Paying Off A Mortgage From Thailand

[Introspection]

i'm lucky to have a good job here (uk) which i'm gonna do for a year or two (couldn't do it forever) to save before doing a pgce and moving abroad eventually teaching - thats what i want to do careerwise.

the idea was to be able to put down a deposit for a flat here before i move abroad and pay off the mortgage from there, taking on a tenant to add to my mortgage payments. i just felt it would give me a bit of security if teaching didnt work out or i had to come back, or even if i stayed abroad it would give me a wee boost to my income after the mortgage is cleared should i retire outwith the uk.

are there any problems with doing this i've not considered?

i'm only 22 so i don't know a great deal about mortgages etc.

Edited August 18, 2006 by Introspection

[johnb]

i'm lucky to have a good job here (uk) which i'm gonna do for a year or two (couldn't do it forever) to save before doing a pgce and moving abroad eventually teaching - thats what i want to do careerwise.

the idea was to be able to put down a deposit for a flat here before i move abroad and pay off the mortgage from there, taking on a tenant to add to my mortgage payments. i just felt it would give me a bit of security if teaching didnt work out or i had to come back, or even if i stayed abroad it would give me a wee boost to my income after the mortgage is cleared should i retire outwith the uk.

are there any problems with doing this i've not considered?

i'm only 22 so i don't know a great deal about mortgages etc.

Intro

I would suggest that you first have a word with your mortgage lender and secondly a Landlord agency and get then to advise if this is possible

Johnb

[Introspection]

Intro

I would suggest that you first have a word with your mortgage lender and secondly a Landlord agency and get then to advise if this is possible

Johnb

yeah i will do, i just wanted to get some advice from folk that aren't trying to sell me products as the last time i spoke to the bank about this kind of thing he was trying to sign me up to all sorts of stuff and i didn't know what to believe.

[Charma]

Firstly you will need a lender who does "buy to let" mortgages - not all of them do, and some of them have a higher rate for this type of mortgage. Shop around - money supermarket or the motley fool are good comparision sites.

Then you need to decide how to manage the property. An agency will do all this for you if you want and will charge commision for this. Charges will vary, so again shop around. Some will also just collect rent or just get the tenant in and leave you to do other management functions. I have done this from abroad using email to communicate with the tenant and this worked OK in that case. A poor tenant could make this difficult though.

Then you need to think about periods when the place is not occupied - can you keep the mortage payments going to cover such periods.

Finally, if you are earning your money abroad, consider the effect of exchange rates. You will need to have a safety margin to cover any sudden change in the value of the baht.

Hope this helps. Good luck.

[Chang_paarp]

All good advise above.

Just remember banks and other money lenders are immoral creatures. They do not care where the money comes from, so long as they get paid. While they may increase you interest rate if they discover you are not living in the property (happened to me in Au), they get a lot nastier if they do not get their pound of flesh.

So plan ahead and have a slush fund prior to your leaving, this can help pay for the unexpected as well, such as the bad tennant or the melted hot water system.

[Introspection]

well if my sums are correct, i should be able to pay off the mortgage without taking on a tenant but i was going to try and find out about charges,if any, for making accelerated payments by using the rent money so the mortgage could be cleared quicker.

i'd like to keep the amount borrowed as low as ppossible thats why i'm working and saving for 2 years or so to be able to put down a decent deposit.

[Charma]

There is a good mortgage calculator here to help you work out the effect of extra payments:

http://www.bradford-bingley.co.uk/mortgage...?linkfrom=yahoo

[Hadrian1]

I think you want to know if there will be a problem with you puchasing a property in the uk and then moving abroad. I told a mortgage advisor this and I was refused a mortgage with Barlcays. I think the reason that she gave me was that they didn't do Buy-to-let mortgages at the time. This is 2002. I then went to a financial advisor who typed some figures into a computer ie my earnings - I had a pretty crap job after returning from abroad, my deposit etc. She came up with a mortgage with Nat West. I still had intetntions of going abroad again and I felt a little worried so I told the bank manager at Nat West. He said that there would be no problem at all. It's a case of you get the mortgage on the basis of your current job and savings.....who knows what the future brings? I dont' think you need to tell him/her that you will not be living there or indeed, might not be livning there in the near or medium term. If it was a second home, it would be different. But my mangaer did stress that the one thing that you must do is to inform the insurance people that you are not living there and that someone else is. Insurance might be marginally more expensive.

