Dont pay unnecessary tax

Look to claim costs as 'Revenue' costs
If you can claim large costs as 'revenue' costs rather than 'capital' costs then you can reduce your annual property income tax bill in a big way.

Sometimes it is easy to determine whether a cost is of a capital nature or not. For example, if you have had a new conservatory built, or even a new bedroom added, then this is clearly a capital expense. This is because it has increased the value of the property. Examples of this nature cannot be offset against revenue immediately.

However, anything that replaces an existing item could be revenue related. For example, if you currently have rotten single glazed windows then you will be able to replace them with UPVC double glazed windows and offset the entire cost against the rental income. There will be no need to class this as a 'capital cost'.

Claim tax relief on all revenue expenditures.
Remember the golden rule: If you have incurred a revenue expense for the purpose of letting your property, then you can offset it against the rental income. This means that you can continue to lower your tax bill - legitimately. Most investors are aware that they can offset mortgage interest, insurance costs, rates, cost of decorating/repairs, wages and costs of services. However many investors fail to claim the following costs, which when added together can provide a significant tax saving:

• Costs incurred when traveling back-and-to the investment property


• Advertisement costs


• Telephone calls made (or text messages sent) in connection with the property


• Cost of safety certificates


• Cost of bank charges (i.e. overdraft)


• Advisory fees e.g. legal and accountancy


• Subscription to property investment related magazines, products and services

Make money in any market

With media attention focused firmly on the perceived static state of the UK property market many inexperienced property investors might think that now is not a good time to buy. However, clever investors know that it is possible to make money investing in property no matter what the market does if you know what to do and what to avoid. Here's how:

Buy smart.
Research your market so you know how to find a bargain investment property. Study the market, watch the trends, and learn as much as possible about different regions and locations. Remember the property market is different depending on which town or city you invest in or which type of property you are looking at. Look for high levels of public and private sector investment, and improved transport links such as new rail services which can add value.

Finance smart.
Check your credit and put yourself in position to qualify for the best interest rates, lowest mortgage costs, and avoid early redemption penalties. You can buy investment property with poor credit, but you will pay much more for the financing so it is worth cleaning up your credit record if possible. It maybe that your credit record still shows credit that you no longer have. Contact the credit reference agencies to obtain your credit record and make sure it is accurate. Speak to one of our mortgage advisers for advice regarding your financial circumstances on 0870 1670996.

Rent smart.
In order to achieve maximum capital growth it is often necessary to 'feed' the property by a small amount each month to cover a possible shortfall. This still makes good financial sense as long as you are investing for capital growth and not cash flow. In the medium to long term, if property prices still increase, these small monthly 'top up' payments will be a very small price to pay.

Also, make sure you attract tenants quickly. This can be done by slightly undercutting the market. Although your rental income will be slightly lower it is far preferable to have the property let than have a void period. Remember, you can always increase your rent at a later date.

Improve your property.
Raise your profit potential by making improvements. You can raise the rent or sell for higher values when tenants and home buyers fall in love with your property. Make your property irresistible with clever dιcor, furnishings and fittings. A well presented property will rent that bit more easily with items such as a dishwasher or DVD player.

You can profit in any property market, static or not, when you do your research, understand your location, buy smart and improve the property.

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"Even the most daring and accomplished people have undergone tremendous difficulty. In fact, the more successful they became, the more they attributed their success to the lessons learned during their most difficult times." - Barbara Rose Speaker and Author

"Winners are losers who got up and gave it one more try." - Dennis DeYoung Rock Musician and Songwriter


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Don't be scared of debt, use it!

Robert Kiyosaki is a well respected investor, entrepreneur and educator. Author of many best selling books on the subject of wealth generation he has been so successful that he was able to stop work at the age of 31 and has never looked back. The following extract from one of his recent articles clearly demonstrates why (if used correctly) debt should be your new best friend.

I attended my first real estate investment class in 1974. The two-day program cost me $385, which was a fortune at the time since my salary was less than $1,000 a month.
After months of searching for my first investment property, I found a tiny, one-bedroom, one-bath condo in Lahaina, Maui, the world famous beach resort. The condo was priced at $18,000. Not having any money, I used my credit card to finance the 10 percent down payment of $1,800.
In other words, I used 100 percent debt to buy the property.
Even though I was leveraged 100 percent, which I do not recommend even though I did it, I was netting approximately $20 a month positive cash flow after all expenses and debt were paid. At the age of 27, I owned a condo in Waikiki, in which I lived, and a condo in Lahaina, which I rented. My real estate investing career was launched -- and I was in debt up to my eyeballs.

