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Having watched the video in the above thread I am baffled by the statement 'The days of the accidental landlord or armchair dabbler are long gone' more so as it is stated in contrast to 'Newbies really looking at the tax situation'.
I am an accidental landlord and an armchair dabbler but I am also really looking at the tax situation and the legal situation. I have studied, researched and questioned. I have made incorrect assumptions and learnt more from them. All I can conclude is that there are a plethora of opportunities for landlords who do not take the mainstream options.
I understand the element of recognition for the professional landlord, this is justified and deserved, but there is still plenty of opportunity for the amateur, but legitimate, landlord.
As an example, a core decision is that I don't want direct ownership of property as I get older. A company is one way of achieving this. An available benefit is that this can increase my income tax allowance from £12.5k to £17.5k for 2019/20, by using the starting rate for savings. A follow on benefit of this choice is that I retain the rent a room exemption. I may also be exempt from BIK taxes, but I haven't yet been able to confirm this.
I call the sector you mentioned here’s the cottage industry of landlords
to be honest I think in general they will go the road of the old corner shop
some will survive but most wont
the time is now comming with the professional company landlords
the old rich dad poor dad will work today but you will need to find large cash deposits to do the deal most likely with max borrowing of 70% in a company
it’s the wrapper which has changed
I think it may be a good thing to see the back of the accidental landlord
its never good to go or be forced into any bussinss
by accident or other strategies
cash cash cash builds strength not borrow borrow borrow as was done since BTL started in the 90s
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
I like the analogy to retail. Supermarkets have taken a lot of trade from smaller retailers. I understand the assumption that the larger company will prevail. Yet I rarely visit these retailers. I find there are many 'cottage industry' retailers offering a mail order service from a spare bedroom or similar. They're amateur but legitimate.
The high street is dying but all the trade is not going to the out of town shopping centres.
Hi Gary,I think you are in the minority of an accidental or dabbler landlord who is making informed decisions.There is opportunity for any demographic of landlord who does that.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
I have some sympathy with what you're saying. We were 'armchair investors' 15 years ago but had our fingers burnt. Dabbling today just isn't enough. I'm not saying accidental landlords can't step up to meet all the requirements with the right support, clearly some do. However, it's more about becoming a professional, able to meet all the legislation (100 + pieces!), regard tenants as clients with a view to developing a respectful long term relationship, (if they want a long tenancy).
I used to object to landlord associations pushing for landlords to become accredited, but since doing the course with the NLA I've changed my view. It's just one way to show you're serious about how you run your business and the time you put into professional development.
I realise not everyone will agree with me, but I really do believe times have changed. If you don't develop the knowledge, gain enough experience, have the right support in place, then it's just a question of time before something comes along to trip you up. All the government tactics confirm this. They want landlords to clean up their act. BTW, PT is probably the best source of info, advice, support I've come across. Smart Landlord is the latest gem, what's next.........
I generally agree with you. Government changes are making the sector far more difficult.
My first decision was that I don't want direct ownership. My second was that I don't want to use an AST. These two decisions have significantly reduced the opportunities available to me, but have also significantly reduced the legislation that will affect me.
I like the idea of some sort of accreditation or qualification. Whether professional or amateur, this has to be beneficial. Ironically, I contacted RSW last year regarding training and licencing but was told that I didn't need it as I wouldn't have any ASTs!
I think it still works for the armchair folk, the only difference is that it will be the wealthier rather than the highly leveraged.
It will be your doctors/lawyers etc. who earn 100k ish, they'll buy the occasional house unencumbered every 5/10 years as a safe place to park their savings. They'll be hands off and instruct a letting agent to get on with the management. Very straight forward vanilla single lets in middle class areas.
Nowt wrong with that.
I can relate to that, although I certainly don't have the high salary!
1 mortgaged resi that I'm stuck with due to divorce complications and 1 unencumbered inherited property. I've been muddling along as an armchair landlord and could continue to do so.
I could be a millionaire, on paper at least, within 12 months. It doesn't appeal to me and it probably wouldn't be the right time even if it did. A little scratching around has revealed some more appealing alternatives.
Being a millionaire doesn't appeal to you??
I'll probably be a millionaire one day, if I live long enough. I can achieve financial security and freedom with a reasonable effort and a few rules and regulations, which does motivate me. I don't feel a need for any more, someone else can enjoy that.
... financial security and freedom with a reasonable effort and a few rules and regulations...
And there are many millionaires who haven't achieved that - so fair play to you Gary!