Is tax change the biggest risk for buy-to-let investors?

 

Changes made to taxation are the biggest risk for buy-to-let investors in the UK, and with new regulation to mortgage relief finance coming into effect in less than three weeks, investors are starting to show their concerns.

Property Wire recently ran a panel discussion on the future of buy-to-let in the UK and saw taxation and how to master changing rules as one of their main topics.

https://www.buyassociation.co.uk/2017/02/17/uk-urged-stop-punishing-landlords/

The debate panellists pointed out that buy-to-let is a business. And it should be run like one. During the debate, they encouraged landlords who are in this to make money to make some changes, if necessary.

One of the suggested changes was for London-based landlords to maybe look outside of the capital for their next investment as this would quite possibly improve their yields quite drastically.

Of course, there are benefits of being close to your investment property. You can more easily establish a relationship with your tenant and will be in a better position to keep an eye on your property.

However, for those willing to put those benefits aside, a property away from London, at a lower price could come with plenty of perks. One would pay less stamp duty, achieve higher yields and maybe even benefit from higher capital growth.

Landlords themselves seem to have very different opinions when it comes to where to invest next.

Some say landlords would be right to focus on yields rather than capital growth. Those in favour of yields mostly see tax changes as something that needs to be accepted, as a part of running a business.

https://www.buyassociation.co.uk/2016/10/25/mortgage-tax-relief-changes-wont-stop-landlords/

Other said they felt like investors are better off putting their money where they already know the details. In times where things are changing, some – especially London-based – landlords said they’d prefer to invest in the city they already know.

So whether you choose to continue investing in the capital and therefore go with the already known and smaller gains or decide to maybe branch out, take your money somewhere else and maybe get back more in return is completely up to you.

The one thing most landlords and investors could agree on during the debate was that buy-to-let should be treated as a business and decisions should be made with your business hat on, regardless of whether that’s in the capital or further up north.

Highgrove Mews

High Net Yield Freehold Houses

  • Commutable to London (27 mins to central Paddington station)
  • Rental demand extremely strong with large industry presence in Reading
  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

  • Discounted launch prices from £160,000
  • Excellent transport links with 3 trains per hour to London Euston and only 9 mins journey to Manchester Piccadilly
  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

  • Assured rent & no rental voids
  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
  • Free property and lettings management

From £62,000

Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
  • DE14 is one of the fastest selling postcodes in the West Midlands.
  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
  • Rental yields - 6% plus

Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

ba-

Talk to us

Speak to our UK property experts today: 

+44 (0) 333 123 0320

Open from 9am-6pm GMT

+852 9865 4446

Open from 9am-6pm HKT

Stamp Duty Calculator

.

Unlock members only investment opportunities and full development details. Join now – it’s free, quick and easy.

Login

Not a member? Sign up for free

Is tax change the biggest risk for buy-to-let investors?

Is tax change the biggest risk for buy-to-let investors?

Example

By submitting your details via this online form you agree to be contacted via email/phone/SMS by Direct Marketplace Ltd t/a BuyAssociation in relation to property investment and property developments . We do not share your personal details with third parties.  To view our full Privacy Policy click here.