Why Must Buy-to-Let Landlords Choose the Correct Business Structure

November 4th, 2019 by admin

Why Must BTL Landlords Choose The Correct Business Structure

Buy-to-let properties are back in fashion… This is because rental yield is becoming higher due to the increased rental demand. Moreover, mortgages are now available in abundance. However, like any other business, buy-to-let properties do come with their risks. One of the best ways to avoid this risk is to choose the correct business structure for your buy-to-let property. There are several options available to a buy-to-let landlord that can be availed, and each has its own pitfalls. Most of the BTL landlords either own the property personally or follow and investment company structure. Tax Relief on Mortgage Interest In the past, owning a buy-to-let personally used to be the most profitable option. However, this has changed since the announcement of new tax rules for buy-to-let properties. Back in the day’s landlord could offset mortgage interest payments against rental income. However, in... [Read More]

5 Home Renovation Ideas Worth Investing In

November 4th, 2019 by admin

As a homeowner, you have the responsibility of proper home maintenance but also adjusting your personal environment so that it feels truly comfortable. Not to mention that your intent might be to sell your current home and get a good deal out of it, which is another reason why you should definitely look into the options you have when it comes to home renovation ideas worth investing in. Of course, if you’re aware of a certain aspect of your home that requires urgent repairs and upgrades, make sure to go with that first. On the other hand, you might be interested to learn more about the generally favourite renovation projects among homeowners nowadays. Light Up Your Home Properly Regardless of whether you’re planning to sell your current place or want to enjoy it yourself for years to come, it’s crucial... [Read More]

Private Landlord Tax vs. That of A Private Hotelier

November 4th, 2019 by admin

This case study illustrates just how unfair the UK tax legislation will become for private landlords as of April 2020. Perhaps more importantly, it provides insight into what can be done to “level the playing field”. Let’s assume that both businesses own assets worth £2,000,000 and have 75% LTV mortgages secured on them at an interest rate of 5%. In other words, their annual finance cost bill is £75,000. Now let’s assume that both businesses make profits after finance costs and all other expenses of £50,000. The hotelier will pay £7,500 of income tax. This is broken down as follows; £nil on his first £12,500 of net profit and 20% tax on the next £37,500. However, the private landlord cannot treat his finance costs as a legitimate cost of business in the same way as the hotelier. Accordingly, his tax bill is... [Read More]

The Best Student Cities for Property Investors During and After Brexit

October 27th, 2019 by admin

Are you looking to invest in purpose-built student accommodation? It can be an extremely lucrative venture as long as you choose the right property in a prime location. This will ensure that you generate a significant amount of interest from students, while also benefiting from high rental yields, generous rental returns, as well as the potential for capital appreciation. Take a look these top destinations, where you could find the most lucrative student real estate on the buy-to-let market. Durham The city of Durham is home to one of the most prestigious universities in the UK and is currently ranked 5th in the University league tables. Attending this academic institution is a dream for many young hopefuls and is the main reason why the area is exceptionally lucrative. Investors can also achieve their goals by investing in purpose-built student accommodation... [Read More]

LLP Structure Reduces Landlords Tax Bill by 85% (Case Study)

October 21st, 2019 by admin

When used correctly, Limited Liability Partnerships “LLP’s” can be an excellent structure for landlords, not just for tax planning but also for the evolution of rental property businesses generally. For example, many landlords wish to eventually leave a legacy to the next generation. They also wish to consider succession planning, which is something all business owners should do. Do you want to be tied to your business until the day you die or would you like to think you can take more of a back seat when you reach retirement age? One of the key advantages of LLP’s is HMRC accept that it is perfectly legitimate for taxable profits to be allocated disproportionately to ownership between individual Members (not Corporate Members’ though). Landlords LLP Case Study Let’s say that Mr X has a property rental business in his own name... [Read More]

New Build Property in the Brexit Era

October 6th, 2019 by admin

There’s no doubt that Brexit has caused uncertainty across the UK property market. While some investors are happy to continue investing based on successful past performance, some have taken a more ‘wait-and-see’ approach. However, despite the warnings, the UK economy and the property market have continued to hit new heights. The national GDP grew by 1.8% in 2017 and regional property prices around the country have continued to flourish – Birmingham, for example, has risen by 16% since 2016 and is forecasting further growth by 2022. New-build property is becoming increasingly popular for investors compared to traditional existing stock, demonstrated by 75% of respondents to a recent survey, by FJP Investment, praising the modern features associated with new-builds. In the same way that new-build properties have always been a popular asset type, the UK market has historically been a popular... [Read More]

Property Investor’s FactFile – October 2019

October 5th, 2019 by Ruban Selvanayagam

- According to the latest UK House Price Index, average house prices saw an annual price rise of 0.7% (to July 2019); - The latest Hometrack UK Cities House Price Index reported that Leicester saw the greatest year-on-year house price growth at 4.8%. This was followed by Liverpool (4.6%), Manchester (4.5%), Cardiff (4.1%), Edinburgh (4.0%) and Birmingham (3.8%); - The most recent Royal Institute of Chartered Surveyors (RICS) report stated that near term sales expectations slip deeper into negative territory; new instructions and buyer enquiries broadly flat and the demand for lettings continues to rise against a backdrop of falling supply. [Read More]

Benefits and Dangers of Real Estate Investing

October 1st, 2019 by admin

There are many investment opportunities that you can consider getting involved with today, and one of which is real estate. Many people still have their apprehensions in real estate investing, since many would think that it requires a lot of technical knowledge. Aside from that, people also are thinking about the costs of getting started with it, as well as the risks involved. Although all of the things mentioned are true, many people are still interested in investing in real estate. This is because there are a lot of benefits in real estate investing, and if you are able to become more familiar with them, then you may also find yourself joining the real estate bandwagon soon. To get more familiar with the benefits of investing in real estate, some of them are found below. 1. One of the more... [Read More]

What is Property Investment Management?

October 1st, 2019 by admin

Property investment isn’t only about buying and selling properties. To turn a profit, you’ll rent out your properties to give you a steady rental income. Your properties should appreciate in value until you sell them. Renting out even one property can be difficult and time-consuming. So, growing your property portfolio will mean more work for you. Landlord Vision are experts in all things property management. Here, they give insight into the different methods of managing investment properties. Read on to find a property management system that helps you meet your investment goals. What is Property Investment Management? Property investment management is the process of managing money that has been invested in property, usually in order to earn high profits and capital growth. As a property investor, this means monitoring the performance of your assets and making decisions based on performance... [Read More]

The True Cost of Illegal Tenant Cannabis Farms

September 29th, 2019 by admin

Illegal cannabis farms are dotted across the UK, with many situated in London. It’s reported that a cannabis farm is found every two days in the British capital, especially in South London. The borough of Croydon, in particular, had the most cannabis factories according to the latest numbers – 30 in total. The London rubbish removal agency Junk Hunters has seen at least three cases of rental properties converted into illegal cannabis farms. They were called in on each occasion to clear out the leftover rubbish after police had raided the property and confiscated and destroyed all the cannabis. Illegal Tenant Cannabis Farms Increase Since the UK has not legalised cannabis, these factories continue to proliferate. Many have been found in derelict locations across Britain – from abandoned hospitals, and warehouses to farms and even buried shipping containers. But these... [Read More]