There are some things that money we earn can buy and other things that are out of the reach for an average salaried individual or even an entrepreneur who hasn’t really hit the height as yet. People can often finance their day to day expenses as well as some occasional extravagance. Unfortunately, there are certain expenses such as buying a car, refurnishing your house, etc. that need a sizeable amount of money saved up. Unless you are an avid saver of money, you will find it hard to finance such activities. How then can a person finance their needs? The easiest way to do that is to get Long term loans. These loans are typically spread out over payment schedule of 15 years or more. This makes them easier to get. This article outlines a step by step approach to obtaining a long term loan.
Great Britain, as a nation, is obsessed with mortar and bricks, but financial experts warn investors of unfavorable days ahead.
Why?This is purely because both, conservative chancellor and the Bank of England tried to eliminate the property bubble market that has been core reason for inflation in the nation. Since April 2016, new tax related forces have been implied, only to bring bad news for landlords. Read along to find out four ways that has led to unfavorable tax changes for buy to let landlords:
There is stamp duty on buying secondary propertiesDo you have any property besides your primary home? Well, if so—the stamp duty for any such property has mounted. If you have buy to let properties that is worth more than 40,000 UK pounds, stamp duty applicable on them is an additional 3 percent. So say, if your buy to let property investment is 500,000 UK pounds, your stamp duty will be 6 percent (30,000 pounds!)
There is income tax relief on mortgage interest cutUp till now, the tax reliefs on mortgage interest for buy to let landlords was around 45 percent (marginal rate of the income tax), it is now only at 20 percent. For basic rate tax payers, this is no change, however, it has increased income tax substantially.
There is tax on buy to let turnover—not on incomeThis might not be an oblivious change, but it sure is a crafty one. This tax makes sit expensive for buy to let landlords. Let’s look in to an example to comprehend the tax: X is a buy to let landlord who currently rents out a house worth 250,000 pounds and earns a gross rental income of around 4 percent. So, that leaves him with 10,000 pounds in a year from rental income. Before the tax being implied, X could deduct 10 percent for the wear and tear, without being accountable for any bills. However, now he needs to have a proof in order to show any expenses incurred for maintenance. Let’s assume, X did not pay a single penny in maintaining the house since it was new. So now, the 10 percent he could have deducted (before new tax implied) can now not be used. With changes in tax, X is still receiving 10,000 pounds from the rental income but paying out 40 percent (4000 pounds) out of it! At the end of the year, X is badly affected by the new tax laws.
The capital gains tax remains unchangedWhile capital gains tax remain unchanged, all other investments are now more lucrative. So, if you own a property/house then it still holds attractiveness as there is no capital gains tax if you sell it off. However, for buy to let landlords it is time to switch for other types of investments to look out for better opportunities in the future.…
Dividend growth is a simple concept yet most investors do not go through the path of dividend growth. One reason for this may be the fact that it can be boring to be a dividend growth investor because you simply sit on the funds that are planted at a particular organisation and left for a number of years to grow. The overall earnings from a good dividend investment, though can provide you the best results possible from a particular investment. Here are few of the important concepts that you need to know when observing the way dividend growth investors operate to make profits.