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I am looking to get my 1st BTL property soon (with the intention of eventually building a sizable portfolio over time) and have been doing a fair amount of research into whether I should set up a Ltd company or buy as an individual. I think I know which is the best option for me but the next step is to get some expert advice.
I dont currently have a Tax Advisor/Financial Advisor/Accountant so I have a few questions:
1. Who is best placed to advise me on this subject?
2. Do I need an accountant for my 1st property, or is it easy enough to do this myself? Does this get any more difficult to do myself if I was to purchase through a limited company? Ideally I would like to keep my costs down as much as possible at the beginning, but if it would help significantly at this stage I would be willing to use one.
Thanks for any help in advance!
The first thing to do is to speak to an accountant who is also a property investor and so can offer more than generic tax advice.I can't imagine why he or she would advise holding property in your own name in the current climate, and as you want to build a portfolio, but of course, I don't know anything about your circumstances.On the second point, you don't strictly speaking but you will need a solicitor and unless you are buying a property entirely with cash, you will also need a mortgage broker. However, if you find your accountant as above, you will probably need their help to submit accounts each year to Companies House and may you need their help to provide the substantial details on your finanicial affairs that the mortgage company will demand.Of course, they can advise you on the most tax-efficient way to buy the house and any refurbishment, so although not essential, you will find that the accountant will be worth their weight in gold later on, as you can save more by being tax-efficient that you are likely to spend in fees. Kevin
Director, Cogenic Property Group
Thanks for the quick response! What would be the best way to find an accountant that was also an investor? Asking around on forums? Or just simply calling accountants and asking them?
Yes I agree, I don't see why I wouldn't want to do it through a Ltd company. Especially as I plan on using any profits to purchase more properties for at least the next 10-15 years.
Lots of interesting point for me to ponder over, I guess the best thing to do is to find a decent accountant first!
Thanks again for the advice.
Sorry, no. I live in North Yorkshire, so none of my team are in London. I'm sure someone else can help you though. Kevin
Via a portal such as Property Hub, via a networking event such as PIN or the Property Hub Meetup Group, by recomendation, of course, or by asking as a "qualifying question" when enquiring about accounting services. Also try Property Tribes, RLA and Facebook.
Perfect, thanks! I am attending next month's Property Hub meet up in London so will ask around then as well as scouring the internet.
Founding Director, for and on behalf of
Less Tax For Landlords
0203 735 2940
Thanks Tony, I will take a look.
I own both company and personal property
If you can keep it personal its far better in the long run
A ltd company is fine but it has major drawbacks
Just getting a Mortgage for a company can be costly
I have just purchased an 80k property
and it has just cost me around 5k in fees and stamp duty
Seek really good professional advice Us a Company as last resort
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.
Thanks for your reply. I will definitely seek some pro advice on the subject.
That's a massive cost! What were the main things here that would have cost less if you had bought privately? What would you have expected to pay in fees and SDLT had you gone private?