Always Learning
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Current Landlords - what would keep you in the game and stop the current exodus of landlords.
Have you ever heard of Section 23 Tax relief?"1) Taxation. Landlords are vilified and yet the government takes most of the rental income at 52% of same. I think it's unfair and I think to retain me in the sector, I would want to see a tangible change in this area. Tying in with my second point, I would like to see my tax rate on rental income reduced to 0% or 20-25-30% flat rate instead."
I can't see any way how rental income could face a different tax rate than wage incomes?
Why should incomed from one asset (BTL) be treated differently than income from another asset (e.g. dividends)?
Okay, I think maybe something could be done about capital allowances, etc., but a different tax rate? I can't see it.
We have a housing crisis!"1) Taxation. Landlords are vilified and yet the government takes most of the rental income at 52% of same. I think it's unfair and I think to retain me in the sector, I would want to see a tangible change in this area. Tying in with my second point, I would like to see my tax rate on rental income reduced to 0% or 20-25-30% flat rate instead."
I can't see any way how rental income could face a different tax rate than wage incomes?
Why should incomed from one asset (BTL) be treated differently than income from another asset (e.g. dividends)?
Okay, I think maybe something could be done about capital allowances, etc., but a different tax rate? I can't see it.
I think the tide is turning on that, maybe I'm naive, but I think by this time next year you will be able to noticeably feel a different attitude toward landlords. Now don't get me wrong, I don't think they will be having parades for us anytime soon, but I don't think landlord and villain will be synonymous with each other as public sentiment would dictate they are at the moment. I think people are gradually seeing that it's the government needs to step up to the plate here.We have a housing crisis!
The anti landlord stance is actually quite sad. "Don't give landlords anything, the supply keeps shrinking, people have nowhere to live but yeah we gave the landlords nothing".
Do you not see how narrow minded this is? People are actually so bigoted they don't care who gets hurt once the landlord gets nothing.
If I cannot sell or move a family member into my investment property then I'm out
I am unhappy about others things however I can deal with those.
So eviction notice on the way in March...
Have you ever heard of Section 23 Tax relief?
Tax on artistic income was/is zero I believe?What I am specifically asking about is the tax rates.
Could there be different tax rates on different types of income?
Did Section 23 tax relief involve different tax rates? I don't think so. I think it involved tax reliefs? Obviously, the net effect of Section 23 is to reduce the effective tax paid on rental income.
I am specifically asking could we have the following, for example:
Tax rates on wages/salaries/pensions/profits: 0%, 20%, 40%
Tax rates on rental income: 0%, 20%
Is that legally or technically possible?
If you don't mind me asking, are you planning to invest the money in something else you see as more lucrative?
After paying off mortgage on property and also clearing home mortgage I hope to have 100K left. Really don't know what I'll do with this.
What I am specifically asking about is the tax rates.
Could there be different tax rates on different types of income?
I am specifically asking could we have the following, for example:
Tax rates on wages/salaries/pensions/profits: 0%, 20%, 40%
Tax rates on rental income: 0%, 20%
Is that legally or technically possible?
Sounds like having kidsBe careful you don't suffer withdrawal symptoms from being a landlord/landlady and randomly pay some unsavoury types rent for them for a few years with some of it. Then find yourself paying to decorate someone else's home and buying them new kitchen appliances and a new boiler.
I have posted previously on another thread about a decision my wife and I reached about a year ago to sell up our 5 x remaining Irish BTLs. We have provided long term residential lets for about 25 years. Over the years we compiled a small portfolio up to about 7 x rental properties, 5 in Ireland and 2 abroad. (We bought and sold here and there during this time, but maintained about 5 in Ireland). During this time, I continued to work my mid/senior management PAYE role while my wife managed the BTLs as needed.I started another thread regarding the tax treatment of landlords, which evolved into a conversation around what the real issue is behind landlords leaving the market. So I thought I would address the issue here in a dedicated thread.
Potential Landlords - what would convince you to invest in the property rental market over your other investment options
Current Landlords - what would keep you in the game and stop the current exodus of landlords.
Personally, I'm in the game and I'm here to stay. For me, I find it an attractive investment. However, if I were to rate my top three issues it would go like this
1) Tax - I'm not saying we deserve tax breaks anymore than anyone else, however, I'm in this to make money, so if I was paying less tax or there were incentives there, it would encourage me to invest more.
2) RPZ's - these are very worrying when trying to future proof my investments. At the moment I won't buy a property in an RPZ, but who is to say they property I buy on the out skirts of town won't be included in the RPZ next year? This is a serious concern for me.
3) Uncertainty Over Rights - I do worry over the eviction ban that's in place, the liklehood of these becoming more common place, the difficulty in evicting a problematic tenant etc. I'm not too bothered by a tenant having a right to a property for life (as long as they are law abiding tenants) because I'm in this for long term rental income, however, I do want the ability to be able to sell if I decide I want the money for something else. So this area of tenant's / landlords rights is definitely concerning.
That's my top 3, what about you?
Why? If you are a committed landlord you don't need to get rid of tenants arbitrarily. If you are not committed you can always regain the property for personal use or to sell.-Indefinate tenancies reversed and go back to 4/6year cycles.
I agree. Fixing new rent to previous rent was an anti-abuse measure to stop landords getting rid of tenants on a whim and letting to new tenants at a higher, market rate. But in the meantime it's been made very difficult for landlords to get rid of tenants anyway. So if tenants leave voluntarily landlords should be allowed to increase to market rates.-RPZ. Allow a re set of the rent once a tenant has left.
Tenants will not down size or upsize due to increase in rents on the open market.
I had a tenant for 13years and did not increase every year as I knew they could not afford it. Now the property is up for sale. Last rent was 900 but the market rent in the area is now 1750! More fool us.
This is a myth.-Make the big investors pay for properties that are over priced and sitting empty.
Would you carve out a whole different tax regime for rental income? I would, but it's a massive step to take and unlikely to be palatable.-Reduce the tax rates small landlords pay. When we started the tax was 20% but now with USC and payee it is approximately 52%. Property tax not allowed as an expense.
Fully agreed. The RTB process takes too long and it should be easier to make tenants pay unpaid rent.RTB speed up the process of eviction for non paying tenants. That you can engage in a sheriff sooner and not have to go to court after RTB decision. 2 years to evict a tenant is too long. Then trying to get the rent from the ex tenant is impossible or costly due to legal fees.
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