Episode 27 - Taxes When Buying or Selling at Property Auctions

Episode 27 - Taxes When Buying or Selling at Property Auctions

Ruban Selvanayagam from quick sale specialists and regulated auctioneer Property Solvers speaks again with Simon Misiewicz, founder of Optimise Accountants – delving into the nitty-gritty of property taxes when buying and selling auctions.   Simon runs through his initial thoughts on Chancellor Rachel Reeves' October 2024 budget and its impact on landlords and property investors. He goes on to discuss the increased Stamp Duty Land Tax (SDLT) rates alongside how to leverage exemptions and reliefs to minimise your tax liability as an auction buyer.   Simon also shares insights on tax saving strategies for auction buyers like buying uninhabitable or mixed-use properties, commercial acquisitions and navigating the pros and cons of purchasing property portfolios via limited company and other corporate structures.     The discussion also touches on tax-deductible costs and some tips if you're selling at auction – particularly with regards to Capital Gains Tax (CGT) when selling personally-owned properties and Corporation Tax with assets owned in a Limited company.   #propertyauctionstax #tax #buyingatauctiontax #sellingatauctiontax #propertyauctions   LINKS (RESOURCES) REFERRED TO IN THE PODCAST Optimise Accountants [https://www.optimiseaccountants.co.uk/] Optimise Accountants Youtube Channel [https://www.youtube.com/@UK-Property-Tax-Accountants/videos] Follow Simon Misiewicz on LinkedIn [https://www.linkedin.com/in/simon-misiewicz-61637033b/?originalSubdomain=uk] RELEVANT LINKS Property Solvers Investor Profiling [https://auctions.propertysolvers.co.uk/buyers/auction-investor-profiling-form/] Become an Auction Partner [https://auctions.propertysolvers.co.uk/become-an-auction-partner/] Property Solvers (Sell House Fast) [https://www.propertysolvers.co.uk/sell-house-fast/] Property Solvers (We Buy Any House) [https://www.propertysolvers.co.uk/we-buy-any-house/] Property Solvers Auctions [https://auctions.propertysolvers.co.uk/] Property Auctions News [https://propertyauctions.news/] How to Value Your House [https://www.propertysolvers.co.uk/blog/house-valuation/]   TIMESTAMPS 00:10 - Introduction to Simon Misiewicz (of Optimise Accountants) and tax implications for auction property transactions 00:32 - Impact of the Labour (October 2024) budget on landlords and property investors 02:03 - Shift in the market as amateur landlords sell and the industry professionalises 02:12 - Key features of the budget affecting property investors and auction buyers 06:03 - Overview of the revised stamp duty regime 07:18 - New 5% surcharge for UK  property investors and auction buyers and its impact 10:00 - Stamp duty relief when buying multiple properties 12:08 - Mixed-use properties and their Stamp Duty advantages 14:45 - Saving on stamp duty for uninhabitable properties 17:26 - Exploring chain break properties and their tax implications 19:24 - Importance of consulting accountants before buying property at auction 20:32 - Claiming stamp duty rebates retrospectively 22:03 - Stamp duty rules for commercial acquisitions and land purchases at auction 25:18 - Minimising taxes when acquiring properties at auction 28:38 - Buying TLC properties and leveraging refurbishment for tax relief 30:21 - Using BRRR strategies and tax considerations for limited companies 31:31 - Offsettable costs when buying properties at auction 33:41 - Tax treatment of costs for companies vs. individuals 34:09 - Capital Gains Tax strategies for landlords selling personally owned properties 36:58 - Common mistakes in calculating Capital Gains Tax 38:52 - Keeping records of transactional costs to reduce tax liabilities 40:04 - Buying properties through companies and tax advantages 41:24 - Due diligence when acquiring companies with property assets 42:56 - How to connect with  Simon Misiewicz and Optimise Accountants

