Shaz discusses the various ways you can and should diversify in property to ensure you are spreading both the risks and returns

He looks at effectively making use of the 70/20/10 principle and shares great advice on how to make diversification in property really work for you

 

KEY TAKEAWAYS

• The 70/20/10 rule means 70% of assets and income come from your primary strategy, 20% of income from your secondary strategy and 10% from your third strategy
• In property, you need to diversify to make things work really well
• Use the Pareto principle to identify the outcomes from specific strategies
• There are many different strategies in property including buy to rent, commercial conversions, residential
• Identify what will work best for you and what you are passionate about
• Think about investing in a specific geographical area
• Review the asset type are you targeting and link this with your geographical area
• Property works well if you are clear and focused on your strategy
• As your portfolio grows it will require you to  be more involved
• You can over diversify so it’s important to keep focused on a primary and two secondary strategies  

 

BEST MOMENTS

‘There are quite a few strategies you can deploy in your property business’

‘Geographical area is extremely important’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of

income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.

 

 

 

 

 

 

 

 

 

 

 

Shaz goes through the hidden costs of any property deal from costing the time to complete research to the legal fees and insurance needed

If you are new to property investing this is a great checklist that will mean you know exactly what costs to factor into your property purchase because the purchase cost is only a part of the overall picture and understanding the hidden costs is vital

 

KEY TAKEAWAYS

• Factor in the time costs to complete thorough research for any property deal
• Use the services of a property and building surveyor, where needed,  to make sure you know what to expect
• Work out stamp duty and land tax as these are payable on completion
• Purchasing two or more properties may qualify for multiple dwellings relief
• If the property is uninhabitable you may be able eligible to pay non-residential rates
• You will need to make sure your insurances cover everything required, make sure you have adequate cover
• Legal fees can vary but are part of the costs and payable on completion
• Always allow for covering voids in rental properties
• Use a separate account for taxes
• Properties will need repairing and maintenance so keeping a fund available to cover this is crucial
• The cost of the property is only part of the total budget you need to allow when doing a property deal

 

BEST MOMENTS

‘Researching is time well spent on property’

‘Some lenders may cover your legal fees’

‘If after purchasing you are using a management company this cost needs to be factored in’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of

income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.

 

 

 

 

 

 

 

 

Shaz shares great content on the best way to build your pension through a SSAS and explains how TOMS works and the criteria that may mean it applies to your business

He also answers questions from his live audience about FHL and SA properties and how best to use your tax allowances

 

KEY TAKEAWAYS

• You cannot use the profit from buy to let property to make pension contributions
• You can only make contributions from trading income SA or furnished holiday lets. It has to be relevant, qualifying income
• A SSAS means you have control and can buy commercial property and loan money
• Buy to let Property is always jointly owned between husband and wife
• A benefit of FHL and SA is that the profits can be split based on how much work each partner is doing
• FHL and SA are treated as trading businesses for tax purposes
• If TOMS applies to your business you must use it
• If you qualify for the flat rate scheme using it is a choice
• If you are a principal, buy in a service and a retailer TOMS applies to your business

 

BEST MOMENTS

‘Contact HMRC and ask if TOMS applies to you’

‘You are a principal buying in and making no changes’

‘You can reinvest the money that goes into your SSAS every year’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of

income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.

 

 

 

 

 

 

 

 

Shaz talks all things Serviced Accommodation in this informative episode from capital allowances through to sideways loss relief

He explains the crucial differences between serviced accommodation and furnished holiday lets and discusses what tax relief can be claimed and the best ways to build capital allowances as you purchase more properties, listen in, and find out more.

 

KEY TAKEAWAYS

• In a limited company when you take money out you pay income tax on the salary or dividend
• Claim all your capital allowances up to the limit and create a taxable loss going forward
• The more property you buy, the more capital allowances you have and the more you can claim in the coming years
• With serviced accommodation, you are providing extra services such as laundry
• If it’s a furnished holiday let it must be available for commercial letting for 210 days
• and has to be let out for 105 days
• Stays must not be longer than 30 days
• You need to be able to meet the criteria
• Sideways loss relief means you use it against other income

 

BEST MOMENTS

‘It’s to stop you living in the property and claiming the tax benefits’

‘A limited liability partnership and a limited company are separate legal entities’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of

income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.

Shaz answers questions from property investors about the potential tax implications when you incorporate and move properties into a limited company and when you own properties with other people

There is more great content and advice that anyone with property can effectively use in this episode

 

KEY TAKEAWAYS

• With the flat rate scheme once you are over £225,000 you go onto the standard rate for  VAT
• TOM’s flat rate works for you as a small business
• If a guest stays for over 28 days there is no VAT chargeable
• Your asset has been sold from an individual to a limited company
• A limited company is a separate legal entity
• If you own at least five properties and spend around twenty hours a week working on your business you may qualify for section 162 incorporation relief
• If you move the properties into a limited company there is no capital gains tax to pay
• If two or more people own the properties together and incorporate there is no stamp duty or land tax to pay

 

BEST MOMENTS

‘When you make the disposal you don’t have to pay capital gains tax individually’

‘If you have a business and it incorporates you can claim 162 incorporation relief and have no capital gains tax to pay’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.

In this episode, Shaz shares in-depth and comprehensive answers to property entrepreneurs' questions about restructuring.

