Rental property return ?

[blade7]

Assume the property is mortgage free, value around £140k with rental income around £550 PCM, what would a standard rate tax payer lose in tax and what could be claimed against the tax ie accountant/telephone/maintenance/repair costs etc ? Thanks.

[blade7]

Thank you for the information. The house owners total income would be well under £40k inc the rent. I thought the rates and utility bills were the responsibility of the tenant, or is there an advantage to the landlord to pay the rates ?

[blade7]

jonny70 said:

blade7 said:

Assume the property is mortgage free, value around £140k with rental income around £550 PCM, what would a standard rate tax payer lose in tax and what could be claimed against the tax ie accountant/telephone/maintenance/repair costs etc ? Thanks.

thats not sucha great investment , thats a pretty low yield

What's the risk free alternative with interest rates so low though ?

[blade7]

jonny70 said:

blade7 said:

What's the risk free alternative with interest rates so low though ?

575 per month on 140 k property is

thats about a 4.8% yield .Then you have the agent fees (10%), void periods, building insurance,gas certificate, maintenance and wear and tear , (will it be furnished?)

You may be clsoer to 3% than you think which you can get in the bank/bonds/shares wtih dividends without the agro of having a broken boiler at 10 pm on a friday night etc

No agents, unlikely void periods, expenses out of tax liability ?, unfurnished, could consider 5 year DSS/council tie in ? Potential agro is the only downside.

[blade7]

Siscar said:

blade7 said:

What's the risk free alternative with interest rates so low though ?

Property isn't risk free, things like national savings are much closer to that than property.

Assuming ISA's are already at limit interest rates seem low.

[blade7]

Siscar said:

Yes they are. But it's a trade off between risk and reward. Putting money into national savings is as safe as you get but the returns aren't great. Property is low/medium risk and you can get a better return but you can also lose money. Equities can be high risk but can give high return. And so on.

My point is simply that it's a mistake to think of property as being no or very low risk.

Fair point but my original question didn't intend to suggest property was risk free, just what alternatives were. Thanks for your input anyway