Danny H

Registered with Property118.com
Thursday 3rd July 2014

Latest Comments

Total Number of Property118 Comments: 3

Danny H

15:51 PM, 8th April 2019, About 2 years ago

Licensing costs and admin finishing off some Landlords

Just got a letter from Liverpool Council today, telling that they're planning to continue the selective licencing scheme once the current scheme ends in 2020. Brilliant.

I own 7 properties in Liverpool, they're all licenced - so far 1 property has been inspected, and the only recommendation was that I keep a written record of inspections. Gee thanks Liverpool Council, that was worth the £500 per property I've paid for a licence.... Read More

Danny H

13:49 PM, 6th November 2015, About 6 years ago

Are most landlords under charging?

I've never raised rents during a tenancy. Why rock the boat for an extra few quid a month? It costs way more in vacancy, refurb, and advertising for a new tenant.

I will pretty much be forced to once the new tax kicks in and interest rates move up however. I will firmly be blaming the tory government for the rent hike when I break the news to my tenants.... Read More

Danny H

13:45 PM, 10th September 2015, About 6 years ago

A Level Playing Field Between Homeowners and Landlords

"It makes perfect sense that btl investors may have a tax advantage over bto at the point of purchase as currently a btl investor can basically pay interest cost gross of income tax, whereas a bto purchaser has to pay interest net of income tax. This is undeniable."

This argument is driving me nuts, as it's completely nonsensical to compare the two.

There are two distinct areas here, one is a person's residential home, and the other is a person's business activity. So let's review the comparison between BTL investors and home owners in these two distinct areas.

1. Residential home:
* Homeowners do not get any tax relief from paying mortgage interest on a house used purely for residential purposes.
* BTL investors do not get any tax relief from paying mortgage interest on a house used purely for residential purposes.

All square so far.

2. Business activity:
* A homeowner that uses their home for a business activity (as a home office etc), can deduct a proportion of those housing costs against their income to arrive at a taxable profit. THAT'S RIGHT, a homeowner gets tax relief (up to 45%) on their residential mortgage interest, if they are partly using their home for a business activity.

* Similarly BTL investors currently get tax relief for mortgage interest on houses used for a business activity also (usually 100% business use in the BTL case), which they deduct against their BTL profit to arrive at their taxable income.

So hopefully that shows that there is currently no unfairness in the tax system. Business related costs (whether residential or BTL mortgage interest) can be deducted fully against business related income. The average homeowner doesn't get mortgage interest tax relief, because they have no business related income to net it against! However, any plumber, electrician etc who keeps an office at home to deal with the business admin, or entrepreneur building things in his garage, is given full tax relief for a proportion of their residential mortgage interest.

"Levelling the playing field" is purely political rhetoric to gain support from the layman.... Read More