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  • Tax

    Landlords advised - "Get out while you can"

    So even if she has a point about getting out of direct investment in BTL - would you buy grainger ? - wouldn't you be looking to diversify out of uk property....

    https://www.hl.co.uk/shares/shares-searc...rdinary-5p

    div yield of 2%.

    oohh light my fire. not.

    better off buying water company shares ! 

    e.g. 4.4% yield on Severn Trent... https://www.hl.co.uk/shares/shares-searc...y-97-1719p


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    DISCLAIMER just my personal opinion - for legal advice consult a qualified professional grown-up.


    Renters may face price rises as landlords cash in on property

    Hundreds of thousands of landlords are planning to cash in big gains from a decade of rising property prices as the government’s assault on buy-to-let encourages an exodus from the market.

    More than one in four landlords intend to sell at least one of their properties over the next year, risking a crisis for tenants, according to a survey by the Residential Landlords Association (RLA).

    Nearly five million people — about one in five households — live in the private rented sector, including many families, with half of all babies now born to families living in privately rented accommodation.

    There are 1.5 million landlords in Britain and they own 3.4 million properties. The RLA says that tenants face less choice and higher rents if landlords sell up, and mortgage brokers warn that buying a property remains an unrealistic option for the majority of renters. Waiting lists for social housing also remain long.

    The Royal Institution of Chartered Surveyors has already warned that the imbalance between supply and demand in the rental market is expected to lead to rent increases of more than 15 per cent over the next five years.Landlords’ desire to sell comes after the government started scaling back their tax breaks, such as relief on mortgage interest payments.

    From April 2020 landlords will only be able to claim relief at the basic rate of income tax.

    https://www.thetimes.co.uk/article/rente...-znjlzdmnq

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    I think we have all said this would happen

    But this was the Osborne Plan

    Get Landlords out they have to sell and too FTB

    So the plan is working as Osborne wanted it

    But it will have a knock on effect as the times has indicated less property to rent

    as profitable landlords leave the sector and who can blame them

    There are times when I think I should cut and run

    I dont because I dont have the Capital growth to cash in so I am stuck where I am

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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.

    LL's would have to have owned for at least 10 years and made significant CG's to take into account the large CGT they would be taxed on the proceeds. Plus kissing goodbye to that income % for ever more. I'm not sure how long it would take to make it worthwhile buying back in at a later date?

    Has anyone ever played that game and succeeded? Selling up, then buying back in and 'cleaning up'?

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    If a Landlord in the SE had been in the bussiness for say 25 years I would have imagined they would have substantial gains 

    lets say they have Five Million in Profits 

    They could take advice on  how best to avoid CGT 

    but even if they did have to pay CGT they would walk away with a dam good nett profit 

    Pay there taxes and then sit back and take it easy 

    Invest there profits wisely away from property and enjoy the fruits of there labour 

    They could also take advice on IHT

    Property is a sound place to make wealth but I think there may come a time in some Landlords lives when they have done well

    and move on

    The sector is not going to be as easy as it was Regulation and Taxation is going to increase so why stay and put up with the paper work and Tenants

    Once a Landlord has sold they may want to come back and do it again

    But at least they have a choice

    BTL can be stressful and hard work at times



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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 sector is not going to be as easy as it was Regulation and Taxation is going to increase so why stay and put up with the paper work and Tenants``

    So a 50 yr old whose been  in it 25yrs has 5 mil equity

    100K income pa lets say

    Sell up and that 100K income stops stone dead

    So much better is to employ a property manager at 30K pa

    70K income pa is quite sufficient going forward

    Then in the next 25 years  you now have 10 mil equity as prices will double

    So by not selling up you passively make another 5 mil and secure a  1.75 mil income

    The hard work has been done - Why throw it all away between 50 and 75 . Crazy

    BTL is only stressful if you choose to make it stressful

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    Jonathan Clarke. http://www.buytoletmk.com