Episode 26 - Property Crowdfunding with Atuksha Poonwassie

Ruban Selvanayagam from fast sale and auction specialists Property Solvers speaks with  Atuksha Poonwassie, MD and co-founder of Simple Crowdfunding.  As director of the UK Crowdfunding Association, Atuksha brings a wealth of expertise, blending technical know-how with a passion for property. We explore how Simple Crowdfunding became one of the first platforms in the UK to empower property developers and investors alike. From demystifying the crowdfunding process – where small financial contributions can fund property projects of all sizes – to understanding its role in bridging gaps in traditional financing, this conversation sheds light on a sector transforming property investment. We delve into equity versus peer-to-peer lending, what types of investors can get involved, and the regulatory landscape shaped by the FCA. Atuksha also shares insights into the due diligence processes that ensure project integrity and explains how crowdfunding offers opportunities for everyone, from seasoned investors to those just starting out. Ruban and Atuksha also run through some of the projects on the Simple Crowdfunding platform, including modular builds and assisted living developments whilst discussing the future of property crowdfunding, with technologies like AI and blockchain set to make their mark.   #PropertyCrowdfunding #Crowdfunding #PropertyInvestment #PropertyInvesting #PropertyInvest   LINKS (RESOURCES) REFERRED TO IN THE PODCAST Simple Crowdfunding [https://www.simplecrowdfunding.co.uk/] Follow Atuksha Poonwassie on LinkedIn [https://www.linkedin.com/in/atuksha/] Follow Davin Poonwassie on LinkedIn [https://www.linkedin.com/in/davin-poonwassie/] RELEVANT LINKS Property Solvers Investor Profiling [https://auctions.propertysolvers.co.uk/buyers/auction-investor-profiling-form/] Become an Auction Partner [https://auctions.propertysolvers.co.uk/become-an-auction-partner/] Property Solvers (Sell House Fast) [https://www.propertysolvers.co.uk/sell-house-fast/] Property Solvers (We Buy Any House) [https://www.propertysolvers.co.uk/we-buy-any-house/] Property Solvers Auctions [https://auctions.propertysolvers.co.uk/] Property Auctions News [https://propertyauctions.news/] How to Value Your House [https://www.propertysolvers.co.uk/blog/house-valuation/]   TIMESTAMPS 00:10 - Introduction of Atuksha Poonwassie and Simple Crowdfunding 00:23 - Atuksha's background in CRM and property investment 02:32 - Founding Simple Crowdfunding in 2013 03:03 - Overview of crowdfunding in the property sector 04:58 - How crowdfunding works for property projects 07:02 - Onboarding process for property crowdfunding investors 07:38 - Definitions of sophisticated and high-net-worth investors 09:06 - Accessibility of crowdfunding for all property investor types 10:02 - Learning while investing in property projects 11:45 - Opportunities for aspiring developers to learn 12:41 - Challenges faced by early crowdfunding platforms 14:38 - FCA regulation changes and platform closures 16:13 - Evolving regulations in the crowdfunding space 16:58 - Simple Crowdfunding’s dual approach: equity and peer-to-peer 17:49 - Explanation of equity investments in property crowdfunding 19:26 - Risks and returns associated with crowdfunded equity investments 22:04 - Overview of peer-to-peer lending for property projects 24:19 - Choosing between equity and peer-to-peer investments 25:30 - Due diligence process for developers and projects 28:02 - Challenges faced by property developers in recent years 29:09 - Why developers choose crowdfunding over bridging finance 31:33 - Handling project challenges and delays transparently 34:14 - Typical timelines for crowdfunding property projects 36:38 - Expected returns for equity and peer-to-peer investments 37:39 - Examples of recent crowdfunding property projects 39:37 - The future of property crowdfunding and emerging technologies 41:15 - Benefits of crowdfunding for aspiring property investors 42:08 - How to contact Atuksha and find out more about Simple Crowdfunding

Episode 25 - Empty Property Hunting (with Simon Taylor)

