Yes with all the problem's being a landlord. Selling up is the right thing to do if you have been in it to make good money. To many taxes and rules and regulations all benefit tenants. Selling mine after 30 years in the game .ok for me because i own them out right always have done with no mortgage on any .ill have enough to last me comfortably for 30 years .
I hope property investment is curtailed. Our young people have it so much harder tday than we did. Young people need affordable rents and affordable properties to buy so they can get on and make the next generation.
Most landlords own ex local authority homes ironically sold to them by those that had bought under right to buy and wanted to cash in. Most aspirational first time buyers dont want to live in areas that are quite often are sink estates. They want shiny new builds boosting builders profits.Most landlords are getting out because they are demonised at every leve from HM Gov to the Daily Mail with little respite to this. Shelter make it sound that every tenant is a saint and every landlord is a sinner. Many landlords are tired of paying a fortune to tradespeople. With all these factors combined why stay ?
Oh My days....Simon. Why do these politicians not actually visit a PIN meeting or walk the streets to understand the tsunami waves their point scoring sparkly strategies actually unfold. Glad I live in the Commercial property space.
@steveharman8907 yes that would be a good idea. One of the problems is that many politicians have never had a proper job outsdie of politics and so they are out of touch with the general public.
I always await your video nuggets eagerly. This one is so full of talking points that I want to rewatch it a couple more times and think carefukky about what my comments will be. Very timely video.
Simon I have just been on the PIN meeting link in the description but can't see the one for the virtual meeting on 7th August that you mentioned? I do think the topic of rent caps is high on Landlords list of concerns. Thanks for giving details of how it went in Scotland, which wasn't as intended! I believe it hasn't worked as politicians expected anywhere it has been tried in the past. Cynically I think politicians all think they know best, so will try again because they will do it right this time - which of course they won't. As you said the real problems with raising rents will happen to the Tenants. I hope they listen to experts in the field before jumping in but I am not holding my breathe. 😕🤯
If somebody could provide more detail of what happened recently in the Republic of Ireland, I should be grateful. As I remember vaguely, the Irish Government introduced pro-tenant (supposedly) legislation. It resulted in landlords withdrawing their properties from the rental market, leaving relatively few properties being offered for rent. Within about one year, or thereabouts, the legislation was withdrawn.
Corporation tax is both 19% and 25%. Yes so my point is if you’re paying nearly 54% of your profit in taxes, how do property investors make it pay anymore. No one seems to ever answer this question, yet all the property investors on RUclips tell you that BTL is alive and well.
@@andrewfallon2719 Well of you are making £100k profit a year from a hands off buy to let portfolio. Say it's your only income and you paid yourself a salary. Besides coop tax. The first £12000 or so be tax free to you personally. The next £38,000 you'd pay basic income tax rate. The next £50,0000 you'd pay the higher rate. Or say you took it as dividend. 7% Tax to pay up to £50,000. Then the higher rate after that, which you've already stated. So yes, the taxes are ridiculous but again they are only on profits. It's essentially like saying, imagine your company makes half of what it does now. You have 5 houses instead of 10. So you have half the amount of profit (in this case it goes as tax rather than less houses). But if you have 20 houses you'll still be doubling what you made with 10. The tax is ridiculous and driving many people away and we'll end up with too many empty homes and no enough places for people to rent but it's still a viable business as it makes profit. Your profit it just halved by tax.
I have a few properties which I used to rent as HMO’s. My council fined me £20,000 because I didn’t renew a gas safe certificate in one property. I got out, turned them all into holiday lets. Has been much better! Now I’m super worried about section 24 from April 2025. I don’t think I will have a business anymore (that is worth all the effort). I don’t want to sell as this is all I have done for 15 years and all I know. I feel I will be forced to sell them 😢
It sounds like you've had quite a challenging experience. Transitioning your properties from HMOs to holiday lets seems to have been a beneficial move for you, but I understand your concerns about Section 24. The changes coming in April 2025 will undoubtedly impact many landlords. Here are a few suggestions that might help you navigate this situation: Consult a Financial Advisor - A professional can help you explore all possible options, including restructuring your business or finding tax efficiencies. Stay Informed - Keep up with any updates on Section 24 and other relevant legislation to ensure you’re prepared for any changes. Join Landlord Associations - Networking with other landlords can provide support, insights, and potential strategies to cope with these changes. It’s understandable to feel uncertain, but seeking professional advice and exploring all your options can help you make the best decision for your future.
