rental market - worth investing in ?

[pipster]

Of course it is; well spotted lad.

"Lad" are you sure about that ?

[Dorcus]

"Lad" are you sure about that ?

Yes, certain!

[North Cardiff Blue]

she is 56. So are you saying that in theory she could divert 100% of her income (salary plus rental money) into a pension ? - or have I misunderstood that ?

We live off my wage anyway just about.

Simpler to just look at Income, if she is on £30,000 for instance, a basic rate taxpayer so if she paid in £24,000 the government would make it up to £30,000 so in effect she has made £6,000 before she starts. If she's already contributing to a works pension you would have to deduct that amount. The new tax year is April 6th and she could do the same again, and so on until it's all invested.

Obviously much better if she's a higher-rate taxpayer with 40% tax relief.

The rental income could get complicated because it's not all profit, so not all income.

I wouldn't bother buying a rental property now, with all the tax, higher-interest rates, and Welsh Government interference, I don't think it's worth especially if you get a bad tenant.

As someone said combine Pension contributions with Cash or S&S ISA's and there is another £20K allowance each tax year, you will be able to invest a fair bit by April 2024.

[North Cardiff Blue]

Simpler to just look at Income, if she is on £30,000 for instance, a basic rate taxpayer so if she paid in £24,000 the government would make it up to £30,000 so in effect she has made £6,000 before she starts. If she's already contributing to a works pension you would have to deduct that amount. The new tax year is April 6th and she could do the same again, and so on until it's all invested.

Obviously much better if she's a higher-rate taxpayer with 40% tax relief.

The rental income could get complicated because it's not all profit, so not all income.

I wouldn't bother buying a rental property now, with all the tax, higher-interest rates, and Welsh Government interference, I don't think it's worth especially if you get a bad tenant.

As someone said combine Pension contributions with Cash or S&S ISA's and there is another £20K allowance each tax year, you will be able to invest a fair bit by April 2024.

Obviously if you're the type of couple that are tight, she could utilise your allowances also, to get the money invested even quicker.

[North Cardiff Blue]

she is 56. So are you saying that in theory she could divert 100% of her income (salary plus rental money) into a pension ? - or have I misunderstood that ?

We live off my wage anyway just about.

I said earlier up to £40K per year but forgot it was increased to 100% of er income up to a max of £60K per year and your income also potentially.

[A Quiet Monkfish]

The other half has inherited enough money to buy a 2 bed flat - (not in Wales and without the need for a mortgage).

Im sure Ive heard numerous times though that landlords are getting out of the market.
If that is correct - can anyone here suggest why that is ?

(This would not be a place / holiday home in Wales and it wouldnt have a mortgage on it. I know there are new rules re no fault evictions etc . She is also thinking of the airbnb type scenario instead of long term renters)

Stay well clear. Landlords are selling up everywhere. AirB&B and 'built for rent' from the corporates are swamping the market. Check Rightmove, 1 bed flats to rent in CF5, a popular area to rent. There are 3. The Holiday Inn and other hotels in Cardiff are jammed full of ex-renters who the council can't house. the Welsh Govt. has finally succeeded in pushing decent landlords into selling up whilst having no a clue what to do with those people who have nowhere to live.

[pipster]

Stay well clear. Landlords are selling up everywhere. AirB&B and 'built for rent' from the corporates are swamping the market. Check Rightmove, 1 bed flats to rent in CF5, a popular area to rent. There are 3. The Holiday Inn and other hotels in Cardiff are jammed full of ex-renters who the council can't house. the Welsh Govt. has finally succeeded in pushing decent landlords into selling up whilst having no a clue what to do with those people who have nowhere to live.

Thanks , and thanks to everyone who has replied (with something relevant) - that seems to be the conclusion Im coming to. Basically - it's not worth the hassle and there is money to be made elsewhere.
Shame really - as she would have made a very decent landlord for any decent tenant.

Too much tax, too much hassle and too much (in Wales) Govt interference it seems.