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  • Mortgages & Finance

    Building portfolio with no personal cost?

    Just to correct one point, if you already own a residential property, on your 2nd and subsequent purchases the 3% extra SDLT applies to the whole price, so on a £40K property you'll pay £1200 stamp duty.

    See the calculator at

    https://www.tax.service.gov.uk/calculate...ax/#/intro

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    it's still saying £0. Are you sure there is stamp duty?

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    The extra 3% only applies on properties purchased at 40k or more - but then  applies to the whole purchase cost.  So a 39999.99 property has 0 SDLT. a 40k property has 1200 of SDLT.

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    Hi Michael,

    You mention access to Trade Accounts, please excuse my ignorance, but what are they exactly and with who and what is the benefit of them over what you get as a member of public?

    Can you provide some price examples? I too am in the game of trying to do as much work myself as possible and always on look out for ways to save.

    Thanks

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    Hi Michael Jarrett

    With auction properties you need to do your own research before offering eg the legal pack etc, and have a look at a few properties and set a price limit that you won’t go over.

    Alan Boswell Group give comprehensive landlord cover.

    I have a property that may interest you, I’ve listed it in the marketplace see link in my signature.

    Thanks

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    Thank you!

    I'm really hoping to find properties below £40k at the moment, theres actually quite a lot around i just need to make sure there in decent areas not really bothered about the state it is in as long as it's structurally sound.

    Thank you!

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    Welcome Michael

    I must be looking in the wrong place. A lot  around below stamp duty threshold.

    Are we talking Burnley/ Arrington ??

    Or st Helen’s.

     The idea you have is good but not unique. The refinance part is Critical.

    Tbh your best idea is the buy/ refurbish and sell. CGT allowance used.

    Speak to propertytribes financial about what is possible with your strategy.

    Then crunch the numbers.

    before you jump into becoming a landlord please be aware of obligations and don’t assume everything is easy and plain sailing.

    The search bar with right words will unearth some more guidance.

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    Coming soon Investorsk8.com

    Wisdom - an integration of knowledge, experience, and deep understanding that incorporates tolerance for the uncertainties of life as well as its ups and downs. 


    Burnley and Accrington lower end properties are very cheap indeed! i am based in Rossendale so they are two neighbouring towns.

    Rossendale has a handfull of property below £40k. If I'm only picking up 1 or 2 houses every 6 months or so i can probably stay local as i have more knowledge of the area and i can be sure that the property has sale-ability.

    I have noticed Accrington & Burnley houses are often £25k and under! but i worry they might not sell if i needed to get rid, the areas they are in don't look as family freindly as the ones local.

    Thanks for your advice i am going to look further into landlord responsibilities.

    I am always comparing buy to sell against buy to let. i believe i can get a better return doing buy to sell projects but the buying and selling process is so long i could only get through one every 9-12 months.

    My long term ambition is to do a bit of both.

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    You are on the Right Tracks but your plan is out of date by around 5 years

    Your proposal has been done by Thousands of Landlords in the past 20 years and It worked very well indeed

    The Reason I say your Five Years out of date is S24 Stamp Duty

    The Days of easy money are over and Taxation has changed

    I am not sure how old your are or if you are working ? are you employed or self employed and what is your salary

    what is your long term goal

    are you single or married do you have children or Grandchildren

    Do you wish to stay a Landlord long term

    Lots and lots of questions which you have the answers for

    Once you have this in mind and once you have decided what you Goals for Property are then you can set your Taxation and ownership strategy

    Your system is the easy part subject to finance and would work via a company or a personal situation

    how you own the property is essential to understand

    The Company Route will be more restrictive on borrowings You would struggle to get 80% LTV

    But for the value of the property your purchasing  5% is not a large fig to find

    Personally If I was starting now and I wanted to make my living long term from property I would now go the company route

    Remember your not inventing the wheel But you need to fully understand who you are going to get the wheel turning

    Take advice for a Good Tax advisor who understand property first.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    im 30 in June, wife and 2 children. im a Director of a Ltd company. i own a property newly refurbed esate agents want to put it on for offers over £135K i believe it will go near the asking price but for argumants sake lets say £120,000 after fees.

    The whole of that is my investment capitol for now.

    I can take more Dividend from the business but working on the strategy of buying cash, adding value then re financing i believe i can keep hold of most of the origional pot of money. 

    It's my understanding that S24 is the fact that HMRC will tax your full rental income and not treat the mortgage repayments as an expense it that correct or is there more to it? I hould be able to soak up plenty of other expenses for it not to be 20%. Property, no doubt, will bring new issues that i have not dealt with previously but id rather pay for good advice and avoid huge tax bills. Never the less i still need to look further into it.

    I haven't spoke to a lender as a Ltd company, just as a person. maybe i need to work the Ltd scenario a bit more.

    In my origional cashflow at the top i put profirt as £230. how far out do you think i am? it would be a shame if it was much less than £180-£200.

    I need a big 2-3 year cashflow to estimate tax percentage as i would be looking for the Ltd company to get company cars, Mobile phones and other expenses that are usually personal.

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