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TommyG

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    TommyG got a reaction from alex usovs in SETTING UP LIMITED COMPANY   
    Hi Alex,
    As Dino mentioned, you need to look at SIC codes - These are codes which tell the tax man what you're company is doing, and how you should be taxed.
    I think the codes you'll be most interested in are:
    - 68209 is for Property Letting (BTLs).
    - 68100 for Property Flipping (Do them up and sell them).
    You mostly want to just have one of these codes assigned to your business (so if doing both, setup 2 companies), which is referred to as a Special Purpose Vehicle (SPV) as it affords you better tax treatment, and usually the opportunity of Entrepreneur's Relief as an exit strategy (although I don't know anyone who has exercised this in Property, only friends who have done it in IT Consulting).
    It can be a bit daunting if it's your first time, so as Dino suggests, it may be worthwhile to speak to an accountant to help set it up.
    Are you planning on using an accountant for your company filing/books? If so they would be a great person to help with company incorporation.

    **As a disclaimer, I'm not an accountant, this is all based on my setting up my property company, and from having my own company for 4 years in my main line of work.
  2. Like
    TommyG got a reaction from rockwood in DIYing the work vs paying for it to be done   
    Hey Rockwood,
    I think if you're 'time rich' and have the skills, it would be silly not to, especially if you're trying to kick-start the portfolio, as this can drive better ROI figures.
    You will most likely want to focus on finding trades for the 'important' areas where you think it may make sense to get an expert in - e.g. Electrics & Gas.
    I personally would also want to find a plasterer as a good one is worth their weight in gold!
    As time goes on (and if you start running multiple refurbs at the same time), you'll most likely find that you'll have to find tradesmen to help out and you'll shift more into a 'project manager' role, but your experience in the field will help you to oversee the projects and will give you a leg-up on other people who don't have this experience!
    You mention 3-6 months to finish the project - this does seem like a slightly longer time than I think most would estimate for a turnaround (but not sure the size of the refub you're looking at!), so if this is a realistic figure based on your other commitments, then make sure to calculate in the extra mortgage interest/finance payments you'll need to make, as this could break the above model and you may indeed want to involve more trades!
  3. Like
    TommyG got a reaction from ollie h in Buy to Holiday Let?   
    Hi Ewanah,
    I've personally not got a holiday-let, but have been looking into one on the Yorkshire coast as our next investment.
    I can't speak for legislation, as I'm not aware of any local licensing laws in Glasgow (e.g. in London you can't have a short term rental for more than a set number of days), but I think one of the main things of note is that not all lenders are comfortable with Holiday lets/Serviced Accommodation, so you may need to hunt around and/or get less competitive rates.
    Generally Holiday-lets seem to be more profitable than vanilla BTL's, but that is heavily predicated on the situation being right e.g. is it near local landmarks, the finish of the property needs to be a tad higher (in my opinion), the wear and tear will be higher and you'll need to repair the smaller issues more quickly than you would on a normal BTL.
    You also have costs that you may not have had with BTL e.g. towels/linen (need multiple so you can have some being washed while some in use), internet, council tax, regular cleaner, key safe, higher quality of furniture etc.
    You will also need to workout if you're going to self manage, or use a service (such as Airsorted although not sure if they operate in Glasgow). If you self manage then you need to get the properties on a few of the Online Travel Agents (OTA's - AirBnB, Booking.com etc.), and then be on-hand to answer queries and check-in and out guests.
    There's a chap called Dale Smith who has some good resources on his site around holiday-lets (he has quite a few in Whitby/Saltburn and surrounding areas):https://www.investicity.co.uk/resources 
    And he's also done a few interviews for the IPI podcast which are worth a listen.
    Hope this helps!
    - Tommy
  4. Like
    TommyG got a reaction from ewanah in Buy to Holiday Let?   
    Hi Ewanah,
    I've personally not got a holiday-let, but have been looking into one on the Yorkshire coast as our next investment.
    I can't speak for legislation, as I'm not aware of any local licensing laws in Glasgow (e.g. in London you can't have a short term rental for more than a set number of days), but I think one of the main things of note is that not all lenders are comfortable with Holiday lets/Serviced Accommodation, so you may need to hunt around and/or get less competitive rates.
    Generally Holiday-lets seem to be more profitable than vanilla BTL's, but that is heavily predicated on the situation being right e.g. is it near local landmarks, the finish of the property needs to be a tad higher (in my opinion), the wear and tear will be higher and you'll need to repair the smaller issues more quickly than you would on a normal BTL.
    You also have costs that you may not have had with BTL e.g. towels/linen (need multiple so you can have some being washed while some in use), internet, council tax, regular cleaner, key safe, higher quality of furniture etc.
    You will also need to workout if you're going to self manage, or use a service (such as Airsorted although not sure if they operate in Glasgow). If you self manage then you need to get the properties on a few of the Online Travel Agents (OTA's - AirBnB, Booking.com etc.), and then be on-hand to answer queries and check-in and out guests.
    There's a chap called Dale Smith who has some good resources on his site around holiday-lets (he has quite a few in Whitby/Saltburn and surrounding areas):https://www.investicity.co.uk/resources 
    And he's also done a few interviews for the IPI podcast which are worth a listen.
    Hope this helps!
    - Tommy
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