no sense.

One is in the centre of a catchment area of a school with an Ofsted rating of outstanding. A couple of times a year, I turn down offers from families who don't want to live there. They want to rent the house, leave it empty, so they can claim an address near the school of their choice. No thanks!

It's worth remembering that you can carry forward losses made in one tax year (for example, the year that you buy and make repairs to the house) and off set these against taxable income made in future years.

It's also worth asking yourself what will happen when a tenant stops paying their rent or leaves your house damaged. Be ready for the cost and strain.

I've been a landlord for 13 years and take personal care to resolve issues in 24 hours, provide tenants with immaculately cleaned and maintained homes. I've never increased a tenants' rent, or unreasonably withheld a deposit.

The wind of change is blowing and the shifting narrative is that private landlords are part of the housing problem. I expect more new laws that make it less attractive to be a private landlord in the future, which is also bad news, for tenants.
In Australia for a non-resident its 30% tax on ANY Australian income and 10% Tax on the value of owned land. Is it like that in UK? Probably not?
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  #22  
Old 27.12.2019, 20:17
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Re: Buying house in UK to rent out

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In Australia for a non-resident its 30% tax on ANY Australian income and 10% Tax on the value of owned land. Is it like that in UK? Probably not?
My rental property income is taxable in the UK. Capital gains tax will be due on the gains, if and when sold in the UK. Maybe inheritance tax too.

And, thats before they are disclosed and taxed in Switzerland.
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  #23  
Old 27.12.2019, 20:22
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Re: Buying house in UK to rent out

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My rental property income is taxable in the UK. Capital gains tax will be due on the gains, if and when sold in the UK. Maybe inheritance tax too.

And, thats before they are disclosed and taxed in Switzerland.
But how much percent tax do you pay on income in UK as a non resident? And do you have to pay a land tax? ( not capital gains tax ). I think UK has a tax agreement with Switzerland as Australia does?
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  #24  
Old 27.12.2019, 20:43
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Re: Buying house in UK to rent out

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But how much percent tax do you pay on income in UK as a non resident? And do you have to pay a land tax? ( not capital gains tax ). I think UK has a tax agreement with Switzerland as Australia does?
UK income tax is between 0 and 45% (46% in Scotland) depending on income, and is the same for residents as for non-residents.

Stamp Duty Land Tax is between 0 and 12% of the purchase price.
There's a 3% surcharge if the purchase is for second home, or investment or it's made by a company / trust.

The UK govt are considering introducing a further 1% surcharge, if the buyer is not UK resident.
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  #25  
Old 27.12.2019, 20:45
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Re: Buying house in UK to rent out

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UK income tax is between 0 and 45% (46% in Scotland) depending on income, and is the same for residents as for non-residents.

Stamp Duty Land Tax is between 0 and 12% of the purchase price.
There's a 3% surcharge if the purchase is for second home, or investment or it's made by a company / trust.

The UK govt are considering introducing a further 1% surcharge, if the buyer is not UK resident.
The Australian Govt and Local Govt are a pack of greedy bastards!
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  #26  
Old 09.01.2020, 21:03
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Re: Buying house in UK to rent out

Sorry guys I kinda disappeared. I think I'm going to leave this idea for another time. It seemed great initially but reading through your comments was quite a wakeup call.

For some context I'm just in my mid twenties, no experience of owning property. I thought this would be a good chance to make a few mistakes and gain some experience. But it's probably too much of a gamble.

The property isn't actually on the market yet. When that happens I'll be curious and maybe check it out online, but that'll probably be as far as it goes.
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  #27  
Old 09.01.2020, 22:10
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Re: Buying house in UK to rent out

The house will probably get snapped up by a developer before you know about it. In general property is a good investment but take a look at the changes that have been made recently e.g. no tax relief on mortgage interest payments.
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  #28  
Old 10.01.2020, 07:57
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Re: Buying house in UK to rent out

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The house will probably get snapped up by a developer before you know about it. In general property is a good investment but take a look at the changes that have been made recently e.g. no tax relief on mortgage interest payments.
MIRAS ended 20 years ago, hardly a recent change.
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Old 10.01.2020, 15:37
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Re: Buying house in UK to rent out

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MIRAS ended 20 years ago, hardly a recent change.

https://www.which.co.uk/money/tax/in...d-atnsv0j6j782
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  #30  
Old 10.01.2020, 16:23
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Re: Buying house in UK to rent out

UK property was an outrageously tax-advantaged investment which has gradually lost more and more of its tax advantages over time.
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  #31  
Old 10.01.2020, 17:37
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Re: Buying house in UK to rent out

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UK property was an outrageously tax-advantaged investment which has gradually lost more and more of its tax advantages over time.
Also with the introduction of deposit protection schemes things are very much skewed in the tenants favour for any damages done on checkout.
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  #32  
Old 11.01.2020, 09:37
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Re: Buying house in UK to rent out

Only will make a difference if UK income exceeds 50,000 for a single or 100,000 if jointly owned, I doubt that will be an issue to most expats buying a pace to rent out.
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Old 11.01.2020, 21:50
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Re: Buying house in UK to rent out

No one here mentioned buying property in Switzerland? Why? Sure it can be silly expensive, sure it can be difficult to sell, but ...

You have less issues with tenants, the law here is on your side and if it is for you to live in it, it costs a fraction of what you waist in rent.
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  #34  
Old 11.01.2020, 23:44
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Re: Buying house in UK to rent out

You can be lucky and get a good tenant, but they are getting rarer. The laws are now biased in favour of the tenants, and a one of purchase of a property to let out is a real gamble, a bad tenant can wreck the place and walk away, and it could cost you 2 years income to restore it to original condition and you are probably still paying a mortgage. As a professional landlord of over 35 years, now retired, I have seen a fair few buy a property with the hope of making a good income and end up with huge debts. Plus get the paperwork wrong and you could have a tenant living virtually rent free and you paying for continuous repairs because the tenant doesn't look after the property.
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