Which direction are you heading towards? ...

 

As the old adage goes …. being a property investor is a journey not a destination. Well, maybe I just made that up, by the general concept is understood by most. 

 

I have been a portfolio property investor for over 20 years. But, I have never badged myself as a landlord (although, of course, all property investors are), but instead I have detached the emotions and focused on my property investments, in a 'black and white' perspective, as a business. 

 

What do I mean by that? 

 

I have AST properties, holiday lets, houses, flats, I have bought, held, upgraded, sold and proactively managed each daily task to focus on profit. The profit for any property investor can come from capital growth and/or rental yield. It doesn’t matter. If you’re in business to create a return on your investment, or an increased income, all of these strategies work and you are allowed to sell or switch, without fear of failure of loss of pride. 

 

But it does matter if you review your accounts and the rental income profit from your property(ies) is declining and no longer producing what you were used to. 

 

Many standard BTL landlords have switched to HMO investments, or holiday lets too, to add to their portfolio. Ltd Company structures are very popular now (not just for tax planning, but also for efficient succession planning as well). There has been a conscious move to invest further up the country, leaving behind little to no profit in yield in central London and the surrounding areas, and there are also very many seasoned holiday let investors who right now are looking to switch strategies too, or maybe even selling up altogether and then reinvesting in less tangible products. 

 

As a mortgage broker, I see swings in all directions, and so there isn’t any one particular ‘right or wrong’ that covers all property investment aspects. 

 

What I have recognised though, as a common denominator, is that all changes of direction, or starting a new property investment project, or diversifying in to new strategies, all require the property (business) owner … the property investor … to stop, and then take the time to make serious plans with the added help of the right ‘power team’ alongside. 

 

A property tax adviser (who has expertise in landlord and property investor accounts), a mortgage broker (not just any mortgage ‘salesperson’, but an expert and professional BTL, HMO, commercial finance, HL and SA specialist), an insurance adviser who has access to the insurers who cover non standard properties, portfolios, short term rentals (a furry animal off the internet just does not suffice – cheap is not best), and other go-to specialists are the people who will work with you to help you to safely, profitably and legitimately achieve your goals. The wrong mortgage contract, the wrong insurance arrangement, the inappropriate tax plans, the short term vision overlooking the long term need …. they can all be disastrous if left unchecked. 

 

Let’s all move in to 2025 together, with a clear vision We all have the same aim, which I believe is to have a peaceful, profitable and fun business. So let’s work on it all together, with you bringing your ‘project’ and us bringing our long standing, expert advice and giving you access to the widest range of skills, products and services. 

 

For a new year, new start (new direction?) review, contact the team at HD Consultants. 

 

We look forward to working with you in 2025 and beyond.