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Looking for an advisor

I'm looking for an advisor to make a decision - should I setup a business or not

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Dear all,

I’m looking for an advisor to give me an advice on should I setup a business or not. Basically, I have a property which is a freehold and would like to put that on market to let. Long term idea (dream) is to create a portfolio of properties. I’m in a full-time job and don’t want to leave that for now, but again in future I may leave and do some consultancy/ contract work as a specialist professional.

Can you please point me to a good financial advisor who can advise on how to setup now so that it is future proof, tax efficient and versatile enough to select future direction without need to go back to a drawing board?

Please accept my apologies and ignore my request, if the policies of this forum forbid you to entertain this type requests.

Regards,

 

Replies (15)

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By Wanderer
29th Oct 2020 01:29

pandy
Other
Member Since: 28th Oct 2020

pandy wrote:
Looking for an advisor
I'm looking for an advisor to make a decision - should I setup a business or not

Dear all,

I’m looking for an advisor to give me an advice on should I setup a business or not. Basically, I have a property which is a freehold and would like to put that on market to let. Long term idea (dream) is to create a portfolio of properties. I’m in a full-time job and don’t want to leave that for now, but again in future I may leave and do some consultancy/ contract work as a specialist professional.

Can you please point me to a good financial advisor who can advise on how to setup now so that it is future proof, tax efficient and versatile enough to select future direction without need to go back to a drawing board?

Please accept my apologies and ignore my request, if the policies of this forum forbid you to entertain this type requests.

Regards,

 

Thanks (1)
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By paul.benny
29th Oct 2020 07:10

Credit to you for seeking advice first - we see a lot of people here who have set up something and then got into a mess because they didn't understand the consequences of their actions.

How big are the numbers here? Is your property residential or commercial? Is it Scotland - property law and practice differ significantly from England and Wales. What are your aspirations - do you hope to have multi-million portfolio or are you thinking of a few houses as a retirement fund?

You need to think about a business plan - in particular, how much you're going to earn in rent and how much it's going to cost you. Don't be too optimistic: you'll have rental voids, you'll have unexpected repairs. A local estate agent should be able to give you some indications.

How are you going to fund buying more properties? If you expect to borrow, check out what sort of LTV you'll need.

Consider the resilience of your property venture - if you have no rent coming in for a time, could you meet the expenses?

When you have some sort of plan, talk to an accountant. Get them to sense check your plan and to explain the tax consequences. Ask whether or not you should incorporate.

Someone from here may contact you privately. I don't think anyone will directly point you to a specific adviser.

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Replying to paul.benny:
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By Anonymous.
29th Oct 2020 12:57

paul.benny wrote:

Credit to you for seeking advice first - we see a lot of people here who have set up something and then got into a mess because they didn't understand the consequences of their actions.

How big are the numbers here? Is your property residential or commercial? Is it Scotland - property law and practice differ significantly from England and Wales. What are your aspirations - do you hope to have multi-million portfolio or are you thinking of a few houses as a retirement fund?

I think we need to "back up the truck"!

As you say, definitely better to be seeking advice now but when the OP says "advice on should I setup a business or not" and uses the words like "dream" and "future proof", I think the answer is to see an IFA and start from scratch. What may or may not be a good investment depends on a million and one things. Get an investment strategy and then discuss with an accountant.

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By Paul Crowley
29th Oct 2020 09:22

Talk to a local accountant
Face to face beats email messages

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Slim
By Slim
29th Oct 2020 09:28

where are you based?

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By Cheshire
29th Oct 2020 09:29

Ask your contacts for a recommendation or check out ICAEW/ACCA website to locate someone near you.

Self recommendation, via all those PMs is not a recommendation.

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By cbp99
29th Oct 2020 11:17

Nothing is "future proof".

Thanks (1)
Replying to cbp99:
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By I'msorryIhaven'taclue
29th Oct 2020 11:35

Especially as tenants are falling behind with their rents; I can only see that worsening.

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Replying to I'msorryIhaven'taclue:
Hallerud at Easter
By DJKL
29th Oct 2020 12:19

Maybe, but short of a vast decrease in population people need to live somewhere so overall demand for housing (whatever the tenure) will not materially reduce- unless they all move back in with their parents ( On that point I need to convert their rooms to something else asap in case I get rid of them and they later return forever)

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Replying to DJKL:
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By paulwakefield1
29th Oct 2020 12:57

Even more important - change the locks.

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By The Dullard
29th Oct 2020 13:39

No.

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By pandy
30th Oct 2020 00:03

Dear all,

many thanks for posting your initial view and advices.

Honestly, I don’t know what the future plan is...my ask is not big from future, just a retirement fund OR may be steady rental (or not so steady) income.

My location is in Bedford but the property I have is in Birmingham...next one I’m thinking to buy will be in Swindon and then will be in Aylesbury....I don’t have any strategy, but the property map follows an area with good schools. My daughter will start 11+ (year 7) in two year’s time. So just to get in the catchment I’m buying these inexpensive (150k-180k max) properties in these areas.

My job as I mentioned before is transferable so location is not a problem. Depending on her admission I will put rest of these properties on rent. I think my total portfolio will grow upto merely 700k-800k. Considering that I’m financially comfortable if I don’t get any tenant in these properties for 8-10months. I don’t have any tenant in my 1st property and I don’t want to rush into anything (ie buy another or put tenant etc), before getting a professional advise.

As suggested I will check websites some of you have mentioned.

If any of you interested in taking this painful task to educate me then please message me. I understand these will not come free and im ready to pay for your time.

But what I need is an answer “what will be better for me...private landlord OR a business”.

Again, many thanks for your time and support,
Regards,

Thanks (0)
Replying to pandy:
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By Wanderer
30th Oct 2020 01:15

pandy wrote:

But what I need is an answer “what will be better for me...private landlord OR a business”.

I'm not sure there is any difference on the level of investment you are talking about.
There again I'm not sure that you understand the terms.
What do you mean by 'a business'.
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Replying to pandy:
My photo
By Matrix
30th Oct 2020 06:22

You actually have to prove you live in the house in the catchment area to apply to a school.

I abhor people who try and cheat the system. (There are great schools in Bedford and an 11+ exam I believe.)

Is your question the same as any other real estate guru - should I set up a company or not? Just put that then.

I am sure there are loads of accountants in Bedford, make sure they are property tax experts.

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