I'm a new buy-to-let landlord considering my first property. Given Section 24 and the upcoming Section 21 changes, what's a realistic profit margin I should aim for on a *single-let property costing £250k with a 75% LTV mortgage* in the current UK market, and what are the key tax-efficient strategies to mitigate Section 24 effects for a basic rate taxpayer?
Quick Answer
Aim for a 2-4% net cash flow on a £250k single-let property with 75% LTV, post-Section 24. Limited Company purchase is a key tax-efficient strategy for basic rate taxpayers.
About This Topic
New landlords should aim for 2-4% net profit on a £250k single-let BTL with 75% LTV, post-Section 24. Consider Limited Company purchase for tax efficiency with 19% Corporation Tax.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
Expert Guidance from Steven Potter
Steven Potter is a UK property investment coach with a £1.5M portfolio and over 5 years of hands-on experience. He has helped over 1,000 students achieve their property investment goals through practical, ethical strategies.
Ready to Take Action?
Get personalised property investment coaching with Steven Potter's Property Freedom Framework.
Learn about the Property Freedom Framework