Cable Forum - View Single Post - How to keep house prices low for generations to come

nomadking · 20-11-2016, 00:59

Taking out a loan to buy equipment is very different to a loan to buy what is seen as an asset. The house will retain or even increase its value, where equipment will depreciate in value.

As the cost of the loan is retained in the value of the house, any rent is relatively pure profit. By renting it out you are partially "selling" the house. If you sold the house you might be liable for Capital Gains tax.

20-11-2016, 00:59	#10
nomadking cf.mega poster Join Date: Apr 2004 Location: Northampton Services: Virgin Media TV&BB 350Mb, V6 STB Posts: 8,180	Re: How to keep house prices low for generations to come Taking out a loan to buy equipment is very different to a loan to buy what is seen as an asset. The house will retain or even increase its value, where equipment will depreciate in value. As the cost of the loan is retained in the value of the house, any rent is relatively pure profit. By renting it out you are partially "selling" the house. If you sold the house you might be liable for Capital Gains tax. Last edited by nomadking; 20-11-2016 at 01:11.