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I'm thinking of investing in 1 property to provide a source of income when I retire.
I've contemplated BTL (and received very helpful feedback from you) but the government seems hell bent on raiding landlords using section 24 so I’m wondering whether Holiday Let would be make more sense from a financial and tax efficiency perspective.
Some background info:
Funds available & goal:
Pension & retirement:
Love the lodger route you are choosing to use most effectively.
I wonder if the usual LL haters would castigate you for stealing rental income from lodgers to pay your mortgage even though you may be providing a rather nice home for them! ?
Surely what you do with lodger income would be your choice?
But not for the usual idiot lefties .
You have remarkable opportunities
But be on your guard.
You could out of the blue find yourself captured by a female.
You have circumstances that would make you a very good catch
Never underestimate their capabilities
They can turn your life upside down without you realising it!!
So perhaps have a plan to cope with that situation if it ever did occur.
Only 5% of women ever buy a property in their own name.
Most become homeowners by moving in!!!
Other than that you could have a FHL that you could enjoy as well.
But you would need it to be managed for you.
I believe you are correct in considering the SW for FHL.
The staycation will be in a lot of people's minds with the increased costs of going abroad.
The English Riviera has an attractive ring to it.
The rail link is to be upgraded I believe.
Investing in FHL could give you another interest and you could always move into it if you ever wished leaving your lodgers at your Oxford property.
Thanks for your thoughts and suggestions. I had a good belly laugh at your comment warning me about being captured by a female! As the laugh subsided I felt a shiver run down my spine. Being captured is probably one of the biggest financial risks.. I've seen too many divorce casualties to ever contemplate marriage or kids and I make that known upfront before relationships develop. However I fear that even offering your loved one a roof on a temporary basis to help them out is a risk.
Any ideas on where I can find out what ones rights are if a loved one cohabits on a temporary basis? Any ways of doing this without taking on risk?
I can't afford the time to manage a FHL myself so is there any hope of pulling owning one and not getting involved in the management? I've heard FHL can be managed by a holiday let company for approx 20% of income. Do you reckon that would tip the scales back to BTL (even considering S24, CGT, and other tax drawbacks)?
FHL sounds so much more profitable from a tax perspective
Not being experienced in anything to do with FHL I would pay attention to what Vanessa and DL etc state about FHL
As for finding your assets taken from you by any co-habitee.
You would ensure that they make no payments whatsoever to anything to do with the relevant property.
So they can buy the food and holidays etc
Of course things could change if children rear their ugly heads!!
One way to protect is to apply voluntary charges or 2nd interests in favour of trusted parties.
So in the worse case scenario she says I'm having the house etc your response would be that the 2nd interest will apply for the property to be sold to satisfy the charges or interests.
She just won't know you have technically no equity in the properties
1st and 2nd charges or interests must be satisfied first before any female could get their clutches on your equity.
Only costs £50 to register any amount you wish.
So look at current equity and stick about another £150000 onto a debt owed for that amount to the trusted 3rd party.
Of course it involves a lit of trust.
Parents are usually the vest for this as the BOMAD could have Bern in operation for decades.
You would just be formalising the debt obligation by giving parents security over your equity.
I have done both
Holiday home I think is much more hands on
You are running Hotel in reality
I ran the figs with a property in Northumberland which achieved 35 weeks a year on average
the Figs came out about even
BTL made the same Profit as Holiday Home
You have to get Holiday homes right I found It had to be of a very high standard in every area of the business
It needs to be a slick operation I met some fantastic folk from all over the world
But I just did not have the time to spend on Holiday Home
Today you have Trip Advisor so you have to get it right
best of luck DL
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Thanks for sharing your knowledge. I can't afford the time to manage a FHL myself so is there any hope of pulling owning one and not getting involved in the management? I've heard FHL can be managed by a holiday let company for approx 20% of income. Do you reckon that would tip the scales back to BTL (even considering S24, CGT, and other tax drawbacks)? (Im a higher rate tax payer)
FHL sounds so much more profitable from a tax perspective but I can't afford the time to manage it at this stage of my life.
I would ask that question to Venessa she will be more up date than me
When you ran the figures did you take into account the fully implemented S24 or was this pre S24?
Did you also take into account the difference in CGT between FHL & BTL?
It was pre s24 which will make a huge difference
so it may well have gone back to Holiday Home being best
depends on the investors tax position
If I had kept my property in the sticks I would have most likely gone back to Holiday home
Some resources to assist you in making the decision:Holiday lets vs. standard BTL Guide to sourcing & setting up a holiday let
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Captured by a female lol ! I love you Paul.
he ain’t wrong either!