Paul Arnold

Registered with
Wednesday 5th October 2016

Latest Comments

Total Number of Property118 Comments: 7

Paul Arnold

10:35 AM, 2nd August 2021, About 4 months ago

Utilities Nightmare taking my time?

I've been going through the same problems and have wasted hours of my time on what should have been simple things to sort out.
I've recently put most of my HMO's through a broker so they find the best deals each year and have the fun of dealing with the power companies.
Still have a few problems getting the initial switch over on a couple of properties but hopefully then I can forget about it and leave it all to the broker.
I'm sure there are other brokers out there but I've found Love Energy to be good.... Read More

Paul Arnold

7:05 AM, 1st January 2017, About 5 years ago

Summer Budget 2015 - Landlords Reactions

An interesting discussion on PT about the marginal rates of tax which shows why the government are not going to be able to count on the PRS to supply family housing in the future.

I've copied the corrected table from Aya showing how additional purchases quickly become non profitable with any increase in interest when you are at 40% tax rate.

Lenders currently asking for 145% rent to mortgage coverage simply won't work any more as you will actually run at a loss with this coverage. As you can see below, with a mortgage payment of £600 against rent of £1000 you will have £0 net profit as you will be paying 100% tax. Any lesser coverage than this on additional purchases will mean you make a loss. So either we have to obtain eye watering levels of rent or we can't supply the extra rental housing that will be needed in coming years,

Rent £1,000 £1,000 £1,000 £1,000
Mortgage £300 £400 £500 £600
repairs/voids £200 £200 £200 £200
Tax £320 £320 £320 £320
Tax credit £60 £80 £100 £120
Net tax £260 £240 £220 £200
Profit £240 £160 £80 £0
Marginal tax 52% 60% 73% 100%... Read More

Paul Arnold

17:23 PM, 14th December 2016, About 5 years ago

The Tenants must now have their say on Section 24

I've signed the petition Pam but I think many may be put off by you asking for full address and emails.... Read More

Paul Arnold

9:39 AM, 26th November 2016, About 5 years ago

Disproportionate presence of Conservative Party donors and supporters

Agreed this is first class work. However, P118 is not widely enough read to have any affect on the general public. We really need this research sent to a big media outlet to take it up. It could easily turn into the next scandal like ministers expenses did. Telegraph may be a good starting point as they have been quite supportive and vocal about the unfairness of the landlord attacks... Read More

Paul Arnold

15:52 PM, 6th October 2016, About 5 years ago

Summer Budget 2015 - Landlords Reactions

Restructuring doesn't work for me so I'll continue with the lobbying and rent increases. My plan is to gradually sell down through retirement so if I incorporate it would end up being even less tax efficient as I sell properties off and then try to withdraw the capital from the company.

I think a company structure can be efficient when building a portfolio but if trying to withdraw rental income from it and capital gains on sales the tax can be higher than individual. Add to this the cost of incorporating and the higher interest rates on mortgages and it really is a non starter.... Read More