Much needed kick up the *rse needed?

[The Gravy Boater]

Just now, NB DW said:

It's hard to say.  The worst is yet to come, potentially.  But I've been quite lucky and put a chunk in around April across varying index trackers and came out with £1200 more.  The shares in these funds have since been sold and it's readily available cash now.

 

I think you might have a point with the house though, part of me does want to do it 'properly' so to speak.  It's just if I end up with a nightmare non-paying tenant it'll be far harder to manage than it would be with a lodger who turned out to be an idiot.

It's a two bedroom property, right?  It's not like you are flipping 4 bed HMOs and you're not going to make much profit out of it either way.  You have a great income, more than adequate to support the lifestyle... so unless you are looking to get into property investment it's more about protecting your asset.

[NB DW]

7 minutes ago, Bod said:

I think (but do check) that to have "lodgers" you as house owner have to live on the premises, other wise they are "Tenants" with all that entails.

 

Bod.

Thanks.  I'll do some reading tomorrow on this.  I guess what defines me as living or not living there is what matters... it's still my primary residence, arguably, and backed by the fact I pay the council tax and utilities.  I just happen to like sleeping on a boat instead for most of the week.

6 minutes ago, The Gravy Boater said:

It's a two bedroom property, right?  It's not like you are flipping 4 bed HMOs and you're not going to make much profit out of it either way.  You have a great income, more than adequate to support the lifestyle... so unless you are looking to get into property investment it's more about protecting your asset.

Yep, just a small 2 bed 15 year old home.  Profiteering definitely isn't the motivation for what I'm doing.  If it was I'd need my head testing, as you say, the profit would be negligable if I were to let the house out completely.  And there's no profit whatsoever in taking on a lodger - they're only there to cover the mortgage, or pay my moorings, licence, diesel etc depending on which way you look at it.

Edited June 13, 2020 by NB DW

[Tracy D'arth]

15 minutes ago, NB DW said:

 

 

I think you might have a point with the house though, part of me does want to do it 'properly' so to speak.  It's just if I end up with a nightmare non-paying tenant it'll be far harder to manage than it would be with a lodger who turned out to be an idiot.

If you let a property, always use an agent, divorce yourself from the tenant completely. Accept that it can all go wrong, burn down, get totally wrecked, turned into a grow or a drug den. Or have a hoarder who won't leave.

The agent will sort the references and make regular inspections to avoid as much disaster as possible. And also ensure the rent is paid.

Accept that when you change tenant it will need new carpets and redecorating at least.

I don't know which part of the NW you are in but I may be able to help with advice and a good letting agent. I have various properties tenanted.

 

£400 a month is way too low for a 2 bed house in a good area.  I get that for studio flats, nearly twice that for a 1 bed bungalow. Agents take 10% to 14%.

Edited June 13, 2020 by Tracy D'arth

[NB DW]

Thank you.

 

I'm in Cheshire East. 

 

I've read a fair bit about self-managed v's agent managed.  Sometimes, and this is from what I've read from landlord experiences too, I'm not sure that agents add much value.  Property still gets trashed and rent still goes unpaid - for me they're the two main worries - and there's very little the agent can do about either.

 

I'd be making sure my insurance policy covered non-payment of rent without a doubt.  I was amazed at how little home and contents cover was, even with all the boxes ticked including non-payment of rent.  For my property it's easily had for under £300 a year.

4 minutes ago, Tracy D'arth said:

If you let a property, always use an agent, divorce yourself from the tenant completely. Accept that it can all go wrong, burn down, get totally wrecked, turned into a grow or a drug den. Or have a hoarder who won't leave.

The agent will sort the references and make regular inspections to avoid as much disaster as possible. And also ensure the rent is paid.

Accept that when you change tenant it will need new carpets and redecorating at least.

I don't know which part of the NW you are in but I may be able to help with advice and a good letting agent. I have various properties tenanted.

 

£400 a month is way too low for a 2 bed in a good area.  I get that for studio flats, nearly twice that for a 1 bed bungalow. Agents take 10% to 14%.

