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  • Property-a-holics

    Triple threat facing property market say RICS



    Record low stock numbers, political uncertainty and the aftermath of tax changes are the obstacles hindering the housing market, according to the latest monthly RICS survey. 

    The main element holding back the market continues to be a sustained deterioration in the flow of fresh listings, with new instructions dwindling for the 17th consecutive month. Consequently, average stock levels on estate agents’ books remain close to record lows, limiting choice for potential home buyers.

    “Sales activity in the housing market has been slipping in the recent months and the most worrying aspect of the latest survey is the suggestion that this could continue for some time to come” says Simon Rubinsohn, RICS chief economist.

    “One reason is the recent series of tax changes but this is only part of the story. Lack of new build in the wake of the financial crisis is a more fundamental factor weighing on the market. And there are some very real consequences for the economy from all of this including the impact on the ability of people to be mobile when looking for work” he says.

    Lettings Market Summary:

    In the lettings market, the quarterly (seasonally adjusted) figures are also consistent with a somewhat subdued picture. Indeed, although tenant demand continued to edge higher, it did so at the slowest quarterly pace going back nearly twenty years. Meanwhile, landlord instructions declined, with 8% more respondents noting a fall (rather than an increase) in listings.

    Rental expectations are now only very modestly positive for the coming three months. Over the next twelve months, rents are projected to increase by a little under 2% nationally. Expectations remain firmer at the five year horizon, with respondents expecting rental growth to average just over 3% per annum.



    Full/source article - Estate Agent Today 

    DOWNLOAD THE FULL REPORT

    SEE ALSO  -          Where next for house prices?

    UP NEXT -              What effect do you think Stamp Duty increases will have on property prices?

    DON'T MISS -         Rents rise as Landlords exit the sector

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    It is all very well LL incorporating, but as DL has advised repeatedly it is not possible to pull out income at the same tax cost as when a sole trader.

    There are significant tax costs when pulling out rental income from a corporate.

    I appreciate that many LL will have little alternative than to incorporate.

    But doing so will not necessarily facilitate the same income as presently.

    Without S24 a sole trader is far more effective as a vehicle to pull out income than from a corporate.

    S24 of course turns that on its head!

    Unless you are prepared to wait for long term capital growth just taking a tax effective income annually from a corporate I can't see the point.

    It is a long time to wait for gratification!

    Anyone with a portfolio is really just looking at a pension which is not to say that BTL is a highly effective way for the little man to achieve a large pension.

    The days of giving up the day job to live off rental income are long gone.

    LL who are prepared to do more than just buy and let out will of course be able to possibly give up the day job.

    Few LL wish to engage in such activity.

    Obviously it is viable if you have cash and are not reliant on mortgages.

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    Thanks Paul

    I was chatting with one of my bankers last Monday

    and she said 40% deposit was req  from a new Landlord to buy today

    That's a lot of money to tie up from day one

    Then the elephant in the room how do you get the money out of the Co

    I believe the days of becoming a Landlord and leaving 9 to 5 are over in general too

    The Party is over ?? just most don't realise it

    I was showing my banker my plans for investments in Pensions and ISA

    She looked through the figs and had to agree with me Pensions and ISA for a higher rate tax payer is better bet than BTL when your over 50

    BTL expansion is flogging a dead horse Taxation has killed it


     

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    Learn Change and Adapt ?????


    Agree it's a lot harder and strategy needs to change I don't " know " the answers I guess I'm willing to take risks considered calculated risks I'm still hungry but looking at my own portfolio clearly I need to move some more from personal to ltd company and are doing that now although I think the 3% stamp may get adjusted but who knows HMOs have definately helped me but not a walk in the park we now manage hmos and deal find but advise to only buy in right place there will be challenges with hmos that will hit the net yield I like having a mix now but for shops they have to be in rentable areas and if a commercial or shop stays empty that can be big hit . I've always liked houses or flats as they can rent even if have to be low end .

    The pain in the Dss lha world hurting with UC coming into all parts from later in the year in Doncaster we have a plan but it will hurt Cashflow wise . If it was easy everybody would be doing it the seminar people seem to be promoting the opposite that bothers me plain wrong . Happy to help

    Kim stones 01302 562788 mob 07979690484 Doncaster hmos

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