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Robert Brown
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1761  Profile Views

About Me

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my expertise in the industry

20 + years

Robert 's Recent Activity

Robert  Brown

From: Robert Brown 26 November 2020 14:43 PM

Robert  Brown

From: Robert Brown 25 November 2020 12:15 PM

Robert  Brown

From: Robert Brown 19 November 2020 15:12 PM

Robert  Brown
I wonder if they will abolish the annual £12.5k CGT allowance which stock market investors (I.e. Most MP's and Tory voters) can use every year but landlords can only use once when they crystallise a capital gain (largely inflation) when they sell, usually after a number of years of caring for and improving the property. I foresee two outcomes, neither of which will be what the Government wants. 1. Landlords will dramatically reduce how often they sell or churn their properties, so the amount of CGT raised won't necessarily increase as the Government hoped for. Look at how the Stamp Duty hikes have reduced the amount of activity in the owner occupied sector, with many ugly unsuitable extension being built to avoid moving. This has all reduced the availability of smaller homes for the first time buyers. Any. CGT hike will add to this problem - not the outcome the Government wants! 2. In the 80's and later, rents stayed relatively stable as landlords were happy with modest yields and healthy capital growth. Now that capital growth is stalled, rents have grown substantially in the last 10 to 15 years. A hike in CGT will add to. Landlords' potential costs and thus increase rents in the current market where demand outstrips supply. Again, not what the Government wants. It's notable that they are steering clear of a much fairer strategy - taxing the dead! Whilst I expect my children to pay a modest amount of IHT on my demise, I have taken steps to minimise this by buying much of my portfolio in their names and receiving the after tax rental profits as tax free gifts from them. However I wouldn't object too much if the rules were changed to close IHT loopholes and spread the load amongst all relatively comfortable families. However that would hurt the Tory voter base too much so it's easier to penalise landlords as most voters would support that, not realising that it's actually tenants who would be penalised in most cases. Any landlords who plan to sell up in a few years would be well advised to set up a company and sell to it NOW, so crystallising the current gain under current CGT rates, gaining the current tax advantages of owning properties in a limited company and also gaining the flexibility of selling a proportion of the company later over a number of years to maximise any remaining CGT annual exemptions. In summary, I think only changes to unavoidable taxes like Council Tax, PAYE and VAT will actually make any difference to the amount of tax revenue raised. All other taxes are too easily avoided or mitigated by sensible tax planning and creative thinking.

From: Robert Brown 12 November 2020 09:39 AM

Robert  Brown

From: Robert Brown 05 November 2020 10:27 AM

Robert  Brown
Mark For generations, most working people have been unable to buy their own homes. Keeping families fed and clothed was a daily struggle for many before WW2.This eased up a bit for probably one full generation but it now seems more difficult again in many areas, but by no means everywhere or for every property. Evidently there is no current problem in affording copious amounts of food for the vast "bulk" of people, whether working or not. There are plenty of buying opportunities in auctions throughout the UK for those with the gumption to grasp them. Working people were undeniably poor up until WW2 but given the obesity epidemic, sky dishes, fancy cars, fancy holidays, costalot coffees and expensive mobile phones, the biggest barrier to home ownership for many is the inability or refusal to get their priorities right. For many renters, they don't want to buy and take on the responsibility of mortgages, maintenance, prohibitive stamp duty payments on moving house - compared to no fees at all on renting another property. PRS investors ( NOT speculators!) are providing a valuable and much wanted service and contributing to the mobility of the working population, although not enough of them seem to be prepared to exploit such mobility opportunities and go where the work is and just bemoan lack of local opportunities, ignoring those opportunities further afield. Perhaps if the benefits system, and especially the furlough schemes etc. were less generous then they would have more incentive to chase the opportunities that do exist. However it's easier to moan about those who have grasped opportunities past and present!

