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prop123

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  1. You are right, however if an SPV costs 1.5k per annum to run, the tax benefit from owning it in a company must out weigh this to make it viable. With one cheap property it appears that it makes no sense to hold within a corporate structure, and the risk is that I might not have sufficient capital and/or time to continue investing. As it stands it seems like I would be better putting 20k per annum into an index tracker and some into an active fund and ride the market and hope nothing crashes too bad in the next 20 or so years!
  2. Thanks, I guess my concern is that under a personal acquisition structure I estimate that my annual return would be just 3.5% over ten years which is quite some way below what you could earn putting it into some sort of tracker fund through a S&S ISA. This is assuming of course that my model is modelled accurately and correctly - in terms of assumptions and taxation I am a higher tax rate payer and there is potential to be in the additional rate in say the next 10 years or so, hopefully earlier, so the tax is important.
  3. I share the same concerns as yourself and I too would be a new investor into this space if I decide to invest into the sector. My conclusion was that a corporate holding is far too expensive for cheaper properties and requires a large enough portfolio such that the tax benefit offsets the higher costs to operate an SPV. Meanwhile a property bought under your own name would return a very slim annual return, given the risk anad effort, and I can't help but think an ISA is a better alternative. The models I built are here if you are interested in my analysis Corporate BTL Model (Micros
  4. HI all, I have recently been thinking about investing in BTL but I just can't seem to make the numbers stack up when it comes to returns in other avenues and I notice this was picked up by someone else earlier in this forum. I have created a model outlining an acquisition of a fairly cheap property but it appears that the returns are very skinny on a personal basis and loss-making held in a corporate structure (my numbers suggest to me that a corporate structure requires a large enough portfolio such that the tax benefit offsets the significant increase in costs). Is anyone abl
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