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  • Property-a-holics

    BTL company

    Just having thoughts, I am up early as flying out on a stag party weekend and can't sleep. I won't be able to answer any questions or reply until Tuesday
    If I had a company that owned 20 property's (this being more than the 15 that appears to be the magic number being discussed) if the property's individually are worth £80k each being a total of £1.6 million. The rent role being say £137,000 p.a. (This is based on 10 x2bed houses @£520 8x3 bed houses at £580 and 2 X 4 bed at £750)
    If we said maintenance was 10% and management if required would be 8% +vat. (10,960 +£2193 =£13,152) leaves £110,147 less insurance cost and other incidentals.
    Property's would be based in Manchester postcode areas.
    What value is a company with assets of £1.6 million showing a profit of £100k a year?
    Is it worth more than the actual asset value?
    What complications could this scenario cause? Is there something I am missing? Stamp duty?
    Do you think a deal packaged up offering a scenario similar to this would be of interest to armchair investors?
    I am not in the situation to offer this at present so please don't all jump at once
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    [Image: New-logo2.png] Manchester based investor. I buy, sell, renovate and rent investment property in East/North Manchester Wink email: mike@brentwoodinvestments.co.uk Call: 0161 681 3724

    I would say it would be worth the asset value as an absolute maximum

    But the price it could be sold for is, of course, whatever price the buyer & seller agree on.

    We have all seen examples - sometimes involving property - where £5 notes have been successfully sold, albeit with buyer's remorse sometimes evident afterwards, for £10 each
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    Interesting to see how to define 15 properties? 15 in Donny £900k 15 in London pick your figure? Maybe the southerners would buy up north in a ltd company to get to their 15 then back to London back buying again
    Kim
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