I know this question has been asked several times over the years but none of the research I have done (just google and so on) I am able to find a clear answer.
There is so many mixed reviews.
The question being is say if you have a surplus cash and don’t need the money for the next say 10 years – Is it a bad idea to invest in a flat or a house? For the purpose of illustration say the amount of surplus cash is £150K.
No mortgage will be taken. I understand any income (such as rent) we will have to pay tax on although the tax is deductible for any expense is incurred is deductible from this rent.
I know there is Capital Gains Tax to be paid on any profits – So for example, if the property in five years is sold for £200K then the CGT for the extra £50 is applied. Although I don’t exactly know what the CGT rate is.
I am also aware that if the company is in touch the property as an asset is at risk also but that risk I am prepared to take.
It is not practical to take dividends out as in that example provided will take three years to get in my name – when that £150K could be put to use now.
Do you think this is workable please? Any critique?
Many thanks