In this episode, Ruban Selvanayagam from national homebuying company Property Solvers delves into the fascinating world of empty property finding with Simon Taylor, the driving force behind Empty Property Hunters. Simon's unique approach focuses on uncovering abandoned and neglected properties, reconnecting them with owners, and giving them a new lease of life. With a rich background in estate agency and a passion for adding value to properties, Simon shares the journey that led him to focus on empty homes. From tracing owners across continents to dealing with complex probate cases and sentimental attachments, Empty Property Hunters is on a mission to bring these dormant assets back into use. Simon highlights some shocking statistics: over 300,000 homes in England alone are sitting empty, a number that dwarfs the country's homeless population. He shares the challenges and quirks of this niche market, such as uncovering properties left abandoned for decades or persuading owners who aren’t motivated by money to consider selling. This episode is packed with insights, from spotting the telltale signs of an empty property to how Simon's team uses everything from neighbourly chats to advanced tools like Ancestry to track down elusive owners.    #EmptyProperty #EmptyProperties #FindEmptyProperty #EmptyPropertyHunters #WeBuyAnyHouse    LINKS (RESOURCES) REFERRED TO IN THE PODCAST Empty Property Hunters [https://emptypropertyhunters.co.uk/] Follow Simon Taylor on LinkedIn [https://www.linkedin.com/in/simon-taylor-455995100/] RELEVANT LINKS Property Solvers Investor Profiling [https://auctions.propertysolvers.co.uk/buyers/auction-investor-profiling-form/] Become an Auction Partner [https://auctions.propertysolvers.co.uk/become-an-auction-partner/] Property Solvers (Sell House Fast) [https://www.propertysolvers.co.uk/sell-house-fast/] Property Solvers (We Buy Any House) [https://www.propertysolvers.co.uk/we-buy-any-house/] Property Solvers Auctions [https://auctions.propertysolvers.co.uk/] Property Auctions News [https://propertyauctions.news/] How to Value Your House [https://www.propertysolvers.co.uk/blog/house-valuation/]   TIMESTAMPS 00:10 - Introduction of Simon Taylor from Empty Property Hunters 00:21 - Background of Simon’s career and passion for property 00:54 - Founding and growing of Empty Property Hunters 02:58 - Encouraging public involvement in reporting empty homes 03:59 - Discussion of the scale of empty homes in England 04:30 - Importance of repurposing abandoned properties 05:21 - Common reasons properties remain empty 06:54 - Challenges with owners not motivated by money 07:40 - Costs associated with leaving properties empty 08:33 - Risks of squatters in empty properties 09:49 - Explanation of Bona Vacantia and ownerless properties 12:31 - Process of selling ownerless properties through auctions 12:59 - Common signs of empty homes 14:29 - Appearance of properties deceiving actual occupancy 15:02 - Simon’s process of tracing empty property owners 16:32 - Neighbours as a valuable source of information 17:42 - Tools and techniques used for finding property owners 19:10 - Joint ventures and incentives for identifying empty homes 20:58 - Submitting property leads to Empty Property Hunters 22:07 - Addressing the issue of widespread empty homes 23:55 - Increasing number of empty properties across the UK 24:14 - Potential for repurposing commercial properties 25:26 - Conclusion and how to report empty properties

Episode 24 - Buying and Selling Short Lease Properties

In this episode, Ruban Selvanayagam dives deep into the world of short lease properties with Jason Patterson, the Short Lease Flat Mentor. Jason has been operating in the property investing world for over 20 years, starting with flats in North London when houses were financially out of reach. Through his journey, he discovered the critical steps top follow when extending leases, particularly the "marriage value" that impacts properties with leases below 80 years. Jason shares his firsthand experience of extending leases and the strategies he’s developed, including voluntary and Section 42 notices to maximise property value. He highlights the complexities involved, from liaising with freeholders to ensuring optimum due diligence when buying short lease properties alongside tips on how to sell properties . We’ll also touch on his adaptive methods during market shifts and how he navigated through challenges like the 2008 credit crunch. Additionally, we discuss the 2024 Leasehold and Freehold Reform, its potential impact on the property market and why implementation may take up to five years due to legal challenges. Jason offers advice for sellers on extending leases to optimise property prices and shares how he scales his business through networking, direct vendor approaches, and strong partnerships with industry contacts.   #ShortLeaseFlats #ShortLeaseProperties #BuyingShortLeaseFlats #SellingShortLeaseFlats #LeaseholdandFreeholdReformAct   LINKS (RESOURCES) REFERRED TO IN THE PODCAST Leasehold and Freehold Reform Act 2024 [https://www.legislation.gov.uk/ukpga/2024/22/contents] Selling a Flat with a Short Lease [https://www.propertysolvers.co.uk/homeowners-hub/selling-a-flat-with-a-short-lease/] Follow Jason Patterson on LinkedIn [https://www.linkedin.com/in/jason-patterson-797a1ba2/] RELEVANT LINKS Property Solvers Investor Profiling [https://auctions.propertysolvers.co.uk/buyers/auction-investor-profiling-form/] Become an Auction Partner [https://auctions.propertysolvers.co.uk/become-an-auction-partner/] Property Solvers (Sell House Fast) [https://www.propertysolvers.co.uk/sell-house-fast/] Property Solvers (We Buy Any House) [https://www.propertysolvers.co.uk/we-buy-any-house/] Property Solvers Auctions [https://auctions.propertysolvers.co.uk/] Property Auctions News [https://propertyauctions.news/] How to Value Your House [https://www.propertysolvers.co.uk/blog/house-valuation/]   TIMESTAMPS 00:10 - Introduction of Jason Patterson and his expertise 00:22 - Jason’s greeting and start of conversation 00:56 - Jason shares his property journey background 02:25 - Challenges and strategies during the credit crunch 04:09 - Buying and extending leases experience explained 05:04 - Solicitors' role in flagging short leases 06:27 - Evaluating properties with short leases strategy 07:39 - Approach to determining lease extension costs 08:23 - Contacting freeholders and surveyors for costs 09:42 - Freeholder cooperation in providing information 10:35 - Vendor cooperation in obtaining lease details 11:13 - Steps to minimise risk when buying short leases 11:46 - Explanation of section 42 lease notice 12:34 - Process of using section 42 in transactions 13:45 - Example of simultaneous purchase and lease extension 14:42 - Importance of checking legal pack validity 15:48 - Variability in freeholder response times 16:40 - Using surveyors for lease extension negotiations 17:13 - Tips for sellers to optimise short lease sales 18:31 - Short lease property considerations for buyers 19:30 - Navigating lending challenges for short leases 20:36 - Mortgage and bridging finance for short leases 21:31 - Assessing risk and timing for lease extensions 22:37 - Overview of the Leasehold Reform Act 2024 23:57 - Main benefits of new lease extension rules 24:30 - Removal of the two-year ownership rule 25:52 - Abolishment of marriage value and its impact 26:42 - Legal challenges slowing down the reform 28:02 - Potential delays and political impacts discussed 29:12 - Jason’s approach to sourcing short lease properties 30:35 - Direct connections with councils and housing associations 30:50 - Using property tools and platforms for sourcing 31:18 - Best resources for leasehold sector updates 32:22 - Jason’s social media presence and speaking events 33:23 - Conclusion and final insights

