Traits of a successful property investor in 2020 – Part 5

Chris Street

3rd May 2017

traits of successful property investor in 2020 from Optimise Accountants

By Louise Misiewicz

How will successful property investors grow during 2020?

What are the traits for successful property investment?

I’m writing this as the penultimate article in a series of blog posts on what will be required to be a successful property investor in 2020.

You can read the first week’s blog instalment here – Commercial property investments.

You can read Part Two of this blog series here – EIS investments.

You can read Part Three here – the Use of Limited Companies.

You can read last week’s Part Four here – adapting to BTL sector change.

Last week’s blog article highlighted that truly successful property investors in 2020 will be able to adapt and change as the buy-to-let sector changes and grows. A flexible portfolio will be a critical factor.

I wrote an article here about alternative investment options for property investors to consider which will provide a useful overview of some of the different investment types to be considered alongside property.

What is the fifth trait required for successful investment?

The fifth trait a property investor will need to adopt in 2020 will be the ability to recognise the pros and cons represented by issues such as Capital Gains Tax (CGT).

I believe that the issue of CGT will grow for property investors by 2020 – after all, many buy-to-let landlords in the UK are currently avoiding getting hit by large IHT liabilities by selling one or more of their rented properties to streamline their portfolios.

In principle this makes sense, but by the time we get to 2020 many of them could get caught out by a sizeable CGT bill. I predict that many unwary property investors will get caught out by this in 2020.

If you’re unsure about your position regarding CGT and your property portfolio, please feel free to get in touch here with me.  This article also covers all the basic information needed concerning CGT liability.

How will the sector change in 2020 with CGT impacts?

I was chatting with a property landlord client last week about CGT and the impact it could have on the BTL sector in the UK. It’s clear that ignorance is not an option, as was highlighted in previous blog articles in this series. The purpose of my team of property tax specialists is to fully inform our clients of tax changes.

There are a few CGT-focused articles I’ve written which will help property investors, including:

CGT and PRR for non-UK residents

CGT when splitting a house into flats

Mitigating CGT with EIS investments

Gifting property via Trusts to avoid CGT

It’s worth looking at a broad range of investment options as well as property investment portfolios throughout 2017 and beyond in the lead up to 2020 – this recent article outlines useful information.

The FAQ section of the website here is also a valuable source of free information, advice, hints and tips for property investors, and is worth reviewing alongside this series of blog posts on successful investment.

The sixth and final part of this blog series next week will focus on another area where savvy property investors will be looking to diversify their portfolios – the growth of REITs in the UK property sector.

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