inside index.cshtml

Why are more and more people wanting to invest in HMO’s in Leeds now?

Back to articles
image

Published: 22/08/2018   Last Updated: 17/10/2018  
Author: JG    Tags: HMO, Leeds

 Should I buy a HMO in Leeds? Lots of people who are interested in property are asking this question right now.

HMO’s have always been popular for investors seeking high yields but recently we have seen interest skyrocket from investors.

Why is that?

There’s a number of reasons, I’ll explain a few.

  1. The ‘Section 24’ tax changes. The government are taking away the tax break investors and landlords used to get by off setting their mortgage payments against tax. This includes interest, capital repayments, and finance costs. This began to be phased out in 2017-2018 and by 2020-2021 none of these costs will be tax deductable.
  2. Stamp duty hike for investors. From April 2016 the government have increased the rate of SDLT on property purchases by 3% (where the property isn’t being used as your only home and residence, i.e on all rental property).
  3. The rise of property investment training companies. This is big business with day courses selling for around £500 and weekend courses selling for around £1500. The big training companies teach various property investing strategies, including HMO’s as one of their main ones.
  4. High entry price and low returns in the south east and London. High returns and low entry price in the north. Lots and lots of cash is coming from the south are investors head up the M1 to benefit from this!
To read the rest of this article, please click here