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How to estimate the cost of a renovation
Charles Pell posted a topic in Flips & RenovationsHi all, I am about to embark on my first property renovation (yay?!?). So far I have made a few offers, and missed all of them. I have a profit margin I hope to achieve of 15% minimum. In order to hope to meet this target, I imagine it pays to have a pretty accurate idea of what a property might cost. I have made attempts to try and price jobs up based on a variety of sources, but I don’t feel comfortable doing it since I have no idea whether my estimates are too high or too low, and I don’t know even whether some of the jobs I am allowing for need doing, or whether I haven’t accounted for certain jobs that would need doing. I have started to wonder whether I should get a professional to do this side of things, allowing me an insight into how a professional would go about it. So my first question is this; should I ask a professional to do it, or would it be better to jump right in and make my own crude estimate, and learn from the mistakes I will inevitably make. (Part of what puts me off doing it myself is that I could be drastically overestimating the cost of a job and therefore not offering enough for a property). The second question: If I was to go down the route of asking a professional in to make an accurate estimate, what kind of professional should I ask? I have read in a book specifically on property renovation that you can get contractors to do it, or quantity surveyors. I don’t know who to approach basically. I look forward to reading what anyone has to say :) Charles
Free Project Management Support
Chris Whittaker posted a topic in Refurbs & DevelopingGood afternoon all, With all that is/or isn't happening during lock down I'd like to offer some free help. I'm a self employed project controls engineer which involves detailed project management plans and reporting. This involves building logic based gantt charts, critical paths, manning graphs, cost reports etc. Basically I like planning software and excel far too much! If your current systems would require a second opinion I'm happy to help? I can provide some advice / templates that could improve your current setup. Give me a shout and we can discuss. Stay safe, Chris
Can I claim my refurb as a revenue expense?
a_wibberley_hotmail_co_uk posted a topic in Tax AdvicePlease can someone help! I am in the process of buying my first property through my new ltd company. My guess is it will complete in 6 weeks or so. It is a 3 bed property that will be a single let. The property is perfectly habitable now and could easily be rented out as it is, however I want to do a fairly big refurb. E.g. replacing the kitchen and bathroom, new carpets, redecorate etc. This will mostly be a like-for-like refurb and I don't think the majority of it will count as a capital expense. If I do this work before I first put tenants in, am I right in understanding that I cannot claim this work as an expense as it involves getting the property ready to be let. However if I put tenants in first, then when they leave I decide to do the refurb, I now could claim this as an expense as the "rental business" would have already started. Have I got that right? My big question is... *What is the minimum period of time I would have to have a tenant in my property before I could class any replacement refurb work as a revenue expense?* If I rent the property out on a 1 week AST, then do a big refurb, clearly this will turn some heads with HMRC. So what is the magic number? 1 month? 6 months? I hope I can get some wise responses on this. Many thanks!
Transferring property to LTD company
Murraykerr posted a topic in Legal AdviceHi Folks A quick question regarding transfer of a privately owned property into a LTD company. The property I want to transfer is without any mortgage so I guess that all that remains to be done is for a solicitor to register the property in the company's name at the land registry office. Has anyone done this before? Any idea how much I should budget for? And also when it comes to the stamp duty, will I have to pay for a valuation? and what stage of the process would I need to do this? I'm an 'accidental landlord', but now that the mortgage is fully paid off I'm looking to upscale using leverage to get a portfolio together and I don't want to get hammered by S24 further down the line, so am transferring my property to a LTD company. Any advice would be greatly appreciated! Thanks!