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dino v

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  1. I haven't tried for the internet/phone, as it's a bit more complex. I have charged for use of the home as an office for each director - you can charge £4/week without needing to provide any further information. If you want to do more than that, you need to start showing percentage of your house that's an office etc. Mileage is another easy claim - if you go to a viewing or to your property or to your accountants, you can claim 45p per mile. Then there were receipted expenses for things like box files and meals when a distance from home doing a viewing. That was done through a ltd company and agreed with the accountant. Suspect could have pushed things a bit further, but everything was genuine or things that HMRC won't question (office use), so rather that than a fine and big bill down the line.
  2. You're unlikely to get many 1st time buyers in Didsbury, unless it's a flat which is likely to be harder to find to flip. Where you buy will depend on your budget and your target market. More expensive properties are generally better for flips, not just because 10% profit is more, but a lot of the basics costs similar regardless, unless you were going really high end - a DPC, rewire, GCH, plastering etc will be similar, even things like bathrooms and kitchens don't change hugely unless you want granite worktops etc. In terms of target market, 1st time buyers will have lots of things they'll want, then reality will hit when they look into how much they can borrow. Do some investigation into typical prices for 1st time buyers or typical salaries, to work out how much the house could sell for. Then have a look for houses at that price, which should give you some areas to consider and an opportunity to review those for other fundamentals. Once you find the areas, it's just the simple case of finding a house that's cheap enough to allow for the profit...
  3. Liam, As others have said, focus in on your goals first and then work out how to get there i.e. you've mentioned £3-400 net per month and 15 houses. So do you want £4500/month, £6000/month or 15 houses just so you can say you've got 15 houses? Do you want £4500/month whilst lying on a beach or £4500/month whilst working full time in property? You could probably average that as an income by flipping a couple of properties a year, sourcing a few properties a month, having some serviced accommodation, owning a few HMOs or owning a load of single BTLs. Any of those strategies, or a mix, could get you there, but if your aim is owning 15 houses, the flip strategy isn't for you. I'd also suggest breaking your longer term goal down a bit - whilst a big goal is important as the vision (probably £6k a month isn't big enough considering your age), if you get the first property and you're making £150/month after all the costs, there's the risk of it looking impossible. So a set of sub-goals are useful to keep you going - buy a property every two years for the 1st 5, then every 18 months for the next 5 etc. Or within 5 years, get a passive income of £x which means you could survive if you lost you're job, an income of £xx within 10 years that would allow you to quit the day job and go full time in property, an income of £xxx in 15 years that would allow you to lie on the beach if you wanted. You can then track progress against them more easily, adjust based on how things are going and also check any opportunity against them - if you get a chance of an HMO or a flip, does it move you towards your goal or distract you? The one thing you've got is time on your side. It's said that people always over estimate what they can achieve in a year but under estimate what they can do in 10 years. Imagine what you could therefore do in 20 and you still wouldn't be 40, or in 40 years when you'd still be at least 10 years before the state retirement age.
  4. I know bungalows aren't exactly a hot topic, but is there a potential untapped market there? I'm not thinking here of the larger, detatched bungalows which often get demolished and turned into larger houses, rather small semi-detatched or terraced bungalows (is that even a term?) with one or two bedrooms. The market is probably limited, as younger professionals aren't going to want them and they may not be preferred for small families either, but is there a potential upside? City centre flats only really appeal to young professionals without children, but that's not putting anyone off investing in them. If people who own a 3+ bedroom home are downsizing, they're likely to buy a smaller house or bungalow, so aren't target market for a landlord whatever the type of house you have. I'm therefore thinking of those who've been in the PRS for many years and are wanting to move into something more convenient than a 2/3 bed house. Many old terraces have pretty steep staircases, which aren't going to be ideal, hence the appeal of bungalows for those with restricted mobility. If you move into a bungalow at 60+, I suspect you won't be planning to move out unless you had to move into care, so you could end up with some very long term tenants. Whilst rent may be slightly lower, avoiding regular void periods and the related maintenance should move than cover for that. In terms of capital appreciation, bungalows seem to be slower than houses, however, due to the footprint requirements there's virtually none being built and with the number demolised or converted to houses, the total number is probably falling each year. The population on the other hand is ageing, so are we going to see an increased demand, which could push up rents/prices? Anyone have any similar bungalows or any thoughts on them?
  5. Based on taking out an annuity. How much do you need if you just stuff it in your mattress? Another nonsense article on pensions. And if we need £47k after tax, that's a lot of BTL as well - maybe spending less than £100/month on clothes would help (does anyone really spend that much?)
  6. dino v

