138: A month of highs and lows – welcome to our August 2016 property update

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Wedding Month!Hey Property Insiders, Mike Stenhouse here with another monthly update to wrap up everything that’s been going on with my own investing over the past few weeks. In fact I’ve got a lot to cover today as this time last month I was enjoying my wedding day followed by a long break away from the office for my honeymoon. I’ve got some great content to share on how my own investments are progressing, some new deals that I’m working on, and as always, an exciting update on everything going on with the podcast as well!

But none of that gets me as happy as being able to welcome back the undisputed king of property tax , Mr Simon Misiewicz of Optimise Accountant.

Simon joins us regularly during these monthly updates to make sure our tax bills are as low as ethically possible and that we all have a solid understanding of what’s going on in the property market when it comes to finance and accounting.

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Simon’s Tax Tips

Capital Gains on BTL to be taxed as income – this is a contentious subject at the moment, and whilst we don’t cover it in huge detail as there’s still a lot of uncertainty around it, Simon shares the background to why there are plans to introduce this change, and we’ll be looking at it a lot more closely in a coming episode as soon as we know more.

How to minimise the impact of Clause 24 – we clear up some uncertainty around Beneficial Interest Company Trusts (unfortunately this isn’t as useful a strategy as many think, and we explain why, as well as clear up who can benefit from it); we also cover a more positive topic called EIS (Enterprise Investment Scheme) which allows us to delay and ultimately reduce Capital Gains Tax implications – great news!

Brexit Changes – there are a few positives coming out of the Brexit vote including lower interest rates on borrowing, but equally there has been a swell of foreign investment fuelled by our cheap currency.

Simon also talks about something on his mind at the moment – “Brental”. His belief is that the rental market is going to remain strong despite concerns of drops in demand, as property prices are unlikely to drop low enough to encourage first time buyers, and a potential end to free movement will likely see an influx whilst our doors remain open.

40% off Tax Consultation

As with all of Simon’s advice, it comes with the disclaimer that all of our circumstances are different and as such generic advice is very hard to offer.

In order to help as many of us as possible receive the best bespoke advice for our own investments, Simon is offering 40% off any of their consultation services.

Go to optimiseaccountants.co.uk/financetaxconsultation and use code ‘stenhouse40’ to take advantage of this great offer throughout September.

Remortgage Delays

One of my major focusses at the moment is getting off a bridging loan on a recently completed HMO. It’s costing a small fortune but the mortgage gods seem to be doing everything they can to keep me paying the bridging rates as long as possible. If you’re looking to refinance an HMO, or are looking to transfer some ownership to a wife/partner, we cover a lot of advice and watchouts on this subject.

Planning Misery

My other major focus is getting planning permission on our large commercial to residential HMO development. Find out where we’re up to with that, and why councillors are at the top of my hit list.

I’m confident we’ll get there eventually, but I cover a lot of the details of the planning process if you’re interested in that side of things.

Hands-Free HMOs

We’ve just finished our latest HMO for an investor who is completely hands-off, and she’s delighted. The project was quick, budget was on track, and the rents are higher than anticipated.

It’s been a great success all round, and I talk through the finances as well as the process for investing with us.

Looking Ahead

Next on the list is a large development project. I’m currently appraising a few potential sites around Manchester and my goal is to get a site secured by the end of 2016. Now that we have a good recurring income from our rental portfolio, I think the time is right to go back to buy-to-sell in order to bolster our cash reserves (did you know how expensive weddings can be?!?!?!).

Free Webinar on Starting Your Own Mastermind Group

I run a couple of high-level Mastermind groups for successful and ambitious property investors. They’re responsible for so much of my success that I decided to share the process for starting your own Mastermind.

If you’re reading this before September 14th, 2016, you can sign up for one of these webinars here – insidepropertyinvesting.com/mastermindwebinar otherwise you can find out more about our Mastermind groups generally at insidepropertyinvesting.com/mastermind

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