Episode 226

Is a property business that loses money a good strategy?


March 27th, 2024

25 mins 3 secs

Your Hosts

About this Episode

In this episode of the Business of Property podcast, co-hosts Stuart and Simon engage in a lively debate about the meaning of a "real property business".

Simon presents a scenario where a property business makes a loss initially due to investment and maintenance costs but still generates income through rentals. Stuart stresses the importance of real-world profitability and is sceptical about a business that only shows a 5.1% return after four years. They explore the implications of accounting for profit and tax strategies, with differing views on when a property business should be considered genuinely profitable.

Join our email newsletter for extra, exclusive resources.

Episode links:

Subscribe to The Business of Property podcast on Spotify, iTunes, and all podcast platforms.

Join our email newsletter for extra, exclusive resources.

Please leave us a rating and review if you're enjoying the show.

This podcast is produced in association with PaTMa, the leading application for self managing landlords who want to save time and stay compliant. Easily track properties, tenancies, tenants, repairs, rent, mortgage payments and safety certificates. Get your FREE account today.