Home Based Business Ideas UK: July 2023

Saturday, July 29, 2023

STOP the War on Landlords

STOP The War On Landlords

With the housing and rental crisis getting worse by the day, the UK government must cease its war on private landlords and restore the balance of power.

Housing charities, such as Shelter and The Big Issue are calling on the government to end ‘no fault evictions’ and put a cap on rents, all of which is adding to landlord anxiety and causing thousands to quit the buy-to-let market.

· Almost 1 in 7 had their rent increased in the last month

· Of the 3.5 million private tenants who had their rent increased over 800,000 saw it rise by more than £100 a month, and nearly 200,000 by more than £300 a month
Almost 2.5 million renters are either behind or constantly struggling to pay their rent

· 1 in 3 spend at least half their household income on rent

Source: Shelter

The government has introduced a raft of new ant-landlord legislation and red tape for private landlords including:

· Section 24 tax hike on rental businesses holding propertied in individual names

· Tenant Fee Act

· More tests such as electrical inspections and Legionella tests

· Renters Reform Bill, which will end Section 21 ‘no fault evictions’ and give tenants more rights

Meanwhile, the crisis is leading to record rent highs and creating a massive shortage of properties.

As predicted, the war on landlords is backfiring on the government and tenants and landlords are paying the price.

The Bank of England’s hammer blow interest rate hikes (to stop the inflation they help create through money printing on an industrial scale) have added another nail ‘in the coffin’ to the buy-to-let property model.

More pain to come for borrowers and mortgage holders as both the Fed and ECB raise interest rates by 0.25% this week, a record high for the European Central Bank.

Will the Bank of England follow at their upcoming meeting?

Landlords are switching to other rental models, such as Serviced Accommodation, company lets and holiday rentals, in order to in many cases substantially increase rental returns, bypass Renters Reform legislation and Section 24 tax changes and help them survive higher interest rates.

See also:

Landlord - Serviced Accommodation V Buy-to-Let Property Rental And HMO’s - Exploring Alternative Buy-to-Let Strategies in the UK: Serviced Accommodation, Holiday Letting, and HMOs

https://youtu.be/5uJcr7YoPso

See: – Transfer Property Into A Limited Company Without Paying CGT or Stamp Duty https://youtu.be/mtGq7WaVxLA

If you would like more information and an assessment on letting your property hassle free, hands-off with FULL MANAGEMENT using the serviced accommodation model, email southherts@localagent.co.uk with your property details and location.

3 Steps To Success Money Management!

I want to help you get control of your money, learn how to invest and become financially free.

Join me online on my free live money management training Wednesday at 8.00PM.

Places are limited, so register now below to avoid disappointment.

https://bit.ly/3QPp8IH

#interestrates #property #mortgages #remortgage #mortgagerates #homebuyers #estateagent #housepricefall #finance #moneytraining #moneymanagement #wealth #bankofengland #inflation #money #servicedaccommodation #holidaylet #HMOrental #holidatrental #airbnb #booking.com #buytoletlandlords

Saturday, July 22, 2023

Commercial Mortgage Market Opportunities Beyond Buy-to-Let

Commercial Mortgage Market Opportunities Beyond Buy-to-Let

Join me online on my free live money management training Wednesday at 8.00PM.

Guest speaker, Paul Rogers - Commercial Finance Broker Commercial Finance Broker

Synergy Commercial Finance Ltd paul.rogers@synergy.finance

Tuesday, July 11, 2023

Landlord - Serviced Accommodation V Buy-to-Let Property Rental And HMO’s

Landlord - Serviced Accommodation V Buy-to-Let Property Rental And HMO’s

Exploring Alternative Buy-to-Let Strategies in the UK: Serviced Accommodation, Holiday Letting, and HMOs

Introduction

Investing in property has long been a popular avenue for generating income in the UK, but with mortgage rates hitting a 16 year high, the standard buy-to-let model does not stack up alongside borrowing. While standard buy-to-let properties have traditionally dominated the market, alternative strategies such as serviced accommodation, holiday letting, and houses in multiple occupation (HMO) are gaining traction as landlords look to increase returns to offset high borrowing costs and more red tape.

Many experts are predicting a property market crash – see Housing Market in Deep Trouble https://youtu.be/USGREwntT1I

In this article, we will delve into the pros and cons of each strategy, as well as explore the associated risks and tax benefits for landlords under UK tax law.

