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Landlords resort to mixed property investing to beat tax hikes

Posted on by within Property News

Tax changes introduced this month are encouraging landlords towards mixed-use property in an attempt to minimise damage to their profits. 

Mortgage interest tax relief changes arrive

As of April 2017, buy-to-let investors in Brixton and Battersea will no longer be able to deduct mortgage interest in full from their profits. The measure will be phased in over a number of years, so individual residential landlords will not feel the full impact of the changes until 2020/21.  

Many landlords have been proactive in responding to the changes, exploring their options in a move to protect their rental income.  

One such option is mixed-use property, which is not affected by some of the tax changes being brought in. It allows landlords to diversify their property portfolios, meaning they can take on different types of tenants and receive income from two different types of property.  

Some landlords are choosing to invest in semi-commercial property for the first time with a view to ensuring the best possible rental yields.  

Buy-to-let investors have had to withstand multiple changes to the sector in recent years, including the additional 3% stamp duty surcharge which applies to the purchase of second properties.  

However, if investors seek the best advice and explore their options, buy-to-let investment is still worthwhile.

For more information, click the link below:

Residential Landlord

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