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House For Let

Emma Said:

How bad would it be for our credit if we bought a house, and let our condo fall into foreclosure?

We Answered:

Don't do that, better to try and rent the place out for a loss then let it go into foreclosure, don't give up yet :)

Salvador Said:

i want to use "fly ash bricks" to construct my house pls let me know how far it is better than normal brick?

We Answered:

Congratilations to thinking about using Fly Ash Bricks to construct your House. Fly Ash Bricks are farr better then Ordinary Bricks in every way. If made with High Pressure Machine (Hydraulic Press) Fly Ash Bricks gives strength of 110 to 125 kg per sq cm where ordinary Bricks can give Hardly 45 to 70 kg per sq cm. Fly Ash Bricks are havin uniform shape & size due to this Mortar can be saved up to 40%. Water absorbation of Fly Ash Bricks is 12 to 15% which is much appriciatable.
Go ahead & help ourselves to save our earth. Advise Fly Ash Bricks Manufacturers to use the Automatic Fly Ash Bricks Plant manufactured by "ORBIT INTELLIGENT ENGINEERING"

Christy Said:

if i buy a house to let will i be liable for income tax?

We Answered:

Will you be liable for income tax? Of course! All rental income from property is treated just like any other income by the Inland Revenue. Plus if you sell the house for more than you paid for it, that profit is called capital gain. If it's not your main home (ie where you live) then there will be capital gains tax.

My best advice is to get a tax accountant to explain all the ins-and-outs to you before you buy. You'll need one anyway to make sure you claim for all the expenses and tax reliefs you're entitled to. He/she will charge, but could save you a fortune on your tax bill. Trust me: accountants are not an optional extra for first time landlords.

There are a few other points you need to consider:

Firstly, I think you need to check your mortgage and rent figures. Most mortgage lenders will only lend up to, say, 85% of the likely rental income, as they assume that you will have other bills to pay on the house (repairs, fees, anything). So if they believe you'll get £800 per month on the place, they'll only lend you enough for up to (say) £700 a month repayments. I'm not saying your figures are wrong, but they sound very unlikely - I would recommend getting confirmation from your lender. In any case you must let your lender know that the property will be sublet, as it may be against the terms of the mortgage.

Secondly, tell your insurers about the subletting. If you don't and you need to make a claim, they may well refuse to pay up. Better safe than sorry, and you don't want to find yourself not covered because you forgot to mention it to them. Moral: tell them, in writing, in advance.

Thirdly, have a lawyer look over any lease you agree with the council before you sign. For instance, is there anything in there about returning the property to you at the end of the lease in the same condition it was in at the start? What if the council puts in tenants who wreck the place - who pays? Do they have insurance to cover it? For all these and more, you need proper legal advice in advance.

Fourthly, you say you won't have paid any money towards the property after 5 years? Er, what about all the fees for buying the property? Repairs (is the council going to pay for all of them?)? Improvements (if the windows need replacing, will the council pay for it? Unlikely...)? Accountant's fees? Lawyer's fees? Insurance costs? You must assume there will be sums involved - another thing to ask your accountant.

In short, yes, the taxman will want his cut of both the rental income and any profit from selling the property, but a decent accountant should be able to minimise your tax bill. Have a lawyer check over the council lease before you sign it, and do tell your lenders and insurers about it.

Good luck!

Jean Said:

How to write a brief and good "House To Let"?

We Answered:

Hope this helps watch out for the spelling that is something I have a problem with

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