Why buy-to-let is still worth it

Buy-to-let can be a great way to make use of property you can’t or don’t want to live in. It’s also a great way to make money without having to do a whole lot of work. Despite what you may have read about tax relief and proposed changes to the system, BTL is still a great bet.

If you’re interested in:

*Earning a passive income

*Building a retirement income

*Location independence

*Accumulating wealth at a relatively low risk

This is where to start! Download our free buy-to-let guide! This amazing free report will be sent to your email address within seconds.

How does buy-to-let work?

BTL is essentially the means by which you profit from property ownership. Not only does your property (the asset) accumulate in value while you own it (profit), your rental income provides immediate profit and cashflow, making BTL investing one of the lowest risk enterprises around.

If you want to invest in a BTL property you’ll need a buy-to-let mortgage. You’ll be able to start renting the property out immediately, and your tenants’ rent will cover the cost of the monthly mortgage repayments. The rest, when you deduct maintenance costs and taxes, is profit.

When is tax relief for buy-to-let changing?

Buy-to-let landlords are taxed on their rental income and any profit they make if they sell the

property. The amount of tax relief you can claim has been changing since 2017, and will end by

2020.

Previously, landlords could deduct all their expenses from their tax bill, including interest paid on

their mortgage, maintenance and insurance costs, letting agency fees, and utilities. If you

earned £1000 a month in rental income, and had £500 of expenses, you would only pay tax on

the remaining £500.

Under new rules, the amount you can deduct will be reduced by 25% each year until 2020. However, there is still plenty of time to take advantage of the current rules!

How will that affect my income?

By 2020, landlords will be taxed on all rental income, instead of just their profits, and then be

given a 20% tax credit. Some landlords will be affected more than others – it all depends on your

income.

If you’re a basic rate tax payer, you’re unlikely to see any difference. However, higher and

additional rate taxpayers will see an increase in the tax they pay. You can find the most up-to-date information at gov.uk.

How can I get into buy-to-let property?

Buy-to-let is changeable and can be complex, but with the right information you could significantly supplement your income.

Download our exclusive e-book here to find out how to secure a buy-to-let mortgage, manage your property, and make a profit after taxes and expenses. This is a must read guide that will reveal all the secrets and tips you need to know to succeeded when investing in a BTL property in the UK! Download our free e-book! This amazing free report will be sent to your email address within seconds.