The 'Credit Card Tycoon'
The Friday after closing on my Maui condo, I told my friends about my investment.
"Are you crazy?" asked one friend, a young attorney fresh out of law school.
"You're nuts," said another friend. "You purchased a condo with a credit card? Do you know how risky and foolish that is?"
"Yeah, but it's a great deal," I replied defensively.
My friends just continued to laugh at me, calling me the "Credit Card Tycoon." About a year later, we were all together again at that same watering hole where we met almost every Friday.
"Well, how is the Credit Card Tycoon doing today?" asked a friend who was a young attorney. "Buy any more property with your credit cards?"
"No." I replied with a grin. "I sold one for $48,000. I made about a $30,000 profit in a year."
Although it was good to have the ribbing stop and to win my point, the most important lesson was that I had learned how to use debt to get richer.

From $25 a Month to $29,000 a Month
My wife had a similar experience. She bought her first property in 1988. It was a small two-bedroom, one-bath home in a great neighborhood in Portland, Oregon. The purchase price was $45,000. She put $5,000 down and earned approximately $25 a month after expenses and debt service.
Some of her girlfriends made the same comments my friends did. They thought $25 a month was not worth the risk of borrowing money. What her girlfriends failed to understand is that it wasn't the money that was important at that point. It was the experience.

Using that experience, my wife bought a piece of commercial property 16 years later for $7 million. Since the property was such a great investment, a banker gave her most of the money -- yes, as debt. Every month, after paying all expenses, the net income into her bank account is approximately $29,000. That's more than many people earn in a year.

Debt Is Not the Problem
"My banker is my best partner," my rich dad used to say. "He loans me 90 percent of the money and I control 100 percent of the property, 100 percent of the profits, and 100 percent of the tax breaks. All I have to do is find great investments he wants to be a partner in."
There are many financial experts who say "get out of debt," "pay off your credit card bills," or "pay off your mortgage." Many of them seem to think all debt is evil.
"Debt is not the problem," my rich dad said. "It's what you buy with debt that can cause you problems."
Between 1995 and 2005, savers -- people who saved money in bank accounts or in mutual funds -- were the big losers. They lost because the stock market crashed. Between 1995 and 2005, many of the debtors who took advantage of low interest rates to invest in real estate made fortunes in the biggest real estate boom in the history of the world.


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"It is the greatest of all mistakes to do nothing because you can do only a little. Do what you can." - Sydney Smith 1771-1845, Writer and Clergyman

"Lots of people limit their possibilities by giving up easily. Never tell yourself this is too much for me. It's no use. I can't go on. If you do you're licked, and by your own thinking too. Keep believing and keep on keeping on." - Norman Vincent Peale 1898-1993, Pastor, Speaker and Author

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It is a challenge to succeed by Jim Rohn

It is a challenge to succeed. If it were not, I'm sure more people would be successful, but for every person who is enjoying the fruit from the tree of success, many more are examining the roots. They are trying to figure it all out. They are mystified and perplexed by what seems to be some strange, complex and elusive secret that must be found if ever success is to be enjoyed. While most people spend most of their lives struggling to earn a living, a much smaller number seem to have everything going their way. Instead of just earning a living, the smaller group is busily engaged in designing and enjoying a fortune. Everything just seems to work out for them. While the much larger group sits in awe at how life can be so unfair, complicated and unjust.

"I am a nice person," the man says to himself. "How come this other guy is happy and prosperous, and I'm always struggling?" He asks himself, "I am a good husband, a good father and a good worker. How come nothing seems to work out for me? Life just isn't fair. I'm even smarter and willing to work harder than some of these other people who just seem to have everything going their way," he says as he slumps into the sofa to watch another evening of television.

But you see you've got to be more than a good person and a good worker. You've got to become a good planner, and a good dreamer. You've got to see the future finished in advance. You've got to put in the long hours and put up with the setbacks and the disappointments. You've got to learn to enjoy the process of disciplines and of putting yourself through the paces of doing the uncomfortable until it becomes comfortable. You've got to be prepared and willing to attack the challenges if you want the success because challenges are part of success.

