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Everything posted by EvolutionBlogger

  1. I have provided details about my provider in a personal message. You would set up an account in the name of your SSAS, and then do the transactions online. Exactly as you do right now
  2. It's not a huge issue to make your pot work. Inside a SSAS, you can do everything you can in an ordinary pension. Stocks, Mutual Funds, savings account, crypto etc. You can also buy commercial property inside your SSAS. You have to make a judgement about of value of your pot. I would imagine that your pot has gone up significantly in value, compared to what you put in. If you think its value will bounce back quickly, then you may want to wait. The pot value could also go done further. You have to be picky with a SSAS Provider. A lot (most?) providers overcharge. People have large pension pots, and providers see it as easy money. My provider charges a flat fee, and they are happy to have a chat with prospective clients. I had my 1st chat with them, 12 months before I set it up. Your SSAS will always match your current pension, as it can do everything your current pension can. A lot of people use their SSAS to fund property renovations, where the alternative would be bridging or development finance. Bridging is 12-24% per year. With a SSAS, your cost of funds can go down to 3%.
  3. Hi. I'm not doing any remortgages or further advances right now, because I don't want to lock in an expensive rate. I think this turbulence will pass (just my view). One potential path forward is a SSAS pension. You can move your existing pensions to a SSAS pension. With a SSAS pension, you can buy commercial property inside your pension. You can also lend money to a ltd company, and use those funds to buy property (BTL or commercial). You choose the interest rate that you pay, so it will surely be the cheapest loan that you will get. Best of all, the interest income goes to your pension, rather than a bank. I've written an article on SSAS pensions, if you want to investigate further
  4. Hello Danielle. It really depends on the market. The market is hot right now and void periods are low I think that flats are doing better in the market at the moment, from research I've read
  5. Hello Emma. LLPs are normally used by solicitors and other sorts of professionals. They are not a common structure for property investors Your profits from the LLP are taxed at your personal rate of tax - 20% in your case. It's a 'pass through' structure. So If you make 20k of profits, you will allocate 20k of profits between you and your mum. I don't really see any advantage for you to use an LLP, compared to personal ownership Transferring a property to an LLP is not without risk. You could be subject to CGT and Stamp Duty. you would definitely need to get legal/tax advice I wrote an article about using limited companies for property ownership. Limited companies are far more common than LLPs, amongst proeprty investors
  6. The landlord can raise the rent once a year. It lokks like you have been very lucky not to have had a rent rise in 9 years
  7. I think the 18 year property cycle is just one piece of information to help you with your investments. I wouldn't sell an asset worth hundereds of thousands of pounds, just because of the 18 year property cycle
  8. The two Robs are big fans of northern cities. Leeds/Manchester/Liverpool have been excellent places to invest in recent years If thay is too far away, then you can look at Bimingham and the surroundiong areas
  9. I viewed your instagram. Your photos are really awesome! I would really consider content creation (blogging, youtube etc.). If you want to go travelling, it would be much easier if you can make money while travelling. I appreciate that you are time poor, but I would keep this in the back of your mind. I love Norway. The country is stunning and the people are very respectful/tolerent. It's also off the beaten track - which I like! BTL is good for a 1st investment, as you can learn about property. If you want to quit your job, then you won't do it with BTL alone. You'll need to work on more profitable deals, e.g. HMOs or commercial. I mentioned SSAS pensions in the last message, as you can lend money to yourself and buy more properties with your pension funds. I talk about these strategies on my property blog Happy to discuss further over email or a quick call if you want
  10. Hi Andy, Great to have you here! I have one possible suggestion. Have you considered investing in the North of England? You can find great properties under £150k, that yield above 7%. Your money can strectch a lot further I'm based in London. Buying up north enabled me to supersize the growth of my portfolio. When you go to Leeds/Manchester etc., it's full of investors from London! I have my own blog - link here. There's tons of free education and articles around property investment. I cover commercial, residential, HMOs and many other strategies.
  11. Hi Andy, There shouldn't be any tax issue when you repay your loan, although your lender might levy some charges. You will need to check the paper work. Director's loan is good idea, as your company can then repay the money back to you - tax free. There are different ways to withdraw profits from a company: Repay director's loans Pay yourself a salary Pay out dividends The best method will depend on your personal circumstances and your other income. Many investors choose a mix of all 3. I wrote an article (link here), which describes how to withdraw money from a limited company. It covers each of the above methods in detail and talks about the tax implications.
  12. If you own 5 rental properties, then you will likely be a higher rate taxpayer, and pay tax at 40%. In such a scenario, a ltd co will normally be the best option. Inside a ltd co you pay corporation tax at 19%. This looks pretty good, compared to income tax at 40%. Also, Section 24 tax rises don't apply to limited companies. There are other things to consider, but the differential in taxes is a pretty strong reason. I wrote an article which provides full details about the differences - link here. A company is also better for inheritance tax. There are reliefs that you can claim, when inheriting a company.
  13. I don't think that a £7,000 credit card or loan would significantly impact your credit report. Both a loan and a credit card are unsecured obligations, so I imagine that most lenders would not view the as different to one another.
