Property

[Danny]

I spoke to my accountants a while back , I’m sure if I remember correctly they get you one way or the other , but you know best

We dont plan on selling just leave it in the company and pass it down to maddy and her sibling. It's my retirement so not really an issue....

If we do need to sell then the rules would have changed a few times by then so will see what is best at the time.

The key is finding the right people to advise and guide you...

 

[Danny]

I spoke with the accountant about all this last year. He said that unless you're well into double figures with properties putting them into a Ltd Co is a bad idea. Firstly the 'savings' aren't there to justify it, and secondly when the tax rules change again as they inevitably will (they've done so every few elections) you will be hammered when you take them out of the Ltd Co.

No disrespect to anyone on here, but you wouldn't ask a bricky how to fit a boiler, or a carpenter how to apply render. So surely you'd be better taking advice from a qualified accountant, financial adviser or mortgage broker on property finance, rather than some random on a plasterer's forum?

Absolutely.

What worked for us is a few other things and no need to go into them on here but it is very tax efficient for us to put the properties in an Ltd company.

When things change we will evolve but if you worried to much about what might happen you would not do anything

 

[Deleted member 23452]

What worked for us is a few other things and no need to go into them on here but it is very tax efficient for us to put the properties in an Ltd company.

Which is exactly the point I was making. There are so many factors involved when you're flinging six figure sums about, from your personal circumstances, through interest rates to finance options. So no one can say "what you should do is ....." or "what we did was ...." without having all the information about the person being advised as well as the person giving the advice.

As an example.

Current advice from companies, banks, and those in the financial industry is that anyone using their own money for anything they don't absolutely have to is losing out by a large amount. Business capital expenditure, mortgages (domestic, BTL and commercial) should all be borrowed to the maximum possible because interest rates are so low you actually make money by borrowing.

However, anyone taking such general 'advice' as gospel risks fcuking up massively because sweeping statements like that don't make any allowance for individual circumstances. It is however very sound advice generally.

I sometimes hear people say "I'm only in my 20s/30s and I'm mortgage free>" like it's a good thing. At that age in the current market they are literally giving away tens (if not hundreds) of thousands of pounds which would otherwise be waiting for them 20 or 30 years down the line. I'm not an accountant or financial adviser though, so I don't tell them what I think even though it comes from people who are well qualified to make such claims. They need to get it from the horses mouth with all the above being taken into account.

 

[Smudger1]

I've got a meeting this week with my accountant then my FA to work out the tax implications and other points to do with my properties that are nearing thier mortgage ends. Partly because a property with a tenant that keeps asking to buy it at a good price which would take decades to return the sale price in rent has me weighing up the options to keep it going with good regular rent off it or to invest in another fixer upper with potential plus a lump sum spare for other things.
It's a minefield what with the uncertainty of labour and brexit potentially hammering those that relied on themselves not the state for funding our lives but get robbed regularly by government tax decisions !
Got to keep an eye on those investments we work hard to build up but can forget others are playing with your hard earned for you and can make mistakes that we may not understand if we don't get to grips with at least the basics. E.g... isas, pensions, other investments.

 

[superspread]

I've got a meeting this week with my accountant then my FA to work out the tax implications and other points to do with my properties that are nearing thier mortgage ends. Partly because a property with a tenant that keeps asking to buy it at a good price which would take decades to return the sale price in rent has me weighing up the options to keep it going with good regular rent off it or to invest in another fixer upper with potential plus a lump sum spare for other things.
It's a minefield what with the uncertainty of labour and brexit potentially hammering those that relied on themselves not the state for funding our lives but get robbed regularly by government tax decisions !
Got to keep an eye on those investments we work hard to build up but can forget others are playing with your hard earned for you and can make mistakes that we may not understand if we don't get to grips with at least the basics. E.g... isas, pensions, other investments.

You can never go wrong with property , brexit will stagnate things , and labour won’t get in, I won’t charge you for this consultation smudge

 

[Danny]

Which is exactly the point I was making. There are so many factors involved when you're flinging six figure sums about, from your personal circumstances, through interest rates to finance options. So no one can say "what you should do is ....." or "what we did was ...." without having all the information about the person being advised as well as the person giving the advice.

As an example.

Current advice from companies, banks, and those in the financial industry is that anyone using their own money for anything they don't absolutely have to is losing out by a large amount. Business capital expenditure, mortgages (domestic, BTL and commercial) should all be borrowed to the maximum possible because interest rates are so low you actually make money by borrowing.

However, anyone taking such general 'advice' as gospel risks fcuking up massively because sweeping statements like that don't make any allowance for individual circumstances. It is however very sound advice generally.

I sometimes hear people say "I'm only in my 20s/30s and I'm mortgage free>" like it's a good thing. At that age in the current market they are literally giving away tens (if not hundreds) of thousands of pounds which would otherwise be waiting for them 20 or 30 years down the line. I'm not an accountant or financial adviser though, so I don't tell them what I think even though it comes from people who are well qualified to make such claims. They need to get it from the horses mouth with all the above being taken into account.

Absolutely...

I pay for the best advice...

I think what @Zippydragon was asking was a general gist of what it is like.

Nobody knows my financial situation or my wife's and nobody except my accountants/solicitors and financial advisors can help us.

1 simple thing we have done is making us an extra £10k a year compounding and although I wont see that money till the mortgage we have left is cleared it is just building up nicely.

What works for me or you may not work for @zombie or @JessThePlasterer.

The best education anybody can have is about money and how to use other people's money to make more money.

 

[JessThePlasterer]

Absolutely...

I pay for the best advice...

I think what @Zippydragon was asking was a general gist of what it is like.

Nobody knows my financial situation or my wife's and nobody except my accountants/solicitors and financial advisors can help us.

1 simple thing we have done is making us an extra £10k a year compounding and although I wont see that money till the mortgage we have left is cleared it is just building up nicely.

What works for me or you may not work for @zombie or @JessThePlasterer.

The best education anybody can have is about money and how to use other people's money to make more money.

Dunno an extra 10k a year would work quite nicely for me!

 

[superspread]

Peasants the lot of ya

 

[Deleted member 23452]

Dunno an extra 10k a year would work quite nicely for me!

Well, one way to do it is to set up a forum, get the visitor numbers up, then spam the ever loving fcuk out of it with adverts for everything from dodgy investment companies, through new build homes to flip flops.

 

[lurpak]

Well, one way to do it is to set up a forum, get the visitor numbers up, then spam the ever loving fcuk out of it with adverts for everything from dodgy investment companies, through new build homes to flip flops.

and pva ratio

 

[Danny]

Well, one way to do it is to set up a forum, get the visitor numbers up, then spam the ever loving fcuk out of it with adverts for everything from dodgy investment companies, through new build homes to flip flops.

If only

 

[JessThePlasterer]

Well, one way to do it is to set up a forum, get the visitor numbers up, then spam the ever loving fcuk out of it with adverts for everything from dodgy investment companies, through new build homes to flip flops.

Mind blown. Where do you even come up with this stuff?!

 

[Deleted member 32554]

I missed the flip flops

 

[Danny]

Well, one way to do it is to set up a forum, get the visitor numbers up, then spam the ever loving fcuk out of it with adverts for everything from dodgy investment companies, through new build homes to flip flops.

I still dont see enough adverts to remotely annoy me...

If I did I would be binning them... I wish this place made me rich save me doing all the other crap I have to do