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haf1963

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  1. Like
    haf1963 got a reaction from stephen savastano in Some starting out advice please   
    understanding the legal pack is critical - at least the main points and i always get my solicitor to give the once over to my shortlist of properties - he tends not to charge me as i use him for all my deals. I don't bother with surveys as i am familiar enough to spot major/structural issues and everything else gets covered by by normal full refurb. To be honest 35k won't get you far in an auction..
  2. Like
    haf1963 got a reaction from richard brown in Valuation....Help??   
    I normally do a 'pack' for the surveyor which includes before and after pics as well as a detailed 'schedule of works' that justify the difference between the purchase price and value i use in my mortgage application. My properties are usuall tennanted by the time i revalue (9-12 months) so not sure about 'dressing' - though i doubt it will make much difference. Obviously you need to be with the surveyor at the time
  3. Like
    haf1963 reacted to stoil topalov in Tips for switchinf from BTL to new-build strategy   
    hello,
     
    The only thing I can think of is visit the below websites - they have podcasts and forums too where you can get specific advise:
     
    http://www.self-build.co.uk/
    https://www.homebuilding.co.uk/
  4. Like
    haf1963 got a reaction from richard brown in Birmingham or Manchester?   
    I also invest in birmingham and richard is spot on regarding the different areas and yield versus growth.. Birmingham is also very competitive from a investor point of view so good deals in good areas are difficult to come by. I've done 5 BTL's and am now investigating flat conversions, commercial to rsidential and small developments as my next step
  5. Like
    haf1963 got a reaction from Nikki in Buy - Refurb - Refinance with Article 50   
    Am doing one right now and am of the view that article 50 or not - people will need somewhere to live so rental demand will not suffer
  6. Like
    haf1963 got a reaction from andrew martins tonks in Converting Houses to Flats   
    I am looking at something similar and i would say you need to focus on planning regulations as a priority as i just did a pre-app and got back some very useful feedback on my plan to extend & convert a corner plot semi into flats
  7. Like
    haf1963 got a reaction from mogsie in BTL Lenders Open to Change to LTD Company   
    I seem to have got through all the pre-reqs and tests with N&P and now have the official offer so its down to the solicitors to get the deal over the line.. I am hoping that having done one refinance, the subsequent ones will be easier as my mode is to buy at auction fro cash and then refinance after refurb and tenant in place and 12 months. Though I may try 9 months for the next one and see.
  8. Like
    haf1963 got a reaction from blakeyj in Advice for a new investor.   
    one of many options as its what i did in a similar situation
    setup ltd company buy a bmv cash property at auction, renovate, rent out (2-3 bed terrace/semi) repeat 2-3 times depending on property prices where you are after 1 year re-finance as the value added should have increased the value so you will get most of your money back out buy some more
  9. Like
    haf1963 got a reaction from Alexissoi in bridging loan   
    Hi, I am buying at auction next month and need bridiging finance of approx 60k - any suggestions of a bridging loan company that doesn't have huge arrangement fees as its one thing to pay 1% per month but the extra fees all make it very expensive, when its not even a large amount
    Thanks,
  10. Like
    haf1963 got a reaction from ranjanx in BTL Lenders Open to Change to LTD Company   
    I have had a few go's at it and am currently applying through N&P for a 100k interest only mortgage - seems ok so far but lots of hoops and restrictions so will see if it works out. Shawbrook are more open to lending but charges and interests rates were too high for my liking. lloyds are decent but do repayment only..
    I will see if I actually get a sucessfull result and then come back
  11. Like
    haf1963 got a reaction from lcostello in Investing in Birmingham???   
    David,
    I am investing in brum and have access to a small team of builders who do all my refurbs - done 4 in the ast 12 months.
    send me a private message and i can try to help...
  12. Like
    haf1963 got a reaction from adil saleem in when flipping property within 6 months of purchase   
    I have been told the same i.e the lender will scrutinise the deal much more closely if under 6 months and some will simply not provide a mortgage against it.. You could do refurb that takes 6 months eg inc an extension or something?
  13. Like
    haf1963 got a reaction from propertysam in Bridging loan, then morgaging   
    to get the best chance of a loan aganst the full 65k valuation you need to wait a year rather than 6 months (in my experience). The way to do it sooner os to have a comprehensive spreadsheet of all teh work done, before and after photo's and evidience of similar sales at the higher price. Also bear in kind that many lenders won't go below 75k.
    Its definitely harder than you think so be careful
  14. Like
    haf1963 got a reaction from propertysam in Why I WON'T be transferring my properties into a company   
    Depends on the bigger picture eg if a BRT or HRT payer is now going to have to declare rental income as increased earnings then (with a few properties) it will be easy for that person to be forced into a higher tax bracket not to mention the penal tax ode of 60 percent between 100-120k and loss of pension tax benefits above 150k.
    For a person with a single property I can see why LTD is not the way to go but for a longer term strategy its a better option (at least for me) and has a number of side benefits that are worthwhile (employing a spouse, writing off other costs etc).
    My accountant tells me i will not be making an official profit anytime soon so I expect to pay zero tax in teh short term allowing the business to build up..
    It comes down to what your long term strategy is rather than just looking at the interest rate in isolation
    As always the answer will be different for different people based on their personal circumstances and goals - but an interesting discussion nevertheless
  15. Like
    haf1963 got a reaction from propertysam in Why I WON'T be transferring my properties into a company   
    I ran the numbers and decided to go for the limited company option for a few key reasons
    1. I just started so there wasn't any capital gains hits on transferring existing properties
    2. I am looking long term and want to grow at 2 properties per year
    3. I am not looking to take money out in the short term so no tax implications
    4. I don't want to complicate my personal finances as a 40-45% tax payer
     
