Protection for your Property Investments

We have lots of property investor clients, who continually look at different properties to invest in, who hear family and friends talking about investments, some have thought “I’d like to try that”, some have inherited properties and become accidental landlords, but very few spend much time on planning how to protect their
investments and themselves, as with every new business, the excitement is around investing time, money and passion.

We all need to protect our investments, whatever type they may be, so it’s important to think about this before you invest, wherever possible.

Questions to ask:

• Should I open a Limited company to buy a property? if yes, Why?
• Does it make a difference when/how I purchase a property? If I am a cash buyer or need a mortgage? And what are the advantages and disadvantages of both?
• Do I need to know anything about tax law or laws around letting? What are the responsibilities for landlords?
• How do I manage the income I receive from tenants? Do I need to tell HMRC about my extra income?
• What happens if I sell the property? Do I need to tell anyone or do anything?

… and lots, lots more questions to consider, which is why you should always find advice regarding your investments, from an Accountant, an Independent Financial Adviser, a Mortgage Broker, maybe also speak to someone who is already investing in property, but don’t go it alone if you are new to property investing – as with everything, there are things you must do, should do and best to do, and also things you should definitely not do.

Planning is everything, to purchase and to sell, timing for taxes, especially if you have other earnings, also the structure you build your investments in will give you different protections. A Limited company has a different legal entity than privately investing, both have advantages and disadvantages, but considering the structure of your investments could be the difference between creating an additional income stream or not, keeping your investments safe or losing them, so this is a major factor when investing in property.

Always protect yourself and protect your property investments.