MTTM Podcast Episode 514 – Complete Buy-to-Let Guide, Little-known State Benefits & Latest ‘DaMoney’ Questions Answered

Listen to Episode 514

In this week's podcast I provide a complete buy-to-let guide, including the latest tax rules and recent legislative changes. Next, Andy reveals some of the little-known state benefits you might be entitled to. Finally, I answer some of the most popular questions you've been asking DaMoney, our new AI guidance tool.

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Episode 514 Podcast Summary

Guide to Buy-to-let

Summary

I provide a detailed overview of investing in buy-to-let property. I cover the potential risks and rewards, the importance of a solid business plan, how to finance a purchase, and understanding the true net yield. I also explain the complex tax rules and the significant legal responsibilities landlords must adhere to, including the upcoming Renters (Reform) Bill.

Key insights

• Buy-to-let should be treated as a long-term, highly regulated business, not a get-rich-quick scheme.
• Net yield (profit after all costs) is a more crucial metric than gross yield. The average UK gross yield is around 5.6%, with significant regional variations.
• Tax rules have become less generous; landlords now receive a 20% tax credit on mortgage interest, making limited company ownership (SPVs) a more popular strategy.
• The upcoming Renters (Reform) Bill will abolish 'no-fault' evictions, making robust tenant screening even more critical.

Little-known Benefits You Could Be Entitled To

Summary

Andy highlights several lesser-known financial benefits available in the UK that many people are unaware of. Some are not means-tested, so make sure you check your eligibility, as billions in benefits go unclaimed each year. Calculators like 'Turn2us' and 'Entitledto' are useful resources to see what support you could receive. Read our article for a full list of the UK Benefits you may be entitled to.

Key insights

• The Jobcentre Plus Travel Discount Card offers up to 50% off travel for those on certain benefits, like Universal Credit.
• The Sure Start Maternity Grant provides a one-off £500 tax-free payment for new parents on low incomes.
• Bereavement Support Payment is a non-means-tested benefit providing a lump sum and monthly payments to those under state pension age whose partner has died.
• An estimated £23 billion in benefits goes unclaimed annually, so it's vital to check what you're entitled to.

Popular Money Questions Answered (Using our AI guidance tool DaMoney)

Summary

I use "DaMoney", our AI guidance tool to run through some of the popular and interesting questions listeners have been asking. I demonstrate how the tool works by asking two of the most popular questions: 'How to check your tax code' and 'What are the best ISA transfer offers'.

Key insights

• Popular questions include topics like the Best Junior ISAs, tax relief on pensions, robo-investing platforms, and the best mortgage rates.
• The AI tool, DaMoney, can provide step-by-step guidance on complex issues like checking your tax code and what the numbers mean.
• The tool quickly compiles up-to-date lists of financial offers, such as the latest ISA transfer deals from providers like Wealthify, Moneyfarm, and J.P. Morgan Personal Investing (formerly Nutmeg).
• All answers provided by the AI are checked and improved by the Money to the Masses team of experts to ensure accuracy.

Episode quiz 

1. What percentage of the monthly mortgage payment do lenders typically require the expected monthly rent to be?
a) 100% - 110%
b) 110% - 125%
c) 130% - 150%
d) 150% - 175%

2. For someone buying a second property in England, what is the minimum stamp duty surcharge they can expect to pay?
a) 2%
b) 5%
c) 7%
d) 10%

3. What is the current minimum Energy Performance Certificate (EPC) rating required for a rental property?
a) C
b) D
c) E
d) F

4. According to a recent report by Zoopla, which UK city had the highest gross rental yield?
a) Sunderland
b) Manchester
c) Glasgow
d) London

5. Approximately how much money in benefits goes unclaimed each year in the UK?
a) £10 billion
b) £15 billion
c) £20 billion
d) £23 billion

Answers

1. c) 130% - 150%
2. b) 5%
3. c) E
4. a) Sunderland
5. d) £23 billion

Resources

Links referred to in the podcast:

• Try our AI guidance tool 'DaMoney' - Ask it any money question
• Complete Buy-to-Let Guide
• What is happening with house prices? (Latest Outlook)
• Best Mortgage Rates in the UK
• CGT Calculator
• UK Benefits Explained
• Nationwide launches free benefit helpline
• Best ISA Transfer deals

 

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