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gareth owen

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About gareth owen

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  1. Hi James Thanks for the feedback! It looks like you are right about JVs, I don't think LTD can have them. I found this link which explains things in more detail and offers alternatives. i will still take your advice and speak to an accountant about it though. http://lawspark.org.uk/business-law/setting-up-a-business/what-legal-business-structure-is-best-for-a-joint-venture/ Regarding profits I may have misled you on that one with the way I worded my previous post. My builder/friend will only be reimbursed the cost of materials prior to profits. The costs of his labour will form part of his 50% cut of profits. So in theory, although I said I was the financial side of the partnership he will still be indirectly financing the partnership by the supply of "free" labour. As I said this is still at consideration stage at the moment so not sure if it is achievable. My reasons for going this route are the same as you, I want to get more projects done and hopefully something more challenging but, my other work commitments mean I spend a great deal of time out of the country and maybe this partnership could be the way to go to still achieve my goals. Thanks again Gareth
  2. Thanks for your replies folks! Personally I think we may see some changes to LTD as well in the future but not for a few years as the aim is to wound us not kill us off completely, otherwise no taxes to collect. This is an easy tax option for the government as it is a specialist market and will only directly affect a small percentage of voters....sorry I mean public. What future knock on effect these changes will have to the wider public remains to be seen. Gareth
  3. Hi all, With the new changes to BTL tax relief and CGT many landlords are taking the option to go Ltd. Do you think the government will eventually change the rules for Ltd landlords as well? Gareth
  4. I am considering a JV with a close friend of mine who also happens to be my builder. Does anyone have any experience in doing this? Basically, without getting into the numbers, I will be the finance side of the JV and he the technical side. Any properties purchased within the JV will be buy to flip refurbs, conversions and/or new builds. He will complete all building works at cost. On sale of properties and all costs accounted for, any profits will be split 50/50. We are both LTD Co's. His interest in doing this is obviously monetary as his financial contribution is only materials and labour, but he also gets an input on what needs to be done and how. My interest is a JV partner with 30 years experience in the building industry whose work I trust and also has a vested interest in keeping costs down yet doing a good job. Does anyone think this could be a good option or should I stick to the more traditional customer/contractor option? If there are other options I would be interested in any guidance. Cheers Gareth
  5. Hi Grant Thanks for the reply. In answer to your questions: 1) Yes I am setting up a limited company for tax reasons. My business partner already has his own limited company so what we are looking to do is a joint venture partnership between the two companies. I need to look into the JV a little more though. 2) The initial properties will be bought with a lump sum. I looked at short-term loans but an issue is many lenders seem to want to see three years of business accounts for limited companies. My direction has changed recently, I had looked at gaining cash flow income from buy to let whilst refurbishing occasional buy to flip properties, but the new tax laws have kicked that into touch. The plan is to go straight into buy to flip starting with cheaper easier sell on potential. Once we are established we can look at bigger projects using funding from lenders. Hope these answers help? Good luck with your venture. Gareth
  6. Thanks for the feedback its given me food for thought. What covenants or restrictions I have come across seem to be minimal although I did find one with "right of way for visitors" which on first viewing was not obvious why. After getting the legal pack and further searches it turned out that there was a former graveyard at the rear of the property. Although the occupants had been removed many years previous, the covenant was still in place. Thanks again. Gareth
  7. I am considering converting an old chapel into a residential property with a view to sell. How is the market on such properties? I am getting mixed feedback from "experts" who say bad idea as chapels/churches are difficult to sell because either people are uncomfortable with an ex chapel/church (I see dead people ) or their designs and/or lay outs can be a little quirky. Others say good idea as quirky can also mean higher sale price. Any thoughts? Gareth
  8. Hi All After many years of talking about getting into property development I have finally decided to take the plunge. I am going into partnership with a long time friend (yes I know never do business with family and friends), who is a builder with many years experience. We have discussed it for many years but have finally decided to do something about it. The set up is that I will take care of the financial, legal, buy/sell and administrative side of the business and he will look after the technical side etc. I have project management experience as well as budgeting so my experience will come from this area. We are both based in Llandudno, North Wales so our area of interest is North Wales but we are also looking at North West England. We are looking at buy to flip properties that need modernisation, renovation and in the future rebuilds and new builds. We will also be looking at buy to let in order to create a cashflow for the business as we are aware that properties may not move as fast as you like. Over the past and coming months I am putting my efforts into research on all disciplines within the property industry so that when we finally purchase our first property we can hit the ground running (we hope!). Gareth
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