  14. Hi Chris, Welcome to the forums. Great to have you here! In general, you need to pay CGT and Stamp duty to move properties to a ltd co. It's possible to avoid these taxes, by using partnership incorporation and S162 Incorporation Relief. I wrote an article about it - link here. In the long term, I think that ltd co are the way to go. Taxes are significantly lower for most people.
  15. Hi Shane, I love your ambition! I'm sure you will achieve your goals. Here are some thoughts: Don't buy you 1st property in the south west. It's expensive and yields are low. In the North of England, good BTLs are avilable for under £150k. That way you can buy quicker and get moving on your journey If you really want to quit your job and travel, then BTL alone won't get the job done. There's not enough money in BTL. As you get more experienced, look into more profitable deals. e.g. HMOs and commercial property Do you have a pension? You can convert it into a SSAS, and buy properties inside the SSAS If you want to travel, then make sure you have a good agent to manage your properties. You really don't want to be calling up plumbers on Skype, in the middle of the night I too share your passion for travel! I have my own travel blog - link here. I would highly suggest that you try to make money while you are travelling, and not just reply on property. This will make your goal far more realistic. Do you know what the most profitable niche on the internet is? It's food blogs recipes. Food blogs and Youtube videos are extremely popular as people need recipes. You could make money while travelling, by providing recipes online.
  16. Buying a company is far more tax efficient than buying a property. Stamp duty rates are much lower One popular way to transfer money between companies is with loans. Just make sure that you do the paper work right
  17. Just for clarity to the original poster: for a buy to let, financing costs are business costs. The level of tax relief obtainable, is capped at 20% - which is the basic rate of income tax To say that finance costs are not business costs, is simply false
  18. Here are my thoughts: Buying in cash and remortgage after the refurb seems like a sensible way to go There are mortgage products available to non-residents. But they are more expensive. I suggest you speak to a broker that specialises in non-resident purchases Ltd co is surely the best structure. As a non-resident, he would (probably) need to declare personal income in the UK, in his home country. I wrote an article about the benefits of using a ltd co for poperty investment. Companies can also benefit from Entrepenuers Relief Flips could be good in a high inflation market
  19. Don't touch your residential mortgage. In this market, your 1.5% is a superstar rate! I would raise finance against your buy to let properties. Those financing costs become business costs, and reduce the amount of tax that you pay on your rental profits You should also look at moving your buy to let properties into a ltd co. Corporation Tax of 19% is pretty attractive. Look into S162 incorporation relief, which means that no capital gains tax and on stamp duty is payable to incorporate. I wrote an article about how to do this
  20. Florida has been on a tear for the past few years
  21. In many parts of the country, there are large restrictions on holiday lets
  22. Hi Chris. I believe that if a ltd co own another ltd co, then it doesn't pay dividend tax. Dividend tax is only paid at the last stage, when it gets sent to a human. Your overall question is essentially about the best structure for your business. I really think you should speak to a professional. The right structure could save you hundereds of thousands over a lifetime. Property 118 specialise in efficient company structure for landlords. You can set up a free consultation here.
  23. Hi James, I don't think your strategy will work and enable you to quit your job. There are loads of issues I don't think it's realistic to do 8 BRRR deals alongside a full time job. You need to sleep/eat at some point Bridging Finance is risky. If you're paying 1.5% per month, and you project gets delayed by 6 months, then it's a disaster. 6 month delays could be due to slow place of refurb or delays in getting a mortgage (as you are aware of!) Mortgage companies and valuers will be VERY reluctant to agree to big increases in valuations after 6 months If you do 8 deals, there will be loads of hard searches of your credit record. That will make it even more difficult for you to get loans I have some alternative suggestions: Commercial Properties have yields of 10%+ You can convert your pension into a SSAS. With a SSAS, you can lend money to yourself and invest in property at much lower rates - compared to bidging finance. Basically, your pension becomes the bank Look into more complex deals, link converting commercial property into residential (e.g. convert the upstairs of a shop into a flat). These deals can be very profitable I've written articles about these strategies on my website. If you are serious about quitting your job, then you need to rethink your current strategy - as it won't work. If you want, we can set up a (free) call
  24. The deal look pretty thin in terms of cashflow. There's a lot of expenses coming up too. There's a good chance the deal won't make money for a few years. I wouldn't personally do it. Have you considered commercial property? Yield of 10%+ are common and stamp duty is much lower. I have explanation articles on commercial property on my website. The economics of commercial deals look much better in this market
  25. Helo Olly, To answer your questions The best time to enter the market was always yesterday! Property is a long term investment. A 5% price difference in your property will be a blip in the long run. I don't know anyone that has regretted becoming a property investor. A bigger deposit would protect you from risks. I think that 5.5% yields are perfectly acceptable. The difficulty is obviously with mortgage costs, which are currently rising. My advice My general advice is to get moving. Even if your 1st investment isn't a blockbuster (they never are), you will learn so much. Going forward, do some research on different (and more profitable) strategies. In a high rate environment, you want more than 5.5%. Will commercial, you can get yields of 10%+. There ia also something called a SSAS Pension, where you can use your pension funds to buy properties. I have (free) guides to these strategies on my website Also consider investing in a ltd co. Corporation tax of 19% and no Section 24 make them quite attractive
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