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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pandy
Other
Member Since: 28th Oct 2020
Looking for an advisor
I'm looking for an advisor to make a decision - should I setup a business or notDear 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,
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.
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.
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.
Especially as tenants are falling behind with their rents; I can only see that worsening.
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)
I'm not sure there is any difference on the level of investment you are talking about.But what I need is an answer “what will be better for me...private landlord OR a business”.
There again I'm not sure that you understand the terms.
What do you mean by 'a business'.
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.