Jeremy C

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About Jeremy C

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  1. I recently attended a training session at work on data protection (yes, it was as thrilling as it sounds) and it got me thinking, as a landlord who holds information digitally, what my obligations were and whether I needed to register with the Information Commissioner's Office (ICO). I did a bit of Googling and also saw that there have been a few posts on the Hub about this but could not get a definitive answer so phoned up the ICO to ask for their advice. This was the result: 1. In my case, I use an agent on a fully-managed basis and the only information I have about my tenants is their names, address (obviously!), phone numbers and email addresses. This information by itself is not enough to require registration. 2. However, if I was ever to receive electronically/digitally any personal information about my tenants, I would need to register. Such information would include any financial information or reference checks. 3. If you self-manage and carry out your own reference checks then you need to register with the ICO if you receive or store anything digitally. Maybe this is something everyone who self-manages does anyway but it was news to me! 4. If you use a letting agent but receive digitally anything more than basic contact information about your tenants then you may also need to register. Apparently this even applies if you receive something by email and then delete it. 5. Registration is only necessary where information is received or stored electronically. If you do everything in hard copy then there is no need to register, but I doubt many people do this these days! 6. Registration costs £35 - not going to break the bank, but a mildly annoying expense. Apologies if this is all common knowledge amongst Hubbers, but I thought it was worth mentioning. Cheers Jeremy
  2. PS consultation document can be found here: Public Consultation_taxation of rental income_3.pdf
  3. The Irish government has just launched a consultation on how landlords are taxed. Measures suggested include:  Tax relief similar to pension contributions for rental income  Reduced tax rate (e.g. 25% corporation tax rate) to apply to rental income  Tax relief targeted at ‘accidental landlords’  Improved deductibility of expenses, including: Restoration of 100% mortgage interest relief Deduction for cost of personal time spent managing / maintaining property Up-front deduction for full cost of furnishings and fittings Increased tax relief for refurbishment works Deduction for Local Property Tax, potentially tied to longer term leases I don't know how the Irish and UK property markets compare, but might we dare hope that the UK government follows suit...?
  4. Interesting point here is that there has to be an intention to realise a gain on a sale. Does that mean HMRC has to provide evidence that there was an intention to sell on acquisition? That could be difficult, especially if you subscribe to the "buy and hold forever" school of thought. It's sneaky, to be sure, and creates uncertainty, but may not be that bad in practice. Glad the Law Society has responded, though. Hopefully this will result in a change or a clarification.
  5. Hi everyone I'm considering the possibility of buying a furnished holiday let somewhere on the Norfolk coast - I've chosen that area because it's within relatively easy reach of home (2-3 hours drive) and would be a good place to take the family for holidays. My plan would be to outsource all the bookings and management as far as possible and so, as a first step, I would like to have some initial conversations with local specialist FHL agents. Does anyone have any recommendations as to good agents to contact? Many thanks Jeremy
  6. Thanks, Paul - no, not conducting policy research, just a newbie investor (hopefully completing on my first BTL in the next week or so) who is a bit paranoid about what the future may bring! I'm intrigued by your comment that building more homes causes prices to rise. Would that mean that, if the government did meet the recommendation that 250,000 homes per annum are built, prices would still only go up?
