Transcription
So, I just want to talk about the budget and how it could have and may be affecting the rent-to-rent strategy. Okay.
So, I'll start with service accommodation. That's the Airbnb strategy. So, service accommodation, there were talks about the VAT threshold coming down to 30K. That's no longer happening, which is brilliant news because one Airbnb in your property business, if it's successful, would have put you over 30k turnover quite easily. Then you'd have to be charging VAT. And you might think that's okay. But what that actually would have meant is pretty much every single Airbnb listing, every single host throughout the country would therefore be VAT registered. So, that means the general public and contractors would be paying more in tax. It would have been a very good move for the government, a very greedy move, and it would have annoyed everybody. It would have just annoyed everybody. It would have annoyed the likes of small businesses running property businesses, contractors that travel all over the country to stay. They, they'd have to spend an extra 20%. General public traveling about another 20%. So, that's good. Unaffected, not moved, still at 90K. Rent service accommodation unaffected. Rent HMO unaffected because it's residential, they're tenants. You can't charge residential or tenants VAT. They either have to be a guest and they're buying a service. But no, this is their living standards and you don't charge VAT. So, rent-to-rent HMO. All good.
Rent to social housing. Unfortunately, there's a constant supply of people needing specific care and the houses that actually needed to supply the care for these people aren't there. So, the councils can't fulfill that gap. Social housing providers can't fill that gap because they're too busy providing care. A lot of landlords don't know how to even structure this or get in touch with social housing deals. So, they're kind of relying on a lot of rent-to-renters to facilitate this transaction. Okay. So, there's still a good, really healthy gap there to fulfill. That's our jobs. So, that's what we do and that's what you should do.
Deal sourcing again, that would have felt liable to the VAT. So, that's amazing. They haven't touched that as well. So, if you're thinking about becoming a deal sourcer, you can do transactions all the way up to 90k a year and not become VAT registered. So, that keeps your service cheaper, right? So, the average deal is £3,000. That's good. It would have been 3,600 if they brought the VAT down to 30K. So, that's amazing.
So, in terms of rent-to-rent all in, nothing really has changed. It's just they've affected small businesses with the dividend tax, which is annoying. What does this mean for you going into next year? It means exactly the same as when I started. Get out of your jobs, start a rent-to-rent business, become financially free, have multiple properties that you can control and don't own, and make money.
My plans for next year, I'm going to seriously aggressively scale my service accommodation business, possibly my deal sourcing business as well. And my partner Dan, he's going to scale his social housing business. We've got Chris doing deal sourcing. So, if you're interested in being mentored by people actively doing this, I've just launched the six-week challenge, right? And it's just ended its first batch of challenges that started with us. So, Max, he secured a deal. Here's his first booking. 8 days into the six-week challenge, he had his offer accepted. And now the property is live, is up and running, and this is his first booking. £440 a night, two nights, over £1,000 in an Airbnb booking. He's absolutely buzzing. He paid £497 for the 6 weeks mentoring. So, go to kennypitman.com, go to the 6e challenge tab. It will be open by the time you watch this video. Currently, it's closed, but I'm going to open it.
Max isn't the only one getting deals. Sarah and Cla, they've secured a block. I believe they, they've even got more deals in the pipeline. We're just waiting for the contracts to land. They're kind of dragging their heels, but that's normal. And all of the others are going on many viewings and submitting offers, so it's just a matter of time. It is 100% possible to get a deal within 6 weeks. So, if you want to be part of the second ever batch, there's only 25 max spaces. It's 497 investment, okay? You can have the full access to the training course, the service accommodation, or HMO. So, whichever strategy you're looking at doing, go to kennyputman.com. Go to the 6 week challenge and get on board. This will launch in 3 weeks' time. Cool.
Just a small update for me. I'm, I'm still actively very busy doing up my two latest service accommodations, aiming to get them live in actually 2 days. So, we're at the tail end. It's been exciting, been hard work. It's been great fun working with my family, but now it's come to an end. It's on to the next deal. Peace.