Month: February 2022

Star Trek fans, look away now.

“It’s a home, Jim, but not as we know it.” The original phrase (we’ve replaced life with a home) didn’t even feature in the popular sci-fi show, apparently, but we’re digressing.

If you’re interested in what life will be like in the homes of 2050, keep reading.

A report commissioned by the respected industry organisation the National House Building Council (NHBC) sees experts look into the future and make predictions around how homes will change.

The report, fittingly called Futurology: The New Home in 2050, makes for fascinating reading.

Below are ten forecasts from across the 40-page report.

• Multigenerational living will become increasingly popular. As property prices increase and people live longer, more families will come together to live under one roof.
• ‘Green roofs’ featuring grass areas will become the norm to encourage wildlife activity.
• Electric car charging points will be a feature of every new home and development.
• Smart boxes will replace letterboxes so that deliveries can be safely and securely left.
• The homes of 2050 could monitor our health and remind us to go for a walk, take medication, or even let us know if the bathwater is too hot.
• With demands on homes to be multifunctional, expect to see many more properties with movable walls.
• Micro living, for people living on their own, will increase. These smaller homes will be part of developments that offer communal areas, shared services, and cycle storage.
• New homes in 2050 will be highly energy-efficient – featuring several ways of capturing, storing, and distributing energy.
• Due to climate change, homes will need to be more responsive to weather events. In addition, better cooling systems will ensure homes don’t overheat in the potentially warmer summers.
• Light switches and electrical sockets could become obsolete as movement detectors and voice controls become omnipresent.

If you’re thinking of moving a little earlier than 2050, maybe even this year, feel free to contact us with any questions you have.

We’ll use our expertise and experience to help you on the journey to a new home in the future.

 

 

In this two-minute read, we have a quick look at what you need to consider when becoming a landlord.

Before becoming a landlord, you need to consider how you want to buy your rental property. There’s lots of tricky tax stuff to consider and changes to tax relief over the last few years mean that becoming a landlord might not be as profitable as you first think.

So, what should you do? Should you buy a rental property in your personal name or via a limited company?

Setting up a limited company

Since 2016, more private companies than ever before have been set up to hold buy-to-let properties (primarily because of tax changes) and it’s relatively easy to do. Whether you’re starting a company on your own or with others, it’s a matter of choosing a name, deciding who does what, having a company address, and registering online with Companies House.

Keeping the accounts and records for a limited company can be a lot more complicated than personal tax, so it’s always advisable to hire an accountant. In addition, proper accounts are a legal requirement when running a limited company, so by hiring a professional you can have peace of mind that things will be done the right way.

Taxing stuff

Tax. Ugh. A word that makes everyone feel slightly sick. And when you’re a landlord, it’s an area you need to get your head round.

Over the last few years, the government has brought in several tax changes that impact private landlords with property in their own names and their level of tax relief. In simple terms, this means less profit and more tax.

For example, in England, rental profit is subject to income tax. Previously, if you had an £800 monthly mortgage bill and earned £1,000 in rent, you would only pay tax on the £200 profit. However, since April 2020 tax changes have meant that mortgage costs can no longer be treated as an expense, meaning after-tax profit has considerably reduced.

Limited companies now hold more tax advantages for landlords. For example, a limited company can still treat mortgage costs as an expense along with other related costs of managing a rental property. In addition, limited companies are subject to corporation tax which is currently set at 19% (although this is set to increase), instead of income tax, which changes the more that you earn.

Other tax areas to investigate if thinking about setting up a limited company include:

• No capital gains tax
• Inheritance tax issues (if you plan to pass your property on)

Always speak to an accountant or financial advisor when it comes to tax matters.

If you’re thinking about buying a rental property, please speak to us at Chamberlains.