Most people seek regular income from their investments and landlords are no exception; the promise of monthly rental income on top of increasing property values is what attracts people to the sector.
Not content with annoying the business community, Labour have also announced rent control policies which will inevitably impact the UK’s private landlords.
Accidental landlords, people who find they need to let their home out for work or personal reasons, make up around 30% of all private landlords according to figures from Rightmove.
An opportunity has arisen for buy-to-let landlords to indirectly hold their properties within their pension schemes, and effectively make them free from capital gains tax (CGT), by investing in property investments.
Letting agents and landlords are absorbing Labour’s latest policy on the private rental sector - to give councils the power to ban buy-to-let investors from buying new-build property in designated “housing growth areas”.
Only a week ago the papers were reporting how “Buy-to-let investors have had a bumper year” with data showing the average annual return for landlords was 12.7% before tax, mortgage repayments and maintenance costs were taken into account. There were even some new discounted mortgages aimed at buy-to-let landlords – 3.09% fixed for 2 years for example. All good it seems.
Is now a good time to invest in property, or are we in a property bubble that’s ready to pop? And are there better ways to invest anyway, with fewer headaches?
Arranging a tenancy takes time and time, as we all know, inevitably equals money. You have to expect to be hit with some fees when you take up a tenancy on a property, but any respectable letting agent will provide you with clear information about its charges before you sign anything.
If you’re a landlord then squeezing the maximum income from your rented property is of course important; you may be a professional/buy-to-let landlord who’s making a living from property, or maybe you’re just renting your home while you need to live elsewhere, and the rental income is helping to cover your costs there.
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