If you do rent out and move abroad, any fees from a renting agent can be put against the rental income tax you incur. If you decide to stay, you can still rent a room out under the 'rent a room scheme' which allows you to do so and not incur any tax liability for any rental income below a certain lever - around £4,000 I think.

Other things you should consider is not only exchange rate but the interest rate. They are on their way up and are basically at an almost abnormally low level. You can of course, lock yourself in a fixed as opposed to a variable mortgage. The last thing I would say is, but this is only my opinion, that house prices are going to come down if not nomally, then in real terms. So I don't think there is a need to panic. Good luck.

PS Early payment is another thing you need to check with your advisor, some incur penalites.

Edited August 18, 2006 by Hadrian1

[Introspection]

thanks guys, sounds like some really good advice there.

the way property prices are going in scotland i think it's unlikely they will fall in the near future so if i buy now it should save me money in the long run.

i'd hope i would incur very little tax if i was earning my main income abroad as the total income from renting a flat here in scotland would proabbly be less than or close to the threshold for tax free income (around 5k or so if i remember correctly). i;d need to check that out aswell as the rent a room scheme you mention.

Edited August 18, 2006 by Introspection

[Inspector 2211]

i'm lucky to have a good job here (uk) which i'm gonna do for a year or two (couldn't do it forever) to save before doing a pgce and moving abroad eventually teaching - thats what i want to do careerwise.

the idea was to be able to put down a deposit for a flat here before i move abroad and pay off the mortgage from there, taking on a tenant to add to my mortgage payments. i just felt it would give me a bit of security if teaching didnt work out or i had to come back, or even if i stayed abroad it would give me a wee boost to my income after the mortgage is cleared should i retire outwith the uk.

are there any problems with doing this i've not considered?

i'm only 22 so i don't know a great deal about mortgages etc.

You fail to mention what you expect to pay as the monthly mortgage payment.

Take my case: The monthly mortgage payment for my house here in Northern California is just below $2000, and a typical salary for an English teacher in Thailand is 30000 Baht or about $700.

Do the math...

You do state that you want to rent out your flat (condo).

The risk with this is:

- if the renter moves out, how do you find a new renter while in Thailand?

- if the renter trashes the place (cigarette burns, water damage, pet damage, ...), would you find out before it's too late?

- assuming the renter HAS trashed the place, even a little bit, how are you going to repair the damage when you are in Thailand?

Hire a professional contractor by phone? Some of these contractors are crooks!

Believe the contractor when he tells you on the phone that everything is picture perfect now?

Believe the contractor that the actual cost of repairs slightly exceeded the estimate and you now owe him, say, 3000 Pounds (not unrealistic) ?

I think, in your situation an investment in stocks/bonds/mutual funds is called for, not an investment into a flat/condo.

If you strongly believe real estate will outperform traditional stocks and bonds, consider investing into a REIT (real estate investment trust).

General rule #1: Don't rent out a property you cannot keep an eye on.

General rule #2: Don't expect to make investments (flat, pension fund, whatever) in the west based on a Thai salary - do it the OTHER WAY AROUND!

Cheers,

Harry C.

[Introspection]

Thanks for that Harry. The average starting salary at an international school for uk qualified and experienced expat primary teachers is about 100,000 baht p/m so i reckoned i could use around 30-35000 baht (or 500 pounds) a month towards the mortgage whilst living comfortably and then if i have a tenant that can only help though that added income isn't essential. I just felt whilst I wouldn't need a tenant for the money, making money off it would be more productive than having it sit there dormant.

You do raise some interesting points of thought though that my old man has also brought up about problems in the flat while i'm abroad and being a financial advisor he also reckons mutual funds, isa's etc. sre where my money would be safer.

