John Eastgate
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Latest property news
Landlords set to make £162,000 profit per property over next 25 years
Landlords in the near future will not be the dying breed some industry commentators would have agents believe, research by a leading lender has revealed. Chatham-based KentReliance says its data shows landlords in the UK will make an average net profit of £162,000 per property over the next 25 years – in today’s money – despite the government’s recent tax take. This equates to £6,500 per property per year and includes both rental income and capital gains. KentReliance says the figures prove buy-to-let investment still has long-term appeal for landlords, even though over the 25-year term they will pay £100,000 in tax. That includes £60,000 in capital gains tax, £29,000 in income tax and £10,000 of stamp duty, assuming the landlord is a lower rate tax payer. “The buy to let market is undergoing a sea change,” says John Eastgate of KentReliance’s parent company, OneSavings Bank (pictured, below). “Regulatory and taxation changes have altered the market dynamic, reducing its attractiveness to amateur landlords, and increasing the tax bills of higher-rate investors. “In spite of rising costs, there are still healthy returns to be found in property for committed investors, but the days of speculation are gone. “It is a long-term…
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Latest property news
Number of landlords setting up limited companies rises nearly four-fold
The number of landlords setting up limited companies to run their businesses through has increased dramatically as the April 6th tax relief deadline looms, it has been claimed. Lender Mortgages for Business says the number of landlords applying for loans through limited companies has increased from 21% of all applications in 2015 to 77% of today, an almost four-fold increase. Purchases and transfers Mortgage for Business says the increase is made up of both landlords purchasing properties through newly set-up limited companies, and those transferring existing personally-owned properties to limited companies. The government is gradually reducing the finance cost relief that landlords personally receive on their mortgage interest payments each year between now and 2021, when the relief will end. Limited company mortgages are also quickly starting to eat up more of the overall buy-to-let market, increasing from 18% two years ago to 47% today, and the number of buy to let mortgages available has increased too, by more than a third. “With the changing face of the buy to let mortgage market, it is no surprise that lenders are keen to appeal to limited company borrowers,” says David Whittaker, CEO of Mortgages for Business (pictured, left). “We have been…
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