Some notes based on your comments below:
No CGT if bought in a Ltd Co, just Corp tax as we're all already used to.
The 15 companies rule is not as you have read it, and it's changed to 6 properties now. It's about buying 6 properties in one go, which will avoid the SDLT surcharge. This is still in consultation. The objective for this is to encourage large, corporate style rental businesses to thrive whilst choking off the small investor and the people that want a couple of BTLs for their retirement.
Beware of HMOs. This is not a new strategy; it has been around for many years and the property 'gurus' have been there and done it and now sell courses to teach others how to do the same, i.e. they make money from handing off the training more than they do from their properties. There is a vast oversupply of HMOs in a number of areas already.
Still, in some areas HMOs might work, especially if you're up North where is more LHA demand. Buy cheap 3 bed-terraced houses with 2 reception rooms that you then rent as either 4 or 5 rooms. You'll need to avoid Article 4 areas (restriction on multiple occupation) and loans will be commercial rather than residential (hence a little more expensive). You'll have to manage a higher turnover of tenants, and also spec the house out to be HMO compliant - fire doors, wired smoke alarms, lockable doors, sufficient bathrooms/kitchens etc. You will also be liable for all bills on the property. Your numbers should be based on an 80% occupancy rate. BUT, having said all that, you can make a decent return, for example, £130k 3 bed in Kettering can get £1,600 to £2,000 monthly gross income. And that's not even far up North.
Don't mix your IT business with Rentals in the same Ltd Co. Use a separate company but be aware of the Affiliated Companies rule.
And yes, MF is a millionaire, but it means bullcr@p because its never enough and none of this money is real and none of it will make you any happier or go with you to the other side when you're 6 foot under.
No CGT if bought in a Ltd Co, just Corp tax as we're all already used to.
The 15 companies rule is not as you have read it, and it's changed to 6 properties now. It's about buying 6 properties in one go, which will avoid the SDLT surcharge. This is still in consultation. The objective for this is to encourage large, corporate style rental businesses to thrive whilst choking off the small investor and the people that want a couple of BTLs for their retirement.
Beware of HMOs. This is not a new strategy; it has been around for many years and the property 'gurus' have been there and done it and now sell courses to teach others how to do the same, i.e. they make money from handing off the training more than they do from their properties. There is a vast oversupply of HMOs in a number of areas already.
Still, in some areas HMOs might work, especially if you're up North where is more LHA demand. Buy cheap 3 bed-terraced houses with 2 reception rooms that you then rent as either 4 or 5 rooms. You'll need to avoid Article 4 areas (restriction on multiple occupation) and loans will be commercial rather than residential (hence a little more expensive). You'll have to manage a higher turnover of tenants, and also spec the house out to be HMO compliant - fire doors, wired smoke alarms, lockable doors, sufficient bathrooms/kitchens etc. You will also be liable for all bills on the property. Your numbers should be based on an 80% occupancy rate. BUT, having said all that, you can make a decent return, for example, £130k 3 bed in Kettering can get £1,600 to £2,000 monthly gross income. And that's not even far up North.
Don't mix your IT business with Rentals in the same Ltd Co. Use a separate company but be aware of the Affiliated Companies rule.
And yes, MF is a millionaire, but it means bullcr@p because its never enough and none of this money is real and none of it will make you any happier or go with you to the other side when you're 6 foot under.
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