The Property Investing Strategy for 2020

In this blog I want to tell you about a very time sensitive opportunity.  I encourage you to read all this blog because you're not going to want to miss out on this. I believe that 2020 is going to be an incredible time for you to invest in property, and make use of this property investing strategy. Something is going to happen in January 2020, which is going to make it much easier for you to find really fantastic property deals. So let me explain the best property investment strategy for 2020.

A Higher Tax for Property Investors

At the end of each tax year, investors have nine months to complete their personal tax return. This needs to be submitted by the end of January. In January 2020, everyone's going to have to put in their self assessment tax return for the 2018-2019 tax year. There are 1.75 million landlords in the UK and this will be the second year where landlords are starting to see the effects of Section 24. These are the tax changes that were introduced in April 2017, whereby as property investors we are taxed differently from other business owners. What this means is, if you own property in your own name, (which most landlords do) and you're a high rate taxpayer, (which many property investors are)you're going to pay a lot more tax on your property income.

So what does this actually mean for you? It means for the same amount of work, effort and hassle you're going to get paid less and less over the next few years. If you own a company, you're not affected. That's why new investors are buying in a company structure.

Selling Up & Retiring Early

This is why we are seeing many more landlords, thinking about selling up and retiring early. In any market, there's always people coming in and always people leaving. But right now there were more and more landlords thinking about leaving. How do we know this? I run the'property investors network',which has 50 meetings all over the country, and I can tell you that at a very grassroots level, we see what's happening. We're seeing more and more investors, coming to these meetings, wanting solutions and thinking about selling up and retiring.

Why Is This A Good Opportunity For You?

Well, this January 2020, it's going to be a second year where people are going to be getting their tax returns and seeing they've got the same income coming in, and yet they are will paying a lot more tax. This will be the catalyst for many people to make the decision to retire early. This is an incredible opportunity to help these landlords and make money at the same time. If they sell all their properties in one go they're going to a pay a lot of tax, and so it's a better idea for these landlords to phase their sales over a number of years, to maximise the personal capital gains tax allowance each year. The best way to help them is by using Purchase Lease Options (PLOs).

Purchase Lease Options

A Purchase Lease Option is a great property investing strategy for 2020. You can control property, get cash flow and equity growth from a property that you don't even own. It's an incredibly powerful strategy. There needs to be certain circumstances for this strategy to work. Ideally the seller doesn't need the money now, and have favourable mortgage conditions. Landlords selling up often don't need the money and they have favourable mortgage conditions, which is why landlords are some of the best people to do Purchase Lease Options with.

So you've got all these things coming together, you've got this unique time where landlords more than ever, are thinking about setting up and retiring. If you want to get into property or expand your portfolio the next 12 months are going to be the best opportunity to do this.