[Hadrian1]

I don't see where the problem is regarding care of the apartment. You should use an agent to do this unless your father enjoys doing such things. I don't think (although not sure ) you'll be exempt from paying rental income tax even though living abroad so the agent's fees would be off set against tax. Also, wear and tare may be offset against tax.

I purchased a property in 2002. It was a mess needing new carpets and painting the whole lot. It came to very little really as I did it all alone except for a couple of jobs such putting in a new fuse box and putting in a new bath tub and carpeting. I also furnished the whole place. Carpets were bought for a few hundred pounds from a place which sold off-cuts. I bought furniture at local auctions and from looking in local newspapers. When I rented it out for a time, I was surprised to hear the agent say that it would be better to let it unfurnished as this usually gets you a 'better class' of tentant. Who would have thought?

PS

It is one of the best things I did ie to buy my own place but the important thing is not to overstretch yourself financially. I wish if I had done it years earlier but there we are. I don't know the situation in Scotland as I live in Wales but I would imagine it's a similar situation to other areas within the UK but maybe lagging the London area. I will stick to my guns about the future direction of prices.....but of course, I don't own a crystal ball. Best wishes to you and I see from this forum that you are taking your future seriously and planning accordingly. I respect that and wish you well.

Edited August 19, 2006 by Hadrian1

[Super Hans]

Although property prices in the UK have risen dramatically in recent years, rental incomes have stayed roughly the same. I'm looking to rent my house out while I take a year bumming around, and am expecting to receive roughly the same in income as I was paying in rent for an identical property just round the corner 10 years ago.

If my father was a financial adviser, I'd listen to him. I'd also check your earnings potential as a teacher - I'm no expert, but everything I've read seems to suggest teachers are VERY poorly paid in LOS.

Does anyone know the exact position on tax regarding property rented in the UK? I take it I'll have to pay tax even if my earnings whilst abroad are zero? If I let my house out privately, what are the chances of the Inland Revenue not finding out?

[Introspection]

If my father was a financial adviser, I'd listen to him. I'd also check your earnings potential as a teacher - I'm no expert, but everything I've read seems to suggest teachers are VERY poorly paid in LOS.

that's certainly true for EFL teaching which is what i used to do briefly, though salaries do appear to be getting a bit higher. I just decided if i was to come back and make a career of teaching, I'd do what's necessary to get into an accredited international school. Big difference in salary and qualification/experience requirements between uk curriculum schools and government/private/non-accredited international schools.

They work you very hard but pay accordingly.

[Hadrian1]

Here's an article I read today about the housing market in the UK. So, as I said in an earlier post, I don't thin anybody should rush to buy......but then that is my opinion,

"There were a number of uncharacteristically downbeat pieces on the property market spread across the weekend press.

Since the beginning of the year, the pundits have been itching to proclaim the return of the boom, with prices in London apparently leading the way. So why the sudden change in tone? Well, after this month’s “shock” rise in interest rates, the estate agents are getting edgy.

“If we keep saying that house prices are rising, the Bank of England might hike rates even further,” they imagine to themselves. “And that could - gasp - damage the market.”

To our minds, it is nothing less than rank self-delusion for property pundits to imagine that the rash of half-baked little surveys they churn out will make any difference to the mindset of the Bank’s interest-rate setting committee - which is after all, meant to be targeting inflation, rather than house prices.

But still, you can rarely accuse an estate agent of thinking far beyond their next sale. And surprise, surprise, just as we said would happen last week, the data on the property market has taken a sudden downturn…

Recently-listed property website Rightmove reports that asking prices for houses fell by 1.6% in August, with the annual rate of asking price inflation eased to 9% from 10.6% in July. Director Miles Shipside said “Prices are now cooling off and require no further intervention from the Bank of England.”

We’re sure that Mervyn King will be glad of Mr Shipside’s advice. There may even be a section in the minutes of next month’s meeting where Mr King turns to one of his colleagues and says: “What with inflation running rampant, and consumers up past their eyeballs in debt, I was going to vote for a rate rise. But thankfully, Miles Shipside reminded me that the property bubble might pop if I did. So a 0.5% cut it is.”

