• Home
  • News
  • I resolve to finally make the most of my properties!

I resolve to finally make the most of my properties!

I resolve to finally make the most of my properties!

Another year nearly done, roof still leaking? Woodchip still up? Tenants still creating mess? Have you followed the golden rules of Property Investing?

Another year nearly done, roof still leaking? Woodchip still up? Tenants still creating mess? Have you followed the golden rules of Property Investing?

How to maximise your Property Investment:

  1. Buy low
  2. Make the best yield in the meantime
  3. Sell High
  4. Legally avoid as much tax as possible!

All very well you say! The Government, tenants and all the fee-takers in between can thwart your investment and rapidly shrink your bricks and mortar value to virtually nil. Tenants can drive you round the bend and occasionally cause enough damage to make you wish you hadn"t bothered.If you have re-mortgaged you may then face a CGT bill larger than your equity value.

I spend too much time on facebook and often hear stories of newbie landlords very taken with the idea of being 'hands-off", those buying 'investments" via sourcers miles away from home that they may never see and putting their pension pots or savings in the hands of developers and sourcers that they may not even meet face to face. Far from putting them on the road to the golden sands of financial freedom it seems to usually just create a load of pain!

'Doing SA" (Serviced Accommodation) is not a property strategy, it is a business with all the brain-ache that that brings. It can, however, be leveraged to help you to maximise your profits and minimise the tax sting of your portfolio, particularly those of us who have held our properties for many years and are reluctant to part with a large dollop of CGT at the end. (I am not an accountant and this is not advice) but does the idea of CGT coming in at 10% or, possibly 0 sound inspiring?

Let"s take the above suggestions:

  1. Buy Low. Use whatever dark magic you apply to get that elusive deal! Use the cash you saved on the deal to renovate and furnish.
  2. Make the best yield in the meantime. Use short lets to generate up to 1.5x rent (net of all costs). Deduct your set up costs, renovations, furnishing and finance costs from your taxable income. Claim Capital Allowances not once but twice to mitigate your current tax bill.
  3. Sell High. You have a beautifully decked out property with professional photographs. Staged and ready to maximise sale at any point. It will stay this way for a number of years, (you can also stay there or use it to house your more challenging relatives at Xmas time!).
  4. Legally avoid as much tax as possible. You have created a commercial property and a holiday let business without too much difficulty. On sale, the tax applied to these categories is considerably less than resi property.

I haven"t had this much fun in Property since I started out 28 years ago, I am always happy to talk through the options and can help by taking the pain of doing the short lets themselves. I can help you to plan your exit or map out a plan for your next property so get in touch if you are considering being strategic in your next property deal. Charlotte Walker 07973 407362

Written & oral information and advice from the Portsmouth & District Private Landlord's Association is given in good faith, but no responsibility whatsoever is accepted by the Association or it's officers for the accuracy of it's information & advice nor shall the Association be held responsible for the consequences of reliance upon such information.

Copyright © - PDPLA
A private company limited by guarantee number 4444664.
Registered in England at 214 Chichester Road, Portsmouth PO2 0AX.

Site designed by This email address is being protected from spambots. You need JavaScript enabled to view it.
Web design, hosting and domain management.
Discounts for PDPLA members.