Peter

Registered with Property118.com
Saturday 7th April 2018

Trading Status
Joint

Providing essential rental accommodation since
1984

Insures properties through a broker recommended by Property118
No


Latest Comments

Total Number of Property118 Comments: 4

Peter

16:08 PM, 19th October 2018
About 9 months ago

Generation Rent tries to hoodwink policymakers

The timeframe in WC’s argument is too short. These effects take much longer to manifest themselves in an illiquid assets such as housing.
To paraphrase the whole discussion; rents have risen, but less than inflation since 2005 in spite of house price inflation outstripping inflation .
This coincides exactly with an explosion in the number of Buy-to-lets .
In short, rents fell in real terms as supply increased. It follows that in due course rents will rise above inflatiion as landlords leave the business.
Even if they don’t, it will be a disaster for renters since they will have less choice. It will decrease mobility amongst the labour force accross the country.
For the fortunate and patient landlords in a position to ride the Tsunami of negativity, I predict better things for the future, but it will be years coming .... Read More

Peter

11:28 AM, 2nd May 2018
About A year ago

Section 24 Tax Reforms

A little understood part of this section 24 is very significant.

One’s rental income, after allowable expenses, but BEFORE deduction of mortgage interest relief, is now added to all other income. Effectively therefore, if one has, for example an income of £30,000 from investment income or employment or pensions, and perhaps three or four buy to lets, your total income before deduction of interest payments move into the area above £100,000 pa. Tax is then deducted on your total income.

Above 100k, taxes are levied at an effective rate of 60%. That is, 40% income tax plus the progressive loss of personal allowances in the ratio of 50p allowance for each pound of income declared. One then obtains a 20% tax credit.

In short, you pay 60% tax and then get back a 3rd of it

So a lot of relatively small landlords are going to be very badly hit when the full section 24 tax reliefs are lost. In short things are worse than they look.

So, if you borrow for a buy to let, it doesn’t work. If you have cash, other investments seems less risky, less work and less headache.

In my view, this is the beginning of the end of Landlording as a profession.

What do you think?... Read More

Peter

18:25 PM, 23rd April 2018
About A year ago

Should I invest my pension lump sum in another buy to let?

Paul Green has laid out the long list of risk and things you have to do. For 4% return?

I agree with the Silver Surfer- buy an investment product. In fact-the best possible one is exactly where your money is right now- in your pension. This accumulates with no capital gains tax. If you need income supplement, just draw down what it earns - its pretty certain it will exceed 4%.

That way, you avoid capital gains tax, do no work, do no tax returns, avoid possible expensive mistakes that landlords have to face, maintain your capital which continues to grow tax free and have access to your cash as short notice penalty free, cost free , forever.

No brainer!... Read More

Peter

14:25 PM, 12th April 2018
About A year ago

Will I fall foul of discrimination law?

Hi Jan, my experience of people with CCJ’s is appalling. The additional evidence of the garden mess, wishing to meet you at your own property, and the empty house all adds up to a tenant that you are almost certain to deeply regret. The advice above is good.... Read More