Lenders are tightening up and here's what it means for investors in South London.
Well it's been another busy month in property investing. Everyone is getting ready to tackle 2017, and by now very well underway to taking action to achieve their goals. If you are looking to invest further in property using good old-fashioned buy to let, be wary though as there are a few things to take note of... Increased Taxes I've discussed it before but I'll mention is again - the dreaded Section 24 (of income) tax means that you will be paying the taxman FIRST and then deducting your rental income costs. Brief example: Old system: £30,000 Rental profits after repairs £20,000 Mortgage/loan interest ---------- £10,000 profit so tax bill based on 40% income tax = £4,000 New system: £30,000 Rental profits after repairs £30,000 Taxable income, 40% income tax = £12,000 £20,000 Mortgage/loan interest turns into a 20% credit = £4,000 So your tax bill is now £12,000-£4,000 =£8,000!!!! Point to note is that this will be phased in over the