For example, it could be a good time to consider your finance options.
If you are nearing time to remortgage after a fixed term or, like us, you have properties which have been benefitting from long-term low rate variable mortgages, then it would be wise to contemplate the best way to continue to finance these properties.
There are some very good rates on fixed rate mortgages of 5-10 years.
With the first interest rate rise in over a decade having taken place at the end of last year, many are predicting further rate rises over the course of the next year or two. In that sense, if your intentions are to continue to hold properties which have mortgages on, then it could be a very good way to lock in sensible rates of interest.
It is also a good opportunity to see whether you can reduce the level of LTV as you remortgage. If your property has increased in value at all, then this will potentially have eroded the debt owing. Seek the advice of a good, independent mortgage broker to help you re-evaluate your borrowings.
This leads me on to the next point, which is to check your tax position.
We are fast approaching the deadline for self-assessment tax returns, with the previous tax year being the last year without the impact of S24. From April 2017, as most of us know, the new legislation was brought in to start to reduce the ability of offset all your mortgage interest.
With it being very difficult and costly to move existing properties into a Limited Company, many landlords will start to feel the pinch of having to pay more tax. It would therefore be a very good idea, if you haven't already, to speak to a qualified and knowledgeable property accountant or tax advisor to help you work out how best to structure your existing and any future business.
Looking after your current properties should be a priority this year.
Plan a schedule of any works or maintenance needed and set aside the funds to make them happen. By looking after your properties, and your tenants, of course, this will pay you dividends in the future. Your business, and ultimately your revenue, is only as good as the stock and consumers you have in it.
With all of this in mind, many landlords will look to exit the property market over the coming year.
This opens up opportunities, as I've said before, for those who are still in the business to increase their portfolio. With the right approach, you can take advantage of the current scene. With this decrease in supply of rental properties, my prediction is that rents will increase further.
If your intentions are to ramp up your property cash flow, then the demand for rooms means you can provide good quality accommodation and receive healthy returns for your efforts. With the ability to continue to build your business within a Limited Company structure alongside any properties you own personally, and more lenders coming into this arena, this gives you scope to benefit from even more cash flow.
As ever, the key is to know what your overall intentions are for your business and plan accordingly.
Think about the bottom line and how much income you'd like to derive and over what timeframe. For example, if your goal is to achieve £3,000 per month net income from property and your current income is £1,000, then you need to plan your way and chunk down how you're going to make this happen.
With many aspects to take into consideration...
...it can be useful to get help from someone who has already achieved that which you would like to. In that spirit, and having helped hundreds of people to work towards and achieve their property goals over the last 10 years, I'd like to invite you to join me on an exclusive new webinar which I'll be running within the next couple of weeks entitled:
"How To Simply Create A Life-Changing Property Income"
To be sent further details and secure your place on this brand new webinar which will teach you everything you need to know about how to start or build your existing property business, then please drop me a quick email by clicking here and I'll make sure you are notified.
During the webinar, you will learn...
- How to create a property portfolio which could make you serious wealth over the next 5-10 years
- Where to find the money, even if you have none of your own right now
- How to gain the confidence to do this, no matter what your background or experience is
- How to safely navigate today's property world, despite all the recent changes
- Where to find deals which give you instant equity and generate an ongoing income stream
- How to do this alongside your current occupation and from the comfort of your home
- Q & A - I will answer all your questions
I look forward to seeing you there!
Wishing you all the best for 2018. :-)
Hazel de Kloe
Property Investor | Property Mentor | Speaker | Author
The contents of this article or for educational purposes only and we make no recommendations of any particular property purchase. The price of property can decrease as well as increase and you make any investments in property at your own risk.
Â© Why Property Works 2018| www.whypropertyworks.co.uk