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Landlords Could Be Taxed Out Of The Market

Landlords Could Be Taxed Out Of The Market

Conservatives Set About Raising Increased
Tax Revenue From Landlords

Before the general election the Conservatives were the only political party to not openly target landlords and property investors with manifesto rhetoric, making them the property professional’s choice for power.

Even before the budget statement was delivered by Mr Osborne, there was plenty of press coverage about the generous tax treatment enjoyed by private rental sector (PRS) landlords and buy to let property investors.

So it was of little surprise that the Chancellor chose to turn to the private rental sector in order to raise some additional revenue for the government.

Conservatives Vowed To Leave PRS Landlords AloneSpotlight predicted that this would happen after the Conservatives were elected, and this year’s summer budget could be just the tip of the iceberg.

George Osborne before the  summer 2015 budget announcement George Osborne’s post election Budget announcement, made earlier in July, contained two  important changes to buy-to-let taxation that will impact on portfolio landlords and higher rate  tax payers.

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Budget Targets Landlords

Budget Targets Landlords

Was The Budget Really That Much Of A Surprise?

The first Conservative budget for 20 years was expected to be good for Britain; however, the reality was not what many landlords wanted to hear.

The decision to target private rental sector landlords and property investors wasn’t too much of a surprise, as the Government can plainly see where the profits are being made and they, like all the rest of the political parties, want a slice.

On the run up to the general election in May 2015 every other political party openly stated that they intended to target landlords, whilst the conservatives remained quiet, prompting a few political commentators to predict that policies would be introduced surreptitiously that would effectively put money into Government coffers.

That’s exactly what we got last week!

The key points that affect landlords from George Osborne’s budget statement include:

Benefit Cap Lowered To £20,000 (GBP)

The total amount of benefits a family can receive over the course of a year has been reduced from £26,000 (GBP) to £20,000 (GBP) – (£23,000 in London).

This is a particular concern for landlords as any loss of income from the reduced benefit cap will hit tenants’ housing benefit first.

Many private rental sector landlords are now worried about increased rent arrears and the probability that many areas of the UK will become unaffordable for large families to live in.

The Government have said that they will allocate £800 Million (GBP) of discretionary housing payments for councils to help affected tenants.

Housing Benefit Abolished For Under-21s

From April 2017 the automatic entitlement to housing benefit for 18- to 21-year-olds will be scrapped for new claimants.

Exceptions will be made for vulnerable young people, including those unable to return to their family home and claimants who were in work for six months prior to making a claim.

Working-Age Benefits Frozen For Four Years

The freeze means Local Housing Allowance (LHA) will fall further behind inflation as the chancellor seeks to stop the housing benefit bill soaring with increasing rents.

Buy To Let Landlord Mortgage Relief Cut

In a £2bn tax bombshell, from April 2017 landlords will no longer be able to claim tax reliefs worth 40% or 45% of the interest payments on their buy-to-let mortgages. Instead, the maximum tax relief will be set at 20%, although the change will be introduced over a four-year period.

Effectively it looks as though 40%/45% taxpayers will only get around half of their mortgage interest (and arrangement fees) offset against their rental income.

20% taxpayers shouldn’t see much change as all mortgage relief will be limited to the basic rate of income tax.

The effect of this will be staged meaning that

  • 25% of this extra tax will be payable on profits made in the April 2017 – April 2018 tax year,
  • 50% in April 2018 – April 2019,
  • 75% in April 2019 – April 2020
  • 100% in April 2020 – April 2021 meaning that the full effect of this change won’t be felt until the January 2022 personal tax bill is due.

Despite the staged introduction many PRS landlords have warned that this could see costs passed on to tenants in the form of higher rents.

Wear And Tear Allowance Tightened

Landlords will have to prove they have improved or maintained their rental property before they can deduct the costs from their taxed profits.

Currently, landlords can deduct 10% of the rent from their profits to account for wear and tear regardless of whether they have improved the property or not.

From April 2016 this is set to be replaced by a new system that only allows landlords to get tax relief when they replace furnishings.

Changes To Non-Domicile Rules

This change in entitlement could affect property investment and buy to let, particularly in London as people born in the UK to parents domiciled here will not be able to inherit non-dom status and people will not be able to have permanent non-dom status.

Anyone resident in the UK for 15 of the last 20 years will have to pay full UK tax.

Rent A Room Tax Free Income Threshold Raised

After 18 years, the Rent A Room tax free income threshold is being raised to £7,000 (GBP) per year. There are an estimated 19 million empty bedrooms in owner-occupied properties in England alone. Freeing up just 5% of those rooms would accommodate 1 million people. This move will also fuel the growth in short, informal lets such as the type offered by Airbnb and the like.