    On the negative side then the main hit is availability and rates of finance
  16. Like
    haf1963 got a reaction from gareth owen in LTD Accountants / Advice   
    There will be various accounatncy costs but so far i have only paid for the ltd compnay to be setup - as not yet had any actual company accounts done. The setup cost was 150 but this included the accountant address being my company registered address (plus mail forwarding) as i didn't want my home address freely available on the company house register
  17. Like
    haf1963 got a reaction from gareth owen in LTD Accountants / Advice   
    Hi,
    I'm north birmingham and recently went with an accountant up in bearwood - mainly because a friend of mine uses him and the accountant seemed to know his stuff. I don't think its essential you have a property specialist accountant as i get the impression most general accountants can handle a small property limited company type outfit.  The accountant hasn't really done anything for me yet other than setup the company - which is pretty straightforward and can be done online yourself if needed.
    So I'd say don't put too much effort into the accountant piece and just find someone who has reasonable charges and you can easily talk to..
     
    In terms of buying the property then its pretty much the same process a solicitor will go through for a normal purchase and he will need to see the company certificate plus need details on all the Directors and then its usual proof of funds. I have done 2 purchases through my company (both cash as it happens) and it was very straightforward. I've yet to do a mortgage purchase so that may be more complicated
  18. Like
    haf1963 got a reaction from Muffster in What are you doing ref Summer Budget Tax changes?   
    I only started in property investment this time last year and after reviewing the budget changes in the summer i decided to go the limited company route with my non-working spouse as 50% shareholder. I am not really looking to take out money from the business and there are various expenses/salaries that can be used to minimse tax. I am only just starting to re-finance and i agree it is difficult and more expensive but on balance I think this is the right approach or me as a 40% tax payer and it keeps my investments and personal tax situations very clear
  19. Like
    haf1963 got a reaction from silvina cives in Interesting tax advice from an accountant   
    So,
    I had another session with an accountant about what my best option is in terms of growimg my B2L while minimising tax (am HRT) and he he said, in the long term, setting up a ltd company would be my best bet in terms of being able to both utilise my spouse and minimise my personal tax. We talked around a number of areas susch as the need to grow the business versus take an income etc and the 2 main negatives were
    1. harder to get finance given my model of buy bmv, refurb, rent, refinance
    2. capital gains on selling up
     
    on point 1 i can remortgage my personal property as well as tap into some other financial options - and then loan to the ltd company -  so that I am ok for the next few properties and after that the ltd company should have a decent track record to raise own finance
    on point 2 then i am not looking to sellup in the near future anyway
     
