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A new way to invest in property is here after 2020. Are you ready?

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A new way to invest in property is here after 2020. Are you ready? I have written a blog series that captures my experience of dealing with over 1,000 property investor clients over the past 10 years. My discussions with clients along the way have enriched my knowledge and understanding of what makes a successful property investor. Intro video: https://youtu.be/5HS-urLLWwg Click here to get the latest article that contains inks to the previous parts to the series Article: http://www.optimiseaccountants.co.uk/property-investing-from-2018-part-1-of-9-why-mortgages-are-the-thing-of-the-past/#.WeB7pUyZNAY I am going to cover the following subjects: • Part 1 of 9:  Why mortgages are the thing of the past • Part 2 of 9: The end of buying properties in your own name and why limited companies are the only way forward • Part 3 of 9: Lose it all, the risk of holding residential property investments • Part 4 of 9: You are immortal and do not need to worry about legacy planning, really? • Part 5 of 9: The problem with your Joint Venture partners screwing you over • Part 6 of 9: Why the heck are you doing all this anyway • Part 7 of 9: Why you will be poor at retirement • Part 8 of 9: Why not just buy another poorly-performing asset • Part 9 of 9: The problem of listening to property educators, the so-called gurus I have watched people attend education seminar and read gurus on social media that still talk about buying a property, refurbish the investment and then go back to the bank and get all your money back out within 6 months. Sadly, those days are gone. Property prices have not doubled in value in the past 10 years. In fact, I would argue that some property prices have stayed the same. Banks do not re-finance the value based on the higher valuation levels just because you have done up a property. Even if the mortgage did give you more money for the property. You would be left with a bigger mortgage interest payment each month. With the tax changes, we have seen with Section 24 mortgage interest relief we now know that mortgage interest will be treated as an income. So, by refinancing properties could lead you to a taxation disaster. People are unaware that mortgages and inheritance tax liabilities typically need to be within 12 months of their death. How will mortgages and IHT be paid? People used to say that those investment could easily be sold. Maybe decades ago that would work but now we could be facing recessions in quicker cycles. By the time that your children sell those properties they may be lucky enough to go on holiday with the little money that is left for them. By the time they have finished all the grieving and having the stress of selling your properties they will need it. Take a moment now to think if your parents are leaving you behind their financial chaos. I constantly hear that people need to earn £10k per month. Why is this the case? Maybe they heard someone else say it or they attended a course and everyone said this was the ideal target. What if you do not need all this money to be happy. You may be creating more stress and working harder than you need to as you go past the financial target that you really want. Many people do not truly plan for retirement. Even those that have invested money into pension do not know how well it is performing. You would not take £10 out of the cash machine just to throw it down the drain, would you? I would argue that many people are doing this with their investments for retirement. People are now quickly converting their pensions to invest into property. Lets remember that pension income and capital gains are tax free. Not only that but pensions sit outside of your IHT. By getting money from your pension and investing into property may cause an inheritance tax liability that you was not expecting. I have seen so many clients that have been taken for a ride by some clever marketing. Marketing materials that sell dreams with their clever use of words and figures. The reality is that many of our clients have lost £100,000+ each because the property fell through, the refurbishment costs overran or the revaluation did not come back as expected. What do your joint venture partners have to lose when things go wrong, especially when they have not put any money into the deal? If you want to know the new way to invest in property then you are advised to read these articles and take note.
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