Well, with all the changes to Taxation and stamp duty giving the Buy to Let investor a squeeze on the pockets; its understandable investors wanting to walk away from the game.
But that thought should be an initial thought. Meaning you’re probably saying in your head right now…
“OMG!! these rules are horrible, I’m just going to leave this Buy to Let Game”
But now have a cup of tea and think about things…
Yes Buy to Let now means added expenses, not so good on the Tax side. But still in the long run, your still adding value to your monies and still be better off.
I mean – ok… the rental yield will now be effected, but you still have capital growth, but you will still have an income as well. Better income than sticking your money in a bank or under your mattress.
So don’t shy away from Buying a property to Rent out. Don’t shy away from buying a property as an investment. Because it will still benefit you in the long run. In the interim values will be up and down, but history shows us that UK property market will always recover.
You just have to look at the stats. The below graph from home.co.uk shows you the growth of property in HOUNSLOW since 2006. You can see there has been steady growth – overall of 66% growth since 2006.
3-month moving averages by property type in Hounslow
| Sep 2006 | May 2017 | Change | ||||
|
Detached | £522,108 |
|
+132% | ||
|
Semi | £406,605 |
|
+72% | ||
|
Terraced | £323,441 | £618,401 | +91% | ||
|
Flat | £213,352 | £377,978 | +77% | ||
|
All | £351,195 | £584,131 | +66% | ||
Think of it this way – you work at a company earning £30k a year.
Over the years you get promotion after promotion and your salary is now £50K a year.
Your’re still going to be taxed regardless and this will increase as your salary increases.
But you going have to work harder and put in the hours.
So what you going to do?? ask for a demotion and a salary cut????? – I don’t think so.
But why are you buying a property?
Its an investment, for now and for when you come to retirement age.
Where you respectfully walk away from your employment to simply relax and enjoy life. – Cash in your pension when the time comes and have a top up from your property investment.
But now your going ask me? I will still pay higher Tax? and be hit with a range of Taxes such as inheritance and capital tax.
My answer is – Get yourself a good accountant 😉 they will advise you the best structure for your portfolio to benefit you and your dependants.
If you want to have a chat with a knowledgable Accountant – drop me an email with your name and number and I will get OUR accountant that we use ourselves to give you a non obligation chat.
You email email me on manraj@diamondmove.co.uk