18 Jan 18.01.2017 What you should know when you acquire a buy-to-let property
18.01.2017 What you should know when you acquire a buy-to-let property
- Even if you can earn a high rental yield (see the article London’s best buy-to-let postcodeson our website for more information), you should note that yield on a property is not profit. 25% of rental income is spent on costs, such as management fees and taxes.
- To make a real profit the property has to be occupied 365 days of the year.
- Last April the Government increase the stamp duty on buy-to-let properties by 3%.
- By April 2020, landlords will no longer be able to deduct mortgage interest payments and other finance-related costs from their rental income when calculating how much tax they need to pay. This could double or even triple their tax burden.