Summer Budget 2015 – Landlords Reactions

Reply to the comment left by “James Fraser” at “08/09/2016 – 22:03“:

James and Ahmad

Have you seen section 160 – HMRC V Ramsey? Start a real job – be a landlord – Give up that dead end day job, incorporate the right way than the go back to work in a year…. eeeeeeeeasy!

Reply to the comment left by “James Fraser” at “08/09/2016 – 22:03“:

James

I find it reassuring to know that I am not the only one in a hot pot of soup.
Unlike you, I am not so lucky with the mortgages. My average mortgage rate is about 3 apr on an LTV of about 60%. The saving grace is that I am already in partnership with my wife who has no other earnings. I will keep a tab on you to the end of the year – if you do decide to go down the BICT route, that might convince me of its merit and I would then have a closer look myself.

Reply to the comment left by “Markb ” at “08/09/2016 – 22:23“:

Yes, Mark.
The problem, in my case, is that I earn twice as much from the day job than I currently do from the portfolio.

Bringing individual derelict homes back into use is one of the most valuable things smaller landlords / developers do.

And receive no praise for it, just criticism under the ‘all individual private LLs are bad’ umbrella.

Reply to the comment left by “Ahmad Jibril” at “08/09/2016 – 22:35“:

>Ahmad…

Then say thank you George and put the rents up so there is parity! Then take a sabbatical, act like a landlord, incorporate the Ramsey way and then go back to the surgery in a while if we still have an HNS at that stage…..just trying to help Ahmad…

You may be right Mark.

Come to think of it, forget about sabbatical, If I retired completely, dump my lump sum pension into the portfolio to deleverage, I may come out better off at the other end. Except, I would have the time to do whatever I like while getting away from the stresses of giving people bad news and watching people succumb to their illnesses. Think how many years that alone would add to my own life expectancy not to talk of its quality. Honestly, I must do the arithmetic and give it serious thought.

Ahaa, many thanks.

Reply to the comment left by “Ahmad Jibril” at “08/09/2016 – 22:55“:

This is another ludicrous way the tax affects the most productive in society. If we have other jobs, paid community responsibilities, other investment income etc it actually becomes beneficial to give up those activities, which is another wasteful and unhelpful side effect. I have skills that are in demand but have to keep turning down well-paid work – leaving the employers short – because tax makes it uneconomic to accept!

Government policies always have unintended consequences.

But if anyone had asked George if he thought thought S24 would lead to a senior consultant surgeon seriously considering chucking his NHS job & private practice in 8 / 9 years before retirement age, I am quite sure the answer would be no.

Such is the nonsense of government policy. It is our common cause but disparate nature that works against us .. we are an easy target.

Imagine if were to collaborate… if all private landlords were to group together and form a true Union. How many houses we could build, How many jobs and homes we could create!

It is the fact that we are dispirate individuals – surgeons councillors, teachers, retired professionals, solicitors etc that is what stops us collaborating and making a real difference. Instead we think up tactics rather than strategies to avoid tax and stay solvent, rather than help solve the housing crisis.

If I had a group of people wanting to invest in property and willing to invest and able to invest I think I would embrace them rather than piss them off.

Seriously though, Ahmad, if you are tempted to go down that route then make sure it’s only the tax free lump sum of your pension (25% I believe) that you withdraw to pay down mortgages, because if you take all the funds in one year it will be added to your earnings and bump up your annual income to a figure so high that your tax bill will wipe out years of pension contributions.