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  • Property-a-holics

    What are your property plans for 2019?



    So what are your plans? Buy, hold, sell, rent???

    I've just taken a leap and rented out an (albeit small) property for my business - first time I've signed any form of tenancy agreement in 15+ years!

    It gives me a vital bit of space so I can grow my other business, storage etc. to help pay for my tax bill.

    What are you planning on doing?

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    Very good question

    I have never been so undecided on what to do in the Future years

    We live in such uncertain times We just don't know what the Govt will do next

    Taxation is my main Issue

    I ask myself the question is it worth the effort to purchase more BTL property and pay Stamp Duty and Fees and running costs to make a profit which is taxed over 50%

    Just like all Business we are all very different and different ages

    As a landlord I have been treated badly by the Govt S24 is just unfair

    I'm 60 so I am funding pensions because its a safe bet with no tax disadvantages

    I am sure if I was 25 years old and I did not have investment property I would have a very different view

    I enjoy doing business and I enjoy making a Bob or Two but there comes a time when I think enough is enough

    I know the Govt wont support me in my creation of wealth from residential property So why should I bother

    I have my Build to Rent Project finishing phase 1 at the end of November

    I will now wait and see what happens next year Phase 2 starts hopefully in the Spring 19

    Im in the NE and Prices are not low enough for me to purchase and I will only purchase Houses for around 75k and there are none to buy

    So I just crack on now set a steady course and watch my Income Tax Bill rise due to S24

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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.


    Hi Adam,

    Thanks for starting this and congratulations on moving your business forwards.

    I have just completed my tax return, so awaiting to hear my tax liability before making any firm decisions, but, broadly speaking, my plans are based around battening down the hatches and riding out the storm.

    1.  Maximise existing properties in terms of occupancy and rental income.

    2.  Build up cash reserves through other income streams.

    I thought it worth mentioning here, that, throughout January 2019, Property Tribes will be championing the concept of what we are calling the "smart landlord".

    You've heard of smart phones, smart meters, smart highways .... well now we are applying that to creating smart landlords.

    Like smart technology, smart landlords are capable of adapting and modifying their behaviour to fit an ever-changing environment.   They also use experience to improve performance, anticipating, thinking and reasoning about what to do next, with the ability to create sustainability in their business, no matter what the challenges.

    We are currently in the process of recording a set of 20 videos with industry leaders for this campaign and what smart landlords will be doing in 2019, so watch out for it throughout January as we've already banked some really valuable contributions and insights that will help landlords have a more profitable new year!

    See also - Property market predictions for 2019

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    Thanks Vanessa for your kind words. The premises isn't large or expensive and is covered by other income so will be put on my tax return each month as opposed to buying a similar property which would be very expensive. Richard Branson said something similar a long time ago about renting assets that way instead of owning. Especially if they de-value like vehicles.

    Interesting you say about smart LL's as I'm trying to minimize the amount of trips I end up doing to the properties. I'm seriously looking into setting up with British Gas their call-out for white goods as I supply them. £10pm for 5x products covered and a maintenance guy coming out to a time slot of my choosing rather than theirs sounds good to me. Running the BTLs instead of them running me!

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    Hi Adam,

    Have you considered Viewber - the outsourced viewing service for landlords?

    Cost-effective viewing and access service 

    I think this service will become even more relevant and popular with landlords in 2019.

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    [Image: 4995468760_6be86655d4_t.jpg]
    general operations director, site owner and moderator - propertytribes.com

    Hi Nick,

    Thanks for your thoughts. What happened over the weekend proved to me unfortunately that such a service will probably not be of use to me. I'm only 40 mins away so need to work with companies that can offer smaller visiting windows.

    Fridge Freezer has been playing up, freezer not freezing properly (only 2 years old, just out of warranty (of course)) and £120 for Currys to come and look at it.

    Service guy was excellent. I couldn't be there unfortunately, but he asked me on the phone before he arrived what the problem was and I told him. He went to look at it, and told the tenant what the problem was. All the tenant did was relay a picture of the inside of the FF showing a small amount of buildup of ice, but no further information other than "I don't know, I was busy at the time".

    I called the engineer back as I spotted a missed call and for 5 mins he helped me through the situation. He went far above and beyond the call of what I've experienced before and he was excellent basically.

    Long and the short of it was: tenant wasn't bothered, and it was only me calling the helpful guy back that I got any useful information at all.

    Viewber wouldn't have helped at all in this situation or similar ones unfortunately.

    I'm trying to outsource wherever possible but when it's my cash on the line I have to be there to ask the questions and gain the knowledge!

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    In 2019 I want to remain strategically very flexible within  this current turbulence

    Keep my options open - sit on the fence - nothing too drastic - but still chomp at the bit

    Stay alert 24/7/365 to any opportunities to consolidate and maximise

    Sell  - when something feels a bit of a dead weight and to get my  CGT relief

    Hold  - the vast majority as they are my engine room

    Buy - when something irresistible comes up and i feel I can make a few quid

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

    I have recently completed on a property in my new limited company name, this has opened up some very good tax saving efficiencies that will I calculate save me around £2000 a year which will more than cover the cost of S24. 

    Along with this I am also going to be reducing my debts over the next couple of years so the only mortgage I will have will be on my private residence, used to loan money to my company so not effected by S24.

    It does mean I am not expanding my portfolio as with the extra SDLT and S24 it is just not viable so instead I plan to retire in a few years (I will be 38) as I don't see the point in earning more money to pay 40% tax plus 2% NI, to have those assets so when I die 40% tax will be paid on those new assets.   

    I will have a turn over of around £43k with very little overheads so profit of around £35k.  because of the company I can maximise all available allowances and pay minimal NI just to get my NI years so will be the equivalent of someone on around £40k on PAYE.

    Net result of all the extra taxes by the government, they will get about a tenth of the amount of tax from me than they do now.

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    I was planning on selling my former home and using the proceeds to pay down mortgages in my own name. I have had to bring the sale forward as the current tenants have given notice that they will be leaving at the end of December. That might mean I end up paying a bit of CGT Sad

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    I was thinking about you the other day

    I knew you were going to sell your old home and I wondered if the change in budget would force you to sell early

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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 tenantc gave notice on the Friday before, so it wasn't the budget.  Even though I have been using up my CGT allowance for this year I think lettings relief will enable me to avoid CGTi if done this financial year. If it didn't happen until the budget changes were in effect thanI think it would still be under my CGT allowance, though not by much.

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