Now is the time to incorporate

martinsurrey

GreatApe wrote: »

I do not have the time to go digging for you but as I have already said an individual can get a 25% down BTL mortgage for less than 2.5% so why would a corporate with a bigger deposit not be able to get similar deals

Yes the mortgage company can go after other assets but since they do not check for other assets they likely do not count on doing that

Also what about MBSs that is quite a big market and rates are low

Anyway I think you are bogging this down in minor detail I dont have the resources or intention to start something like this its only saying that if it existed it would be interesting and offer a lot of advantages even a 0% geared residential REIT would be interesting

Agreed this has spiraled a bit!

Been fun though, but I would like to end it as well.

It would be interesting, and if things carry on like they are I think they might become more common, the rise of PRS will give the market a bit more confidence in corporate letting, but I doubt it'll be very much very fast.

there are London focused REIT's out there as we speak, so I gues you can get in now.

http://www.proactiveinvestors.co.uk/companies/news/108666/kc-reit-a-capital-way-into-london-s-residential-market-108666.html

http://www.proactiveinvestors.co.uk/LON:KCR/K%26amp%3BC-Reit/

Thrugelmir

GreatApe wrote: »

Large residential REITs do exist in other countries and of course non residential reits exist in the uk

That's historic in nature. If you visit cities such as Hamburg. Housing had to be built on a large scale post war. Apartment blocks are nothing like those in the UK. Many are large and spacious. 4 bedrooms is not uncommon.

movilogo

What is REIT?

davomcdave

padington wrote: »

You then g t stung for More capital gains tax I think, it's only a very long term strategy.

Yeah, the transfer of property would be a CGT trigger event AIUI at least. The bill would become due immediately but from the sounds of the plan no cash would be realised to pay the bill.

Plus there would be SDLT to pay on the transfer of ownership.

davomcdave

movilogo wrote: »

What is REIT?

It's a Real Estate Investment Trust.

The precise terms vary between countries but in general terms a REIT is a structure where properties are held by many people via a share-type structure with some tax advantages as long as most of the rental income is paid out rather than retained within the REIT.

I've never really understood why real estate should get this benefit but some countries (USA) are moving these benefits to other assets like oil and gas pipelines.

Malthusian

Thrugelmir wrote: »

That's historic in nature. If you visit cities such as Hamburg. Housing had to be built on a large scale post war. Apartment blocks are nothing like those in the UK. Many are large and spacious. 4 bedrooms is not uncommon.

I always smile when some citizen-of-the-world extols the benefits that European cities are able to enjoy thanks to being razed to the ground multiple times throughout the 20th and 19th centuries and beyond.

The scary thing is that if you ask them whether it would really have been worth firebombing UK cities and killing thousands of people, just to have perfectly straight roads, gigantic empty plazas and cycle lanes all over the shop, they get this thoughtful look in their eye.