Rightmove’s index is at best, a measure of estate agent confidence. It’s taken solely from the asking prices of houses that are new on the market that month. So any houses that have had their price reduced since going on the market are not included.

A far superior asking price survey, from Home.co.uk, covers both new properties and those that have been on the market for some time. According to Home, asking prices fell 0.6% this month, and are down 2.2% for the year as a whole – a markedly different picture to Rightmove.

The truth is, the pundits are right to be worried. One of the more bearish columns came from The Daily Telegraph’s Edmund Conway. “I’m starting to get a little worried about house prices,” he said. “I still don’t think prices will crash, but there’s something in the air that makes me nervous.”

Perhaps Mr Conway had been reading his own newspaper. The personal finance pages contained a ‘financial makeover’ page, running through the balance sheet of a PE teacher and her husband.

The two were in their late twenties, recently married, and had bought a house together. They had a £205,000 two-year fixed-rate mortgage at 4.69%, costing them £890 a month. The trouble is, it was interest-only.

“Once the fixed-rate period is up next year, we would like to try to switch the mortgage to a repayment basis, so that we are paying back some of the capital too.”

Looking at the figures, the experts estimated that if they make the move, with interest rates rising, a 5.5% fixed rate capital repayment mortgage would cost them £1,310 a month. That’s an extra £420 a month they have to find.

If you assume they’re both basic rate taxpayers, that means that to maintain their current standard of living, they will have to earn about an extra £7,600 each year just to pay the mortgage.

That’s by no means impossible for two people at the earlier stages of their careers. But as most of us are aware, one thing that tends to follow marriage is children. And children are expensive and they also have the potential to take a lot of time out of a woman’s working life.

It’s stories like these that are really worrying. This is an ordinary, working couple on slightly-above average earnings – there’s nothing to suggest that they are less financially savvy than the rest of the population. And yet they have taken out an interest-only mortgage, with no plan for paying off the capital, assuming they will be able to make up the slack at some point in the future.

If this is the kind of situation that the average ‘sensible’ couple is getting themselves into, then we should be worried about the housing market. It’s clear that for most people there is no give in the system – if personal disasters strike, or jobs are lost, or interest rates rise much further, their finances will not be able to take it.

We imagine that this is the “something in the air” that’s making The Telegraph’s Mr Conway nervous."

And this isn't just a localised thing...ie UK. The same is happening in the states. Global interest rates are believed to be on the way up...

[Lacoste]

Tell, the mortgage company NOTHING, If you have a tennant in the property they will put you on a higher rate of interest. Also if you tell them that this is your plan before they have released the funds to you there is a good chance they wil tell you where to go.

Get the mortgage and pay it for a while, then try and get a tennant in before you move. An ideal situation would be that you could afford to pay the mortgage while you are abroad with out having a tennant, It's not an ideal situation to be reliant on a tennant.

Also make sure you get some good insurance and be carefull who you let to. A letting agent is not a bad idea.

We have several properties in the UK, all let out through a company, Three of these have no mortgage but the apartment in LOndon and cottage in the Lake district do. If there was nobody in any off them it would not be a problem financialy, though it would be a worry for other issues.

[Hadrian1]

Tell, the mortgage company NOTHING, If you have a tennant in the property they will put you on a higher rate of interest. Also if you tell them that this is your plan before they have released the funds to you there is a good chance they wil tell you where to go.

Get the mortgage and pay it for a while, then try and get a tennant in before you move. An ideal situation would be that you could afford to pay the mortgage while you are abroad with out having a tennant, It's not an ideal situation to be reliant on a tennant.

Also make sure you get some good insurance and be carefull who you let to. A letting agent is not a bad idea.

We have several properties in the UK, all let out through a company, Three of these have no mortgage but the apartment in LOndon and cottage in the Lake district do. If there was nobody in any off them it would not be a problem financialy, though it would be a worry for other issues.