    SSAS Pensions

    Apparently you can, although not tried it so not sure of the practicalities and feels like one for a decent accountant https://www.property118.com/one-of-the-best-kept-secrets-the-ssas-loanback/
  7. One of my goals is a Spanish holiday home. Nothing particularly fancy, bit somewhere we can spend the off peak times for long weekends and a few weeks here and there, with running costs covered by letting it out during peak season (we've only got a few more years of school holidays to work around). But I'm not planning on doing anything yet because of Brexit (and a lack of spare cash!). The £ has lost a lot against the €, so the cost of a property is a lot more than 3 years ago and if the £ recovers, you're building in immediate negative equity or loss. Then who knows what the rules will be - you may not be allowed to own property as a non-resident or you may be taxed heavily on ownership or any income. If there had just been a crash in Spain, I might be willing to risk it, but at the moment, I don't think there's enough value to offset the potential downside. But fingers crossed come November/March/2025, something will be sorted and my dream can become reality, as I hate the cold/rain!
  8. Presume it'll be that you have no right to buy a council property (which makes sense, considering the shortage), but you'll be given 10% of any private house for free. Although I could be conflating two of Comrade McDonnell's policies there.
  9. This will never get past the first court case brought by one of the big build to rent investors. Unless it's the first thing they do, they'll have already caused a full on recession and a huge pension problem when they steal 10% of each business to give it to the workers, meaning a mass sell off of shares by the big investors. Not sure what happens if the worker decides to sell the shares - they end up back in circulation with the workers owning none, so do they steal another 10%? And there's the nationalisation of many private companies - are they planning on paying the market rate for those shares and where is that cash coming from? Student level politics. Interestingly, one of our properties had a tenant who'd been there around three years when we bought it. The house was on the open market for a number of months and the tenant is still there. So they could have bought it themselves and had a mortgage for less than their rent, yet didn't. So either they couldn't get the credit or just didn't want to. So if this becomes law, guess I'll be kicking them out so I can sell it as a family home. That'll solve the housing problems...
  10. The service charge is from the leaseholder for the upkeep of the building and the communal areas and isn't optional. If you decide to use a letting agent then you'll be paying 6-12% of the rent on that as well. As previously, consider your goals. If this is your only planned purchase, not an issue, but if you plan on getting a few, it could take you into the higher rate tax bracket, which would have a serious impact on your numbers. You can avoid that by buying through a ltd company but the mortgage will be more expensive. Also note that if the mortgage you've gone for is a short term product (2 years) then you're going to need to remortgage, so you'll be paying the fees and survey again. You can find one without the fees, but the rate will be higher than what you've considered, so you need to calculate which way works out cheapest.
  11. Does the ground rent include the service charge? Assuming so looking at the cost, but that can be the real killer on flats, especially ones with lower rents. Insurance is too high, as building cover will be included in the service charge. Technically, you don't need anything, but if a tenant or visitor trips over loose carpet in the flat... To cover that, get contents cover for least amount possible, as it'll include landlord cover. I've just done that and it was £86 for the year. In terms of ROI etc, it depends on your goals. I can guess the areas the flat would be and you won't get a lot of capital growth, so it all comes down to yield. Flats will generally yield less than a 2 bed terrace for the same cost, due to the service charge, however, you don't need to worry about the building and communal areas, which brings it back up. Question is can you get better for a £20k investment? Well it would get you a £60-70k house, which are limited in Manchester and surrounding areas but you could get something in Burnley etc for that that would rent for about £400-450. Without the service charge, you'd be slightly better off but would probably have at least the same issues with capital growth. But you're getting ~£250/month before tax, so depends why you want it. Not a life changing amount on it's own, but as part of a long term strategy, it'll start to add up
  12. Be aware that you won't get any IHT advantages unless it's deemed a trading company, which would mean actively buying and selling, not buying and holding. You'll need a good accountant to find a way through that
  13. Doesn't matter if you pay for it in washers, the value will be £80k on land registry. If anyone else in the street tries to get a higher price, they'll have a potential problem, especially if Rightmove has collected photos of your property and can show there was nothing wrong with it. Once you're more than 6 months after purchase, it'll be easier to get it valued higher, although if you've done nothing, it'll still be tricky. If you're doing any renovation, even new carpets, keep receipts and take photos that you can pass to the valuer. They won't explain the whole difference, but will go someway to explain why it was cheap and no longer is
  14. It'll definitely fall within a parish, as every piece of land in the UK does. That doesn't mean there's anything to pay though, however, the first paragraph mentions a defect in the title that they need to insure against. That letter must have been from before exchange, as it's written in the present tense. If they've sent it to you after completion because they'd forgot beforehand, I'd suggest to them that they might like to pay it before you feel the need to take it further.
  15. Ivan, If you go on the lenders website, you may find their list of approved solicitors on it. I've done that for a previous purchase, so was able to find one local