Any reasons not to cave into the fear?
Hello everyone, I am about to begin my journey in property investment. However, reading the current headlines about how dire it will get for Buy to Let landlords both economically and legislatively and for property investment, in general, it is very worrying.
For some reason, I’m not put off by this unrelenting wave of negative news.
My question is am I making a huge mistake?
I’m going to do this via starting a Limited Company. I would welcome some wisdom, advice and reasons not to cave into the fear!
Thank you.
Sarb
Comments
Have Your Say
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
Previous Article
Propertymark urges financial help for landlords to meet EPC targetsNext Article
Rent refund tax implications?
Member Since October 2013 - Comments: 1630 - Articles: 3
9:54 AM, 22nd October 2022, About 3 years ago
Reply to the comment left by Laura Delow at 22/10/2022 – 08:49
I would add, keep at least 18 months rent in reserve to cover arrears and legal costs until eviction.
Member Since October 2022 - Comments: 11
5:26 AM, 23rd October 2022, About 3 years ago
Reply to the comment left by RODNEY CRABB at 22/10/2022 – 08:22Thank you for sharing your advice Rodney, I really appreciate your guidance. My circumstances will be different as will be moving abroad so will need a tax accountant that knows about uk and overseas tax which is why I have to pay for a specialist in this regard. Pinches! But not much choice re compliance. Do you run yours through a limited company?
Member Since October 2022 - Comments: 11
5:29 AM, 23rd October 2022, About 3 years ago
Reply to the comment left by NewYorkie at 22/10/2022 – 09:54
Ok will keep this in mind. Thank you NewYorkie.
Member Since October 2022 - Comments: 11
5:33 AM, 23rd October 2022, About 3 years ago
Reply to the comment left by Laura Delow at 22/10/2022 – 08:49Hi Laura, thank you for sharing your knowledge and expertise. I can see you have a vast array of experience in this. It was hard for me to understand all of what you wrote as I am completely new to this and have not studied enough about property investment to be anywhere near your level. I do however appreciate everything you wrote and read it even though I did not know what it all meant as I have not been in the game long enough. But exposure to the terminology you shared and scenarios are good for me to familiarise myself with. Thanks again.
Member Since June 2022 - Comments: 111
8:06 AM, 23rd October 2022, About 3 years ago
Also if you purchase a Leasehold property only buy if the building has Right To Manage (RTM) this is gives the leaseholder’s the right to appoint the managing agents and have totally control over all spending.
I certainly wouldn’t buy without out RTM in place.
Member Since October 2022 - Comments: 11
1:33 AM, 26th October 2022, About 3 years ago
Reply to the comment left by David Smith at 23/10/2022 – 08:06
Thank you David. This is really helpful to know. I’ve been educating myself through various sources for months now and not come across “RTM”. This is such an important point to bear in mind.
Member Since June 2022 - Comments: 111
9:34 AM, 26th October 2022, About 3 years ago
Reply to the comment left by SARBJIT SEHMBI at 26/10/2022 – 01:33
Sarbjit as mentioned before regarding the EPC if the property has a C rating take a close look as to why it’s a C.
There might well be an assumption that for instance there is roof insulation in a roof that can’t be accessed therefore a C rating is given but in the future if it’s proven that there is no insulation then it could drop to a D rating .
Member Since October 2013 - Comments: 1630 - Articles: 3
9:59 AM, 26th October 2022, About 3 years ago
Reply to the comment left by SARBJIT SEHMBI at 26/10/2022 – 01:33
I echo David’s advice to choose a leasehold with the Right to Manage (RTM). I and fellow leaseholders suffered horrendous exploitation by the freeholder and their ‘associated’ managing agents. Achieving RTM has improved our development and reduced our costs and stress.
I noted you intend to live abroad, and I’m sure I read something recently about HMRC making that more difficult if you let UK property. Worth some research.