How do I get the best return on my property?

How do I get the best return on my property?

12:16 PM, 24th November 2013, About 8 years ago 15

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Scenario: I rent a terraced property, may consider selling in future, currently I overpay on mortgage to reduce the amount owed.

Point 1;

I was told that having a mortgage on a property wasn’t actually a bad thing as I would save on capital gains tax as the mortgage would have to be paid off first before capital gains was charged.

On this first point, would I be right to think that you can reduce the amount of capital gains tax charged if an outstanding loan (mortgage) was still outstanding? How do I get the best return on my property

Point 2;

I am looking for any hints or tips to help manage my investment better for maximum return.

Currently I pay over the normal mortgage repayment to reduce my mortgage a lot quicker (no fees for over-payments), but I don’t know if in the long run I am penalising myself by doing this. The interest repayment on this property is only actually £75 per month as there is only 14k left to pay.

I do not pay any tax on the property as it is still minus £12,000 due to refurbishment so this will have to run down and move into the green before I pay tax.

My question is, would you advise me to stop overpaying the mortgage and just pay what is required therefore I will reap more of the benefit of having a rental property?




by Jerry Jones

15:02 PM, 25th November 2013, About 8 years ago about halfway down says "The underlying principle is that the cost of buying a property in good condition is clearly capital expenditure. Hence the cost of buying a dilapidated property and putting it in good order is also capital expenditure. "

So it seems to me that when the refurb was done is important - was it a running repair or was it done shortly after acquisition and before the property could be let?

by Andy

16:26 PM, 25th November 2013, About 8 years ago

Well it was bought on a first time buyer scheme and wasn't rented for 6 months but my circumstances changed and I had to rent it. So it was repairs made to Let the property about 6 months after aquitision

by Mark Alexander

16:31 PM, 25th November 2013, About 8 years ago

Reply to the comment left by "Andy " at "25/11/2013 - 16:26":

Presumably you obtained Consent to Let from your mortgage lender Andy?

by Andy

18:34 PM, 25th November 2013, About 8 years ago

Yes of course plus I purchased a landlords insurance with building cover etc. protected deposit and put inplace an assured Shorthold tenancy in.

the hmrc wrote to me over a year ago but when I wrote back they never responded but when i called they advised me they had received my reply and they will get someone to look at this.

I'm going to give them a ring tomorrow and chase it up with them because I haven't had a final response.. I just want to make sure I'm doing the right thing...

Has anyone ever managed there own accounts?

by Colin Childs

18:49 PM, 25th November 2013, About 8 years ago

Out of curiosity. How did you obtain a residential mortgage on an uninhabitable property?

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