    The only other option we talked about was to keep the properties on my/my-spouse names but use the ltd company to manage them and re-invest the income etc. The downside of this is that I think it will not cover all the interest payments as they come down to 20%
     
    All very interesting and needs more looking into as i have just got 2 properties at the moment and neither will have made much capital gains so timing wise i could move them into the company without taking a CGT hit..
     
    thoughts/comments welcome before i see the accountant again
  20. Like
    haf1963 reacted to lee moffatt in 2 queries from a new-ish investor   
    1. Depends how long ago this was. I do know that you can carry forward losses from a previous year but I'm not sure how long you can roll losses forward (maybe someone else on here could comment).  You should check this with your accountant to get a definitive answer.
     
    2. Yes, you can do this but it can be rather hit and miss.  If there is a particular property you are after it doesn't do any harm to see if the vendor is willing to sell it prior to the auction.  
  21. Like
    haf1963 got a reaction from hugo vandermeer in sample tenancy agreement   
    I am just about to let out my first property and have found a tenant via a trusted friend but am keen to try and treat professionally with a proper contract so whast the best place to find a sample contract or template that I can use?
    Thanks,
  22. Like
    haf1963 got a reaction from Rob D in Up and running (finally)   
    Sorry I have been away for a while but the 'day job' has been getting in the way. So to outline how I got to buy my first property.
     
     I am one of those who is sort of 'cash rich and time poor' so despite thinking and trying to get into property for years, I never had the time to do all the research etc to actually make the move. Last year a very good friend of mine took VR from his work and we decided to team up - given he is 'time rich and cash poor'. He happens to have a lot of experience in the property refurb area so he took a couple of months to research a load of property in our area and attended a few auctions plus rightmove properties with a view to either doing a flip or a refurb/rent. The key for us is that we are not looking for a quick return and willing to invest in the business for 5 years without a return.
     
    We must have seen/bid on half a dozen properties where we thought the finances added up but they usually went for more than we thought was reasonable. We finally spotted a good opp in a area attractive to young professionals so high rental demand/yield but needing a full refurb. Also it was at an auction in London so miles away from the midlands and we hoped the interest would be lower.
    In anycase we managed to secure it exactly on the price limit we set (phew) and paid cash.
     
    There were a couple of clauses in the legal pack that we didn't really understand and so took a bit of risk but it turns out they were not significant and I would definitely be paying more attention to the legal packs next time. I also forgot I had to insure it from day 1 so that didn't happen till I met with the solicitor a couple of week slater - but again no damage done. I also didn't pay attention to the auctioneers fee, which was £900, and I probably should have factored that in much earlier. So a few learning points for next time for sure but I'm happy with the purchase.
     
    We completed last week (4 weeks after auction) and the refurb has began with my partner handling everything and being onsite most of the time. We estimate a max of 2 months for the upstairs 2 bed flat and probably 4 months for the downstairs as we are trying for a garage conversion to convert that also into a 2 bed apartment from the current studio.
     
    In terms of the numbers then it goes something like this :
    Auction price : £85k for the 2 flats
    Refurb costs plus all fees : max £20k (possibly 15k)
    rental yield : 5-600 each
    resale value : estimate 140-150k
     
    The plan is to rent and ideally we can get the upstairs flat done quickly and get that rented while working on the downstairs
     
    The next challenge for me is to find a way to refinance quickly so I can start looking for the next property as our target is to do 3 in 2015. Ideally I would like to get a B2L mortgage on the value after refurb so that way I can get back most/all of the £100k I would have spent and use that on the next one. I have some ideas on this from other posts and need to investigate over the next couple of months as the auction season starts in march.
     
    In parallel I need to look into how best to let it out as I would rather avoid agency fees as my partner can do a lot of the running around needed. Again this area needs some thinking about. I am also looking into the tax side of things as the property is on my name and I am a high rate taxpayer so need to minimize earnings from a tax perspective - again some good advice on this forum in this area
     
    very early days and no certainty on how this will pan out but we did enough due diligence and feel that the risk is minimal with good rewards potentiolly
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