BTL Advice

[sam_vfr]

I've been renting out a property now for around 7 years. I was unaware of the tax that was due on the income so decided to get an accountant involved to help me get everything up to date. I've back dated everything and declared it all and i can rest easy now knowing that everything is legit.

My only concern now is what to do with the property. With the new rules saying you can offset any of the interest of the mortgage against the income, this somewhat increases my tax bill. When you take this into account along with insurance and some repairs, it almost doesn't seem worth it any more. Im in 2 minds whether to sell and pay a big chunk off the mortgage of the property im living in. + i think in the next couple of years the property may need a kitchen and boiler!

Is BTL worth it anymore?

[rufusgti]

sam_vfr said:

I've been renting out a property now for around 7 years. I was unaware of the tax that was due on the income.

Is BTL worth it anymore?

I doubt it's worth it for you as you must have got into it with very little thought or calculation if you really didn't think there would be taxable income.

It's really quite simple for me. If you have a chunk of equity in the property but are making a loss on the income it's not viable. That money in a fund will almost definitely do considerably better.

I'd only consider it to be viable if it were
A) subsidising your income each month after all costs.
B) paying it's own mortgage down over a set time, ideally before retirement.