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Property Investing Q&A | Stamp Duty Land Tax | Property Investing Insurance - YouTube
Channel: Premier Property
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Could you recommend the best insurance to use the cost?
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And any advice on tips on what to look for?
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Welcome to the Premier Property weekly Q and A,
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and today we have questions and as always, these
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are coming from our Premier Property property.
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And if you're joining me for the first time, my
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name is Cam Devadi, I'm the founder of Premier Property
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and we're going to jump into these questions right now.
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And remember, I'm doing this every single week.
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So if you've got any questions or you would like
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to make comments, then you're welcome to do this.
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Happy to assist you to move forward and what I'm
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sharing with you really is my humble experience over the
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last 30 years in property investing and developing.
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And of course, we're active in property right now
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and my aim is to help you, to assist
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you to move forward in your property journey, whether
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you're new or whether you're experienced.
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So, let's discuss these right now.
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So the first one is from Andy.
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Andy Jones is asking, so, Kim, how do
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you work out stamp duty on the government's
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website for a lease hold property?
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So the thing is, Andy, whether it's a freehold or
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it's a leasehold, it really works on the purchase price.
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So whatever the purchase price is of the property, you
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will pay the stamp duty according to that property.
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For properties up to 拢125,000, the stamp
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duty that you're paying is zero.
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From 125 to 250,000, it's a further 2%.
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And for above 675,000, then you're looking
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at paying a further 5% within the
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proportion of the 250,000 to the $925,000.
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So I'm just giving you the numbers here
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and the next 575,000 pound above that.
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So it's a portion between the nine two five
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to one and a half mil, you're looking at
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paying 10% on that portion and the remaining amount
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above one and a half million, you're paying 12%.
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Now, these I've just shared with you
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are residential stamp duty, land tax rates.
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And as investors, if you've got more than
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one property, then simply add another 3% to
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the figures that I've just shared with you.
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So, namely properties up to $125,000, it's not zero,
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it's going to be added with a 3%.
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So you're paying 3% stamp duty.
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Hope I'm making sense here for you.
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Right, so this is where we are and if you're
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wondering what stamp duty is, just for clarity, it's a
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tax that you pay on the purchase of the property.
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So, stamp duty, land tax within the
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UK, we will go to pay it.
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The way we look at this at
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Premier is a cost of doing business.
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You pay it and you create a
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return on investment on that property.
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So it kind of makes sense.
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Although when you see the statement and you
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see that stamp duty, it's like shocking.
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Paying that much, yes, but pay
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it, get the return on investment.
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Hope that makes sense.
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Moving on to our next question is from Jason.
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So Jason asking, hi, Cam, have you found any
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issues in getting rental guarantee insurance since COVID?
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Could you recommend the best insurance to use, the cost, and any
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advice on tips on what to look for and so on?
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Right, okay.
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So what kind of insurance can you use?
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When COLVID happened, I wonder what you did.
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Right, so one of the things I did straight
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away when actually it started happening was to sit
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down with my five trusted advisors, the people that
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are nearest to me, people in property, people that
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I trust who know the game. And you want to surround
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yourself with people like this.
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And I asked the question, what you're going to do?
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What you're going to do? What you're going to do?
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What you're going to do? What do you suggest?
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What do you suggest?
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What do you suggest?
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And then you can then make an informed decision.
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That's exactly what we do.
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That premiere.
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One of the things that we are now doing,
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moving forward as we're coming out of COLVID and
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gone out of lockdown, we're out of lockdown.
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And one of the things that we are
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now doing moving forward is making sure we
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have the belts and braces approach.
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So if you're following me, belts
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and braces approach is very important.
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So how does this apply to what we're
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discussing here when it comes to insurance?
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So we take out an insurance policy
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for every rental that we take on.
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If it's local housing allowance, then
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we have a form of insurance.
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Let's call it with the council
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that we can discuss another day.
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If you've got any comments, let me know.
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With professional tenants, working people,
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we always take out insurance.
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So the insurance you will find many of
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the insurance companies have gone to the wayside
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they're not insuring anymore tenants for rental payments.
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So namely, the insurance is
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for, of course, rental guarantee.
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So if the tenant doesn't pay, then you get paid.
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However, like what I say, a number
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of those insurance companies have gone.
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The ones that we're using right now are very astute.
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They're the key players in the industry.
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And to be fair, we had to
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check their policy conditions and so on.
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And we're at Premier, we're happy with them,
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and you want to check them as well.
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So we use a particular company
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I'll share with you right now.
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So we use Alan Boswell insurance.
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And typically you're looking at circa
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拢225 for that insurance policy.
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Now, what Alan Boswell do is this?
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So we always remember how
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to build some braces approach.
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So we have good letting agents managing the
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properties, and if the tenant for any reason
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doesn't pay and it falls into a 30
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day arrays, then Alan Boswell will step in.
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And what they will do is they won't just evict
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the tenant, because that's the last resort, isn't it?
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Let's be honest. Right?
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So what they will do is they will help to
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mediate the conversation between you, the letting agent and the
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tenant to find out why they're not paying.
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Maybe they need help with a payment plan.
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It may be that they just need an extra little
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bit of nudge to actually pay the rent over.
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So whatever that situation is, they
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will help to mediate it.
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So they're treating people like people.
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You have a tenant in there, most people are reasonable.
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There's usually a reason why they're not paying.
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So if you put a step into place where
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you've got insurance, like Allen Boswell, where they will
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help you mediate the situation, you very quickly find
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that you don't really have a problem anymore.
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And what you've got is a tenant who's
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paying rent and treating their place like home.
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So, peace of mind, security, leverage,
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and you are investing in property.
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So there you have it, two quick fire
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questions there and two quick fire answers.
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It's cam debatey and I will see you
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on the next video this time next week.
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Same time, same place. See you you later.
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