Property remains one of the most popular areas for people to invest in and Edinburgh in particular has always been an area that has seen a huge demand for property. A vibrant, cosmopolitan city with a huge student population, a booming financial services sector and a tourist market attracted by the Edinburgh Festival amongst other things, Edinburgh has always drawn domestic and foreign investment.
Buy-to-let property investment can bring an additional steady income in the form of rental returns, along with the potential to gain large returns if your property’s value grows over time.
If you are thinking of investing in property as a career, then using a limited company status when acquiring new properties could be beneficial to you in order to offset costs as a result of tax reforms in the buy-to-let-sector. By putting properties into a limited company, landlords could offset all mortgage interest against tax bills as a business expense, potentially saving hundreds of pounds. With legislative changes affecting tax relief due to come into full force in 2020, individuals or Partnerships that own property should consider their business structures now.
Recent reports show that 64% of landlords with large portfolios use limited company status when making a purchase of a new property. There are however cost implications involved in switching to limited company status and it is important to think about this at the start of your property investment strategy.
McDougall McQueen advise a number of portfolio landlord clients on their property purchases.