Now that may sound like a full menu of activities, but let me assure you that the process of going from average to fortune isn't really all that difficult. Thinking about it is the difficult part. Anticipating all the effort and the changes and the disciplines is far worse in the mind than in reality. I can promise you that the challenges you'll meet on the road to success are far less difficult to deal with than the struggles and the disappointments that come from being average. Confronting and overcoming challenges is an exhilarating experience. It does something to feed the soul and the mind. It makes you more than you were before. It strengthens the mental muscles and enables you to become better prepared for the next challenge.

Why not now take the Challenge to Succeed!

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Need mortgage advice?

Maybe you're thinking of buying an investment property, or you need to release funds tied up as equity in your house. Perhaps you just want to find the best mortgage rate for your own individual circumstances and cut your mortgage payments. Why not call our mortgage department today? Our resident mortgage advisers will give you the best possible advice to suit your requirements. Call them today on 0870 1670996.
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Meet a fellow Property for Life investor

"Property for Life provides opportunities with real discounts and therefore real equity in the property" says Chris Broadfoot, a seasoned investor and client of Property for Life.

Chris has been investing in property for just 18 months, but in that time he has purchased 11 investment properties and has developed an exceptional level of skill and knowledge. Chris buys all of his investment property 50/50 with a friend and this enables them to greatly reduce many of the associated risks in addition to enabling easier organisation post completion. "There is a lot involved in letting a property once we have completed, from sourcing good quality tenants to hanging curtains", says Chris.

The first purchase was an apartment in Canary Wharf in summer 2004. This was so successful that several other purchases quickly followed and the portfolio grew rapidly to total 7 properties. In an effort to further reduce risk by spreading the portfolio Chris decided to purchase a number of properties in overseas markets that were at varying stages of the growth life cycle, and so property in Dubai, Cape Verde, Bulgaria and Australia joined the growing portfolio. "These properties will all perform differently" explains Chris. "Australia is a very well established and relatively safe market whilst Dubai's astounding growth carries substantial risk but huge potential rewards".

Currently, Chris estimates the total portfolio value to be around £1.5 million with equity in excess of £250,000. Given that this has been achieved in just 18 months and during some rather challenging economic times, future growth looks very strong. "Over the next 5 years we are looking to build the portfolio to between £4 million and £5 million, which we feel is fairly achievable" says Chris. I believe that within 10 years we will be in a position to draw equity out of the properties as a cash bonus each year".

Chris says: "We use Property for Life because of the ease of moving through the process from initially finding the property to completion. Being a 'one stop shop' makes life a lot easier and results in far less hassle and stress. This makes Property for Life a pleasure to work with. If I would give any advice I would suggest attending a Property for Life property investment academy as it I found that it refocused everything I believed about buying property and the reason why I was doing it".

We wish Chris the very best of luck and look forward to working with him over the coming months and years.

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What's available?

We currently have the following investment opportunities.

CV One, Lower Ford Street, Coventry
Waterside, Victoria Way, Woking, Surrey

Please go to www.propertyforlife.com/property/ for full details and look out for more great opportunities coming soon!

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Upcoming events

Over the coming months we will be attending several exhibitions in addition to our ongoing Property Academy programme. If you would like to attend a property academy session please call Laura on our 01252 737575 or email laura@propertyforlife.com stating which session you would like to attend and how many places you require.

March 25th 2006 – PFL Property Investment Academy – The Coppid Beech Hotel, Bracknell.

April 22nd 2006 - PFL Property Investment Academy - The Whitehouse Hotel, Kegworth, East Midlands

May 20th 2006 - PFL Property Investment Academy - The Felbridge Hotel, Nr Gatwick

June 24th 2006 - PFL Property Investment Academy - Luton region

For further information regarding the Property Investor Academy Programme please follow the link www.propertyforlife.com/whyinvest/education.html

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Do you fancy a spending spree at one of the UK's leading department stores?

The new look Property for Life referral programme can offer you just that.

All you need to do is tell an interested friend about Property for Life and you could soon have a minimum of £250 in gift vouchers to spend in any John Lewis or Waitrose store.

Quite simply, for each person introduced by you who then purchases a property through us you will receive a cool £250 in John Lewis gift vouchers. If they purchase more than one property you will receive £250 in gift vouchers for each property they purchase. You could soon be well on your way to that spending spree.

Remember, the more people you introduce the more chance you have of grabbing at least £250. So why not tell your friends and family about Property for Life? Make sure they register on-line at www.propertyforlife.com/register/ and select the recommendation option at the end of the form and include your name in the 'other' box.

Please note that the referral programme is on a per property not a per person basis.

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