There’s been no shortage of legalisation changes that have affected the buy-to-let market and with the ever-changing political and economic landscape, it’s likely that regular changes will become more commonplace.
But what’s the best solution for investors who don’t wish to put their money in banks, where there are little to no rates of interest, and want to have more flexibility over their tax matters.
Mixed-use properties are now becoming more desirable for landlords who feel hard done by with the three percent stamp duty surcharge. Properties that were once discounted because of the association of unsightly empty shop units and a shabby residential offering upstairs are now being considered as an attractive investment.
Sam Spencer, associate at Bruton Knowles explains the benefits of investing in mixed-used properties.
He said: “Flats above shops avoid the extra stamp duty and are an alternative way for landlords who wish to remain in the residential property market to keep more of their cash.
“Alternatively, landlords could consider purchasing commercial property with the aim of securing planning approval to convert the building into residential use.
“However, I would recommend undertaking in-depth research to understand whether this would be possible, or to prepare a commercial and residential property plan, just in case the planning permission is not granted.
“Similarly, taxation of commercial income can be charged through a limited company scenario rather than by personal taxation. However VAT can also be a factor so investors should ensure they receive proper financial advice before making any decisions.”
“There are areas in Nottinghamshire and neighbouring market towns where some high streets have never fully recovered from the recession and shop units with flats above still remain empty.
“As such we’re seeing more developers creating joint ventures with councils who have housing targets to meet. This could present an exciting opportunity for investors who are looking to revive their property portfolios, but could also help to kick-start regeneration in some of the outer urban areas.”