Some activities are classified as trading and some as investment so structuring your business in the right way, using investment and trading holding companies makes a huge  difference to the tax and reliefs you can claim  so this episode is a must for anyone building a successful property business.

 

KEY TAKEAWAYS

• With different property strategies, you should have different companies
• Serviced accommodation, flipping and deal sourcing are all treated as trades
• Have one holding company as the investment company, with other companies with different people as partners and shareholders
• A second holding company can be used trading doing deal sourcing, flipping and SA
• If you buy and hold property for tax purposes you have an investment company
• When you buy and sell something it’s a trading business
• The government incentivise by giving more tax relief and exemptions if you are trading
• If shares are sold in an investment company there is no entrepreneurs relief
• If 20% or more of your turnover, profit, value of assets or time spent is directly linked to the investment side of the business you will lose trading status
• A holding company is determined by the shares it has in the other companies below it

 

BEST MOMENTS

‘If it’s a trading business the first million pounds you make, you will only pay 10% tax on the shares’

‘You don’t want to lose trading status’

‘You should not mix investments and trading together’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.

Shaz explains how no money down deals work and takes us through a deal of his own that is a great example of how well ‘no money down’ deals can be a great way to build your property portfolio

He also answers questions about shares and purchasing probate properties along with more information about taxes in this informative episode

 

KEY TAKEAWAYS

• You can find a joint venture partner and work with a funder
• 100% of the funds came from the two other partners
• Trusts have a limited life
• If you are a property developer and you don’t spend more than 10% or £10,000 refurbishing a probate property no stamp duty is paid
• When a dividend is paid it will be taxable
• Alphabet shares mean you can have different classes of shares
• It gives the flexibility to pay people different dividends according to the class of share they own
• A dividend waiver is complicated and should be avoided
• The funds in the company need to be sufficient for some shareholders to be paid a dividend and others to leave their money in the company

 

BEST MOMENTS

‘I haven’t put in a single penny of my own’

‘You can have shares from A, all the way to Z’

‘I’ve gone on to do quite a few no money down deals’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.

 

In this episode hear about alphabet shares and how you can freeze some shares and continue to put value into others along with great information about whether you should have a company car or not and how should you finance it

Shaz also discusses business structure and how you can form a holding company structure and then use different business structures for different projects within this. If you are just getting started there’s great content that will make a difference, listen in, and hear more

 

KEY TAKEAWAYS

• Create alphabet shares so that people can have different dividends
• You can also restrict voting rights and exit entitlements
• You can freeze the value of existing shares and put all value into new shares
• Alphabet shares are great for passing over income, assets, and value to your children
• You may use different structures for companies doing different things
• Think about having a holding company that can create new SPVs every time you do a new project
• When the dividend gets paid into the holding company there’s no tax to pay
• Having an SPV limits the risk because it's only dealing with one project
• If you use your own car you can claim 45 pence a mile for the first 10,000 miles in any tax year
• If you have a company car you need to look at the benefit in kind rules
• Explore the opportunities and find what works for you

 

BEST MOMENTS

‘One project in one company at one time works best’

‘Think about your situation and what’s right for you’

‘If you go electric the tax is very low’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.

Shaz continues sharing great advice on how to avoid the most common mistakes in HMOs

From making sure you do the calculations in detail though to researching the area to make sure there is demand and understanding how to look after your tenants this is an episode that used in conjunction with Part 1 will help you avoid mistakes and make sure your HMO has good cash flow and is successful.

 

KEY TAKEAWAYS

• Before you invest calculate the income, expenditure along with the potential profit and cashflow
• Have a detailed breakdown of the expenses
• Make sure you pay attention to the regular maintenance of your HMO
• Have a regular procedure in place and make any repairs
• HMO landlords often include bills in the rent of the room
• Check to make sure there is demand in the area you want to have your HMO
• Most HMOs are in urban areas
• There will be a ceiling price for the area and a good agent will be able to help with local knowledge
• If your HMO is in the right place of a good standard and run well it’s a good cash flow model

 

BEST MOMENTS

‘Your rooms should be in tip-top condition’

‘Do your research and make sure there is demand’

‘HMOs work really well for landlords who have their finger on the pulse’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.

Shaz looks at the 5 most common mistakes people make when starting out and running an HMO

There are regulations and processes that must be adhered to with HMOs and it's important to understand what you need to do.

Successful HMOs are run by teams of people who understand how to look after the tenants and the property,  if you want more hands-on involvement and can build a good team this is a great cash flow strategy when done properly. Listen in to this great content so that you benefit from getting started in the right way

 

KEY TAKEAWAYS

• You need to be fully aware of what you are getting into
• You need to make sure you meet the regulations and that the rooms are of a good enough standard
• Be aware of cash flow voids and know how you will cover them
• Detail the costs and make sure the figures work
• There are a variety of reasons people want to rent a room in an HMO so tenancy is often very fluid
• Have a good vetting process in place for tenant
• Understand the local market, if there is demand for an HMO and the standard of rooms and facilities  
• Be fully aware of what’s required to meet regulations and if you are changing use make sure you have checked with planning
• There is comprehensive legislation surrounding HMOs and you must be compliant

 

BEST MOMENTS

‘It’s a good cash flow strategy is done properly’

‘HMOs require hands-on involvement to make them successful’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

•   Facebook
•   LinkedIn
•   Instagram
•   YouTube.