I think I agree with that and more or less agrees with what I said before. The only thing though, you have to infrom the insurance co if you are renting it out. Imagine the stink if the place burnt down and they found out that you weren't living there but some tenant. That could be a get out clause for them.

[Blake7]

get a regular mortgage but check the conditions should you choose to let. My RBOS mortgage charged a one off 50 pound fee in order to let the property but the low rate remained unchanged. I have also been renting with no problem through an agent and don't pay tax on rental income.

BTW, I think you are optinistic thinking you can earn 100k as a primary teacher. My kiddies primary teacher here in an international school gets 50K....

[GuestHouse]

The average starting salary at an international school for uk qualified and experienced expat primary teachers is about 100,000 baht p/m so i reckoned i could use around 30-35000 baht (or 500 pounds) a month towards the mortgage whilst living comfortably

#1 If you are working in an organization where everyone is earning 100K and you are sending 50K back to the UK you are going to segregate yourself from those around you.

#2 Paying a mortgage from overseas currency is subject to a very much higher risk- fluctuations in exchange rates, bank charges etc can have an enormous impact on your income.

#3 I think your average starting figure is high. Teaching in Thailand (qualified teaching in Thailand) is an area of employment where supply outstrips demand.

[Super Hans]

get a regular mortgage but check the conditions should you choose to let. My RBOS mortgage charged a one off 50 pound fee in order to let the property but the low rate remained unchanged. I have also been renting with no problem through an agent and don't pay tax on rental income.

How do you manage to not pay tax if you're renting through an agent? I'm looking to rent my house out when I go to LOS for a year, and am considering renting it privately to avoid HM Customs and Excise taking a slice. Is it possible to "disappear" for a year and rent your house through an agent without having to inform the taxman?

[Lacoste]

get a regular mortgage but check the conditions should you choose to let. My RBOS mortgage charged a one off 50 pound fee in order to let the property but the low rate remained unchanged. I have also been renting with no problem through an agent and don't pay tax on rental income.

Thats a fantastic deal, if you have had a mortgage with the same company for a considerable amount of time this is very possible. I dont think that you could do this straight of the bat after getting a mortgage however. I may be wong.

Blake7 may i ask if your mortgage is in the UK and if so who with.

I'm also interested how you avoid paying tax on rental income if you are letting through an agent. (good for you that you do)

Thanks.

Lacoste.

Edited August 22, 2006 by Lacoste

[Hadrian1]

get a regular mortgage but check the conditions should you choose to let. My RBOS mortgage charged a one off 50 pound fee in order to let the property but the low rate remained unchanged. I have also been renting with no problem through an agent and don't pay tax on rental income.

BTW, I think you are optinistic thinking you can earn 100k as a primary teacher. My kiddies primary teacher here in an international school gets 50K....

I don't know how you can get away without paying tax on rental income unless you are doing it 'illegaly'. The 50k per month is way too low for a Primary Teacher at an international school. The better schools will pay over 100k per month for techers recruited from abroad. Locally employed would I imagine be on 65k plus. I get those figures from when I worked at an international school in BKK and I left in 2001. It might be a little different if your children's teacher is EFL only or if she is Filippino or some similar situation. Many shcool use any get out clause possible.....

[Introspection]

The average starting salary at an international school for uk qualified and experienced expat primary teachers is about 100,000 baht p/m so i reckoned i could use around 30-35000 baht (or 500 pounds) a month towards the mortgage whilst living comfortably

#1 If you are working in an organization where everyone is earning 100K and you are sending 50K back to the UK you are going to segregate yourself from those around you.

#2 Paying a mortgage from overseas currency is subject to a very much higher risk- fluctuations in exchange rates, bank charges etc can have an enormous impact on your income.

#3 I think your average starting figure is high. Teaching in Thailand (qualified teaching in Thailand) is an area of employment where supply outstrips demand.

Thanks for the response.

1. 500 pounds is actually just over 30,000 baht so i think 70,000 a month wouldn't segregate me too much from my colleagues and would still afford me a good quality of life in Bkk.