 

£400 was the figure for lodging and not the property outright.   Around £420-450 a month looks to be going rate for lodgings on spareroom etc for CW5 location.

 

Letting out it should be around £540 a month.

[The Gravy Boater]

1 minute ago, NB DW said:

Thank you.

 

I'm in Cheshire East. 

 

I've read a fair bit about self-managed v's agent managed.  Sometimes, and this is from what I've read from landlord experiences too, I'm not sure that agents add much value.  Property still gets trashed and rent still goes unpaid - for me they're the two main worries - and there's very little the agent can do about either.

 

I'd be making sure my insurance policy covered non-payment of rent without a doubt.  I was amazed at how little home and contents cover was, even with all the boxes ticked including non-payment of rent.  For my property it's easily had for under £300 a year.

Always have a plan B.  You seem pretty switched on to be honest, so I'm sure you'll be fine.  Let us know how it goes with the boat.

[NB DW]

3 minutes ago, The Gravy Boater said:

Always have a plan B.  You seem pretty switched on to be honest, so I'm sure you'll be fine.  Let us know how it goes with the boat.

Thanks.  Not sure having read back what I'm about to do makes me sound switched on though!  But appreciate the comment.

 

A plan B - what would you consider a plan B in my situation?  Genuinely interested.

 

I'll definitely update on the boat.

[Tracy D'arth]

5 minutes ago, NB DW said:

Thank you.

 

I'm in Cheshire East. 

 

I've read a fair bit about self-managed v's agent managed.  Sometimes, and this is from what I've read from landlord experiences too, I'm not sure that agents add much value.  Property still gets trashed and rent still goes unpaid - for me they're the two main worries - and there's very little the agent can do about either.

 

I'd be making sure my insurance policy covered non-payment of rent without a doubt.  I was amazed at how little home and contents cover was, even with all the boxes ticked including non-payment of rent.  For my property it's easily had for under £300 a year.

 

£400 was the figure for lodging and not the property outright.   Around £420-450 a month looks to be going rate for lodgings on spareroom etc for CW5 location.

 

Letting out it should be around £540 a month.

Nantwich is good, not far from me.

A good agent is worth their money, inspections, organising gas, legionnaires and electrical testing, getting tenants out promptly when it goes wrong, boiler servicing, plumbing and appliances fixing. Its a pain having to do these things when you are occupied elsewhere.

[dmr]

Its actually a difficult decision. If you keep the house you get an address and should avoid capital gains tax, you can also do small jobs yourself rather than paying the agents favourite tradesmen to replace tap washers etc. A lot depends on your lodger and if you get a bad one you are still in trouble. If you plan to stay local on a mooring the lodger idea might work, if you can go long distance CCing then renting via an agent would be better. We lived between the house and boat for two years and it was very hard work, everything is always in the wrong home when you need it. We sold the house (lovely Victorian jobby) and got a little modern low maintanance house to rent out. Have not been inside it since the day we got it.

 

........................Dave

Just now, Tracy D'arth said:

Nantwich is good, not far from me.

A good agent is worth their money, inspections, organising gas, legionnaires and electrical testing, getting tenants out promptly when it goes wrong, boiler servicing, plumbing and appliances fixing. Its a pain having to do these things when you are occupied elsewhere.

A good agent also has a good instinct for good and bad tenants, though it can still go wrong.

 

...............Dave

[system 4-50]

Allow for somebody else coming into your life. If somebody else is already in your life, allow for them leaving your life.  Not a great deal you can do about it, but it is best to be aware of the possibilities. A number of people seem to arrive on the canals as a result of the movement of these fundamental forces.

[mrsmelly]

FFS go for it. My mum and dad did it the " Proper way " and mum now on her own has a house ive just sold for 220k after doing what various governments have said over her 100 years about being sensible and saving for the future. Mum has gone into care and is getting the same as people with no money and no property in a great care home. The 220k will be taken to look after her wheras if she hadnt been prudent she would have got the same care for nowt. spend it while you can.

