Nice video, thanks. But Tax! If you do this within a company, you will be taxed 19% to 25% depending on your profit. If you own the property personally, you will be taxed according to section 24 of the finance act. They will add your personal gross income to your gross rental income to determine your tax rate. If you earn decent income you will pay 40% tax on your rental income. If you earn total income above 125k, you will pay a NOTIONAL 60% tax on income between 100k and 125k... plus 13.5% national insurance. Property is easy if you have low income. When you earn real money, trust me, Tax is a real issue
Good point but everyone gets taxed on income/profit regardless of where it comes from- whether its property, wages, stocks, a business, inheritance. You name it they tax it- is inevitable. And of course there are ways to minize it legally (capital allowances, allowable expenses, etc)
Two main reasons: 1) Auction fees are too high- so unless its a great deal, would opt to source direct from seller rather than auction 2) Serviced Accomodation is better yield/cashflow in my opinion
Nice video, thanks. But Tax!
If you do this within a company, you will be taxed 19% to 25% depending on your profit.
If you own the property personally, you will be taxed according to section 24 of the finance act. They will add your personal gross income to your gross rental income to determine your tax rate.
If you earn decent income you will pay 40% tax on your rental income. If you earn total income above 125k, you will pay a NOTIONAL 60% tax on income between 100k and 125k... plus 13.5% national insurance.
Property is easy if you have low income. When you earn real money, trust me, Tax is a real issue
Good point but everyone gets taxed on income/profit regardless of where it comes from- whether its property, wages, stocks, a business, inheritance. You name it they tax it- is inevitable. And of course there are ways to minize it legally (capital allowances, allowable expenses, etc)
@@thewealthwarren6940 Absolutely! Thankyou.
@@thewealthwarren6940 Oh and I really like the format/style of your videos. 😁👍
Great and very helpful video 🤝
Enjoy your Bank Holiday Warren. Thanks for the video 🫡
Thank you Warren, a quick question why where you not interested in auctions for HMOs?
Two main reasons:
1) Auction fees are too high- so unless its a great deal, would opt to source direct from seller rather than auction
2) Serviced Accomodation is better yield/cashflow in my opinion