Property Investment Questions And Answers: In a recent property investment questions and answers session on YouTube, I tackled some of your top property questions. I covered everything from: mortgage types; getting permissions from lenders; and the impact of transferring property from your name to a company.
If you are a property investor who wants actionable insights for maximising property portfolio growth, I highly recommend watching the full video until the end. You can find the video at the top of this page or on my YouTube channel.
A lot of people have questions about property, but don’t know where to turn to for information. In this article, I will give you the answers to 5 questions from the video. If you find this article helpful, please consider sharing it on social media. With your help, we can get property education to the people!
Property Investment Questions And Answers: 1. Would The Owner Be Penalised If They Live In Their Buy-To-Let Property Without Notifying The Lender?
Mortgages are provided for a specific purpose. In some cases, they are for living in the property (i.e. a residential mortgage), in others, they may be for investment purposes (e.g. a buy-to-let mortgage or a holiday lets mortgage). If you plan to live in a property that is on a buy-to-let mortgage, you will need the lender's permission. Often, this will be granted, and you will not need to remortgage the property.
Property Investment Questions And Answers: 2. Should A Company Be Used For Rent-To-Rent Arrangements?
When doing a rent-to-rent deal, it is important to do so via a limited company. This is because this limits your personal liability if something goes wrong. If you are a sole trader (i.e. acting in a personal capacity) everything you own is potentially on the table if the other party sues you. If you work via a company, only the company’s assets are at risk (barring exceptional situations such as negligence or fraud). Speak to an experienced property lawyer for independent advice on this topic.
Property Investment Questions And Answers: 3. What Does It Mean To Buy A Property With Cash?
Buying a property for cash doesn’t mean a suitcase full of money! It means that you have the money to buy the property without needing a mortgage. This is preferable to sellers, as getting a mortgage can take 4–6 weeks. So ‘paying cash’ means that you have the money in the bank, or you have bridging finance, which is treated as cash (because bridging finance is very fast).
Property Investment Questions And Answers: 4. What Are The Tax Implications Of Owning A Property in A Company?
It is often beneficial to own a property via a company. This is because you cannot claim your interest payments on your mortgage as tax-deductible if the property is in your personal name. If it is in the name of a company, you can! Each situation is unique, however, and you will need to weigh the pros and cons with an accountant or property lawyer.
Property Investment Questions And Answers: 5. Can You Transfer A Property Owned Personally To A Company?
You can transfer a property into a company, but it essentially means selling the property to the company. This means you may have to pay stamp duty and capital gains tax. You will also need to pay solicitor fees. Therefore, you will need to weigh up if the tax savings are worth the costs for doing so. There are some situations where you can move your property into a limited company without paying stamp duty, however. Speak to a property lawyer to see what makes sense in your individual circumstance.
Property Investment Questions And Answers: Get All Your Property Questions Answered!
Now that you have read these 5 top property investment questions and answers, it's time to get all your questions answered! Join me at my next £1 training event!
On the course, you will learn how to:
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Become a property investor using other people’s money so that you can get started straight away
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Utilise the 5 different types of raised finance so that you know exactly what to offer and when
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Find the perfect properties for the BRRR strategy
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Recycle your money so that you can ‘rinse and repeat’
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Build a power team you can trust, so that you can save time and money
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And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
