Motivated by tax incentives, an increasing number of buy-to-let landlords have changed the way they let their property: discover why below, and also, get to grips with four proven profitable strategies for investing in property.
Buy-To-Let Property Landlords Are Becoming Holiday Let Property Landlords To Save Tax
The Tax Advantages Of Switching To A Different Property Letting Basis
According to a survey by the Residential Landlords Association, it seems a significant number of buy-to-let landlords have started using Airbnb to offer their properties as short term holiday lets.
The reason for such a move is largely blamed on the increasing tax liabilities on buy-to-let properties let on assured shorthold tenancies. Recent tax changes include a reduction in the generous wear and tear allowance, and the restrictions being imposed on mortgage interest.
To date, short term holiday lets have not been affected by these changes. And when you consider they enjoy other valuable tax advantages, including substantial reliefs against Inheritance Tax and Capital Gains Tax, it’s certainly worth giving this area some serious consideration.
Here’s an in-depth look at the benefits of letting your property as a holiday let.
And here's our recent article on the subject entitled How To Profit From Residential Property Investment.
If you’re unsure whether a switch from an assured shorthold tenancy to a short term holiday let would be advantageous for you, it’s worth speaking with your trusted advisers. And if you have a mortgage on any property you’re considering switching, you should consult with your lender to ensure it complies with the terms of your loan.
Four Proven Property Strategies For Property Investment
Whether you’re a property newbie, or a seasoned property investor, it’s often a good idea to go back to basics.
With this in mind, here are four proven property investment strategies worth checking out.
The illustration below comes from the USA, so it contains some rather flowery language we tend not to use over this side of the pond, but the essence of what it’s sharing is interesting.
Although buying and holding is the most common and traditional strategy used for property investing, it’s possible to make money deploying each strategy. Of course, all property markets are slightly different and some of the property strategies will work better in some areas compared to others.
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