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About richardhughes

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  1. I'm not sure I get all this company hype. Its OK if you want to grow a company but what if you want to do it to get money to spend: Lets say you get to the position where you are earning £60,000 profit (yipee) You suggest you want to take this as income to spend. As an indicvidual you would pay tax as follows £12,500 no tax £37,500 at 20% = £7500 £10,000 @40% = £4000 Net income £48,500 In a company £60,000 @19% = £11,400 leaves net £48,600 Now you want to take this money out to spend: 12,500 no tax 36,100 @20% = 7220 net income £ 4
  2. I own a house with a freind. He is ready to exit I am in the process of purchasing his share. We hoped to get it through by 31 March to take advantage of stamp duty but that is less of an issue now. His profit on the deal is £ 26,000. So after his CGT allowance of £12,300 he'll pay tax on £13,700 at 28% = £3836 I wonder, if I pay him a deposit of £12,300 in March and we complete in April when I pay him another £13,700 will he be able to claim his 2020-21 CGT allowance against the deposit and 2021-22 allowance against the balance? And so only pay tax on £1400 at 28% = £392. Id rather
  3. Hi James, I use Toby at David James Wealth in Saxmundham - not too far from you. He's been good with my mortgage requirements. By all means mention my name. Have you thought about anywhere more local? I know Lowerstoft is ....well! But there is a sea view flat their coming to auction with a guide of £50,000. If you are local could make a good holiday let opportunity? Ive tried to stay local with my investments. I like to be able to select my tenants and look after the house myself. But I agree, growth is going to be greater in Manchester and Leeds ifyou want to be hands off.
  4. My wife and I own a property with another couple. Each party 25%. We are going to buy their half from them and being a relatively simple transaction hope to get it through quickly. It looks like the lender will allow us to take them off the loan so we will keep the same loan. Can we just complete a TR1 form and submit it to the land agency? If so, when do we send the other couple the money? Our conveyancer who wehave used 3 times previously seems to want to do a full conveyanceing job with searches etc but we already own half the house so are aware of all the issues. And becau
  5. Thanks Dennis. The % will change on each transaction I’ve just tried to keep it easy. In fact there may be VAT and corporation tax in there as well. (this is just my thought process!) So where does money come from? The only people who can create money (in its current form) is there government. They print money, but services, kick start a whole new economy trading goods and services for the money they put into circulation, and it winds it way back to the government after about 10 transactions. The more the government can motivate people to spend the money the quicker it moves throug
  6. I’ve been having a think which is always dangerous. my tenant is a nurse. The government pays her and she pays me £500 a month rent. I pay 25% tax which leaves me £375. I need an electrical safety certificate so I pay £375 to the electrician. He pays tax which leaves him £ 280. His van needs a service so he pays the garage £280. They pay tax which leaves them £210 (for simplicity I am just working on 25% tax). The garage buys insurance for £210 and the insurance guy takes home £152. He bus food from the corner shop who pay tax leaving them £112. ( you can see where this is going). In
  7. Getting your first is always the hardest and you will have doubts - thats natural. Look at it this way you could buy today at £200,000 (75% mortgage at 1.94% = £2910 per annum) and £50 equity If prices fall by 15% next year the same house would be £170,000 (75% mortgage 1.94% = 2473.50 per annum) and £ 42,500 equity. So you have saved £7,500 but you have lost out on 12 months rent at £900 a month (£10,800 pa) If prices rise 5% next year the same house will be £210,000 (mortgage cost £3,055.5) and equity £52,500 equity. Youve got to find another £2500 and you will have l
  8. Hi, you don't need a lawyer to set up a tenancy agreement. Its just a contract signed between the two of you. I would recommend joining the NRLA for £75 (You'll get £15 with this code SZX - 413) and you can then p[rint and use their documents including a teanacy agreement and many more documents such as referencing letter, how to rent checklist etc. However, if you are keeping the same tenant that an agent found for you, I think they are going to want a slice of the cake. You probbaly need to speak with them and agree with them that you can take over managing the tenancy.
  9. This is similar to Stevens post below BUT my children are now adults and have their own full time jobs. my wide and I hold a small portfolio in our own names which is nearly enough to replace my corporate salary. We need to grow a little more to match my corporate salary but we are nearly there. Our strategy is to buy and hold, probably never sell and pass on in our estate. As my DB pension kicks in, age 65, there will be surplus income which I hope I can share with my children. Effectively what we have been building will provide on going benefits for my family both in my life time and beyond
  10. The idea of a promo video or virtual viewing video is good. I know there are companies that will do it for £1000 but as Rob says you can use your phone. Has anyone got any good video apps that will help create a nice looking video?
  11. Another great subject ended with a great quote from Abraham Lincoln (was it him that said "dont believe everything you read on the internet"?) Anyway, Ray Dalio has a similar quote in his book Principles "you can have ANYTHING you want, but you can't have EVERYTHING you want". I think this is great. Even Ray Dalio has to make choices. I could have a Ferrari today but I'm not sure my wife and family would be too pleased about it when I sell the family home to finance it. Or I could have a BIG yacht or I could have a Carrebean Island (possibly) but I cant have all these things and I can't h
  12. Today you were answering a question from "Samuel" regarding investment in Huddersfield which has prompted me to ask.... You seem to be very Northern focused and I can understand that. One or both of you live there, your office is there and the cost of housing is less in the Northern Powerhouse resulting in higher yields and opportunities for growth, I suppose my question is, am I wrong to invest in my home town? I live in Ipswich, Suffolk. A rural town that is about 1 hour on the train to London. We have a number of commuters but its not an out and out commuter town. We startin
  13. Just a quick heads up for anyone getting ECIR's done. If your fuse box doesnt have an RCD protecting the whole property it will fail so this is a visual inspection you can carry out before the electrician is booked. If you need a new fusebox, book that in instead and it will come with a 5 year ECIR avoiding you paying twice.
  14. This is interesting and i am now listening to Ray Dalio's Principles while painting walls! Ray talks about hedging a lot and it seems I might have most of my eggs in one basket - property. Which got me thinking, what can go wrong, what will cause it and what can I use to hedge against those things happening (as they surely will at some stage). To put it in context we are 50% LTV across the portfolio of 8 houses. I see the threats as... Demand for rented accomodation drops Legislation adds to my costs interest rates go beyond 5% pa House prises crash by more th
  15. I use a broker who is great but sometimes I just want to play with numbers and see what is available. Is there a BTL mortgage search portal similar to compare the market etc?
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