We'll_live_and_die
Super Moderator
Looking for some advice on finance options for getting into Property developing or BTL if anyone can help?
No problem mate, still in the early stages of planning this venture.Oh shit just remembered I was going to get you rental yields. I’m actually working on an improved version right now so give me a week or two and I’ll get that to you.
No idea on finance I’m afraid.
My wife has spent the last furloughed months looking into this for our own venture into holiday house in Cornwall
Can if you do it as a limited company.is harder to make money doing this now compared with a few years back if you are a higher rate tax payer as interest on mortgage can no longer be offset against rental income like you could before.
Why have you reduced the properties so much if you don’t mind me asking?Does my head in tbh.
We had a house and a flat in Nuneaton, and a house in Cov. Now down to the flat only and thinking of offloading that too. I still have another house in Cov too, but my mum lives in that, so no rental income, but at least she pays for anything that needs doing there!
Think long and hard, would be my advice, as it can be quite stressful in my experience.
On the mortgage front, when we were a bit more enthusiastic, we always used Town and Country Mortgage Services Free Mortgage Advisor & Brokers | Town & Country Mortgages
Can't recommend them too highly from past dealings with them.
Not at all.Why have you reduced the properties so much if you don’t mind me asking?
Wouldn’t bother with an agent. They basically charge you 10% to answer a phone then phone you to ask do you want to sort it or do you want one of their contractors.Not
Not at all.
We had them for about 12/13 years (since just before the 2008 crash) and obviously the value hadn't grown too much, and they weren't making much at all in rental income (the Keresley one in particular).
It seemed like we were spending a lot on maintenance too, on top of agents fees.
We have both suffered mental health issues in the past (I don't mind admitting it now, but it's not something I used to be able to square up to easily) and we really felt that things were getting on top of us and didn't want to end up in that awful spiral again.
The flat in Nuneaton actually returns a reasonable income - certainly enough to cover maintenance and a little over on average - so we decided to stick with it for a while, but we're considering dropping it now even though it's close to being in negative equity.
But can you put them into a limited company if there is a mortgage involved.Can if you do it as a limited company.
But can you put them into a limited company if there is a mortgage involved.
Furnished holiday letting interest is an allowable business expenseis harder to make money doing this now compared with a few years back if you are a higher rate tax payer as interest on mortgage can no longer be offset against rental income like you could before.
Yes mate, but it seems the resolution is too low for it to work. I've decided to leave it as I can imagine people sitting there trying over and over to scan it. Simple pleasures mate.Rich - is your QR code meant to say something?
Ha ha - your logic worked hence me asking you! Feel like a prat nowYes mate, but it seems the resolution is too low for it to work. I've decided to leave it as I can imagine people sitting there trying over and over to scan it. Simple pleasures mate.
But can you put them into a limited company if there is a mortgage involved.
BTL was f*cked up by George Osborne. Not worth it as an income in my opinion unless you set up a limited company which is a hassle. I sold all but 3 of our properties (good capital growth investments), if I was to get back into BTL property again, I'd look at commercial properties as the tax situation is different.
Commercial is definitely the one to get into if you can raise the funds. Or student lets.
It's student lets I do. A lot of hassle if you want to keep your property in decent condition. They moan about everything for the first few months; leave the place like a pig sty and moan when you try to recover some of the expense of putting it right through retaining deposits.
I had one guy go mad with a ball-bearing gun one year. He did over £3k worth of damage: windows; kitchen units; his bedroom wall and bed (which had also been attacked with a knife). Plus they'd bent a lot of the cutlery into what I assume from the shape and colour something to heat drugs on - the garden was full of the steel gas containers they sniff. He then denied, denied, denied and took my deposit retention to arbitration - which took me about 15 hours to prepare for (on top of the 4 weeks repairing all the damage). Fortunately, I had lots of photos before and after and could prove my case to the arbitrator. Still lost over £1k on the transaction as you cannot replace old for new.
Another year I had a kid who was in a top club's football academy. He never told me why but he'd completely destroyed his bed and slept on the mattress without sheets for a year so it was filthy.
You have to accept that things you'd expect to last for years are good for far fewer. I have to paint several rooms every year due to God knows what splattered all over them; carpets are good for about 3 years before you have to replace; mattresses (and I buy good ones) are seldom good for more than 3 years as they are stained and torn... the list goes on. Yes, on the face of it the yield is good - but I spend at least £1k per house every summer putting things right under tight timescales before the next lot move in.
bang it in a ltd company so you can still offset mortgage interest, and pay corporation tax. dont give yourself an income. stick your kids as directors and jobs a good un
We run a pub that we rent, we then own 2 houses 2 flats and 1 shop, all are mortgaged except 1flat and shop.Yes, but it would then be a business loan... harder to get and more expensive.
I agree with others on here - have sold two BTL houses since Osborne's tax-offensive and there's no way I'd buy now. There's also an extra 3% stamp duty to pay on a BTL house. It's no longer economically feasible. Osborne has moved the market towards large companies who can fund it themselves and away from lots of small landlords. I'm not convinced this is better for renters... I guess it reduces the risk of a bad landlord but ultimately it will lead to higher rents IMO.
InheritanceWhy would having kids as directors help? Shareholders maybe...
Inheritance
Yes, but it would then be a business loan... harder to get and more expensive.
I agree with others on here - have sold two BTL houses since Osborne's tax-offensive and there's no way I'd buy now. There's also an extra 3% stamp duty to pay on a BTL house. It's no longer economically feasible. Osborne has moved the market towards large companies who can fund it themselves and away from lots of small landlords. I'm not convinced this is better for renters... I guess it reduces the risk of a bad landlord but ultimately it will lead to higher rents IMO.
I've mentioned this before on here but we had representatives of London letting agencies knocking on our doors in Earlsdon offering to buy houses the week Osbourne announced his tax changes as it didn't really change anything for them.
The only thing I would add Mr Trenchs post is how much equity would you have in the property? If it's high then you could still make it pay but the days of 25 to 30 percent deposit and mortgage for the rest are over.
Obviously a lot of people go down the HMO route but you need to put a lot into getting the property in to fit shape and then there's the hassle of managing multiple tenants.
I have one other property which my daughter is living in at a reduced rate so not really making anything. Once her and her husband get their own house I'm thinking of selling though I might put another bedroom in first.
Not sure where I'll put the money though, are those wasps bonds still available?!
Buy GameStop
Buy GameStop
well this is turning in to some story.
Uber free market capitalists crying like fucking babies because a load of gamers used free market capitalism to stiff them for a fortune.
I have no idea what’s going on or what it means but all the right people are freaking out.
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