Golden Opportunities for UK Estate Agents

Golden Opportunities for UK Estate Agents

11:05 AM, 27th April 2023, About A year ago

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There has never been a better time for Estate Agents to have a fundamental re-think about how to grow their business, because the market has undeniably changed direction.

How can agents prevent their lettings business from shrinking?

How can estate agents help their potential clients to make better-informed decisions and break the ‘analysis paralysis’ cycle?

Regardless of what the media might be telling us, the reality we are all aware of is that 10’s of thousands of landlords are contemplating selling up.

The problem for estate agents is that having prospective clients who are “thinking of selling” is not the same as having clients who are at the point of wanting to list their properties for sale.

How amazing would it be if estate agents could do something extremely simple to unlock that huge potential?

I’ve realised over several years that the best estate agents are the most creative, open to new ideas and willing to take action quickly. A common trait is that they truly understand why clients are holding back. When they can solve that problem, doing business is like finding and mining a seam of gold.

The secret to estate agents doing more business with landlords is to understand that landlords currently feel trapped.

If landlords sell now they might get less than they would have received a year ago. On top of that, they face potentially huge Capital Gains Tax bills.

On the other hand, rental demand is at an all-time high and rental inflation has become rampant, so these landlords don’t know what to do.

Will the market recover?

Should these landlords hang on and increase rent to fund their increased finance costs?

If they do that, to what extent will it actually help restore their cashflow?

The problem is that the additional tax resulting from increased rents to fund increased finance costs can be horrendous. This is because increased finance costs cannot be offset against rental income. Furthermore, the landlords could be pushed into a higher tax rate or lose their personal tax-free allowances.

It is the above dilemma that results in landlord analysis paralysis, thus impacting opportunities for estate agents.

Solving this problem unlocks a multitude of golden opportunities.

Property118 has the recipe for estate agents to find and mine these seams of gold, and we are giving it away for free to any estate agents who genuinely want to work with us to grow their businesses.

Imagine how many more landlords would list their properties for sale if they knew there would be no Capital Gains Tax consequences. This is actually possible with our assistance to restructure landlord business ownership structures. Not only can we provide the advice but we can also do the legal work to implement it. The technicalities are complex, but in simple terms, the incorporation of a business re-sets the purchase price of rental properties and transfers capital gains into shares. Therefore, properties can be sold without exposure to tax on historical capital gains.

Many landlords want to sell their lower-yielding rental properties to first-time buyers and use the sale proceeds to pay down expensive financing. After a landlord has incorporated, this can be achieved without exposure to capital gains tax. Others want to reinvest the sale proceeds into new property-related projects that will give them higher returns. The benefits of incorporation are equally applied to this scenario.

The secret to unlocking this market is for estate agents to help landlords to solve their tax problems. That’s where we come in, AND, not only can we help estate agents to unlock golden opportunities, but we also pay referral fees.

To learn more please CLICK HERE

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