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Is Buy to Let worth considering


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Hi All, 

 

This is my first post here with you guys, I have a serious dilemma that is slowing me from making my first property buy I have good deposit and my mortgage broker can secure me a by to let mortgage. 

 

I talked to property agents and rental demands is high where I am looking but however there are not many properties to rent! Reason being the new taxing rules changes. 

 

I am employed and have a decent paying job; which means any rental I get from a property would be taxed at a 40% rate which means a good yield would just cover the mortgage and interest repayments with hardly any monthly profit. 

 

Do you guys think BTL is a bad option now with tax changes if you have a good paying job? Do you suggest different approach to BTL with the new Tax laws?

Your help is appreciated. 

 

Thanks,
 

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  • 1 month later...

Damien is right.

 

I am in the exact same situation and don't want double taxation but my strategy is to not live of the income so I do think a Ltd company is the way for me as dividends will suffice short term.

 

When I was looking at interest rates on PropertyHawk; personal vs limited company there was a big difference.  Personal around 1% and 3% for Ltd companies.

 

One property I want to switch to a repayment and with those rough figures I think Ill keep that one outside a company, but need confirmation.

 

I've been recommended an accountant by someone and if it goes well I will pass on their details.

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