Property Magic Live With Simon Zutshi And Property Alchemy

byAlanJE

2.5K followers

Updated 3 months ago

Hi Everyone,

I hope you had a great weekend?

I have spent the last 3 days virtually attending The Property Magic Live Event organised by Simon Zutshi and the Property Investors Network based in Birmingham England.

I have been a follower of Simon Zutshi since 2022, and graduated from his Property Mastermind progamme at the end of 2023. Simon provides a year long mentorship programme that enables students to achieve $60k additional income annually and $1m of property equity. It is a bold claim and usually students take 2 years to achieve this, rather than 1 year, however some students do achieve this level within a year, and some exceed it dramatically.

The Property Magic Live Event brings together a large number of speakers and a large number of case study presenters, as well as sponsors, Property Investor Network Meeting Hosts (like myself), and lots of students and followers of Simon Zutshi as well as some new potential students.

The tickets are expensive and rightly so because there is a lot of valuable information presented by Simon Zutshi and the speakers that he brings to the stage, many of whom are experts in their respective fields. I went to the Property Magic Live event in person last year and this year I attended virtually; next year I hope to attend in person again.

The speakers included Paul Collyer who presented Property Alchemy, an explanation of how to turn lead weight into property gold. What does this mean? Paul is a practitioner and expert of purchase lease options, or what he terms structured deals. What is that you may ask? It is simply leasing a property with the option to buy it at the end of the agreed lease option period. To give an analogy, it is like when you lease a car for a period of 3 to 5 years, with the option to purchase the car at the end of that period. In this case you do it with a property rather than a vehicle.

The illustration in the screenshot at the head of this post shows the comparative figures of how a "structured deal" or a "purchase lease option" can be of benefit to a landlord or property owner wishing to dispose of his property either by selling it Below Market Value, in order to sell it quickly, of to sell it using a Purchase Lease Option, meaning he sells it later at an agreed price, but receives a lease payment until the purchase takes place. The schedule takes account of the UK Capital Gains Tax regulations, so that the property owner wins by adopting the latter approach (purchase lease option).

Changes in the tax regulations in the UK made holding property for rental a far less attractive proposition since 2016, when it became impossible to offset all mortgage charges against rental income, so many landlords went from profit-making to loss-making over about 4 years since the tax was increased progressively until 2020.

Hence many landlords with large portfolios are motivated to sell their properties, and depending on the amount of loss they are making they may be highly motivated to sell quickly, but they may be caught in a trap because upon disposal they will become liable to Capital Gains Tax. If they have remortgaged their properties and taken money out they may have little equity left with which they can pay this Capital Gains Tax. Therefore this "lead weight" that they have around their shoulders may be turned into "Property Gold" by adopting the structured deal that allows them to lease their properties out and sell them over a number of years taking advantage of the Capital Gains Tax allowance (which is also being reduced by the UK tax authorities, so property owners are being hit by the tax authorities).

There were many other speakers that I could have focussed on, but Paul Collyers structured deals and Property Alchemy (turning lead weights for landlords into property gold) seemed to be a very smart way to solve some landlords property problems. I will be using this approach to help some property owners to discard the weight around their shoulders.

I wish you all a pleasant remainder of the weekend and a fantastic week ahead, wherever you are in the world.

Cheers

Alan