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  • Buy-to-Let

    Is it S24 deterring newbies from BTL?

    It is clear that such is the uniqueness of every LL personal domestic circumstances and requirents it is simply unwise to suggest that LL might be better off using either a company strategy or not.

    It is clearly something that depends!

    Unless the LL situation is reviewed from a totally holistic perspective there can be no hard and fast rule that says company good; sole trader bad.

    To me many LL are not seeking holistic advice and could well be boxing themselves into corners of their own making that they can't easily escape from.

    Much DD is required by a LL before changing business methodology.

    You can only quote generally like Peter can.

    There is no one size fits all solution.

    Which is a shame as everyone wants the easy answer.

    There just aren't any!

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    If you do not want me to describe  statements you make as *moderator content removed* then don't write such nonsense, It you want to make outrageous statements to attact attention then be prepared to be called out on them.

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    Yes but it's an upfront tax in the tens of thousands of pounds or even 6 figures on my place.  It isn't that easy to make money you know.

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    I've been a lodger landlord for around 30 years and residential landlord for 3 (inherited property), so a relative newbie. I've just put the inherited property on the market. The factors that put me off re-investing in residential property are mainly tenancy legislation, such as S21/S8, licensing, deposit protection, prescribed information, etc. I have decided to re-invest, at least part of the proceeds, into commercial property. I believe the legislation is much more straightforward and as a bonus there is no additional stamp duty or S24. I will continue with lodgers and am also considering short term lets.

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    Imho

    If many landlords with experience are not buying why would a newbie buy?

    Pick anyone of following.

    prices at peak and overdue correction. If they rise there just a little steam left.

    if plateaued then reversal on a Graph or if overly optimistic then short break before leg up.

    Politics - future Corbyn risk.

    media - rogue landlords and portrayal

    although 5 year rates good - the property just won’t stack unless HMO.

    If you had 10-15 year rates might consider.

    Perhaps the course sellers and gurus have calmed down pointing to infinity returns and property doubling every 7 years. There has to be an enticement factor .

    If I was a newbie and just tuned into Propertytribes.

    I have just read negative news stories by experienced landlords avoiding investing further, bubbles popping , rent control , licensing , fines , council issues.

    Have i mentioned section24 once??

    im still a newbie.

    Born again landlord virgin. 

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    Coming soon Investorsk8.com

    Wisdom - an integration of knowledge, experience, and deep understanding that incorporates tolerance for the uncertainties of life as well as its ups and downs. 


    As an ex-landord who is looking at options for the future, S24 is a long way down my list of concerns.

    Above it are 3% sdlt, landlord legislation / registration issues (and the risk of getting something wrong), the difficulty removing problem tennants, and the expectation that property prices will drop next year (S24 sell-off starting in April ?).

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    Here is your answer

    4000 Landlords are selling per month

    I would imagine its because of S24 but there again I imagine lots of things according to some PT members

    https://www.thisismoney.co.uk/money/buyto...MONTH.html

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    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.

    May be because of S24 but looking at this thread S24 is not the main issue for most.

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    I think it will be a combination of a number of things so may have made money and can see it’s the end of BTL coming

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    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.


    The convoluted rules and regulations may put me off if I were new to BTl. However, If I were a newbie and enthusiastic I'd likely be pushing through regardless of all that to a bigger goal. Long term growth and capital growth. A decent pension. The pension systems now you can't trust.

    A lot of investors that are in it for the long haul (10yrs plus) will have positive feedback on long termism.

    Stamp duty is inconsequential if you look at the bigger picture and purchase lower cost properties. If you are sure of your purchase, 12k in a surcharge, even on a 350k purchase would be overruled by the prospects of a much bigger pot of cash growth at the end of the rainbow ( how I see it) even less of a surcharge, then bonus!

    If I were new to BTL, it is definitely  S.24 that would put me off though, That is if I were so keen on property that I took the effort and time to comprehend it. A 110% tax grab would make me a charity and not a business, why graft for no reward. The prospects would look bleak.

    Being experienced though and trapped in (almost) because of the retrospective nature of the s24 beast , you learn of ways to survive the winter. You delve and dig to find ways you can can offset legitimately, become more creative, self manage, buy a new vehicle, form 17's, DOT's. You have been determined to be are in business now like the big guns and Osbourne's cronies so now you need to think like them. There are ways around this, you need to be in league with accountants willing to support you and be self assured.  It is harder for newbies though as inexperienced but doesn't mean they can't make it. They just need to be very very determined. Non-portfolio landlords have better mortgages availiable to them than portfolio landlords, so that is a good start if they wish to sole trade.

    Starting to think like Jonathon now and expand. The mojo is coming back, selling one big one for two  less costlier properties. Each with the same yield as the biggie of which the vehicle can be offset.  Even looking to buy a flat ( albeit with a garden and garage so double bonus) because of the superb location . Near a 45 min train line to London. The service charges would of put me off but now I think, well sod it, that will mean less s.24 liability. A silver lining.

    In our area, I'm 100% sure big growth is coming in the next three years.

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