In this episode, Hazel shares her passion for the challenges faced by property owners, particularly in light of recent tax changes and interest rate hikes. Using a personal example of a six-bedroom Victorian HMO property in Sheffield, she discusses how her once profitable investment has turned into a financial burden due to the inability to offset mortgage interest against rental income and the impact of rising interest rates.

 

KEY TAKEAWAYS

• The introduction of Section 24 has significantly affected landlords by limiting the ability to deduct mortgage interest from taxable income, particularly impacting higher rate taxpayers.

 

• A series of interest rate hikes over the past couple of years has transformed previously profitable properties into financial burdens, highlighting the importance of monitoring cash flow.

 

• Regularly assessing the financial performance of rental properties is crucial. The example shared illustrates how a property that once generated positive cash flow can turn into a loss, necessitating a reevaluation of its viability.

 

• Landlords facing negative cash flow have options, such as selling the property or refinancing to a fixed-rate mortgage, but each choice comes with its own set of challenges and considerations.

 

• The exit of many landlords from the rental market has led to a decrease in available rental properties, contributing to rising rents and creating a challenging environment for both landlords and tenants.

 

BEST MOMENTS

 

“You know, we are a business at the end of the day, we are not a charity. And yes, we've had the heydays, we have had the high times, and now we're experiencing the lower times.”

 

“It just makes you wonder: Why are they creating this impossible situation for landlords? Literally landlords have been exiting the market in droves over the last few years. and you know that's why rents are going sky high, because the amount of supply of decent properties has gone massively down.”

 

“It seems like perhaps selling up, getting a decent chunk of money back and investing elsewhere is perhaps the better option at the moment.”

 

“If you do own property, make sure you're looking at the bottom line, not just the top line figure of what the rent is coming in minus various bits and pieces, expenses, what have you. Make sure that you're getting the real bottom line figures.”

 

VALUABLE RESOURCES

 

Click here to download your FREE gift, our Financial Freedom Spreadsheet, to help you get a 'snap shot' of your finances...

 

https://www.the-freedom-club.com/financial-freedom-spreadsheet-landing-page

 

 

ABOUT THE HOST

 

Having started her career as a professional, classical musician, Hazel de Kloe also had a personal quest to become financially free.

 

She and her husband built a successful, multi-million-pound property business, next to their own careers, but soon realised that true freedom doesn’t JUST come from being financially independent…

 

Having meant so much to her family, it has been her passion ever since, to inspire, educate and empower others on their journeys towards this 'Holy Grail'.

 

During one particular property mentoring session back in 2009, she had a powerful recognition of exactly how to facilitate this. Nicknamed now, The Wealth Whisperer, she has a unique way of getting to the crux of what is needed to help fulfil this quest.

 

CONTACT METHODS

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