The tax reliefs that have been cut by Mr Osborne were hugely important for landlords in being able to offset other astronomic property costs such as lettings agent fees, landlord insurance, maintenance and repairs costs, as well as council tax.

It is still early days and we need to see how HMRC will implement some of these changes, because they may also try to find additional ways to stop property investors and landlords from profiting from property, however, there are ways to get around some of the changes introduced, including:

Tax Relief

Limited (Ltd) companies appear to be excluded from the mortgage relief cuts meaning that property investors and landlords could potentially look to purchase their future investment properties through Ltd companies.

Buy To Let mortgage lenders could become more open to this method of purchasing properties similar to the way that commercial lenders already facilitate.

Landlords who already own properties personally or in a Limited Liability Partnership (LLP) may want to transfer them to a Limited (Ltd) company; however, they will be subject to capital gains tax and stamp duty.

An alternative method to transfer property ownership whilst retaining the current mortgage would be by using a deed of trust, which would transfer the beneficial ownership to a Ltd company. A good solicitor can draw one of these up for you.

Property investors and landlords could also switch their focus slightly and purchase more properties that need refurbishments.

As long as the property is in a habitable condition when purchased but still needs redecoration and comes into the lettings market before the refurb is done, most repairs such as kitchens, bathrooms, paint etc can be offset against all property income from a whole rental portfolio.

Bird_OldLadyWe will always try to keep our sector alive and rents affordable as we are providing services to people who need them, we don’t set out to rip people off, we’re not politicians, we are the ones who take the financial risks, we’re the people who provide housing and it’s our name on the deeds not yours.

You see Mr Osborne, whilst you may think that you are being clever and are tapping in to wealth generated by other people’s hard work and risk taking, well, we as landlords won’t be beaten!

UK Property Investment Increases 8% In A Year

UK Property Investment Increases 8% In A Year

UK Property Investments Rise By 8% During 2014

UK property investment is booming again, thanks in part to the Government changes to the way pensions are controlled. The changes allow interested property investors to release pension funds for property purchases early, because bricks and mortar continue to offer a greater return than pension funds currently provide.

Property investment in the UK is becoming even more popular with the number of property investors increasing by 8% during the past year, according to data recently released by letting agent, Ludlow Thompson, with landlord numbers rising to approximately 1.63 million controlling approximately 3.1 million private rental sector (PRS) properties in the UK. 

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New Data Reveals UK Private Rental Sector Hotspots

New Data Reveals UK Private Rental Sector Hotspots

Private Rental Sector Rents Continue To Rise
In 10 Out Of 12 UK Regions

New data published by HomeLet has revealed some UK private rental sector hotspots for property investors and portfolio landlords to consider.

In some areas of the UK PRS rents have continued to increase, despite all the doom mongering that is going on in the media, with rents increasing by the most in:

  • Leicester – PRS rents up 45% on 2013
  • Southall – PRS rents up 38% on 2013
  • Cambridge – PRS rents up 24% on 2013

Meanwhile other parts of the UK witnessed the biggest falls in rental prices in 2014 on new rental agreements with the biggest rental price falls recorded in:

  • Colchester PRS rents Down 24% on 2013 prices
  • Croydon – PRS rents down 23% on 2013
  • Brighton – PRS fall 18% lower than 2013 prices.

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Property Investors Should choose Investment Properties Wisely

Property Investors Should choose Investment Properties Wisely

Property Investors Warned To Choose Potential
Property Purchases Wisely

Savvy property investors know that profit is made when buying property, not when it is sold, as equity can be locked in upon purchasing below market value, giving the property investor greater control of the purchase price by negotiating a deal with the seller, (vendor), rather than what the property eventually sells for on the open market.

Property investors are different from ordinary residential property buyers, as they are of the mindset that the property should meet all the financial requirements of a landlord first & foremost, rather than paying the high end retail price for a property just because it looks nice.

Many new and amateur property investors make the common mistake of falling in love with a property and begin to let their heart rule their head, becoming so emotionally involved that they lose control of their finances and let their emotions win, overspending massively and reducing any potential yield.

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CML Forecast 16% Mortgage Lending Growth In Next 2 Years

CML Forecast 16% Mortgage Lending Growth In Next 2 Years

Council of Mortgage Lenders Predict Significant
Mortgage Lending Growth

The Council of Mortgage Lenders (CML) have predicted that gross mortgage lending in the UK will increase by 16% over the next two years.

The CML says gross mortgage lending in the UK reached around £207 Billion (GBP) in 2014 and they firmly believe that gross mortgage lending will grow by 7% to £222 Billion (GBP) during 2015.

