RE: Starmer Watch. todays 3rd addition.27 Aug 2024 12:37
Asperger1
You ask if it is worth getting into property now.
Well 44 present Labour MPs are landlords, MPs only have to declare property which generates more than £10K per year per property, so the numbers could be more, if they rent is say £9,999 per year, they can keep them hid.
At the present I would keep away from leaseholds, our properties are all within the same development and each owner is a director of the management company, so maintenance costs can be controlled by the freeholders . As an example our monthly costs are £86. Which is a lot, lot cheaper than leasehold contracts, which in our area are generally over £200 per month.
If you go for it, get a newer property which should be in the higher energy efficiency grade of at least C. And there should less maintenance with the newer properties. Get a property at the right price, keep the stamp duty down! do not fit it out beyond the rent return ratio, no gold plated baths etc. We once let them furnished but they are all none furnished now.
If you do furnished then YOU are down to replace anything that gets broken or wears out, that is on the inventory .
Management.
If you can and it is easy, manage the property yourself, management companies charge up to 12%, it is they, that like to keep upping the rents .You can get some companies to find a tenant for a one off payment, which is tax deductible.
If your property is all electric then a electrical test certificate is required, if you have a gas boiler etc a gas safety certificate is required .
Any out lays regarding general maintenance and testing are tax deductible so keep receipts
Insurance is tax deductible, as is renewing fitted fixing as baths, carpets etc
We use an accountancy firm and Any accountancy costs are deductible.
On tenants we have been renting for around 30 yrs now and only ever had one tenant who needed removing, but he did that himself by sodding off with out paying two months rent, but before that he had been ok, if he had told us he had got into financial trouble we could have work something out.
We do not take deposits, our choice but some people now take the deposit over a period of months to make it easier on the tenant.
PS. keep copies of anything that you spend on the property, if you come to sell it, you could use them to reduce some CGT
I hope this is helpful, it sounds daunting , but once up and running its easier than it sounds. And wait until after the budget.
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