Daddy Ireland
Registered User
- Messages
- 458
Hi,
I am a PAYE worker on higher tax rate and together with my wife who is a PAYE higher tax payer with no investments in property.
An opportunity has come up to purchase a commercial property in my thriving town for 70k plus 23% vat. Currently rented for 550 p.m plus vat and lessee pays all rates, management charges, ongoing costs.
Why would vat of 23% have to be paid by me ?
Why under current lease is the lessee paying vat on the rent ?
I would be a cash purchaser and I assume I would have no costs really to write off against the rental income.
What other costs would I have if buying the property ?
With interst rates so poor would I be left with a net yield of 4% ?
As you see I am a rookie in this but if I could get an approx 4% net after all costs I would be very happy with that.
Any help is appreciated.
Thanks.
I am a PAYE worker on higher tax rate and together with my wife who is a PAYE higher tax payer with no investments in property.
An opportunity has come up to purchase a commercial property in my thriving town for 70k plus 23% vat. Currently rented for 550 p.m plus vat and lessee pays all rates, management charges, ongoing costs.
Why would vat of 23% have to be paid by me ?
Why under current lease is the lessee paying vat on the rent ?
I would be a cash purchaser and I assume I would have no costs really to write off against the rental income.
What other costs would I have if buying the property ?
With interst rates so poor would I be left with a net yield of 4% ?
As you see I am a rookie in this but if I could get an approx 4% net after all costs I would be very happy with that.
Any help is appreciated.
Thanks.