WEF Plan to Seize Your Home

the world economic Forum infamously said that by the year of 2030 we will own nothing and be happy meanwhile they will own everything and be even happier and a lot of people said well actually no I'm buying houses I was one of these people the government cannot take these houses off me well we realized we were wrong the government actually can take your houses off you not just by necessarily throwing you in prison and seizing all your asset the most common way that the government are stripping people of their properties is by forcing them to sell how by taxing The Living Daylights out of them even if you are not making any profit at all as a landlord you still have to pay a lot of money just to own the properties this absolutely sucks so I'm going to warn you in this video to tell you the different taxes that you are going to have to pay so the first tax is stamp Duty tax stamp Duty tax is what you have to pay just when you buy a house now if you buy a house to live in that's okay I don't think the government are necessarily opposed to you buying a house to live in and the reason is is because when you buy a house to live in that is not an asset it's actually a liability because if you're living in it it's not making you any cash flow if anything you've just got a big fat mortgage and now you need to work harder to pay off the mortgage and you'll continue to be a good slave whereas if you buy a house as an investment now you're almost a threat now to the elite because now you're getting rich and that's what they're stopping the rich and poor The Divide is getting bigger and bigger and bigger generally speaking I mean people might say it's 3% it's actually not 3% it's a sliding scale if you buy a house for £100,000 as an investment then maybe you pay 3% maybe you'll pay three grand but the problem is houses aren't 100 Grand anymore are they I mean if you buy a house for 250 Grand your stamp Duty on that is going to be 75,000 and you got to pay cash up front it's not like it just gets added to the mortgage and you can pay it down the line and installments that's a big sourcing fee isn't it that you have to pay the government I mean this house that we're in right now which I bought to live in which cost me £3 million the stamp Duty was £ 361,000 that's just a fee a one up to the G that's over 10% of the purchase house prices are going up and up and up and up and you got to pay that extra big stand Dey tax but that's just the first problem we have then if you're refurbishing the property the refurb is not tax deductible because that's seen as a benefi in kind then you rent the house out now you're going to have to pay income tax now nothing wrong with paying income tax but there's a lot of different taxes I mean income tax depends on whether you're a higher rate earner or not it could be 40% so if you're renting the property out you're paying a big chunk of money to the government but this is where it gets really almost a little bit Sinister that brought into section 24 a few years ago and if you don't know what that is what that is is you're paying your income tax on the profit right so you're renting the property out and you're paying tax on the profit income tax section 24 tax says that the mortgage payments are no longer tax deductible if you're renting the property out for a grand and your mortgage payments are a grand you're making nothing but you're still paying tax so section 24 stamp Duty tax income tax they decided to sell the property oh I'm sick of this you sell the house now you got to pay capital gain G tax which is 28% so you're getting tax tax tax tax tax and then you slowly paying all these taxes if you actually work out how much tax you're paying to the government it's probably for the average landlord way over 50% and then you die and you leave all your houses that you paid all this tax on to your kids and then your kids have to pay 40% tax in inheritance tax even after you're dead by the way disclaimer I am not a financial advisor but I'm going to be Shar from my experience how you can navigate and plan around some of these taxes so let's start from the beginning with stamp Duty tax I hope you enjoying the video but have you spent one day with me yet at the property investors crash course if not what are you waiting for linkoln Bio tickets are just1 and if you can't make a physical crash course we now have a virtual crash course too I'll see you there now stamp Duty tax is unavoidable if you're just buying a house and renting it out however there are ways that you can limit your stamp Duty tax and potentially bring it down to to zero if you're buying a property that is uninhabitable then you are exempt from stamp Duty tax now if you're buying something really really really massive there is after a certain point you still will pay a bit of stamp Duty tax up to the first £150,000 you'll pay literally zero stamp Duty tax at all and then 100 Grand after that then on that difference you'll pay just 2% your solicitor will probably not know this trick and they will still charge you the full whack for stamp duty but if the property is unhabitable you can go uh H I watched a YouTube video from Samuel Leeds and he said that if the property is uninhabitable then I'm exempt from stamp Duty and they'll go oh let me look into it oh wow you're actually right boom the thing is if you over paid it you bought a property a year ago two years ago and you didn't realize this little Nifty trick on stamp Duty you can claim it back from hmrc and you will get it back so a lot of people messag me my students they're like oh my gosh I went to one of your training programs I found this about stamp dut and I've just now got 15 grand given back to me that's one way to navigate through stamp Duty another way is if you're buying property that's commercial property you'll be not completely exempt but up to the first £250,000 you'll pay nothing and by the way commercial property classes there's lots of different things that you might not even think about so if you're buying