No its still 18/28% depending on tax bracket You do however pay a shed load more in stamp duty, whcih cant be claimed back anymore!
Overall property investment does best over time. However with all the red tape, tax rules, and this new renters reform Bill. Stay out of the private rental market.
Wow. What mixed bag o f views and that doesnt surprise me. Ive several and have for some time. Ive had good tenants and had horrific ones. The big question anyone needs to ask themselves is what is their plan be it short or long term. Short term then no its not great but i still argue that long term there is no better return on a chunk of money that you have sitting in a bank. Buy a expensive bike is great but its just going to lose you money . Long term if you buy the right house then its still a winner for me to the point im going through the purchase of one as i type. It needs some TLC so with the market as it is then i'm getting it as a good price . I see it as £200k over the £160 im getting it at. The return wont be great on the rental side but long term add in the increase in house price and it will do well i hope. For me it comes down to one strong point in that the demand for houses grows quicker than availability .
Just buy a second house, get the wife to live in it rent free for 5 years, then sell it and enjoy the profit. Win win!
You and the wife count as one unit for property ownership. So that ain't gonna work with the tax man!
What you view a a “war on landlords”, many would view as much needed regulation in a sector that was and still is rife with rogues and exploitative practices. The UK actually has the most landlord-friendly laws in Europe, because despite the private rental market making up a large and increasing proportion of long term accommodation, there is virtually zero rent control and virtually no security of tenure.
House prices have to hit a ceiling at some point. They only increase in value at above inflation rates because banks find ever more dodgy ways of lending more money and increasing people’s debt.
……..with the connivance/acceptance of Government. The old maximum lending of 2.5 times salary held property prices in check.
Apologies if not put over well there, always two sides to every story and wont disagree, when I rented somewhere some time ago it was a cold winter, and had no heating/hot water for months and a landlord who didnt care so yeah been on the other side of that type. Was hopefully aiming to point out to anyone considering it these days make sure you do the homework on tax relief changes, stamp duty changes and the additional regulations in place now days before you commit. Allot of the changes will eat into any rental profits before you even start which wasnt the case before a raft of changes took hold in the last decade or so, worth speaking to people in the know and still in the business.
It is unfortunate that returns on (cash) investments were so poor over the last 10 years or so that made renting such an attractive proposition, which in turn has distorted the housing market to some degree. My 30 yr old nephew & wife, both in pretty well paid professional jobs, have finally bought a property but only after help from parents. And don't get me started on buy to let mortgages...