2. Thanks for highlighting this, it's something that i need to look into in far greater detail and get advice on.

3. I don't agree with this. 100k is the average starting figure based on a number of contacts i have had with schools themselves to seek advice and from teachers themselves. Maybe supply outstrips demand with unqualified or local hire teachers or efl in internattional schools but the majority of well paid jobs are recruited for from overseas to experienced teachers and as far as i'm aware this demand is still high.

[Inspector 2211]

Maybe supply outstrips demand with unqualified or local hire teachers or efl in internattional schools but the majority of well paid jobs are recruited for from overseas to experienced teachers and as far as i'm aware this demand is still high.

I don't want to rain on your party, but you state that you're 22 and at 22, I'd hardly consider you an experienced teacher, more like a rookie teacher.

Would I have considered myself an experienced software engineer at the age of 22?

Well, maybe.

Would others have termed me an experienced software engineer at the age of 22?

No way.

[Introspection]

I don't want to rain on your party, but you state that you're 22 and at 22, I'd hardly consider you an experienced teacher, more like a rookie teacher.

Would I have considered myself an experienced software engineer at the age of 22?

Well, maybe.

Would others have termed me an experienced software engineer at the age of 22?

No way.

where did i say i was an experienced teacher? i said the jobs go to experienced teachers. i.e those with 2 or more years in the uk/us/aus curriculum, some you need a more i'm sure but there are jobs for young teachers overseas even if not in thailand. i'm in no rush. i only said i want to eventually move abroad to teach.

as you point out, i'm 22 so i've plenty time to get the necessary years in to get a crack at the jobs in overseas schools.

[JimsKnight]

I don't want to rain on your party, but you state that you're 22 and at 22, I'd hardly consider you an experienced teacher, more like a rookie teacher.

Would I have considered myself an experienced software engineer at the age of 22?

Well, maybe.

Would others have termed me an experienced software engineer at the age of 22?

No way.

where did i say i was an experienced teacher? i said the jobs go to experienced teachers. i.e those with 2 or more years in the uk/us/aus curriculum, some you need a more i'm sure but there are jobs for young teachers overseas even if not in thailand. i'm in no rush. i only said i want to eventually move abroad to teach.

as you point out, i'm 22 so i've plenty time to get the necessary years in to get a crack at the jobs in overseas schools.

I wish the OP luck with his/her quest but I'm with Inspector on this.

I'd advise steering clear of Buying to Let while residing in Thailand. I know a few buddies who've had major headaches from this. Usually delayed payment etc.

Establish who it is you are going to have living in your property. I know my neighbour has a list of pre-requisites that tenants must qualify (not on the dole/DSS, non-smokers, 30 - 55 age range etc) for just to be eligable to stay at his pad! This is harsh but it weeds out possible 'undesirables' and homewreckers.

I'd stick any spare cash in a high interest account and go for five months to test the waters, your only 22 <deleted>! If you have'nt ever tought english before in Thailand then think carefully before committing yourself!

Have you even got a job waiting for you in thailand. Forget verbal rumours and half truths, expect nothing when you first get there.

100K a month?? They told you that much huh. Don't take their word for it, ask other teachers to find the real rate! The only guys/girls I know who get that are high school/college graduate teachers! And at 22 I don't think you'll get that!

A friend of mine who teaches english (A prior qualified and experienced english teacher) to kids gets about 45,000 baht NET a month tops.

The registration/licence and work permit fees (yes the schools supposed to pay but they often don't) and tax will bring it down to the dizzy heights of 50 - 60K.

Bangkok living isn't easy so get wise and good luck!

Edited August 24, 2006 by JimsKnight

[Introspection]

I'd advise steering clear of Buying to Let while residing in Thailand. I know a few buddies who've had major headaches from this. Usually delayed payment etc.

Establish who it is you are going to have living in your property. I know my neighbour has a list of pre-requisites that tenants must qualify (not on the dole/DSS, non-smokers, 30 - 55 age range etc) for just to be eligable to stay at his pad! This is harsh but it weeds out possible 'undesirables' and homewreckers.

