New EICR to cover any changes made by outgoing tenant?10:00 AM, 4th May 2021
About A week ago 73
My answer to this question is that a solution should save you money, not cost you money! Do you agree?
Let’s look at this by way of an example: Just suppose that Mr & Mrs X discover that a complete overhaul of the ownership structure of their property rental business could save them £35,000 a year.
If the cost of financing and repaying the borrowing to achieve that overhaul is greater than £35,000 a year they shouldn’t do it.
Do you agree?
However, if the cost of financing the overhaul over say 10 years still saves them say £250,000 over the same period, should they do it or not?
I would say, probably, especially if that’s the best solution and the savings are pretty much a certainty.
Would you agree?
Now let’s add another layer of complexity to this.
Just suppose Mr & Mrs X have a reasonable life expectancy of another 20 to 30 years.
What would your property have cost 20 to 30 years ago?
Is it reasonable to predict that their properties could appreciate in value by double, perhaps treble, quadruple or more?
If they do nothing, do you agree that all of this property value growth could be taxed at 40% when the last of them dies?
Do you think they really want to leave that problem for their children on top of grieving their passing?
What if that problem could be solved at the same time whilst achieving the same level of savings?
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