Top critical review
22 people found this helpful
Wonderfully informative but basically a fiction!
on 13 September 2013
I am a fan of tax cafe publications as they are well written and informative and give many examples to help you apply the learnings to yourself, however I am slightly peeved about this one! I read the book cover to cover, gripped at every page as I am intending to invest a considerable amount of money into property later on this year, but wanted to set everything up right beforehand to fit with my long-term strategy of re-investment. In the end, it seemed the answer was to set up a limited company as I am all about re-investment and was not intending to draw money out as I am a 45% tax payer! The sting however was that banks don't like to lend to limited companies anymore, unless you have a 45% or more deposit, which would ultimately mean you would not be able to buy as many properties as somebody buying their own property with a 20-25% deposit! The book helpfully suggests a way round this by using a deed of trust (you'll have to read up on that one), but after extensive research, I can only find 1 mortgage company that MIGHT consider it as nobody else would. A deed of trust is almost impossible to get out but even if you could get somebody to allow it, you would then have to run the risk that when you come to refinance the property, you might not be able to get it again, leaving you with a property that is trapped in a ltd company on a variable rate meaning you either have to 'take it back' (maybe leaving you liable for CGT) or could end up in any other situation which may not be favourable to you! I am not in the habit of spending £25 on a book and taking the time to read and understand something for it to basically be a fiction since I can get that for £6.99 on my kindle with half the effort to read! To be balanced, over all they are a great selection of books and give wonderful advice, but on this one, I feel really let down and in a way, if this is complete rubbish it does dent your faith in the authors as they must clearly know people are not really able to do this anymore.