[The Gravy Boater]

2 minutes ago, system 4-50 said:

Allow for somebody else coming into your life. If somebody else is already in your life, allow for them leaving your life.  Not a great deal you can do about it, but it is best to be aware of the possibilities. A number of people seem to arrive on the canals as a result of the movement of these fundamental forces.

Absolutely this. 

[system 4-50]

6 minutes ago, system 4-50 said:

Allow for somebody else coming into your life. If somebody else is already in your life, allow for them leaving your life.  Not a great deal you can do about it, but it is best to be aware of the possibilities. A number of people seem to arrive on the canals as a result of the movement of these fundamental forces.

Oh the joy! I've always wanted to be a 4-digit member.

[BilgePump]

You've had a boat before

You love it

You're young

Do it!

[NB DW]

I definitely won't be in a position to CC.  I've a car and I work in a fixed location, and I can't be bothered with the game of hide and seek.

 

I live 10+ minutes from the the mooring will be, so everything can be kept in check.  Not having a residential address would be a concern but I suppose there's nothing stopping me using it, even if it were let out in full, for banking etc.

 

I've been a bit green over the capital gains tax side of things.  The house is valued at around £135K right now.  I need to calculate how much I'd have to pay out in years to come.

 

Re. relationships, if it happens it happens.  Living aboard full time might attract some and put others off.  But that's their problem.  I do accept though it could be a game changer if and when it happens.

 

I can fully relate to the comments on losing the assets you've built when your health turns poor.  My mum moved into a care home in January of this year due to Alzheimer's and we've had to defer the payments against her property. 

 

Don't get me wrong, this doesn't mean to say this should be licence to spend with impunity and be reckless with money on the basis you'll lose it to the state if you become unwell.  Look at it this way, the very fact my mum owned her own home allowed her/us a choice to reside in a much better home than had she not.  So it does pay off.

[The Gravy Boater]

16 minutes ago, NB DW said:

I've been a bit green over the capital gains tax side of things.  The house is valued at around £135K right now.  I need to calculate how much I'd have to pay out in years to come.

 

 

If you do not sell it for seven years from the date you acquired it (presumably from mum) you will not pay any Capital Gains.  It also goes down incrementally after a few years. It's also only something like 18% on any profit realised from its last sale value, can't remember... so really not something to worry about.

Edited June 13, 2020 by The Gravy Boater

[dmr]

9 minutes ago, The Gravy Boater said:

If you do not sell it for seven years from the date you acquired it (presumably from mum) you will not pay any Capital Gains.  It also goes down incrementally after a few years. It's also only something like 18% on any profit realised, can't remember... so really not something to worry about.

You are confusing inheritance tax (death duty) with CGT, and even then you are wrong.

 

..................Dave

 

 

17 minutes ago, NB DW said:

I definitely won't be in a position to CC.  I've a car and I work in a fixed location, and I can't be bothered with the game of hide and seek.

 

I live 10+ minutes from the the mooring will be, so everything can be kept in check.  Not having a residential address would be a concern but I suppose there's nothing stopping me using it, even if it were let out in full, for banking etc.

 

I've been a bit green over the capital gains tax side of things.  The house is valued at around £135K right now.  I need to calculate how much I'd have to pay out in years to come.

 

Re. relationships, if it happens it happens.  Living aboard full time might attract some and put others off.  But that's their problem.  I do accept though it could be a game changer if and when it happens.

 

I can fully relate to the comments on losing the assets you've built when your health turns poor.  My mum moved into a care home in January of this year due to Alzheimer's and we've had to defer the payments against her property. 

 

Don't get me wrong, this doesn't mean to say this should be licence to spend with impunity and be reckless with money on the basis you'll lose it to the state if you become unwell.  Look at it this way, the very fact my mum owned her own home allowed her/us a choice to reside in a much better home than had she not.  So it does pay off.

 

Ok, if you meet somebody you like just remember to ask the right questions before you get involved, "do you like boats".

 

Recently talked to a woman who had lived on a boat for some time and foolishly got involved with a bloke who hates boats.

 

................Dave

[Guest]

Not a criticism, but Im always intrigued by the fact that people come on social media and ask a bunch of strangers about which way to go when making a fundamentally life changing decision.

