Traits of a successful property investor in 2020 – Part 2

Chris Street

11th April 2017

traits of successful property investor in 2020 from Optimise Accountants

By Louise Misiewicz

How will successful property investment look in 2020?

What are the key traits property investors need to adopt?

I’m writing a blog post series on what will be required to be a successful property investor in 2020.

You can read the first week’s blog instalment here.

Last week’s blog article confirmed that having a broad portfolio of residential and commercial properties would be a key trait for successful property investment in 2020.

I’m certainly seeing more of this in effect for many of our property investor clients across the UK in 2017, and this vital consideration will continue to grow in importance from now leading up to 2020.

But there are other considerations which I and my team of property tax specialists have identified as being crucial in the protection and prosperity of a profitable portfolio.

What is the second trait required for successful investment?

The second trait a property investor will need to adopt in 2020 will be, I believe, to diversify into other areas of profitable investment – one of the most promising in recent months has been EIS.

My team has written extensively in recent months about EIS and the benefits of property investors diversifying into this fascinating area of financial investment. There are many different schemes.

I wrote a detailed article here about the various benefits of EIS, which is well worth reviewing.

Does diversifying into EIS deliver a good financial return?

I also wrote an in-depth blog here a couple of months ago, highlighting some compelling reasons why EIS will be an important factor for savvy property investors from 2017 up to 2020.

For example, the EIS scheme has been a great success since its inception, and has raised more than £14.2bn of funds for more than 24,620 companies. HMRC statistics released in October 2016 reported a record year of £1.812bn raised for 3,264 companies.

This alone should give property investors good reason to seriously consider getting involved with EIS in 2020, to ensure that their portfolios are robust, varied, and performing consistently well for them.

If you’re unsure or unclear regarding the pros and cons of EIS, review this article here to get a fuller understanding of the main principles and background. So, the second trait of a successful property investor in 2020 will be to diversify their portfolio into other areas, including EIS.

EIS ties in closely with tax savings on CGT & IHT, which many buy-to-let landlords can get caught out with if they don’t take on board professional advice. Our FAQ section here has a series of articles relating to tax savings around CGT – the ‘Capital Gains Tax – Mitigation’ section has a number of useful articles to review.

Next week’s Part Three of this series will examine the next trait – operating as a Limited company.

How to engage with us

If you want to understand how to implement this strategy or to discuss other finance/tax questions then please book some time with us using the below calendar.

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If you are looking for a new accountant, then please book some time with us using the below calendar.

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