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Kevin Rettie

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  1. Kevin Rettie

    Paisley?

    Evening all I keep seeing properties in and around the Paisley area. Having had a general look, the prices and rents/returns look pretty good. Not knowing the area though, I wondered if anyone is familiar with the area? If so, what areas to consider and what areas to avoid? Any help greatly appreciated. Thanks Kevin
  2. Thanks David, that all makes perfect sense. This is for my wife's first rental property so its all new to her (and me). I have a couple of properties but my tax position is completely different and dealt with by someone so have never had to sort this out myself. Thanks again. Kevin
  3. One last query (promise) Can I claim my buildings insurance as an allowable expense? I also had some council tax and utility bills prior to my new tenant moving in - is this also allowable? Cheers
  4. Thanks David, I appreciate your help.
  5. Just one last last question (and probably stupid one!).... when I am working through my allowable expenses, should the costs I put in be ex-VAT or inclusive of VAT? Cheers Kevin
  6. Thanks David, It sounds like most of the works I have done on the flat will qualify for repairs/like for like replacements. The flat was rentable but in a very poor condition. Most of the work (except electrical and plumbing) was carried out buy me and I have all the receipts for the materials purchased and will use these for my claim. I have all the receipts and photographs of the works when in progress as well as the receipts and particulars from the purchase of the property so I have plenty of evidence to support my claim. Thanks for your feedback and I will definitely check out your blogs.
  7. Thanks Julia. I will certainly heed your first piece of advice next year. I have everything to hand and ready to go and will certainly look into TaxCalc - sounds like it will take a bit of the pain away when doing my returns. The flat was in a lettable state but very run down. All of the replacements were like for like so I think I should be okay to claim these back. All of the work was carried out after April 2019 so that should be okay too. Thanks again for your help.
  8. Evening all and Happy New Year! I am just about to do my tax return and have a few (hopefully simple) questions that someone might be able to help me with: • I am doing my tax return for 2019/20 and had no income from this property until mid way through that tax year but had a lot of maintenance costs spanning December 2018 - March 2019. Can I claim these expenses against my income for 2019/20 even though they were from the previous tax year? I bought the flat in December 2018 so had no rent for this property in the 2018/19 tax year. • I had a lot of maintenance on the flat and had to replace the shower room and toilet - what is allowable to claim as an expense? The flat was in a real state and needed a lot of work, all of which I would class as maintenance and general upkeep. Nothing was added to create more floor space/bedrooms or increase the capital value of the property. I just want to make sure I am claiming for allowable expenses only. • Finally, does anyone have a simple spreadsheet/calculator that I can punch in my numbers and it will create a profit/loss sheet that I can attach to my tax return? I am aware that there is some tax relief that can be applied to mortgage interest so would be useful if the spreadsheet had this too. If nobody has such a thing, can someone point me to a page that can give me some working examples of how to lay out my profit and loss calculations. I hope this all makes sense and that someone can help. Cheers Kevin
  9. Hi Debbie, thanks for all of your replies. If I can try and put what I think you are saying into a sum, can you let me know if I am picking you up right? So: I put £5,000 into the renovation budget and transfer it into our joint bank account. My colleague puts in £0 but we have an understanding that he will owe me £2,500 which is to be paid back as a loan. Our bank account will show that I have put £5,000 in to pay for the renovations. If this is all spent as revenue expenditure (allowable costs) and we have the receipts this can be offset against the tax, correct? Now, if our rent returns for the year is (remember, I'm keeping the figures simple) £10,000, that is £5000 each as additional income that we declare on our tax returns. Can we each offset £2500 against our income regardless of who originally paid the money into the joint account? How will HMRC know that we have a loan agreement and we are in equally? Not sure if I'm over complicating this but I just want to make sure we get off to a good start without breaking any rules or making our tax returns any more complicated than they need to be. Hope this makes sense?
  10. The property has been let and it is in need of a freshen up! Its replacing 'like for like' to bring the flat up to a modern standard for our new tenant. My understanding is that this is allowed. I have attached an allowable costs spread sheet that I have used for my previous properties and will use for any future (I think it came from this site). Let me know if this has changed.
  11. Thanks Debbie, we would have an agreement to reimburse the 25% but maybe not fully in year 1. How would that look in the eyes of HMRC? It sounds like it might get a bit complicated at the end of the first financial year.
  12. I am thinking about buying a property with a friend into which he will put slightly more in than me: 58% - 42%. We have agreed that the difference will be paid back through 'my time' as I will be carrying out the renovation work, management etc. We have agreed that we will be 50/50 owners and share the income/profits equally. My question is, when it comes to the renovation work, if he puts up 75% of the renovation money will he offset the 75% against his share of his 50% of the income on his tax return or, as we are 50/50 owners, is the tax split 50/50 regardless of where the money came from? Also, if one of us uses a personal credit card to buy say a kitchen, will both of us be able to to offset 50% of the kitchen against our 50% share of the profits? or will the full amount of the kitchen only be able to be offset against the share of whoever used their credit card to buy the kitchen? In an ideal world we would both have equal amounts of cash to put into a joint account from day 1 but I don't think that will be the case.... We have agreed that any difference in the renovation contribution will be made up through income so any shortfall at the start of the project will be seen as a loan. I hope this makes sense? Maybe I'm over complicating it but any help or direction on where to look would be greatly appreciated.
  13. Hi Usman I have not travelled up to Dundee yet but am planning a trip soon. I have made contact with a couple of agents and will meet with them too when I go up. I have some areas in mind that I want to check out and understand the market in these areas. I have never let to students before either so I need to understand the ins and outs of this too... lots of research still to be done!
