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Episode 226: Is a property business that loses money a good strategy?
Manage episode 409045814 series 3010342
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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.
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