Rental Income Excess - what to do

[Desperate D]

well i wouldnt say u have a rental income excess when u have an interest only mortgage, what is the length of the mortgage? Think about if if you pay 5 years interest and still havent touched the principle u are only making money for the bank, unless we have inflation of 25% per annum

 

[ubiquitous]

NHG - we are going interest only as per advice I got and also reading on this site it seemed the way to go, because as Brendan stated there may be better ways to spend that money than to just put it off the rental mortgage,

Do bear in mind that there are some of us who would disagree strongly with this advice, especially in cases where the individual has no real idea as to what to do with the cashflow excess.

Slim - I think I will probably seek the services of an accountant but I've heard a few horror stories of people not finding the right guy and then paying more than they should in tax.

Well if you don't use professional assistance & you don't know exactly what you are doing, then there is a strong chance that you will pay more (or less) than you should.

 

[gerry1]

Income earned from property letting is regarded as unearned income and as such does not qualify for tax relief as pension contributions.