Buy to Let with Uncertain Future

In message , Tim writes

(Yes I just wanted to escape now.....................

Reply to
john boyle
Loading thread data ...

"john boyle" wrote

"john boyle" wrote

I did say "usually"!!

"john boyle" wrote

I assure you I don't. :-)

"john boyle" wrote

I am not talking about how something is accounted for, nor how it is taxed. Those two feature are, of course, artificial.

All I am saying is that the financial importance of income & capital growth are only brought about when you actually "get the money out". If you don't take the interest out of the bank a/c (ignoring accounting & tax) then it is the same as leaving new equity in a property. Simple as that.

You have one "black box" - something you have put money into in the past. At intervals, you take money out. Luckily for you, money is generated from time to time in the box. At the "end", you can take out all the remaining money in the box.

Now this "black box" can be either property or a bank a/c. It doesn't matter which. Either way, you get money out regularly ("rent" for property, or *part* of the interest for a bank a/c) and a wodge out at the end (we're calling this capital appreciation/growth for property). Of course, you could take *all* the interest out all the time from the bank a/c. You could also regularly re-mortgage the property - thus gaining access to the capital growth from that earlier than when you sell it. Doesn't matter -- income -or- capital growth. All part of the full return!

I'm sorry if you can't follow the issues here! :-))

Reply to
Tim

In message , Tim writes

We have a very basic disagreement here then.

ER, I think I can I'm not trying to hide them in black boxes am I?

Reply to
john boyle

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.