  14. I'm watching this link with interest... I currently have a couple of properties in East Lothian but am looking to invest further afield where the properties cost less! I've been looking at Dundee where costs seem to be pretty fair and the returns look pretty good - just got to hone in on the perfect area/location! If anyone has any advice, please let me know... I use the letting web website for researching rents in specific areas: https://www.lettingweb.com Its also pretty good to check out how quickly properties let and give me an idea of the quality of the properties being let.
  15. I am currently doing research for my next BTL and I keep gravitating towards Dundee... This would be my third property and it would be my first at a distance. The reason for Dundee is that the prices look reasonable and the returns look ok too. I knew Dundee back in the 90s and it seems to have gone through quite a transformation since then. I'm planning a trip in a few weeks to check the place out and just wondered if anyone had any advice for areas to consider or (more importantly) stay away from? As I will be using an agent for looking after the property, any recommendations for letting agents would be fantastic too. Is there a Dundee Property Hub group? Kevin
  16. Could a declaration of trust with your wife work? Someone had mentioned to me that a declaration of trust document can be a way of showing that a property is being held in trust for the benefit of another person or individuals including cash/income. I'm not sure if this is correct or what the legal implications might be, but someone on here might be able to rule it in or out as an option? I'd be interested to see how this plays out as I am in a similar position.
  17. Does the DOT have to be in place when you purchase the property? I have a property in my name and would like the income to go to my wife as she looks after the property and is in the low tax bracket. Where would we stand on CGT, would she have to pay any if the DOT was implemented? Would I have to let my mortgage lender know that a DOT is in place?
  18. Hi Derek, thanks for your reply. I am based in Scotland so the flat is not leasehold. Craig, I have been back to the home report and it is as you said. The rebuild cost is £150k and the flat is £70k. Its not such a huge issue but its another wee lesson learned on the way...
  19. Hi Craig, thanks for coming back to me, your points all make sense. Living in a house all these years has made me forget that a flat is more vulnerable to other peoples actions and not just your own... I've also been chatting to a few people over the weekend and doing some further research and am coming to the conclusion that the quotes not as bad as I first thought. Kevin
  20. Hi I am in the process of buying a small 1 bedroom flat (aprox 40sq/m) and have been given a quotation for landlord insurance that seems ridiculously high... The flat is in a typical small town, tenement style block over a shop on the high street: Stone facade, pitched slate roof and was built around the 1850's. The shop it is over is not a take away or restaurant so there is no cooking happening inside the commercial premises. There is also a flat between the flat I am buying and the shop. The building has 4 storey's and shares a common stair with 6 other flats. The first quote I received for buildings/landlord insurance was £327.00 per year. The improved quote was £267.00. I have another BTL property in the same town, its a 1 bed bungalow with a box room and decent size garden on the edge of a housing estate, built in the early 70's. The landlord insurance I pay for this is £183.00 per year. I understand that flats potentially have more risks associated with them than houses do but I can't help feeling that the price I have been given is on the high side. Can anyone give me any indication if this sounds over-priced or if indeed it is a reasonable price? Also, any recommendations on insurance brokers/companies that deal specifically in landlord insurance would be most welcome so I can get some comparative quotes. Thanks
  21. I'm new to this but have been keeping an eye on Musselburgh properties over the last few years and they are definitely creeping up in value. As the transport links are pretty good to Musselburgh it is within easy reach of Edinburgh so would imagine that its always going to be a pretty good place to buy in. My letting agent keeps telling me that there is a shortage of decent lets in the East Lothian area so I guess that says something to me. On Edinburgh, I was looking for a flat a couple of years ago and was looking at the Gorgie area which was within my price range at the time. Now most of the typical tenements are out of my price range so I can see prices creeping up there too. Not sure if rents are going up as fast though so I have scratched Edinburgh from my search list as the returns might not be as good. I would say Musselburgh would edge it over Edinburgh for affordability and maybe ROI but like I said, I am pretty new to this and thats just my opinion... Happy hunting!
  22. Hi there Just starting to look at new areas for my second BTL. I have some equity from my first venture but have to look at cheaper options as East Lothian and Edinburgh are both slightly out of reach at the moment. Prices in Dunfermline, Dundee and Falkirk all look pretty affordable and I keep reading that the returns are pretty favourable too. I wondered if anyone has any experience or advice that they could pass on regarding these areas? In particular if there are any areas within that are good, solid areas or should be avoided. I'm doing research at the moment and planning some day trips so any information would be most helpful. Thanks Kevin
  23. Evening all! Just wanted to say hi after lurking on here for a few years! I bought my first BTL property last September and have just started to add my journey in the progress journal section so have a wee look if you're interested. I'm going to try and retrace my steps and hopefully keep it updated as I start to think about BTL property number 2. I've always had an interest in property, houses and renovation of buildings. I have a design background and know my way around the building regs so taking on 'a bit of a project' does not phase me! Apart from taking enjoyment from property I was keen to take greater control of my finances and try to grow my savings to help pay off my family home. I was fed up with the constant shortfall letters from the endowment company so am currently restructuring how I am paying my family home through income from my first property. By adding a second property (hopefully in the next month or 2) this will get even better and hopefully reduce my term but 4 or 5 years. Thats my main focus at the moment but as I grow my portfolio my long term goal is to create a decent income for my retirement. Anyway, thats a little bit about me. Hopefully I'll not be a stranger and you'll see me on here more often... Kevin
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