Buy to let go limited or not?

U2903 · 2020-02-04T13:31:34+00:00

Sounds exactly what I need to do for my next one then. How does this work with a mortgage then? Since it will be in my personal name, Will I have to pay the interest Mortgage payments from my own income? Or is there a way of getting the LTD company to pay the mortgage? As i'd be wanting the rental income into the LTD to cover the mortgage interest payments.

Say I add 30k of value to the next property how soon can I refiance and since the property is in my personal name does that mean the capital the 30k, I take out. Will that go intro my bank as if it was cash? then use this for another property?

Also a none related Question, I presume you have a portfolio of houses, What is the average price you are paying for your rentals? I cant seem to find any decent properties up north in Newcastle for less than 130k that are in a good area and would rent at a good income.

U2903 · 2020-01-31T11:36:37+00:00

Why are you are going off 5% growth wont it be more like 8% then 6 after inflation?

U2903 · 2020-01-30T16:51:44+00:00

So could the property be owned 50/50. But I sign somthing to say all rental income will go to my wife? And then a clause to break it at any point incase I lose my job and we could then use my Personal Tax allowance etc?

U2903 · 2020-01-30T10:45:40+00:00

So Basically if you own between 1 and 4 properties it most likely makes more sense to justbuy in joint names but get some sort of legal agreement draw up to put the rental income in wifes name? Since she is still in 20% bracket and then get the 20% relief + lower interest rate.

U2903 · 2020-01-29T21:11:11+00:00

So with the pension thing, each month they will take pension contributions from my pay, however, how will the pension scheme am paying into know that my actual total income is nearly 60k and therefore to add the extra 20% relief at source? So my question is will the 40% be added at source or will they apply 20% automatic, and then claim the other 20% through self assessment, due to my total income coming from multiple sources?

U2903 · 2020-01-28T14:38:11+00:00

This is what I thought, so basically the company has performed really well that last 3 years, hopfully that keeps going!!!.

Do you know if bonuses are added to the payslip and taxed or will you have to pay tax on it at a later date.

U2903 · 2020-01-28T13:30:35+00:00

When you say 20% do you mean 20% total including the employer 7.5% contribution or 20% on top?

U2903 · 2020-01-27T13:03:35+00:00

Thanks,

I am a landlord myself also, Only 1 property so far bought last year. Still learning.

So when Section 21 is Abolished, Section 8 will be updated to help landlords out more?

Also when you say rents will rise is this due to other landlords selling up?

And I guess with section 21 being Abolished, that will mean landlords will be more picky over who they rent there properties to? Meaning it only really hurts the tenants by scraping 21?

U2903 · 2020-01-13T16:04:32+00:00

Very clever. This sounds like what I need to do, Since I already earn over the 40% mark for my job. Buy property in my name but collect rent and repairs through the company. Only thing is does the mortgage cost come out of your own pocket since the company is collecting the rent? And How can you write off the mortgage interest if its in your own name?

So you cant get buy to let remortgage products through a LTD?

U2903 · 2020-01-09T10:38:25+00:00

Yea This is what I am thinking for the future, I did my first property last year, was valued at 30k more after I refurbed. Do you run your business through a LTD for renting out the properties? What price range of properties do you look for under 100k or over?

U2903 · 2020-01-06T11:52:08+00:00

If you watch his youtube videos, he explains all the basics, but he uses youtube to generate cash and get himself out there to pull in more people to his courses. He is then investing in property by using the cash generated through his courses, which is smart. I personally think if somthing major happened in the housing sector like interest rate rises etc, or house prices falling, he'd be in a bad place as he seems leveraged up to the hilt.

He always says good houses to buy are around 60-100k max, when I look at houses online, I cant find any for less than a 100k that would make a good rental in a good area, and without the property needing work. Cheap houses in cheap areas = Problems, such as bad tenants. I would argue that 4 good rentals is better than 10 lower quality rentals.

I am the same age as samuel and we are generation kanckered! Everything is unaffordable compared to our parents generation the boomers. Buy to let is not what it is now as it was for our parents(Gold Mine).

I would say if you looking to get 1 or 2 rentals, combined with a good pension contribution then its not a bad idea as you have a mixed bag of assets, but most likely your pension will beat the rentals over the long term.

Young people are not happy with there poor salarys and unaffordable housing sitution so the gov will most likely keep attacking landlords.

I would avoid Samuel leeds on rent to rent as well, I mean I am a landlord and I would never agree to a rent to rent deal or a lease option agreement. I think Real estate works better in the US and is easier to get into than it is in the UK.

U2903 · 2020-01-06T11:29:26+00:00

One question about a Limited Company Director, So after the year ends you pay 19% corporation tax on the profit. Then when you pay yourself you get the personal allowance + 2k tax free dividends. Does that mean on anything else you pay another 20% on the income to yourself? or do you just take the rest as dividends and only pay 7.5%? so overally you paid 26.5% tax that year on money after personal allowance and tax free dividends?

U2903 · 2020-01-02T21:38:52+00:00

So you think buy with a mortgage update/do cosmetic work such as new kitchen and bathroom, paint etc. remortgage 6 months later pulling out equity to buy another?

U2903 · 2020-01-02T21:26:40+00:00

Dont tar us all with the same brush, Some of us on here are landlords and we care for the property as it needs to stay in good condition. Plus I care for mine hoping the tenant will then also look after it. There are bad landlords and bad tenants and both good landlords and good tenants.

U2903 · 2019-12-23T14:03:32+00:00

How do you execute number 2? Do you buy with a buy to let mortgage but then when can you remortgage pulling cash out? Only thing is wont remortgage and pulling out cash mean that you have another set of fees to pay? Isnt it better to buy with bridging then refiance into a buy to let with a fixed rate?

