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Date: Tuesday 08 September 2015
Location:Holiday Inn Brentwood, CM14 5NF
Itinerary: 18:30 - Casual networking
19:00 - Members introductions
19:25 - Main event & special guest speaker
20:20 - Finger buffet
20:40 - Q&A
21:15 - Casual networking
I have managed to persuade a personal friend of mine to speak at our next event. He has been investing and developing property for the last 25 year. With over 300 rental units, the budget changes will have a considerable impact on his business model. Here is what he has to say in regards to the budget 2015.
“The fundamental rule of business the world over is that you make your sales, deduct your costs, and pay tax on your profit. However, George Osborne is now breaking this fundamental rule of business by effectively introducing a turnover tax. You might think that this is just going to affect those mega businesses like Starbucks, Google and Amazon, right? … Wrong.
Those big guys have been untouched by this. The target for this new turnover tax (which no other G20 country has), is the small-time individual property investor. Instead of being taxed on your rental profit after all costs have been deducted, the Government now intends to tax as income, half of your largest cost, which is mortgage interest.
The effect of this change is going to be widespread and quite horrific for property investors. Coupled with the loss of the 10% wear and tear allowance, you will have to increase your profit margins by 30%, just to maintain your current standard of living!
I predict that many small time landlords will have no choice but to sell up becuase keeping their buy-to-lets will simply be uneconomic. In the short-term, this will drive up rents and lead to loss of single family rental units with Landlords choosing to keep their more profitable multi-lets.
Don’t bank on a Government u-turn on this. The country has no money in the bank and voters don’t care about a raid on property investors finances. In the minds of the average voter, we are on the same level as bankers in terms of voter resentment.”
Hardly surprising then that he and is business advisors have been working non-stop since the budget, to come up with an action plan to survive and thrive.
I have managed to twist his arm into agreeing to share some of his strategies with EPN but he has agreed only on the condition that I provide him certain anonymity. So I have agreed not to publicise who the speaker is as he will introduce himself on the night to those who attend the event.
Those who attend will learn practical strategies to help you survive the turbulent times ahead and thrive in the new property investing landscape which will emerge in the aftermath.
This really is a must attend meeting. Your future in the property business may depend on it.
The Essex Property Network is the ideal place to mix with experienced and novice property investors. You will be able to meet like minded investors and potential joint venture partners.If you want to enhance your property investment skills or simply be enthused and inspired, the Essex Property Network is the place for you.