Strategy for a Second property we will let for 2 yrs max

by Readers Question

9:35 AM, 4th December 2015
About 5 years ago

Strategy for a Second property we will let for 2 yrs max

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Strategy for a Second property we will let for 2 yrs max

We will be downsizing in next 2-3 years so are buying a 2 bed bungalow in same area as current house – we are acting now to also beat the stamp duty (we only have 1 property at present) – completion date early Feb 16tips

We Own current property in joint names – intending to buy this same way. I did read about the tax/legal trust you can use to divert income if needed to one beneficiary (nice!)

My wife pays 20% marginal and I am solid 40% so we will keep that in mind for rental period of this property

It’s an executor sale that we will tidy up a little and rent out till such time a we decide to sell ours and renovate it / move, or indeed at that time in future we may just flip it. I am really not sure yet re strategy or timing re selling ours. Plans can always change, but we got the property at a good price and there is plenty of potential in it.

Regarding prep for rental it looks like kitchen stuff needs a clean and it needs a coat of paint on all walls, a Gas certificate (warm air heating), new cheap carpets and curtains (if my wife wins this argument!) and the garden needs a tidy. Aside from that (unless survey reveals anything) we will be good to go re rentals an we will use the local rental agent for a fully serviced deal as we do trust and know them. I’m not a landlord here just passing through !

Can anyone suggest what we should be doing here re the strategies mentioned to minimise costs / Tax / Legal things we should consider in the future etc etc ?

I already learned a lot about rental & tax deductible items / PPR / capital gains tax tricks / and perhaps some possible thoughts on getting some tax deductible work done on the rental whilst it is still deemed a rental before moving into it.

You Guys are far smarter than me so please give me some advice !

Thanks

Neil

Comments

NVP NVP

13:27 PM, 14th December 2015
About 5 years ago

thanks guys ....appreciated

Chris Byways

14:29 PM, 14th December 2015
About 5 years ago

Reply to the comment left by "Michael Barnes" at "04/12/2015 - 13:25":

I was advised that a monoxide detector was required on a wall mounted gas heater, or if boiler was in bedroom/cupboard off. But advisable on all gas boilers. B&Q have them from £12, so a no brainer.

On the curtains, should I be changing any I have in unfurnished flats that do not have any specific labels saying they are to a certain standard, even if tenanted for some time? IE is it retrospective to upgrade?

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