3 Things That Boris Should Do For Property Investors

Landlords being put under the pump in an effort to hand property to big corporates and pension funds.

So if Boris Johnson really wants to help the economy them he should be helping people find their pensions not handing them to greedy corporates.

Video Transcription:

The three things I think Boris should do to help our property investors. First of all, I think the easy one is that he needs to even the playing field back out, which is that if you're running a business which is a property business, they've turned it into a professional business. They've added all these regulations and all these licenses and all the sort of thing, all these additional costs, but they haven't allowed us to deduct the biggest expense, which is mortgage, so I think that really has to be reversed.

Comparing an individual or a property investor to an individual and ignoring the fact that they are running a business, on the one hand, they're saying, “You're running a business. You got to be professional.” You got to do all these things, checks, human habitations, and all these legislative things they've put in place, and on the other hand, they're saying, “Oh, and by the way, you can't deduct your expenses.” It's just appalling, absolutely appalling, and everyone knows that and everyone knows that it's ridiculous.

The other thing is is the fair … They have to change the penalties attached to some of these things. They are so unreasonable and unfair. £30,000 for an individual for not having a license. It's absolutely appalling. It it just punitive, and really, the whole government right now … It's been a labor government, sorry, the liberal government since they got in all the coalition government, what do they call it, brain's gone, in the UK.

God, they're not a coalition and they're not liberal at the moment, but anyway, those idiots that are in power right now in the UK, they're conservatives. All right, I got it. Yeah. If you look at what's been coming out, some of the penalties that are coming out are totally ridiculously out of corporation, and I think a lot of people haven't been really talking about this because we've been talking about the regulation, but we haven't been talking about penalties.

It's really appalling the way they've gone about this. It's so not joined up. In this day and age, if a government was a business, it would be bankrupt. Why? Because somebody would've come in and joined up all the laws and had one place for law where you can actually work it all out, made it simple, got rid of all these really ridiculous things, and rather than having 15 pieces of legislation that covers one aspect of property, put it into one piece of legislation that applies to this.

The problem is the law has not evolved, and that's why it's being disrupted, and that's why you're seeing lawyers are getting paid less. Barristers are getting paid less. At the end of the day, they are not innovating, and they're going to be killed very soon with technology and AI because AI can do law a lot better than most lawyers can. I know that's an affront to most lawyers and barristers in that whole legal system, but the way the whole thing has evolved, it is not fair anymore.

Look, we deal with tenants all the time who don't pay, who don't fulfill their requirements, and really, they get away with murder on a continuous basis and the courts let them and the law lets them. In fact, the law works against people like ourselves and our landlords who do the right thing. It's almost you don't want to tell these guys the right things because they then go and abuse it, but anyway.

Look, the law's the way it is, I think the penalties are ridiculous. They're totally out of proportion for what it is, and then the other side is the law is ridiculous, but I think the other side and the third thing really is to look at some of the regulations and start joining them up, and I mentioned that. It's so hard. I'm doing my level four, which is the top level qualification for industry, and I'm halfway through. I've got two exams left, and basically, what I've realised is most of the regulation and most of the things that are involved is it's not just one piece of legislation you have to look to

If you want to know about licensing, you got to know 15 bits of legislation, but rather than having one outline that says, “This is the stuff that covers your property,” bang, and rather than having it online so you can go and do a Google-type search engine that has the accurate figures … The problem is, if you want to find something out, you should go on to a forum and basically forums and various websites and things like that, and you end up with 1000 different opinions on what may happen.

Then you go to court and then you realise the judge takes this one way and another judge takes another. Another is having, well, I won't say a bad day. Another interprets the law as meaning we should give the tenants whatever they want in terms of allowances and, oh, yes, okay, you didn't bring the right evidence and you haven't got anyone representing me. Go away. Come back later.

Meanwhile, the company's paying barrister two days. It's appalling the way it is, so there are the three things, so really the mortgage deductibility, and really, I've got no problem with professionalize the business. In fact, I encourage it, but professionalize it onto an equal playing field. Don't make it this ridiculous unequal playing field that we have now.

All right, guys. Will they happen? Yeah, I don't hold my breath. I think the bigger picture is that they're pushing for large pension funds to take over the UK property market and not for individual landlords, and really what you're going to be left to and what they're trying to push you into is investing through a fund, and that's how you're going to own property into the future. The only way to get around that is by actually becoming a large professional landlord right now because they're moving more and more towards that.

I think the more we can rebel against that and the more we can fight up against that, the better. All right, guys. Have a great day. Live with passion. Any comments, chuck them down there. Remember to subscribe to my channel and look forward to chatting to you soon. I love the discussions and debates and all that, so we'll see you soon. Bye.

 

About the author

brettalegrewood

Brett has over 20 years experience in all facets of property, he owns various companies centred around property and is the driving force behind the education and training at Ezytrac. His companies have sold over £850 million in UK and London property and he manages over 1200 properties through his estate agency chain. Today he shares his time between UK, Australia and Singapore. He is married to Arlene and together they have 4 kids. Brett holds both the Level 3 Property Mark Qualifications for Property Sales and Property Lettings and Management.


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