The pin meeting in Manchester last week was a real eye opener! Arthur Kemp presented from HMO Tax Consultants, he really knows his stuff!
He was talking about capital allowances on multi let properties (minimum of 2 people). You can claim as much as 20% of the purchase price in capital allowances ie tax relief. So for example he helped a client in Newport who had bought a multi let for £184K, they were able to claim capital allowances of £42,129.
Arthur also mentioned that you can get 150% tax relief on clearing contaminated land. I was very interested to hear this as I’m doing Lyndon Forshaw’s Land Finder course. So for every £1 you spend you can claim back £1.50. I was very please about this fact!
A good strategy to follow would be to purchase 1 HMO per year, and mitigate any tax liability from your other purchases.
You don’t need to leave your current accountant to use Arthur’s services, he provides a claim report to your accountants. I’ll certainly be using Arthur’s services in the future!! Arthur will soon be writing a guest blog for our website also, which will no doubt be an interesting read.
Richard Bowser who’s the Editor of Property Investors Network, gave a presentation entitled Back to the Future. He gave us some really good questions to ask ourselves about our strategy:
- What are our aims for 2010?
- What do you want to achieve by 2020?
- How much cashflow do you require?
- What’s your annual income from deal trading?
- How much equity do you want to retire with?
All great questions to ask yourself to define your strategy.
He also gave some great tips about rules you should follow when buying property:
- Look in lower quartile areas for strong yields
- Always buy from motivated sellers with proven BMV
- Look to add value
- Maximise your Return on your Capital Employed (ROYCE)
- 8% gross yield
- Build in 25% for annual costs
- Only buy in locations attractive to first time buyers
You also should treat tenants as valued clients and treat each of your properties as a business.
The main thing is to have a 15 year view and have the mindset, motivation and ongoing appetite to learn. Richard gave out some free copies of Property Investor News which I will certainly be having a read of.
Of course as always there was some great networking at the meeting. I’ve got a very interesting meeting booked this week with Trish from the Artful Lodger as a result of seeing her at the pin meeting. So the networking meetings are always worth going along to.
I’d love to see your comments on the blog if you were at the pin meeting in Manchester or if you have comments about other networking you have recently done. Let us know your thoughts.