Finally things are looking up for landlords as rental prices have gone up, taking cue from the recent RICS survey. However all is not good as some tenants face financial pressures leading to increased rents.
Finally things are looking up for landlords as rental prices have gone up, taking cue from the recent RICS survey. However all is not good as some tenants face financial pressures leading to increased rents.
Whilst the usual premature euphoria over certain Budget measures has now died down, analysis has revealed that many proposals are not as beneficial as they first seemed!
The only clear winning measure in the Budget is the raising of the lifetime allowance for Entrepreneurs Relief from £5m to £10m (I was actually predicting this the day before!).
The glaring omission in the Budget (and one that both the CBI and the Adam Smith Institute tried to encourage the Chancellor to make) was to name a date for the scrapping of the 50% Income Tax rate.
This he manifestly failed to do.
As we approach the end of the current tax year, it is a time when landlords should reflect on their property business and plan for the year ahead.
If I was to ask you the following question, what
would your answer be?
“Do you have an idea of how much tax you will be paying for profits made in the current tax year?”
Will the answer be:
a) No, I will find out when my accounts are done – probably in January next year. 🙂
b) I have a rough idea.
c) Yes! I know what both my profits are and what my tax liability will be.
Unfortunately, from feedback I get, the typical answer to the question from too many landlords is a).
This answer is very dangerous and can put landlords in a right pickle, especially if their
rental profits are much higher than what has been anticipated. The last thing you want to find out is that you have a tax bill that you can’t afford or will struggle to pay!
Remember: Forewarned is forearmed.
This is where our award winning ‘Landlords Property Manager’ software can help. It does all
the number crunching for you, tells you your profits and your tax liability too just by the
click of a button!
The only thing you need to do is enter your income and expenses!
Not surprisingly, the answer to my question by our Landlords Property Manager customers is c).
Take a look here at the short one-click tax report video demo that is produced from Landlords
Property Manager. I guarantee no other solution on the market will produce a more complete set of records:
>> www.propertyportfoliosoftware.co.uk/profit
You can also download a copy of a sample report here:
>> www.propertyportfoliosoftware.co.uk/str
Show this to your accountant (if you use one) and he’ll do one of two things:
– Get grumpy because you’ve slashed the amount you’ll be paying him and come up with some *excuse* to keep you paying his fees!
– Be delighted because he can focus more of his time on more interesting tax work (and probably earn more).
Either way, Landlords Property Manager is here to help you get better organised and boost your profits so you can do more.
This article is written by Amer Siddiq, founder of PropertyPortfolioSoftware.co.uk
Want more time and money saving tips for your property business?
Go here to get a free copy of Amer’s Landlords Insider Secrets Report.
After a sustained downward plunge for many months now, statistical indices are showing that the UK properties market is stabilizing gradually – at least in the short term. I am particularly delighted at the latest figures churned out by the National Association of Estate Agent’s (NAEA) just a few days ago.
These new figures show that there is still hope in the industry, and that new home buyers would after all, find houses that match their pockets. The February report from the NAEA shows a year on year rise of 25% in the level of available housing stock. The report also shows that the percentage of sales made to first time buyers also increased slightly from 24% in January to 25% in February. This is absolutely great!
Be that as it may, the long term projections in respect to supply meeting demand as far as housing is concerned is not too bright. I am greatly disturbed about the government’s attitude towards housing policies. What is going to happen to the current labour force when they grow old; how many households would be available for social housing in a few years from now? Many questions begging for answers…
Frankly speaking, the answers are not too encouraging. A recent report shows that even under good economic circumstances – as compared to what we are seeing now, an additional 550,000 households will need social housing by 2025. The report says that without a new housing policy, this demand will not be met.
If around 4.5 million people are currently waiting for social housing, and only some 1.8 million households, equivalent to 8% of all English households can be available yearly, then the situation is quite critical. That would mean a staggering balance of 2.7 million people waiting on the queue; I tell you, if the government doesn’t change or modify its housing policy soonest, we may be facing an unprecedented housing crisis in a few years time from now.
Obviously, a serious gap looms between housing supply and demand. Our ageing population and rising expectations for living standards in the UK are going to drive up demand but if there’s no change in housing policy it will seriously hold back supply. I sincerely hope someone is listening!
The recent escalation in prices of foodstuff currently enthralling all parts of the world is a sure enough incentive for people to go back and till the land. Profits from farm produce are rising as basic food commodities have reached an all-time high. This has led to an unprecedented rise in the price of commercial farmlands.
The consequent rise in the price of farmland reminds me of my Basic Economics teacher; she would, at least once in a day mention this quote: ‘for a balance in the world, supply and demand must marry.’ True to that statement, there seem to be some magical forces that are pushing the price of arable land to never-before-seen-heights. Continue reading
Statisticians all over the world relish in what and what is most expensive, glamorous, large, and what have you; little wonder the Guinness Book of World Records is such a big hit for many – including me! Be that as it may, data covering the most expensive street in the UK is not a one-way ticket, the fluctuation in the real estate market and lifestyle of the occupants generally determines which part of UK is crowned champion.
According to research, St Hilary in the Vale of Glamorgan in Wales has an average house price of £789,000. Just a few miles west of Cardiff and a mile east of Cowbridge, this is one very quiet and fantastic area to raise kids and lead a peaceful and enjoyable life.
The second most expensive street in Wales is Gannock Park – with an average of £677,000 – in Deganwy, Conwy. Streets in Cardiff come next on the list, with Druidstone Road, £651,000, in the Old St Mellons area, Lake Road West, £644,000, and Westminster Crescent, £582,000, most expensive. Continue reading
After 64 years the greatest sporting events in the world comes back to London; having hosted the 1904 and 1948 games with great successes, the International Olympic Committee (IOC) has seen London fit again to host these memorable games. I just can’t wait to get the games going!
The internet has been buzzing with Olympic ticket applications for a few days now, and would be till 26th of April, 2010. These sport loving “army” from all parts of the world are not just buying up the tickets they are also making serious arrangements on where to lodge during the one month sporting fiesta. Continue reading
Today’s article completes the 3-part series on important checklists to consider before buying any property. Now you know what to do before any purchase. Good luck! Continue reading
This is the second part of a 3-part series on vital things to look out for before buying any property. I really do hope people would put these tips to good use. Continue reading
The sheer excitement of metamorphosing from a tenant to a landlord is enough to make most people lose sight of little, yet very important details to watch out for before signing on the dotted lines. I have, over many years in this industry seen many people end up with court cases and endless litigations after purchasing their choice property – residential or commercial.
Below is a list of important facts you MUST CHECK OUT before parting with your hard earned income. Because of the utmost important of this piece, I have decided to make it a 3-part serial so you can get the best out of it. Knowing these facts would save you from a lot of heartaches and help sustain your portfolio.
1. See the City planning office future projections. It is a very common phenomenon to see people sell their property when they realize it was all the while located on a government projected right-of-way such as pipeline, rail line, roads, airports, etc. Also check whether there are any rights-of-way (e.g. for a neighbour) over the land and, if so, whether these are permanent or renewable. If you don’t have current knowledge of the city’s plans, you may fall victim during purchase; and guess what, your property would be demolished sooner or later causing you to lose thousands of pounds due to your lack of elaborateness – or naivety.
2. Confirm legal status. Make sure that the property you are purchasing is not on a list of collaterals for a previously awarded loan to the seller(s), or previously owned by a bankrupt company; ensure that the liquidator won’t reverse the sale and claim it for the creditors.
3. See tax records. Find out from the Council tax offices if there are any unpaid taxes such as property tax or other charges outstanding against your choice property.
.…to be continued!