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Property Sparrow is hopeless at mental arithmetic. For the second time in a week she has had to get her calculator out.
She calculates her anticipated monthly savings in VAT on lettings agent management fees, from 17.5% to 15%.
She reckons this will be:
Saving on Property 1 £2.23
Saving on Property 2 £1.87
Saving on Property 3 £2.16
Saving on Property 4 £1.96
She calculates her anticipated monthly savings in VAT on lettings agent management fees, from 17.5% to 15%.
She reckons this will be:
Saving on Property 1 £2.23
Saving on Property 2 £1.87
Saving on Property 3 £2.16
Saving on Property 4 £1.96
Total per month £8.22. Saving per annum £98.64
Chicken feed some would say but Property Sparrow is easily pleased.
Chicken feed some would say but Property Sparrow is easily pleased.
She puts her Overpayment On The Mortgages target up to £98.22 per month.
She hopes that this is correct and that Darling Alistair will confirm this later on today.
What are you all going to do with your savings?
She hopes that this is correct and that Darling Alistair will confirm this later on today.
What are you all going to do with your savings?
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4 comments:
Could this be another pair of shoes or have some other treat in mind?
Dear Anonymous,
Alistair wants us all to go shopping but for Property Sparrow no more shoes until the next interest rate cut. Every pound and penny saved going into the mortgages.
Would you advocate paying down your debt or building up a cashpile for future investment?
Anonymous,
Property Sparrow thinks that it’s better to try and pay a lump sum per month or per week off your mortgage(s). Now that the interest rate is lower, you are better able to peck away at the capital you have borrowed. That in itself makes you feel good and more in control and, in these turbulent times, who knows what will happen next. The more distance you can put between yourself and the bank/building society the better, if that makes sense. Property Sparrow would prefer to see the overall amount borrowed reduce rather than increase and, whatever the rate, she doesn’t like paying interest!
Of course, it depends enormously on what you want to do next and that’s a personal decision for every landlord. If you want another property, start saving now! You’ll have seen that several of the other bloggers have written recently about the potential for cheaper properties and sooner or later there may be opportunities.
Please bear in mind that Property Sparrow is neither an accountant nor an expert in tax but other readers and bloggers may be able to add more details about the pros and cons of paying off mortgage(s) in the current climate.
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