Following that, the CML also forecast a further 8% increase to £240 Billion (GBP) in 2016, up 16% when compared to gross mortgage lending in 2014.

While the CML are happy to forecast 2 years of mortgage lending growth, it acknowledges that the pace of growth has slowed compared with the 18% recorded from 2013 to 2014, with gross mortgage lending increasing from £176 Billion (GBP) in 2013 to £207 Billion (GBP) in 2014.

In its analysis, the CML said that the stamp duty reforms announced by the Chancellor, George Osborne, in the Autumn budget would help boost overall mortgage lending activity, following the lull encountered in the summer of 2014.

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UK Property Market Predictions For 2015

UK Property Market Predictions For 2015

What Will Happen To
The UK Property Market In 2015?

Happy New Year to all our readers, and welcome to the usual confusion over what the year ahead will bring for the UK property market.

Property prices are still predicted to rise in 2015, albeit at a much slower pace than in 2014, with economists and property experts providing forecasts ranging from 3% to 5% property price growth.

However, there are a few events that might affect the UK property market in 2015, namely the general election that will be held in May and the growing probability of Bank of England (BoE) raising the base interest rate.

Regarding the general election, it all could depend which party wins or what coalition combination is named to form the Government, after Labour recently confirmed that they would introduce a mansion tax if they come to power. Meaning that the changes to Stamp Duty that were announced in the 2014 Autumn budget would be negated if Labour win.

Less clear is what will happen with Bank of England interest rates. It had been predicted that a small rise, either by a quarter to half of a percent, was going to be introduced before the end of 2014, but that didn’t happen. Then it was going to be early 2015 but that is now also looking very unlikely.

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Simon Zutshi's Property Mastermind Accelerator workshop

Simon Zutshi’s Property Mastermind Accelerator workshop

Property Mastermind Accelerator
Advanced Workshop

Property investors have the opportunity to take their property investment knowledge to the next level

We are offering property investors the chance to get on Simon Zutshi’s dynamic 3 day residential Property Mastermind Accelerator workshop, which is normally the first part of the Property Investors Network (PIN) year long Property Mastermind Programme, which has been successfully running since April 2007.

The Property Mastermind Accelerator workshop combines Simon Zutshi’s 17 years property investment experience with some of the very best content from the 12 month Property Mastermind Programme, where property investors can learn:MMA-package-300x246

  • A full explanation of the Investing Strategy Flowchart and all associated strategies including HMO’s, Options and quick Cash generating strategies.
  • Complete tool kit to monetise every motivated seller lead including leads which most people would consider junk leads.
  • In depth step by step details on the 3 most successful lead generation strategies and how you can implement them.
  • How to get other investors to give you their surplus motivated seller leads for free.
  • How to systemise your lead generation process to save you time and ensure you never miss a motivated seller call
  • The knowledge and experience of exactly what to say to motivated sellers so that you can find the best ethical, win win solution to their problems.
  • How to convert more leads to deals and increase your success rate by 200%
  • How you can gain cash flow and equity growth from property you don’t own using options, without the need for mortgages or large deposits.
  • How to find perfect joint venture partners which means that you can do more deals that you would on your own.
  • How to maximise the cash flow from your properties with multi let strategies
  • How to profit from property even when purchased at full market value.

This is a summary of what Simon Zutshi’s Property Mastermind Accelerator is all about:

  • Learn How to become a professional investor
  • The very best bits from the Property Mastermind Programme
  • Full explanation of the Investing Strategy Flow Chart
  • How to attract motivated sellers to you
  • How to get other people to bring motivated sellers to you
  • How to put your lead generation on auto pilot
  • How to find and ethically deal with motivated sellers
  • How to monetise EVERY single motivated seller lead
  • How to maximize the cash flow from your properties
  • How to finance your deals

By investing in your own property education you are making an investment to change your life.

Investing in your self is the best investment you will ever make.

Simon has put together an incredible 3 day seminar which will give you all the tools to become a professional property investor which means you can earn your living from property investing without having to spend all of your time doing it.

The investment to attend this life changing event is just £2997 + VAT

Here is what you get for your investment:

  • 3 days intensive training in workshop format
  • 12 DVD set of the Mastermind Accelerator
  • Workbook with all the notes
  • Personal strategy outline
  • Clean step by step action plan of what you need to do
  • 2 night hotel accommodation
  • All meals and refreshments provided
  • Satisfaction Guaranteed

NO RISK -100% Money back Guarantee

As usual Simon Zutshi offers a full 100% money back guarantee with this intensive 3 day Property Mastermind Accelerator training programme.

If for any reason you are not delighted with the training at anytime up to lunchtime on the second day simply tell Simon, hand back the course materials and he will happily give you a full 100% refund.