Episode 23 - Can Blockchain Transform Property Buying and Selling?

In this episode, Property Solvers' Ruban Selvanayagam is joined by Neil Singer, founder of the online property sales platform, Click to Purchase. Neil, a qualified chartered surveyor with extensive experience in commercial property transactions, has been a pioneer in incorporating blockchain technology into the UK property market. Listeners will hear about Neil's career journey, starting with traditional methods of property sales and leading to his groundbreaking work in transforming the buying and selling process. He shares how the financial crash of 2008 led him to explore digital tools, which eventually resulted in the creation of Click to Purchase - a platform that uses blockchain to offer quick, legally-binding property transactions with full transparency. Throughout the conversation, Neil explains how blockchain technology ensures secure, immutable transactions, and the impact of this innovation on the property industry. He also discusses the limitations of blockchain in real estate and why he believes the future lies in the power of data sharing rather than blockchain hype. This episode is packed with insights into the evolving landscape of real estate, the practical applications of cutting-edge technology, and Neil’s vision for how the property market will continue to change in the coming years.    #BlockchainProperty #BlockRealEstate #SellProperty #BuyProperty #SellHouse #SellHomes #BuyHomes    LINKS (RESOURCES) REFERRED TO IN THE PODCAST Click to Purchase [https://openpropdata.org.uk/] SV International Network [https://singervielle.international/] Follow Neil Singer on LinkedIn [https://www.linkedin.com/in/neilsingerctp/] RELEVANT LINKS Property Solvers Investor Profiling [https://auctions.propertysolvers.co.uk/buyers/auction-investor-profiling-form/] Become an Auction Partner [https://auctions.propertysolvers.co.uk/become-an-auction-partner/] Property Solvers (Sell House Fast) [https://www.propertysolvers.co.uk/sell-house-fast/] Property Solvers (We Buy Any House) [https://www.propertysolvers.co.uk/we-buy-any-house/] Property Solvers Auctions [https://auctions.propertysolvers.co.uk/] Property Auctions News [https://propertyauctions.news/] How to Value Your House [https://www.propertysolvers.co.uk/blog/house-valuation/] TIMESTAMPS 00:10 - Introduction of Neil Singer and Click to Purchase property sales platform 00:56 - Neil’s career background in property sales 02:03 - Transition from traditional property sales to online (including auctions) 02:53 - Development of Click to Purchase and blockchain in real estate 04:02 - Rise in online property sales post-Covid 04:47 - Explanation of blockchain’s origin and use 05:54 - Blockchain’s immutability and distributed ledger 08:32 - Blockchain prevents alterations in transactions 11:07 - Blockchain security benefits via distributed ledger 12:25 - Blockchain application in property transactions 14:45 - Explanation of digital wallets and cryptocurrency 15:35 - How Click to Purchase property sales work 18:44 - Transparency in the Click to Purchase process 20:51 - UK vs international property buying processes 21:22 - Property surveys and due diligence in transactions 22:14 - Click to Purchase’s international network expansion 23:23 - Regulatory adjustments for blockchain across jurisdictions 24:30 - Neil’s involvement in digital document execution 26:27 - Limitations and future of blockchain technology 29:05 - Anti-money laundering challenges for blockchain 30:32 - Lack of backing for cryptocurrency explained 32:28 - Transition to technology-driven property transactions 33:55 - Tokenisation syndication and real estate investments 36:56 - Resistance to technology adoption in property industry 38:49 - Importance of data in property industry 40:00 - Closing and how to contact Neil Singer