@@SimonZutshiOfficial Thank you so much! I didn’t occur to me to consul a financial advisor. I’ll do that right away. You may have just saved me a serious 6 month headache! 🙏
Are they in a company or your name? Would opening a company name and move them into that save the section 24 tax n allow mortgage payments as an expect??? It'll work out OK4u I hope
@@paulcoates3860 my name. To move them to a company would cost an arm and a leg in capital gains tax, it’s not possible to move them into a ltd company. I have asked 3 accountants to work out how much it would cost and no one can do this calculation. They all said it would cost a fortune
Let's be honest here. A large number of properties owned by landlords are often ex-local authority houses. Ironically usually sold by those that bought under right to buy and as quick as they could cashed in their profits and sold. These properties are not desirable to aspirational first buyers as often they're on sink estates. Most first time buyers previously used help to buy or other incentives and wanted a shiny new house. Landlords in some areas are going to be stuck with tenants no-one else wants to house. I feel it's on its last legs and how long does someone stand being part of an industry that appears universally hated by everyone? Many landlords I speak to are leaving because they are tired of being demonised by society and ripped off by tradespeople charging a fortune for repairs.
Great !!! 70% home-ownership; I love it. BUT where are the other 30% going to live? We NEED the PRS. VOTE REFORM UK (BTW thanks for clarifying that the government weren't personally building 300,000 houses .) I doubt that there will be a crash for many years. This so called "reasonable sale price" has to be reasonable from the landlords perspective too. (Your comments are not at all controversial but completely rational.) The only losers are renters.
You cant ruin something that was allready ruined.
Yes with all the problem's being a landlord. Selling up is the right thing to do if you have been in it to make good money. To many taxes and rules and regulations all benefit tenants. Selling mine after 30 years in the game .ok for me because i own them out right always have done with no mortgage on any .ill have enough to last me comfortably for 30 years .
What scares me about labour is that they seem to think toiling away 9-5 is the only way to make money that counts.
They do. "honest work", because they're narrow minded 1930's mentality socialist zealots with ideas.
Uk home ownership was 71% in 2001.
Now it’s 63%
I hope property investment is curtailed. Our young people have it so much harder tday than we did.
Young people need affordable rents and affordable properties to buy so they can get on and make the next generation.
Most landlords own ex local authority homes ironically sold to them by those that had bought under right to buy and wanted to cash in. Most aspirational first time buyers dont want to live in areas that are quite often are sink estates. They want shiny new builds boosting builders profits.Most landlords are getting out because they are demonised at every leve from HM Gov to the Daily Mail with little respite to this. Shelter make it sound that every tenant is a saint and every landlord is a sinner. Many landlords are tired of paying a fortune to tradespeople. With all these factors combined why stay ?
Oh My days....Simon. Why do these politicians not actually visit a PIN meeting or walk the streets to understand the tsunami waves their point scoring sparkly strategies actually unfold.
Glad I live in the Commercial property space.
@steveharman8907 yes that would be a good idea. One of the problems is that many politicians have never had a proper job outsdie of politics and so they are out of touch with the general public.
I always await your video nuggets eagerly. This one is so full of talking points that I want to rewatch it a couple more times and think carefukky about what my comments will be.
Very timely video.
Buy to Let is totally over in London, certain as a forward looking proposition. I think its a good thing its done.
Thanks Simon, great video as usual.❤
Energy security act us the one to be concerned about
Simon I have just been on the PIN meeting link in the description but can't see the one for the virtual meeting on 7th August that you mentioned?
I do think the topic of rent caps is high on Landlords list of concerns. Thanks for giving details of how it went in Scotland, which wasn't as intended! I believe it hasn't worked as politicians expected anywhere it has been tried in the past. Cynically I think politicians all think they know best, so will try again because they will do it right this time - which of course they won't. As you said the real problems with raising rents will happen to the Tenants. I hope they listen to experts in the field before jumping in but I am not holding my breathe. 😕🤯
@helens_personal_wealth_journey here is the link you need: www.nationalpinmeeting.co.uk/
If somebody could provide more detail of what happened recently in the Republic of Ireland, I should be grateful.
As I remember vaguely, the Irish Government introduced pro-tenant (supposedly) legislation. It resulted in landlords withdrawing their properties from the rental market, leaving relatively few properties being offered for rent. Within about one year, or thereabouts, the legislation was withdrawn.
How does anyone make property pay when taxes are 19% corporation tax and then 33.75% on what you take out as dividend.. ??