Watch video version - https://youtu.be/5uJcr7YoPso

1. Serviced Accommodation

Serviced accommodation refers to the rental of fully furnished properties on a short-term basis, often targeted at business travellers, tourists, or corporate clients.

Pros:

- Higher rental yields: Compared to traditional buy-to-let, serviced accommodation can provide significantly higher rental yields due to premium rates charged for short-term stays.

- Flexibility: Landlords have the option to use the property for personal use when it's not occupied, offering flexibility in terms of availability and usage.

- Strong demand: Popular tourist destinations and major business centres tend to attract consistent demand for serviced accommodation.

Cons:

- Increased management requirements: Regular cleaning, maintenance, and managing guest turnover can be more time-consuming and require active involvement from landlords.

- Seasonal demand fluctuations: Depending on location, occupancy rates may fluctuate seasonally, resulting in periods of high demand and low demand.

- Regulatory considerations: Compliance with local regulations, licensing requirements, and health and safety standards can be more stringent for serviced accommodation.

2. Holiday Letting

Holiday letting is similar to the above model and involves renting out a property for short-term vacations, typically in popular tourist destinations.

Pros:

- Attractive rental income: During peak vacation seasons, holiday lets can generate substantial rental income due to premium rates charged for short stays.

- Personal use: Landlords can enjoy using the property for personal vacations during off-peak periods.

- Tax advantages: Holiday letting can offer certain tax benefits, including the ability to claim capital allowances and potentially qualifying for certain reliefs.

Cons:

- Seasonality: Demand for holiday lets can be highly seasonal, leading to potential periods of low occupancy during off-peak seasons.

- Management challenges: Similar to serviced accommodation, managing bookings, cleaning, and maintenance can be more labour-intensive.

- Increased competition: Popular tourist destinations often have high competition among holiday let properties, requiring landlords to differentiate their offerings to attract guests.

3. Houses in Multiple Occupation (HMOs)

HMOs are properties rented out to multiple unrelated tenants who share communal areas, such as kitchens and bathrooms.

Pros:

- Higher rental income potential: Renting out individual rooms within an HMO can generate higher rental yields compared to traditional buy-to-let properties.

- Diverse tenant pool: HMOs can attract a range of tenants, including young professionals, students, and single individuals.

- Demand stability: In areas with a high demand for affordable housing or near educational institutions, HMOs can provide consistent demand for rental properties.

Cons:

- Licensing and regulations: HMOs are subject to specific licensing requirements and regulations, which can vary between local authorities.

- Management challenges: Managing multiple tenants, ensuring communal areas are maintained, and resolving disputes can be demanding for landlords.

- Potentially higher costs: HMOs may require additional safety measures and compliance expenses, such as fire safety systems and regular inspections.

Tax Considerations

Landlords should be aware of the tax implications of each strategy. Depending on individual circumstances, there may be specific tax benefits, including allowable expenses and tax deductions. Seeking advice from a tax professional is essential to navigate the complex UK tax landscape.

Conclusion

Alternative buy-to-let strategies offer landlords in the UK diverse opportunities to maximize their rental income. Serviced accommodation, holiday letting, and HMOs each come with their own set of advantages and challenges. Understanding the risks, tax implications, and individual goals can help landlords make informed decisions when exploring these alternative strategies.

With the right management, there is no doubt that serviced accommodation can increase net returns for landlords, as well as removing them from current housing legislation and the forthcoming tougher legislation proposed under the Renters Reform Bill.

For more information on renters reform, see my YouTube video: ‘Trouble Ahead for Landlords’ https://youtu.be/_QpXWoYmG3U

3 Steps To Success Money Management!

I want to help you get control of your money, learn how to invest and become financially free.

Join me online on my free live money management training Wednesday at 8.00PM.

Places are limited, so register now below to avoid disappointment.

https://bit.ly/3QPp8IH

Saturday, July 8, 2023

Banks Slammed On Low Savings Rates

Banks Slammed On Low Savings Rates

Bank bosses have been probed by the UK's financial watchdog over complaints that interest rates on savings are too low and are not being passed on to savers.

Join me online on my free live money management training Wednesday https://bit.ly/3QPp8IH

Higher interest rates have led banks to put up mortgage costs sharply, but savings rates are barely rising.

Chancellor Jeremy Hunt has finally noticed that savers have been ripped off and says it is an "issue which needs solving", the BBC reports.

Millions of households are struggling with the soaring cost of living, higher mortgage rates and energy bills, which have also failed to come down following the fall in wholesale oil and gas prices.

