Buy To Let has come under a lot of pressure from ill-thought out government policies but make no mistake, it's not the end of it. Far from it. These 3 key points will have to back on the horse and investing again as long as you can shield yourself from point 3...
Hi, guys. Brett Alegre-Wood here from GladFish Property Investment. Property search. Think Gladfish.
Okay. So, guys, what I want to cover today was, is buy-to-let still worthwhile investing in? I mean, in UK property investment we seem to have nothing but negativity about the market, about tax changes and Brexit, uncertainty, Trump and all this sort of stuff in 2016.
And you know, since the end of 2015 and through 2016, everything seems to have been negative, negative, negative, and outright warfare. Okay, very one-sided warfare, just attacking property investors. And you know what? I can't deny that. You know, It certainly looks like it's going against us. It looks like they're trying to stamp out small investors. But actually, when I look at it, and the interesting thing is having been through this whole process and seeing hundreds of our clients go through this process, the end result has been "yes," it is more expensive to run a buy-to-let portfolio. But when you look at the numbers and when you work the numbers through, property investing still makes sense.
Okay, there's no doubt about that. But you've still got to invest in the right areas and do all the same principles apply, you just now have to take on a new adviser, which is a tax adviser. Okay. So, that's number one. You're going to work with that person and make sure you've got the right structure up front.
Whereas before you could quite happily just buy it in your own name and everything was forgiven, mortgages were easy, everything was easy. Now, we're going to start buying in companies and using company law as really the basis for what we do. And it's not just company law. It could be a limited liability partnership. So, there are other options. What I would say is speak to a professional. If you don't know who the right professional is for your situation, then by all means give us a call and we can make an introduction.
Now, the interesting thing is, ( I'll be doing a few videos and a whole video series on this) is the structures for your investments....You're going to have a structure for your current portfolio that could be in your personal name, you know, properties that you buy new may be in a company name.
But certainly it's become a little bit less profitable buying in your own name with not having the mortgage deductibility and that sort of stuff. But the point here is that whatever you're going to do now, you have to make the decision to become a professional property investor.
If you think you're just going to be a mum or dad that buys a property on the side for your kids, "Oh, maybe we'll just invest in one and it won't really have an effect on us," you're not going to, You are going to have to treat this as a professional business like you would any other business. All right. This is not something you just do on the side and you're carefree. This is something that... And it doesn't mean you have to take a lot of time.
This is not going to take more time than it did before. The point is you have to mentally think of it as a much more professional business. And when you do that and you act like a professional owner of a business, an entrepreneur or whatever you want to call it, a business owner, then, actually, when you get in that mindset, you'll very quickly, okay, realize that this whole stuff in the back, you know, this tax changes, Trumps and Brexit and all that, is all the white noise.
And I can tell you, oh, I say, the white noise of property. The white noise of property is always there. Whether it be the economy is going down, whether it be taxes are going up, whether it be this terrorism thing, that, you know, whatever the thing is, there's always going to be things distracting you from what it is you need to achieve. Okay.
So, the key here is to avoid the distractions, manage them, become highly educated about them, but then whatever you do, don't let them stop you. And that's my point here with the buy-to-let thing. Get in, do it. There's still a massive short fall of property that isn't being solved. And, in fact, everything the government is doing is actually just going to cause even more problems for tenants and for people who haven't got property.
People that do have property, it's just going to mean more money, they're going make more money in the long term. So, get on board, you know, sit down with one of the team, work out what it is you need to do, and very quickly you'll start to see that things aren't as bad as the media and certain people, (who are uneducated and aren't really involved), are making out.
All right, guys, have a great day.
Live with Passion,