From: Robert Brown 04 November 2020 13:38 PM

Robert  Brown

From: Robert Brown 31 October 2020 23:01 PM

Robert  Brown

From: Robert Brown 28 October 2020 10:16 AM

Robert  Brown

From: Robert Brown 27 October 2020 11:12 AM

Robert  Brown

From: Robert Brown 19 October 2020 09:18 AM

Robert  Brown

From: Robert Brown 13 October 2020 16:23 PM

Robert  Brown

From: Robert Brown 09 October 2020 18:30 PM

Robert  Brown
Almost every article comparing alternative investments ignores the multiplying effect of gearing or leverage available on residential btl properties. 20 to 30 years ago I was quite comfortable with a 90% ltv mortgage but now I wouldn't go for more than 75% ltv ( if I were still investing personally which I am not as currently 40% of any gain would eventually go to HMRC and I give them enough already in income tax). Getting back to gearing, with a 25% deposit then a nominal 6% yield on a btl property grows to 24% gross, less about 1.5% interest on the 75% mortgage. That £240 per annum income per £1000 equity is solely on rental income and capital growth should augment that further. A 25% increase in property values represents 100% increase in equity on a 75% ltv property - not an unreasonable assumption over a few years based on past performance. The risks are that the 25% equity is wiped out by a 25% reduction in property values and the rent doesn't get paid. I don't think the former will happen and would guard against the latter with solvent guarantors being required. I therefore believe property investment, using money lent by the more cautious (or timid) building society investors is a much better and safer investment than any other investment opportunity. Government bonds might be safer but NS&I has just reduced its interest rate from 1.16% to 0.01%, so earning 10p per annum on every £1000 "invested". I prefer the £240 per £1000 of equity from a 24% return on equity plus probable capital growth which is why I won't be selling up and would advise anyone with a net worth under the iht threshold to invest in property but do so carefully and cautiously.

From: Robert Brown 02 October 2020 22:23 PM

Robert  Brown

From: Robert Brown 01 October 2020 08:59 AM

Robert  Brown

From: Robert Brown 27 September 2020 15:54 PM

Robert  Brown

From: Robert Brown 27 September 2020 09:14 AM

Robert  Brown

From: Robert Brown 14 September 2020 19:34 PM

Robert  Brown

From: Robert Brown 11 September 2020 18:42 PM

Robert  Brown

From: Robert Brown 26 August 2020 18:25 PM

Robert  Brown

From: Robert Brown 26 August 2020 10:07 AM

Robert  Brown

From: Robert Brown 25 August 2020 10:18 AM

Robert  Brown

From: Robert Brown 24 August 2020 13:20 PM

Robert  Brown

From: Robert Brown 06 August 2020 09:24 AM

Robert  Brown

From: Robert Brown 26 June 2020 15:33 PM

Robert  Brown

From: Robert Brown 09 June 2020 17:34 PM

Robert  Brown

From: Robert Brown 03 June 2020 09:06 AM

Robert  Brown

From: Robert Brown 21 April 2020 15:42 PM

Robert  Brown

From: Robert Brown 11 April 2020 17:55 PM

Robert  Brown

From: Robert Brown 07 April 2020 09:10 AM

Robert  Brown

From: Robert Brown 07 April 2020 09:08 AM

Robert  Brown

From: Robert Brown 26 March 2020 21:49 PM

Robert  Brown

From: Robert Brown 24 March 2020 08:54 AM

Robert  Brown

From: Robert Brown 19 March 2020 12:33 PM

Robert  Brown

From: Robert Brown 18 March 2020 12:32 PM

Robert  Brown

From: Robert Brown 17 March 2020 12:55 PM

Robert  Brown

From: Robert Brown 17 March 2020 12:53 PM

Robert  Brown

From: Robert Brown 17 March 2020 10:14 AM

Robert  Brown

From: Robert Brown 21 February 2020 16:50 PM

Robert  Brown

From: Robert Brown 27 January 2020 10:48 AM

Robert  Brown

From: Robert Brown 27 August 2019 09:36 AM

Robert  Brown
Paul You talk a lot of sense but you forget that the source of the rental surge in Scotland is due to the SNP having abolished AST, so the landlord has NO say in when the tenancy ends, only the tenant can decide (unless they breach the terms of the Scottish Government drafted private rental tenancy (PRT) agreement. That is why many landlords have sold up or moved to holiday rentals. Incidentally the normal holiday rental market has also been screwed up by this legislation as many student flats in Edinburgh, St Andrews, Aberdeen etc. were used as holiday rentals over the summer, but these can't be advertised until the landlord is certain that the current tenants are leaving, and they only need to give 28 days notice. Another feature is landlords are now insisting next academic session's tenants sign up from 1st June, so depriving tourist areas of much needed short term rental accommodation and forcing students to pay over the summer for properties they don't want to occupy. Indeed the only way the SNP could screw things up worse would be by persuading 50.0001% of the Scottish electorate to vote for independence and they only need around 200,000 voters from September 2014 to switch in order to do so. Perhaps the English Brexiteers will nudge them over the line? What a coup that would be, not sending £350m a week to the EU AND saving the £14 billion or so subsidy sent to Scotland as it doesn't have enough Income Tax Payers paying a marginal rate of up to 61% ( and many believe UK Income Tax doesn't go above 45% !). Perhaps Nigel and Nicola have more in common than they imagine? A marriage made in Heaven, probably with Corbyn as the Church Minister!

From: Robert Brown 11 June 2019 22:58 PM

Robert  Brown

From: Robert Brown 12 December 2018 12:28 PM

Robert  Brown

From: Robert Brown 05 November 2018 13:26 PM

Robert  Brown

From: Robert Brown 25 September 2018 19:13 PM

Robert  Brown

From: Robert Brown 12 September 2018 11:10 AM

Robert  Brown

From: Robert Brown 12 September 2018 10:56 AM