land to build on that land when you buy it is commercial so you'll pay commercial rates or if you're buying an apartment block and there's six or more properties in one go that will now be cast as commercial so you'll be exempt from stamp Duty because you'll get commercial rates on it let's say you're buying an apartment and it custers mixed juice so there's a shop downstairs and then there's some apartment because that's clusters mixed juice as far as stamp duty is concerned that is commercial rates these are some of the ways how you can really bring down your stamp Duty tax here's another thing Capital allowances oh my goodness I didn't even know what capital allowances was until 2018 you're buying a property and the property is commercial or if it's a property development even just a furnished holiday let there's many properties where the refurb or at least part of the refurb you can claim back as tax-free under Capital allowances this is absolutely huge and I've benefited greatly from this my advice would be find a expert in capital allowances cuz Most accountants don't really they're not that familiar with capital allowances now you referb the house you get some Capital allowances you buy it you pay no stamp jues you uninhabitable bang you're winning but now you want to rent it out and now you know you're going to get hit with income tax section 24 tax how do you get around this if you buy a property through a company instead of as an individual you don't own the property it's not your property it's not Samuel lead property it's Samuel leed's limiteds property what happens is now you for a start you can offset your mortgage payments 100% as tax deductible that's huge you can set up a company tomorrow and buy a house through it okay here's how you're going to structure it again speak to your accountant but from my experience you're going to pay yourself a salary of $12,750 why so specific because that's the amount that you can take out as a salary taxfree from a company anything on top of that you're going to take out as a dividend and up to I think it's around about 40 Grand it's very small it's like 8.75% so if you made 50 Grand 60 Grand 70 grand instead of paying section 24 tax income you're paying very very very limited tax because you've structured it properly and you've done it through a company and then if you do want to sell the property you're not going to pay capital gains tax you're going to pay corporation tax which is maybe a little bit less than capital gains tax but capital gains tax is the killer so here's how to get around capital gains tax there's a few ways if it's in a company and you really want to sell the property you might think I'm forced to have to sell it but what you can do instead is refinance it and this is how rich people use debt as their friend if you sell it soon as you sell it that money you make is seen by the law of the land as profit and you have to pay tax on profit but instead of selling the property if you've got 600 Grand what you can do is you can get a loan against the equity now this is no longer profit now this is debt they can't tax you on debt and they're not going to change the rules on this either because this is what all the super rich do and the super rich are can't even in control but when you got that money in form of debt you can spend it you can re invest it and you can snowball yourself getting richer and richer and richer using debt if the property is not owned in a company you can still do this or if you've lived in the property if that property has been your home residence and you've done it up and you sell it you now don't pay tax on the uplift this isn't scalable I get it if you're wanting to scale and do this commercial property you can get business rollover relief tax which is what we do it's very very very nice so I'll give you an example you buy a building which is a commercial property 400 Grand you fix it up get some tenants in it now it's worth 300 Grand you've got maybe 100 200 Grand equity in the property you then sell it what you can do with business rollover relief when you sell it and you make that money you can reinvest that money into another commercial property and roll it over and therefore you will avoid paying tax so you can just keep doing this forever and ever and ever when you die you you know you're still going to have to pass it down to your kids and pay inheritance tax that's why a lot of my properties are owned in a trust because if you leave your trust to your children as opposed to properties it's tax exempt you leave agricultural land is tax exempt no inheritance tax if I leave my property development business to my kids that happens to own some properties it's taxfree so there's many ways in fact I honestly believe you really need to go and study inheritance tax if you're worth a fair few million that's it from me I hope you found this video useful if you did hit like if you want to see more videos like this if you want to spend a day with me in person come and meet me at the property investor crash course I don't just know a lot about tax I also know a lot about law I know a lot about finding deals selling deals I know a lot about property investment in general tickets are1 and we'll spend the day together in a group you're serious about Financial Freedom and there's no better person to learn from than me so come and spend a day with me I'll leave a link in the description and I'll see you there God bless thanks for watching

Channel: Samuel Leeds

Views: 398,556

Keywords: property investing, uk property investing, how to invest in property, property training, property education, property entrepreneur, property investing tips, property investing news, real estate, real estate investing, millionaire, property millionaire, rent to rent, passive income, serviced accommodation, lease option agreements, buy refurbish refinance rent, brrr property, hmo property, below market value property, how to be a property investor

Id: CCxVRKBI8c8

Length: 9min 39sec (579 seconds)

Published: Mon Apr 15 2024