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  • Property Yields

    Getting tougher to get decent yield in the SE

    Not an issue yet if you have less than 4 properties in your name. You are not a portfolio landlord. If you have 3 of the same such yielding properties, you will be in trouble.

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    With such low yields why not invest in good yeilding shares put them in an ISA and its tax free

    a lot less bother than BTL

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    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.


    Yep, I agree, and hence why I made the thread about 'no CG, why bother'?

    I can't see any suitable properties at the moment for the massive cash input required (c. £60k including fees), especially not when I'd be getting a few hundred quid a month!

    I'm looking towards AIM now.

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    A bit of a curve-ball for ya.

    Freehold mixed-use shop with 2 self-contained 1 bed flats for £525,000 renting for £12k shop and £10,800k each for the flats.

    Leaving aside the overall yield for a moment.

    Split the title and create leases on the 2 flats.

    Sell flats for £250k each and retain the shop.

    No CGT.

    Nice!

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    Hi John,

    Err, why no CGT? Puzzled

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    Purchase price £525k

    Proceeds from sale of 2 flats £500k

    So no profit has been made until the shop is sold - whenever that may be

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    I could be wrong, but think that might not work.

    I think that's where something called apportionment comes in, you need to pay CGT for the gain on each flat sold off, based on the apportioned value. Essentially, the £525k has to be split into the value of shop and each of two flats.

    Interested to hear if that's wrong though, as I go through a similar situation soon selling off some of my garden land, on my residence that was unfortunately rented for 7 months of 4 years ownership.

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    Interesting!

    That sounds logical, especially as dwellings are treated differently for CGT than commercial properties, so you may well be right. But, as with the value of a property at the time of first letting being the benchmark for loan interest allowance, I wonder if it would work in a similar way where value is set at the time of title split?

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    Good Evening Adam,

    Sorry to hear about your frustrations. May I ask what is it that you are looking for, yield, capital growth or both?

    and which area in London?


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