what would that property return ? Stuart.
sell or not
- Thread starter carys
- Start date
what would that property return ? Stuart.
ChrispyUK
Well-Known Member
You don't have to be Malc...its not critical, however, it depends on you're business, capital and strategies.
If you're miles away from a property, them you need to trust in someone else to run and manage the property. Fine to a certain extent if the property is bomb proof and they're just collecting rent. What happens, when a bulb goes and trips the board and you have to pay a sparky to go around because the tenants are clueless!
It all depends in your ROI, but for a single let, its often not that much. Longterm good, short term, a potential headache if the numbers don't add up.
superspread
Well-Known Member
Been there myself Scottie , and funnily enough it was a light bulb, 150.000 a year he was earning, got masters degree in law the lot and couldn’t change a light bulbYou would if you rented to the yanks malc.
Bloody hell never again.
I had a call at 2 in the morning off one of them once cause a downlighter bulb just blew in the kitchen. Just navigate using the other 7 that are still working ffs.
he Can fly a 35million dollar plane , but cant operate a lawn mower.
You would if you rented to the yanks malc.
Bloody hell never again.
I had a call at 2 in the morning off one of them once cause a downlighter bulb just blew in the kitchen. Just navigate using the other 7 that are still working ffs.
he Can fly a 35million dollar plane , but cant operate a lawn mower
they all can be hard work. when i had flats and bed sits some people you had no problems with others just hard work. the local councils where also are problem. i would now employ a an agency and kick their arse while i would take a back seat.
when i was an apprentice the plasterers would tell me that no one under 40 could plaster, and at 40 you are to old to do the job !
Been there myself Scottie , and funnily enough it was a light bulb, 150.000 a year he was earning, got masters degree in law the lot and couldn’t change a light bulb
there are loads of them around, i have them phone up and ask can you come round and hang a picture up for me? his wife says" what a man that can actually do something"!
superspread
Well-Known Member
I’m a father and social worker to all my lot
I’m a father and social worker to all my lot
yes had all that !
one of my pals only has shops as every thing is down to them. he has long term lets to bookies, subway and dominos. giving him 25k per shop per year, with no aggro.
i was always told that you do need to educate your self so that you are able to earn extra money.
stuart23
Private Member
Was getting £550 a month for it. Reason I sold it was my ex was still on the mortgage and not contributing a penny to upkeep, maintenance or rental costs but was making it clear she was taking half of any profit. Legally my only route was to sell now and give her half rather than wait ten years till mortgage was paid of and I was handing her 45 grand.
jamesthefirst
Private Member
My pension is a lucky dip!
Danny
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I wouldnt be selling the property @carys I would be looking at remortgaging and buying more
We are about to exchange on on some property we will have the mortgage cleared in 5 years and when the commercial tenant wants to leave then we will convert it to two flats no bother and double our return.
We also bought the freehold to the building and a large plot of land and a garage
We looked at loads of flats and houses to buy as an investment but the stamp duty charge was a joke... with commercial it is cheap and the returns are good.
We have a 5/10 year plan which we hope to be able to carry off..
We are about to exchange on on some property we will have the mortgage cleared in 5 years and when the commercial tenant wants to leave then we will convert it to two flats no bother and double our return.
We also bought the freehold to the building and a large plot of land and a garage
We looked at loads of flats and houses to buy as an investment but the stamp duty charge was a joke... with commercial it is cheap
and the returns are good.We have a 5/10 year plan which we hope to be able to carry off..
Danny
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That is mega cheap... there are loads like that in wales as well
I would be interested to see where the growth potential is though and if it is likely to increase enough... as the rental alone is ok but I rather spend a bit more money and get the prices rising a bit nquicker
D
Deleted member 23452
Guest
I wouldnt be selling the property @carys I would be looking at remortgaging and buying more
We are about to exchange on on some property we will have the mortgage cleared in 5 years and when the commercial tenant wants to leave then we will convert it to two flats no bother and double our return.
We also bought the freehold to the building and a large plot of land and a garage
We looked at loads of flats and houses to buy as an investment but the stamp duty charge was a joke... with commercial it is cheap
We have a 5/10 year plan which we hope to be able to carry off..
Don't forget if you get VAT registered you can pay 20% VT on materials and labour (even if your company charges you) but you only charge 5% when converting commercial property to residential. So when you claim back the additional 15% it's yours and adds to the profit.
Danny
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I bet all the women like that street lol
the trouble that i had with being vat reg. was one year i had sold off some building land at a good profit. as the total sum was over a certain % of my turnover i had to pay vat on the sale price.
D
Deleted member 23452
Guest
Yeah, it's all about shifting things around to 'play the game'. All legal and above board, and usually played by people for tens of millions, but you or I can do it all be it for much less money and gains.
I own the house in Wales as an individual, but my company did the work on it and invoice me (even though it was obviously me doing the work). All the materials I bought had 20% VAT on them, but the invoice the company raised to me charged VAT @ 5% (house was unoccupied for more than 2 years). So the company kept the 15% difference by way of a VAT rebate.
All legal and above board and declared with/by my accountant to HMRC. It's all covered in VAT notice 708.
Doing it that way meant that I could pay the invoice out of money I'd already put into the company, and money/salary I hadn't taken. In effect I'd already paid so no money changed hands/accounts. It also meant that I could make sure the invoice value was quite high (not falsely so, just charged at a strong day rate). The advantage of that is that it soaks up most of the market value for the property so I (as an individual) won't owe any capital gains tax if/when it's sold.
D
Deleted member 23452
Guest
You're not, it just sounds complicated when it's written down like that.
The main, and most important, thing to remember is that a Ltd company is a separate entity to you/me/whoever owns it. So you have to treat it like that for everything else to fall into place. So my company invoicing me is no different than invoicing any other customer.
The tax side of it is just ferreting out the rules that apply.