The heads of the worst culprits; Lloyds, HSBC, NatWest and Barclays banks have been summoned to a meeting by the Financial Conduct Authority (FCA) on Thursday.

The so-called watchdog will question the banks on their poor savings rates and on how they communicate with customers, according to the Financial Times.

HSBC said it had increased its savings rates "more than a dozen times since the beginning of last year, with every savings product seeing rates increased on multiple occasions during that time".

NatWest have not passed on rates on many of its older accounts at all, leaving it to customers to switch to different accounts to achieve a decent rate on their savings.

The Bank of England has been increasing UK interest rates since December 2021 as it tries to bring down soaring price rises.

Its base rate - which has a direct effect on mortgage and savings rates has risen from almost zero to 5% in the last 18 months.

The Central Bank wants to make it more expensive for people to borrow and spend and encourage them to save – in the hope that we will all spend less so that inflation cools.

Average mortgage rates have soared above 6%, while returns on savings and current accounts have risen by a much smaller amount, in some case not at all.

The average rate for a two-year mortgage deal hit 6.47%, while the average easy access savings rate was 2.45%, a gap of 4.02 percentage points.

The average one-year fixed savings rate was 4.8%.

Low returns on savings combined high inflations is eating away at people’s savings.

This follows over a decade of derisory returns. The banks have been offering poor savings rates since the 2008 financial crisis. Since then, it has been more profitable to borrow money and buy assets such as property, hence the housing bubble and unaffordable homes for first-time buyers.

The big four High Street banks have a monopoly on banking, lending and savings, although challenger banks are making headway.

Many older people are not used to internet banking at a time when the four main banks are closing hundreds of high street branches leaving customers isolated.

Even if the banks increase savings rates increase, money held in a bank account will not give you a ‘real’ rate of return above inflation.

If you want your money to grow so you can build wealth and become financially free you need to invest it into real assets, such as property or the stock market.

This can be done using low-cost tracker funds, unit trusts, mutual funds and pension funds. Average returns in a tracker fund invested in the US S&P 500 index are around 10% per annum, and you can start saving as little as £50 per month into most funds.

See also:

Housing Market in DEEP Trouble: https://youtu.be/USGREwntT1I

If you would like to learn more about how to become financially free and develop a millionaire mindset I am running a free training webinar.

3 Steps To Success Money Management and Financial FREEDOM!

I want to help you get control of your money, learn how to invest and become financially free by developing a millionaire mindset – which is not about buying flashy things and looking rich!

Join me online on my free live money management training Wednesday at 8.00PM.

Places are limited, so register now below to avoid disappointment.

https://bit.ly/3QPp8IH

Tuesday, July 4, 2023

Summary Of Mortgage Deals and Fixed Interest Rates

Summary Of Mortgage Deals And Fixed Interest Rates

Following the Bank of England’s 13^th base rate hike to 5%, we look at the current mortgage deals on offer for fixed rates, discounts, trackers and buy-to-let.

Join me online on my free live money management training Wednesday at 8.00PM. Register now https://bit.ly/3QPp8IH

See video version on YouTube: https://youtu.be/WY1AWe4fdTU

Also in this Money Tips Podcast episode:

· Transferring buy-to-let property to a limited company without paying CGT and Stamp Duty

· Improving your returns using holiday lets or serviced accommodation (SA)

· Getting around George Osbourne’s Section 24 tax grab on buy-to-ley landlords

See: – Transfer Property Into A Limited Company Without Paying CGT or Stamp Duty https://youtu.be/mtGq7WaVxLA

See also:

Housing Market in DEEP Trouble: https://youtu.be/USGREwntT1I

Interest Rates Will Rise, Property Prices Will Fall And Opportunities Will Open Up:

https://www.youtube.com/watch?v=ziTf2jOagB8&t=179s

How To Develop A Millionaire Mindset

I want to show you exactly how you can:

• Not only survive, but thrive in a recession or depression?

• Get control of your finances and spending?

• Save and invest for your future?

• Learn about money and finance?

· Develop a millionaire mindset

To help you, I am running a free training webinar.

3 Steps To Success Money Management and Financial FREEDOM!

I want to help you get control of your money, learn how to invest and become financially free by developing a millionaire mindset – which is not about buying flashy things and looking rich!

Join me online on my free live money management training Wednesday at 8.00PM.

Places are limited, so register now below to avoid disappointment.

https://bit.ly/3QPp8IH

Multiple Streams of Property Income - Flagship 3-Day Training

Friday 14th to Sunday 16th July 2023

https://bit.ly/propertyABC

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