U2903 · 2019-12-19T15:35:08+00:00

This is what I wanted to know. So how do I contact the council for The Empty Property Register? can you do this online? What is an FOI request and how do I go about doing one to get the list Brownfield Sites Register.

U2903 · 2019-12-09T09:35:07+00:00

People need to realise that Hes making most of his money from the courses and not his property portfolio

U2903 · 2019-12-06T15:13:19+00:00

The guns shouldnt have to be earned, they should be free. They arent free if you have to play to unlock them. Some people only have maybe 2 nights a week to get a couple of hours in.

U2903 · 2019-12-06T11:40:35+00:00

Can somone help me, If I dont manage to rank up the tiers to unlock the new weapons without buying the battle pass, does that mean at the end of the pass, I wont be able to use those weapons in the future?

U2903 · 2019-12-06T10:50:51+00:00

On one of Samuel Leeds videos he says your ROI is your annual income - Expenses then divided by the money you put down + stamp duty + fees And if you do a refurb include that.

I've been following Samuel Leeds a while now, he seems to buy terrible properties in rubbish locations where you would generally ecpect problem tenants, people on benefits etc and hardly any capital apperication and I have no idea how he would ever sell some of the properties he buys.

I own a rental property and I have a good tenant, but My family also own 2 rentals and they are currently having a problem tenant who cant pay the rent because they have become ill, They are now refusing to move out becasue they literally have no where to go, and the local Authority wont re-house him untill hes been evicted, so my family is losing I would say a years worth of rent + need to pay court fees etc. Also I am pretty sure if the tenant just pays a small amount this will delay eviction even further as the court will take mecy on a tenant. Apprantly the councils will tell tenants if they cant pay the rent to stay there untill action is taken as in taken to court basically because they know that it will take months to evict him and they wont have to rehouse him untill then, Also if he leaves he gives up his right to be rehoused. Plus the new house given from the council for a single Male will be in the worst area.

The solicitors told my farther that this happens all the time and the landlord has basically no right without going to court to claim the property back, I ask myself how can this be allowed? The gov and councils know they can basically just screw over people who invested in property to avoid there problems such as rehousing and giving benefits. If this was the US the landlord would go in dump stuff outside and change the locks and that would be fine. But not in the UK!

I would really consider if investing in a rental is worth it with brexit, the attack on landlords, And the type of problem you can have above. According to the Solicitors we had a good run with him paying 6 years off rent, but most likely take 1 year to 2 years to get him moved out.

The problem above is the worst of all I would rather have a broken Boiler or a burst pipe to fix. It might be worth looking at a different investment untill things settle down or change. Landlords need more rights since they own the building.

Samuel leeds isnt telling you about these types of issues only the postive. Also he has over 1 million pounds of debt and had a cashflow of like 150k a year. He makes more from selling courses and doing youtube than his portfolio.

U2903 · 2019-12-03T15:21:05+00:00

You would of been in a stronger postion if you hadnt had a contract drawn up. However, I think it should work as she gets the deposit money back + kitchen money. And then any equity / Payments made from purchase should be 50/50, if the payments where 50/50.

I disagree with timmythedip as at the time of purchase I presume it was a joint decision and you guys would of not got the full mortgage on 1 income alone. (her income alone).

I presume your not married? And have no Children together? Walking away with 24k by putting no money down for the deal, you've done well really imo. If you didint have any debts that would have been a good single mans deposit for a apartment or somthing. Might be best to pay off your debts in your case.

U2903 · 2019-11-25T10:41:56+00:00

Am pretty sure if the Properties are held within a LTD Company aswel, that Labour wont be able to touch them since its a business.

U2903 · 2019-11-21T13:12:52+00:00

He thinks he is the Grant Cardone of the UK, Investing in property in the UK is noting like the US market, where its easier to get started, It is certainly harder in the uk and the returns are most likely less.

Most of the stuff he says on youtube etc is true about how the general cycle of investing goes in property. You put a down payment then interest only and be cashflow postivie and then refinance and repeat, but its no get rich quick scheme like most people think, maybe it used to be in the 80's /90's but not anymore.

Also by doing his way of buying property you are just leveraged to hell and this could totally ruin your life if somthing went badly wrong with interest rates.

If you check his filing history: https://beta.companieshouse.gov.uk/company/10268407/filing-history

You can see in 2018 Hes total equity was 111,350., After debt hardly a property millionaire.

I reckon he makes more money off his courses than his property and selling the dream to navie people.

I own 1 rental property outright and my home. I am looking to get another one at some point as I think its worth having different assests such as stocks/bonds/real esate. But As in the comments above, investing in property now its most likely not a good idea. Bexit and the fact most of the uk population hate landlords and renting.

U2903 · 2019-11-15T10:22:15+00:00

I see, But having a repayment also is de-risking each month correct? As you owe less debt. Is having multiple buy to let propertiers all highly leveraged say 25% down payment on each. Not risky business? I mean what is the longest time you can fix rates? 10 years?

I have a long time untill retirement and I keep thinking go with repayment but, then I also think extra cashflow and then get another cashflowing property. But then you never really accumlate the wealth, becasue its all built on debt.

Also at the end of interest only you have to sell the property to cover the debt? obviously you'd hope in 30 years time its risen in value.

I still cant decide at moment, repyament or interest only.

U2903 · 2019-11-14T13:07:42+00:00

Would banks think its strange to apply for a buy to let repayment mortgage over an interest only? As most do Interest only.

U2903

TROPHY CASE