 

Surely people who know you best and know all your circumstances are best placed?

[The Gravy Boater]

3 minutes ago, dmr said:

You are confusing inheritance tax (death duty) with CGT, and even then you are wrong.

 

..................Dave

 

 

You are correct, if not informative.  The seven year thing is inherritance tax.  The percentage paid (whatever it currently is) on profit since the last sale is CGT.

[NB DW]

Just now, The Happy Nomad said:

Not a criticism, but Im always intrigued by the fact that people come on social media and ask a bunch of strangers about which way to go when making a fundamentally life changing decision.

 

Surely people who know you best and know all your circumstances are best placed?

 

I guess I've been very open about my circumstances including age, property, income, debt etc.  They're the basis for whether a decision is right or not.  The only uknown is the emotional or personal elements - they have their place too - but only people who know you, or think they know you can make a call on those.

 

I find the responses intriguing too.  I'm making the assumption the users of this forum and those who've replied probably represent a huge cross-section of people and more importantly, have the benefit of life experience and so are well placed to offer a meaningful reply.

[dmr]

1 minute ago, The Gravy Boater said:

You are correct, if not informative.  The seven year thing is inherritance tax.  The percentage paid (whatever it currently is) on profit since the last sale is CGT.

I was going to inform but Google does it better than me. CGT is 18 or 20%? which is not that bad though people worry about it, but who knows where tax will go in the next few years?

 

But, if your house is your connection to the property market while you live on a boat then CGT could be a Huge spanner in the works when you get too old/frail to live on the boat.

 

.............Dave

[The Gravy Boater]

5 minutes ago, dmr said:

But, if your house is your connection to the property market while you live on a boat then CGT could be a Huge spanner in the works when you get too old/frail to live on the boat.

 

 

He's in his mid 30s... imagine that.

[dmr]

10 minutes ago, The Happy Nomad said:

Not a criticism, but Im always intrigued by the fact that people come on social media and ask a bunch of strangers about which way to go when making a fundamentally life changing decision.

 

Surely people who know you best and know all your circumstances are best placed?

Yes, a lot of people on here talk a lot of bollox a lot of the time, but its still better advice than you would get from most financial advisors. ?

 

If we'd ask our closest family and friends about moving onto a boat we'd still be living in a house in Southampton.

 

Some of the people here are the ones that have actually done it!

 

.................Dave

[dmr]

2 minutes ago, The Gravy Boater said:

He's in his mid 30s... imagine that.

I will try to remember but its a while ago now, I think I was much the same but thinner and more sensible.? (and less happy).

We've been stuck in one place for 6 months now, our longest ever in one spot. There are a few boats here, some occupied full time, some part time, Bloke opposite is in his 70's but doesn't look it, woman opposite and down a bit likewise, woman right opposite looks 20 but is probably a bit older, bloke up a bit is late 20's/early 30's, woman further up maybe 30's, and further down a soldier on extended leave (avoiding virus?). Maybe the canals are not a retirement home after all.

 

..................Dave

[restlessnomad]

50 minutes ago, The Happy Nomad said:

Not a criticism, but Im always intrigued by the fact that people come on social media and ask a bunch of strangers about which way to go when making a fundamentally life changing decision.

 

Surely people who know you best and know all your circumstances are best placed?

strangers are the best people to give non judgemental advice... (mostly) , OP has been pretty open about everything...

[The Gravy Boater]

21 minutes ago, dmr said:

I will try to remember but its a while ago now, I think I was much the same but thinner and more sensible.? (and less happy).

We've been stuck in one place for 6 months now, our longest ever in one spot. There are a few boats here, some occupied full time, some part time, Bloke opposite is in his 70's but doesn't look it, woman opposite and down a bit likewise, woman right opposite looks 20 but is probably a bit older, bloke up a bit is late 20's/early 30's, woman further up maybe 30's, and further down a soldier on extended leave (avoiding virus?). Maybe the canals are not a retirement home after all.

 

..................Dave

I think it would be fair to say that there are more 'reasons' to live on a narrowboat now than ever before.  Whether it's a good idea or not is another issue.