Hello i am known as Hornby.

I have come into some money, i currently live with parents. I would like to get into the property game. I have noticed a flat which is actually quite nice. I could buy this outright, if i did i would like to rent it.

Although my figures state that i would make more money off the interest if it was left in the bank. My questions are, what percentage of tax do you pay on rent. Also i am aware of other outgoings associated with renting such as insurance, estate agent fees should you have them make things more simple and deal with the tenents etc.

Even though i would be better off, as in making more money by leaving it in the bank, what are the beneifits? Would i be correct saying i would be protected from the rise and fall in house prices etc,

The location of the property in the center of town, near the quayside if you are fimilar with Newcastle Upon Tyne, so i believe i wouldnt be sort of tenents,

Basically all in all, could someone kindly anwser my questions and give me other information regarding renting properties,

Thanks Guys,

Hornby

Well, my tuppence worth:

The property market market is falling at its fastest rate for years and years as yet. August saw an average fall or 1.8% as I recall in that month alone. That equates to £3150 "lost" on a house of £175,000 in that month alone. Personally I reckon the housing market will only start recovering at the earliest in 12 to (more likely) 24 months.

For that reason alone I personally would not get into the property market right now, at least not with the idea to make money. Month on month, you will be worth less every month, rent notwithstanding, unless your rent can outpace the current property downturn (which I'm pretty sure it can't.) Hence, shrewd investments elsewhere (or a high interest savings account) is a far better call.

As for tax on rent -- it is taxed as income (AFAIK.) You don't pay a different rate of tax for different types of income - you pay tax on your total income, in bands. Ask an accountant/google for the current tax bands.