By Louise Misiewicz
How will successful property investors flourish in 2020?
What are the key traits for successful property investing?
I’m writing a series of blog posts on what will be required to be a successful property investor in 2020.
Last week’s blog article discussed the ways in which property investors could profit from operating as professional entities, through the setup of doing business through a formal Limited Company.
I believe that as we head towards 2020, one of the key traits that successful property investors will adopt and utilise will be the ability to operate comfortably within a rapidly-changing (but ultimately growing) buy-to-let investment market.
What is the fourth trait required for successful investment?
The fourth trait a property investor will need to adopt in 2020 will be the need for property investors to move as rapidly as the buy-to-let market is itself growing.
The buy-to-let investment market is bucking the national economic trend and growing, despite some of the doom-and-gloom reports within industry media in recent weeks.
Will the BTL market continue to grow, despite tax changes?
I recently published an article discussing some of the raft of legislation and taxation changes affecting the BTL market in 2017 and alternative investment options to consider. Read the article in full here.
The growth in buy-to-let might be benefitting many property investors, but the ability to adapt and grow with the sector is also a critical factor in being a successful property investor in 2020.
It was estimated recently, for example, that nearly 12 million buy-to-let investors are not fully aware of the new tax changes taking place within the sector. I wrote an article here about some of those changes.
Another important consideration for successful property investors in 2020 around the growth of the BTL market is the fact that being based abroad, for example, in Spain, still means that a buy-to-let landlord operating in the UK still needs to be fully up-to-speed on all relevant legislation affecting their portfolio.
Accountants can sometimes be guilty of not being fully aware of the ongoing changes in the sector, whilst I have come across many accidental property landlords over the years as a property tax speiclaist who have inherited properties to rent, but haven’t engaged professionally with their legal obligations.
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What I would say is the BTL market will continue to grow and change, and a savvy property investor will do the same. There are significant changes happening in the industry now, and the best way to avoid getting caught out and losing money within a property portfolio before 2020 is to get professional advice.
One of the simplest ways to remain focused and profitable is to consistently and effectively benchmark the performance of your property portfolio – I wrote a useful article here some time ago on the Top Five Key Performance Indicators (KPIs) for a property investor. It remains as relevant and pertinent today as ever.
The FAQ section of the website here is also a valuable source of free information, advice, hints and tips for property investors. The article on reducing tax liability in 2017 here remains a hugely popular resource.
Next week’s final, Part Five of this series will examine the next trait – utilising CGT allowances and reliefs upon asset disposal.
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