Simon is so confident that the value you will receive will be far higher than the investment you are making in yourself.

Attend at No Cost

Having attended this training, if you decide to really Turbo Charge your results by joining the Property Mastermind Programme, then Simon will deduct your investment in this 3 day workshop off the full price of Property Mastermind Programme so that in effect you will have had the Mastermind Accelerator workshop for Free!

Your Next Step

Simon runs this event four times a year. The next dates are shown below. So decide which date you want attend and secure your place today!

5th-7th February 2015 – HEATHROW

19th-21st March 2015 – BIRMINGHAM

Below is a short testimonial for the Property Mastermind Accelerator workshop

Property Investment Quick StartProperty Investment Quick Start With Simon Zutshi

Would be property investors who want to get their investment career off to the best start in 2015 should consider joining Simon Zutshi’s Property Investment Quick Start Programme (PIQS) to help them achieve amazing results.

Simon Zutshi’s PIQS programme teaches new and seasoned property investors how to buy property using none of their own money!

As many property investors will testify, there has never been a better time to make money in the UK property market, if property investors know what they are doing!

One of the most profitable ways to invest in property is to purchase from motivated sellers, who are more than happy to sell you their property for less than the true market value.

This allows property investors to make instant equity profits from day one, as well as positive monthly cash flow as well as long-term capital growth.

There are still thousands of property owners who need and want to sell their property but they can’t because there are just aren’t enough buyers in the market.

First-time buyers don’t think they are able to buy even with the aid of the Government’s Help To Buy scheme, and amateur property investors are waiting until they are certain that the market has recovered and is on its up way again before they buy.

What this means for you is that there is a HUGE opportunity, as long as you know what you are doing, and start taking action now!

After just one day with Simon Zutshi, property investors will know exactly how to profit in the current property market whilst minimising the risks.

On the one day “Property Investing Quick Start” (PIQS) seminar, Simon Zutshi will share with property investors the benefit of his successful property investing experience, as he has been in property since 1995 and has already helped many thousands of investors personally since 2003.

Property investors will know exactly what to do and even have their own action plan to make sure that they really do get a quick start!

To discover more about Simon Zutshi’s Property Investment Quick Start Programme and find out what the four biggest property investment problems that stop investors from benefiting  are – CLICK HERE!

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No Money Down Property Report Give-Away

No Money Down Property Report Give-Away

This Controversial No Money Down Report Is Going
To Be The Next Big Thing In UK Property!

The UK’s biggest property buying educators, Progressive Property, have just released a fascinating training report and complimentary audio guide on CD that shows how you can genuinely buy a home or investment property with using any of your own money!

This revolutionary printed No Money Down guide is set to change the way in which first time buyers, new and seasoned property investors, and second home buyers purchase and pay for UK properties.

Scrimping and saving hefty deposits, and watching potential ideal property investments pass by could now be a thing of the past.

The report is aptly called HOW YOU CAN BUY PROPERTY WITH NONE OF YOUR MONEY and I’ve included a link below for you to take a look

Act Fast And Get Your Copy Click Here Now

It’s already causing quite a stir on Facebook, Twitter and other social media sites due to its controversial but easy to use tips, and it’s only just been made available!

What’s more… the tips work! (and there is plenty of proof contained in the report)

I’ve read HOW YOU CAN BUY PROPERTY WITH NONE OF YOUR MONEY”, and even as an experienced property investor I have to say that the report really is an eye opener!

I would say that it’s well worth grabbing a copy of “How you can buy property with none of your money just to examine the cutting edge techniques that property buyers across the country are now able to discover.

What’s more, Rob and Mark from Progressive Property are giving some copies away for free right now in order to get property investor feedback before it goes on general sale in a few weeks time:

Act Fast And Get Your Copy Click Here Now

This brand new report is NOT about!

  • This is nothing to do with “Buy A House For A Pound” or anything as ridiculous. This report will show you how to BUY a house (outright) with none of your money
  • This is not something illegal, certainly not something immoral, nor is it something to be “frowned upon”. In fact you’ll probably find it makes your friends want to know how they can do it too
  • This is not some “push-button” system for buying every house on your street. Let’s be realistic, that doesn’t happen. Otherwise everyone would be doing it.

The techniques described in this report are smarter than that. And will show you in detail how to quickly buy an house on (or off) the market. Either in your area or any area of the UK in which you’d like to buy a house…

Allowing you to quickly and easily buy good, sound properties especially when you find them at a great price.

Act Fast And Get Your Copy Click Here Now

 

No Money Down Property Report Give-Away

No Money Down Property Report Give-Away

 

There Will Never Be A Better Time To Invest In Property

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