Corporation tax is 25%
Dividend is 7% up to £50,000 in personal income. But yeah, once you go above that it's a nightmare. But remember the coop tax is only on profit.
Corporation tax is both 19% and 25%.
Yes so my point is if you’re paying nearly 54% of your profit in taxes, how do property investors make it pay anymore. No one seems to ever answer this question, yet all the property investors on RUclips tell you that BTL is alive and well.
@@andrewfallon2719 Well of you are making £100k profit a year from a hands off buy to let portfolio. Say it's your only income and you paid yourself a salary. Besides coop tax. The first £12000 or so be tax free to you personally. The next £38,000 you'd pay basic income tax rate. The next £50,0000 you'd pay the higher rate.
Or say you took it as dividend. 7% Tax to pay up to £50,000. Then the higher rate after that, which you've already stated.
So yes, the taxes are ridiculous but again they are only on profits.
It's essentially like saying, imagine your company makes half of what it does now. You have 5 houses instead of 10. So you have half the amount of profit (in this case it goes as tax rather than less houses). But if you have 20 houses you'll still be doubling what you made with 10.
The tax is ridiculous and driving many people away and we'll end up with too many empty homes and no enough places for people to rent but it's still a viable business as it makes profit. Your profit it just halved by tax.
Whatever the effect from a government policy, you can be sure it was intentional.
What is social housing? Council houses?
Hi Bobby, yes - social housing includes both council houses and properties managed by housing associations.
is the next Global Virtual meeting on the 7 August (as in the video) or 4 September (the website shows this date)?
@diandrrai Global is on 4th September, National (virtual) is on 7th August. Details here: www.nationalpinmeeting.co.uk/
Is it still worth it to invest in HMOs regardless of the party in power?
@cristianosa7913 yes I think so as long as you know what you are doing and go for high end quality HMOs.
I have a few properties which I used to rent as HMO’s. My council fined me £20,000 because I didn’t renew a gas safe certificate in one property. I got out, turned them all into holiday lets. Has been much better! Now I’m super worried about section 24 from April 2025. I don’t think I will have a business anymore (that is worth all the effort). I don’t want to sell as this is all I have done for 15 years and all I know. I feel I will be forced to sell them 😢
It sounds like you've had quite a challenging experience. Transitioning your properties from HMOs to holiday lets seems to have been a beneficial move for you, but I understand your concerns about Section 24. The changes coming in April 2025 will undoubtedly impact many landlords.
Here are a few suggestions that might help you navigate this situation:
Consult a Financial Advisor - A professional can help you explore all possible options, including restructuring your business or finding tax efficiencies.
Stay Informed - Keep up with any updates on Section 24 and other relevant legislation to ensure you’re prepared for any changes.
Join Landlord Associations - Networking with other landlords can provide support, insights, and potential strategies to cope with these changes.
It’s understandable to feel uncertain, but seeking professional advice and exploring all your options can help you make the best decision for your future.
@@SimonZutshiOfficial Thank you so much! I didn’t occur to me to consul a financial advisor. I’ll do that right away. You may have just saved me a serious 6 month headache! 🙏
Are they in a company or your name? Would opening a company name and move them into that save the section 24 tax n allow mortgage payments as an expect??? It'll work out OK4u I hope
@@paulcoates3860 my name. To move them to a company would cost an arm and a leg in capital gains tax, it’s not possible to move them into a ltd company. I have asked 3 accountants to work out how much it would cost and no one can do this calculation. They all said it would cost a fortune
Let's be honest here. A large number of properties owned by landlords are often ex-local authority houses. Ironically usually sold by those that bought under right to buy and as quick as they could cashed in their profits and sold. These properties are not desirable to aspirational first buyers as often they're on sink estates. Most first time buyers previously used help to buy or other incentives and wanted a shiny new house. Landlords in some areas are going to be stuck with tenants no-one else wants to house. I feel it's on its last legs and how long does someone stand being part of an industry that appears universally hated by everyone? Many landlords I speak to are leaving because they are tired of being demonised by society and ripped off by tradespeople charging a fortune for repairs.
Will you hire homeless employees in your property investment business?
Great !!! 70% home-ownership; I love it. BUT where are the other 30% going to live? We NEED the PRS. VOTE REFORM UK
(BTW thanks for clarifying that the government weren't personally building 300,000 houses .)
I doubt that there will be a crash for many years. This so called "reasonable sale price" has to be reasonable from the landlords perspective too. (Your comments are not at all controversial but completely rational.) The only losers are renters.
@gossKamperis yes I agree we need PRS