I'd stick any spare cash in a high interest account and go for five months to test the waters, your only 22 <deleted>! If you have'nt ever tought english before in Thailand then think carefully before committing yourself!

Have you even got a job waiting for you in thailand. Forget verbal rumours and half truths, expect nothing when you first get there.

100K a month?? They told you that much huh. Don't take their word for it, ask other teachers to find the real rate! The only guys/girls I know who get that are high school/college graduate teachers! And at 22 I don't think you'll get that!

A friend of mine who teaches english (A prior qualified and experienced english teacher) to kids gets about 45,000 baht NET a month tops.

The registration/licence and work permit fees (yes the schools supposed to pay but they often don't) and tax will bring it down to the dizzy heights of 50 - 60K.

Bangkok living isn't easy so get wise and good luck!

ok, firstly, i have taught english in thailand before but that is not what i want to come back to do. i want to teach uk curriculum in international schools after getting qualified in the uk and getting the required experience under my belt.

i think you're getting accredited international schools mixed up with every other school and efl teaching with teaching in a uk curriculum school. the salaries, working conditions and pre-requisites for eligibility of such jobs are very different.

you also didnt read what i said about going to thailand eventually. that means not now.

however, i appreciate your comments about the headaches that come with buy-to-let and the more people i speak to , the more headaches are being uncovered.

Edited August 24, 2006 by Introspection

[Blake7]

get a regular mortgage but check the conditions should you choose to let. My RBOS mortgage charged a one off 50 pound fee in order to let the property but the low rate remained unchanged. I have also been renting with no problem through an agent and don't pay tax on rental income.

Thats a fantastic deal, if you have had a mortgage with the same company for a considerable amount of time this is very possible. I dont think that you could do this straight of the bat after getting a mortgage however. I may be wong.

Blake7 may i ask if your mortgage is in the UK and if so who with.

I'm also interested how you avoid paying tax on rental income if you are letting through an agent. (good for you that you do)

Thanks.

Lacoste.

Royal Bank of Scotland - I had it for about two years before I let the property.

When I rent through an agent I filled in a form saying I agreed to be paid rent without tax. I then filled in a form from Tax office (can't remember which one) sent it back to them and then in a couple of weeks got a reply that I did not need to pay tax on rental income.

As for kiddies school teacher salary - actually I made a mistake they get 60K. They are farang and is a good international school. Mind you he is in nursery department still so maybe they get better salaries for teaching older ones.

[Lacoste]

Royal Bank of Scotland - I had it for about two years before I let the property.

When I rent through an agent I filled in a form saying I agreed to be paid rent without tax. I then filled in a form from Tax office (can't remember which one) sent it back to them and then in a couple of weeks got a reply that I did not need to pay tax on rental income.

Cheers for that Blake7.

I'm flying out to the UK next week for a couple of weeks so will look in to that.

Thanks again

[Super Hans]

get a regular mortgage but check the conditions should you choose to let. My RBOS mortgage charged a one off 50 pound fee in order to let the property but the low rate remained unchanged. I have also been renting with no problem through an agent and don't pay tax on rental income.

Thats a fantastic deal, if you have had a mortgage with the same company for a considerable amount of time this is very possible. I dont think that you could do this straight of the bat after getting a mortgage however. I may be wong.

Blake7 may i ask if your mortgage is in the UK and if so who with.

I'm also interested how you avoid paying tax on rental income if you are letting through an agent. (good for you that you do)

Thanks.

Lacoste.

Royal Bank of Scotland - I had it for about two years before I let the property.

When I rent through an agent I filled in a form saying I agreed to be paid rent without tax. I then filled in a form from Tax office (can't remember which one) sent it back to them and then in a couple of weeks got a reply that I did not need to pay tax on rental income.

Any idea why you weren't required to pay tax on your rental income? Do you think it was because your income fell beneath the UK tax threshold? Would be really useful if this is the case - I'm buggered if I want to give 22% to the taxman if I don't have to!

Also, why tell the mortgage company? I plan to keep paying the mortgage by direct debit, so why tell them? It's a legal requirement, I think, but how will they ever know?