  7. There have been a few stories on the BBC this week regarding the unaffordability of housing generally, not just to buy but also to rent. Whilst the big problem is the lack of housing/failure to build over the past few years, the government have shown over the past year or so that they are very happy to go after landlords (SDLT changes, restrictions on mortgage interest relief, etc). If the government further discourages landlords, a side effect of this could be to reduce the supply of rental property which might result in rents rising. To stop this occurring, one solution might be the introduction of rent controls. This could discourage landlords (with the stated aim, probably incorrect, of freeing up housing for purchase by owner occupiers) whilst keeping rents down. Do fellow Hubbers think that this could be a risk? It might make no economic sense (for a start, it probably would not make purchases by owner occupiers more affordable), but it would mean the government being seen to be doing something in the face of these stories. (Policy by media? Never!) I would be interested in views. Jeremy
  8. Really interesting episode, thanks guys. One question I have is where, if at all, the dividing line falls between serviced apartments and furnished holiday lets. Both can be advertised on e.g. AirBnB or Tripadvisor and seem to me to be very similar. Are there any material differences and, if so, what impact does that have? One of the things mentioned on the podcast was planning and possible change of use. Again, is there a particular difference here between serviced apartments and FHLs? Suppose I own a flat in London and a flat on the Norfolk coast and I want to let both of them as holiday lets/serviced apartments. Would there be a difference? (I did listen to the FHL podcast episode a while ago but have forgotten whether planning was covered - apologies off it was!) Many thanks Jeremy
  9. I'm hoping that this morning's referendum result won't have too much impact on property prices. Yes, immigration is a factor on demand, but we don't yet know what impact this will have on immigration and, anyway, it is one only of many factors that have caused demand to outstrip supply. My bigger concern is whether I should be investing heavily in an asset which is inevitably valued in pounds sterling. We have already seen the pound plummet this morning. Is this the time when we start looking at overseas property markets as a hedge against the impact of the referendum on GBP? Or is this an unfounded fear of what will happen to the pound in the medium to long term? Jeremy
  10. I'm trying to choose the best mortgage deal. I'm only looking at two year interest only fixed rates and I will be paying the arrangement/booking fee upfront. The only differences, therefore, are the size of the booking fee and the interest rate. My thinking is that the best way to compare them is to work out the total two year cost i.e. two years of interest plus the booking fee, and the cheapest wins. Is that the right easy of looking at it, or should I be analysing them a different way? Many thanks for any assistance. Jeremy
  11. Many thanks, that's incredibly helpful. Does this mean, then, if you want to borrow the maximum 75%, it does not really matter whether you add it to the loan or not as, if you do so, it means you have to pay a bigger deposit (and so are effectively paying it anyway)? Say you're purchase price is £100,000 and the booking fee is £1,500: The maximum you can borrow is £75,000. You want to borrow 75%, but want to add the booking fee to the loan, this means that you can borrow £73,500 plus booking fee of £1,500 = £75,000. This means a deposit of £100,000 - £73,500 = £26,500. On the other hand, if you borrow 75% but pay the booking fee yourself, your deposit is £25,000 but you pay the booking fee = £26,500. In both cases, you have invested £26,500, but have just got there by different means. Is that right, or am I missing something?
  12. Should have added that the loan is less than £100k.
  13. Apologies if this had been covered before, but I'm just starting out. I have started looking at BTL mortgages and have started getting confused with the rates vs the size of the booking fee. To give example (both on a two-year fix and interest only) 2.79% £99 booking fee 2.29% £1,800 booking fee If I look at interest over two years plus fee, the higher rate works out cheaper over that two year period, but this assumes that I actually pay the fee rather than add to the mortgage and possibly just carry it forward. How should I be thinking about this? What's the calculation? We'll BTL lenders even allow you to add the fee to the mortgage and, if so, does the total still have to be below the LTV of the mortgage deal? Many thanks! Jeremy
  14. Hi everyone I have just had an interesting conversation with someone at a property sourcing company (probably best I keep them nameless). They said that, in order to get a buy-to-let mortgage through a limited company, you first need to have an existing buy-to-let in your own name i.e. owned personally. When I pressed them they were certain that this was one of the criteria for lending to a limited company to purchase a buy-to-let. Is this correct? I do not own any buy-to-lets yet (just starting out) but am seriously considering doing so through a limited company rather than in my own name. Do I need to start with a buy-to-let property in my own name before a mortgage company will even talk to me about a loan to a newly created limited company established purely for these purposes? Or has the property sourcing company got its facts a little bit muddled? Many thanks.
  15. Hi everyone I have just signed up to the Hub and I'm working my way through Rob and Rob's fantastic selection of training courses - many thanks, guys! I'm also (much more slowly) getting through back-episodes of the Property Podcast. I reckon I might be up-to-date by about 2018... A little about me - I'm in my mid-30s and in a full-time pretty demanding job. Having listened to some of the podcasts and read around the subject, I am very interested in starting to build a BTL portfolio. For me this is very much going to be about long-term investment for the future, rather than changing career and seeking an alternative income through the medium of property. I guess I fall into the "time-poor" category and so plan to outsource as much as I can as long as it makes financial sense to do so, including both the sourcing and management of my properties. I am seriously considering the idea of investing through a limited company, particularly following the helpful advice from Rob and Rob in their training on the subject. My initial goal is to start with one or two relatively low value properties (total c£140,000-150,000) and then, with a bit of luck and a lot of the helpful advice out there, build this up into something a bit more substantial. So that's me! Jeremy