November 28, 2023
Painful though it may be to contemplate, we are much, much closer to the end of 2023 than we are to its start. That means a period of looking back, and some looking forwards.
It’s been a challenging year, with the promise of new regulation south of the border and questions about what the Scottish Government might do at home which could further affect the private rented sector (PRS).
So, as has become traditional, we’re going to take a look at what has happened and along with some friends and colleagues from the property sector try to offer some thoughts of what 2024 might bring.
Those subjects however are for other articles – for now we’re going to concentrate on what attracted the most attention from our smorgasbord of blogs this year. We’ve covered a lot of ground, and a fair number of subjects, so what really chimed?
The top 7 Portolio blogs of 2023
Presented in reverse order, because as Dickens wrote in ‘A Christmas Carol’, “…the wisdom of our ancestors is in the simile; and my unhallowed hands shall not disturb it, or the Country’s done for”, and you don’t mess with tradition!
So, without further ado, we present our top 7 Portolio blogs of 2023!
7. Stocks and shares vs Buy to Let
An absolute evergreen, which is possibly more relevant today than when it was written. Ross battled it out with Stuart McAdam, Chartered Financial Planner and Partner of St James’ Place Wealth Management.
As a consequence there’s quite a lot of ground covered and we’d strongly recommend that you read through the original article if you haven’t already.
At its heart, this is a discussion which is not just about different ways to achieve similar goals, but about working out which investment approach best suits you.
Once you understand that, it becomes infinitely easier to plot a path towards your ultimate investment destination.
6: Investing in serviced accommodation
Serviced accommodation can bring excellent returns, but it can also be a more complex investment than a simple buy-to-let.
As our original article explains, managing serviced accommodation is a job, and depending upon a number of factors, possibly a full-time one at that. Is that what you want? If yes, the rewards can be handsome.
If that’s not making your heart soar with delight, there are companies who will handle the day-to-day work for you, but there will be a cost and you have to be certain that the numbers still work out in your favour.
We felt, at the time of writing, that it’s an investment for the bold and we maintain that view in the current economic climate.
5: The Scottish vs English property market
In 2023, we have started to take our business vision south of the border in addition to our work in Scotland. We’ve always kept a keen eye on the English (and Welsh) market, but now we have some skin in the game!
There are many, significant differences between the way the PRS is regulated in the various nations and understanding those differences is vital if you’re looking to expand southwards, or thinking of adding Scottish properties to your portfolio.
So it’s no surprise that this blog has sparked considerable interest. With the Renters (Reform) Bill in England and suggestions of further legislation north of the border, we’ll be returning to this subject again in the future.
You can read our original piece here to discover what struck us as the most important differences between the markets.
4: Buy-to-let running costs
No surprises here! Calculating the cost of running your investment is key to deciding whether or not it is actually an investment!
With rises in interest rates and prices spiralling, understanding your cost-base is even more important for buy-to-let landlords these days, and it may be that we shall have to revisit this article in light of rising costs over the past two years.
The underlying message here is that, regardless of the actual figures, properly understanding the likely costs of taking on and running a buy-to-let property is crucial to deciding whether it is for you or not.
3: Predicting the Scottish property market in 2023
Given the upheavals in the economy over the past couple of years, it’s no surprise that this was one of the most read articles we published.
It was with some admitted trepidation that our colleagues and friends across the sector agreed to offer their thoughts about what 2023 would bring, and who can blame them?
War in Europe, spiralling inflation, a disastrous ‘mini-budget’ that sent interest rates rocketing – who in their right mind would want to publicly second-guess that lot?! But they did and their thoughts and expertise were available to you.
If you would like to see how they saw 2023 working out, you can read their thoughts and predictions right here.
2: Should you buy as a limited company?
It’s really no shock that our top-two blogs offered our thoughts and advice on subjects which are dear to the hearts of property investors, and this one was no exception – private landlord or limited company?
This is a subject that crops up regularly, both in conversations with our clients as well as in the blogs we publish. This is because it’s fundamental to how property investors choose to conduct their business.
Often the choice boils down to which option is most tax-efficient, but that isn’t entirely straightforward as the current government has favoured reducing or freezing tax allowances as a means of raising revenue.
These changes mean that landlords have to stay on top of what’s going on and make sure that they have a solid working relationship with their accountants!
We will be keeping a keen eye on this and other tax matters over the coming year.
And finally, the most popular blog this year (and the most popular blog we’ve written)…
1: Capital Gains Tax
It’s an oldie but goodie, and rightly so. Capital Gains Tax, or CGT, is a critical subject for landlords, property investors and anyone who hopes to make a profit from their investment.
CGT has undergone some significant changes over the past year, which we have mentioned in related articles, however we will take the time to review the tax landscape in the New Year and pull the various threads together.
It’s easy to see why this blog stands out amongst the many, many others we write, as it speaks directly to the hopes and goals of all of our clients – how much of their gains will they be able to enjoy?
When ‘enjoy’ translates to ‘how comfortable will my retirement be?’ you can understand the importance of understanding how this tax, perhaps more than any other, might affect you.
Thoughts from the property pros
When writing our blogs, we have many aims. We might want to make you aware of the potential benefit of investing in different parts of the country – hence our ‘Spotlight on…’ series.
It may be that we feel the need to comment on changes in legislation and the likely effects on the PRS. But our underlying intention is to inform, offer advice and start a conversation with our clients, old and new.
We hope that we have achieved this aim over the years; we already have a series of subjects lined up for what’s left of 2023 and well into 2024, including some interesting investment suggestions.
However, as our top 7 Portolio blogs of 2023 demonstrate, no matter how widely we allow our thoughts to roam, there are some key subjects which our readers find invaluable, and rest assured, these are subjects we watch like hawks.
You can therefore expect, amongst many varied subjects, to see regular updates to our most read content, ensuring that you know where you stand.
In summary…
It’s a pleasure to create these blogs, and although we appreciate not all subjects will appeal to all investors, we hope that each article has something to offer to help you on your investment journey.
As ever, if you’d like more specific information and advice, just get in touch and we’ll be happy to discuss your personal circumstances and how you can begin, or improve your own property investment journey.
Thank you for reading!
Written by Chris Wood, MD & Co-founder of Portolio, and Ross MacDonald, Director of Sales & Co-founder of Portolio
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