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  • Tax

    Landlords advised - "Get out while you can"



    The chief executive of Grainger, one of Britain’s biggest rental firms, has said that amateur landlords should give up and buy shares in her company instead.

    Helen Gordon, whose company includes build-to-rent operations, told The Times that the traditional rental sector’s days are numbered.

    She said: “Instead of people investing in buy-to-let properties, they should invest in a Grainger share. They would get 50% of our net rental income paid out as dividends.”

    She said that for private landlords, “the tax regime looks increasingly unfavourable”.

    She went on: “I think there are some big changes coming, which will make many people reconsider.

    “Are landlords going to be able to compete with the big build-to-rent operators for amenities or quality? It’s very unlikely.

    “Individual landlords will increasingly find it hard.”

    Full/source article 

    In a recent interview, investment commentator, Graham Rowan, was of the same opinion:


    Will you be exiting while you can?!

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    It's like Mr Tesco telling corner shops to close and buy shares instead.

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    Specialist Council Tax advisor (A.Inst.Pa) based in Gateshead, but working nationally for landlords and council tax payers.
    http://www.lgfa92.co.uk
    Posting as @CouncilTaxGuy on Twitter
    Why not look at our blog at http://www.lgfa92.co.uk/blog

    Any posts are my own opinion on legislation and may vary from your local authorities !

    Sooner or later these companies all go under. Very few last as long as a house. The same goes for managed hotel rooms, and other schemes. All it takes is for a dodgy director to pay a bit too much dividend to justify an inflated salary, to cover up a poor or failing scheme.

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    Grainger's share price is about £255 per share (their web page May 7th) and they last paid dividends of 5.26 pence per share according to their accounts.

    If you bought a thousand shares, it'd cost you a quarter of a million pounds (plus trading fees) and you'd get back just over fifty pounds per annum in dividends.

    So, she's right about one thing, tax isn't going to be much of an issue.

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    Well number-crunched there J-P!

    " The chief executive of Grainger, one of Britain’s biggest rental firms, has said that amateur landlords should give up and buy shares in her company instead. "

    I think it's a shame The Times is now stooping to such thinly veiled sales speel. Is there no newspaper that hasn't got these hidden agendas any more? And they wonder why readership is falling?

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    I don't think it's hidden agendas that are killing newspapers, it's simply lack of journalists.

    The papers simply recycle press releases and news service stories (which are themselves often recycled press releases). It fills space and looks like news, so it gets printed.

    I used to read a newspaper and start from a position of trusting it, now I start from a position of distrust, which undermines the whole point. If the newspaper (or broadcaster) isn't reporting on an actual news story where the facts are still emerging, it's probably a press release.

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    I think you have the decimal point in the wrong place and the share price is £2.55 with a yield around 2%.  The quarter of a million pounds you refer to would give you a dividend income of circa £5,000.

    I doubt many existing landlords will take notice of her comments and also wonder what the company is saying to the government

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    The share price is £255. https://corporate.graingerplc.co.uk

    The actual dividend they paid last year was 5.26 pence and the year before was 4.86 pence. https://corporate.graingerplc.co.uk/~/me...s-2018.pdf

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    "The share price is £255. https://corporate.graingerplc.co.uk

    The actual dividend they paid last year was 5.26 pence and the year before was 4.86 pence." 

    The share price is expressed in pence - 255 pence

    I cannot imagine the market supporting a share price of £255 with a dividend of 5.26 pence

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


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    "I cannot imagine the market supporting a share price of £255 with a dividend of 5.26 pence"

    Me either, hence my comments - but the share price being in pence does make a lot more sense! Still a terrible return, but not as daft as I thought.

    Thanks for spotting my mistake!



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