UK Landlord Forum / Life

Hi All

Thought I may introduce myself as I could be spending more time on this forum

Firstly many thanks for all the material and contributions on here - I've gone through some of the guides.............

I'm about to take over my dad's property business.  He's got around 10 properties (not even sure of the number) based around South Manchester and from memory they are all big properties with s/c flats aimed at young first time renters.

I work full-time for a large company however with a lack of interest from anyone else in the family and my dad's increasing age (he did this to keep him busy in retirement) it's time to take an interest so I'm meeting up with him next week (I live in London) to get  a handle on the business. 

The things I've worked out so far in a quick conservation with Dad is all about "minimizing" tax as the properties are nearly all fully paid for so I think it comes down to a choice in purchasing more property or investing the money elsewhere.

I'm sure I'll be popping on here asking for advice shortly!

Purchasing more property will become more expensive in April.

Purchasing more property via mortgages will become gradually more expensive in coming years as the mortgage interest allowance is... ransacked.

Be careful... managing property means more than the investment side, obviously. It's about caring for the properties, maintaining their upkeep, looking after the customers - the Tenants. Minimising tax is a laudable goal, but hardly something that should be your driving aim. If the properties are nearly all paid off, they should be providing a lovely income stream - enough for most people to live on very comfortably indeed.

My original target was to achieve 10 properties let out, fully unencumbered. I do not think I will reach that as my next purchase, prior to April, will likely be my last until the tax regime changes (and that's probably not likely)... so I will have to settle for 8 and get any outstanding debt paid down as quickly as possible (that will obviously also reduce my tax exposure).

Many thanks for the kind response and taking the time out to type it all.

Indeed I've all of a sudden taken a much keener interest in the changes in the buy to let laws.  From my quick review of the papers it seems  buying properties to let becomes less attractive and a bit more worrying it may impact on those with properties like my dad's onsale value so all in all - not a classic.  One question I'll need to answer is whether expanding the business with more properties is actually viable but I'm a long way from that at the moment.

I understand the importance of about tenants, maintenance, ensuring all paperwork is done in a correct order etc., so I wasn't trying to downplay it all however just to explain the slightly throwaway tax comment in case I made the wrong impression.

I think all but one of the properties is fully paid - total income approx  £15k per month (when the final one is paid off) - maintenance around £5k - therefore avoiding 40% tax on the reminder is pretty much at the top of the agenda, maintenance will be a close second along with finding decent accountants and solicitors plus working out if management agencies are still involved (I looked after the properties whilst he was on holiday years ago and worked out within 2 seconds that one of the agencies he used should have been flogged alive for all the use they were - that's a joke BTW)

The main aim of the business is really around the grandkids - my dad set it up so it would help them with uni fees (if they go) and buying their first flat/house etc., - it's tricky for kids these days to start on the property ladder as they normally start work laden with debt (particularly if they go to university)

As I'm bored decided if I should do my expenses or go to the pub (and how I raise that topic with my wife) I thought I would update on my findings in the wonderful world of property.

I attended my first "landlord/investor" show and mainly sat through a bunch of seminars.  I enjoyed some of them and learnt quite a lot - particular in the area of tax and estate planning.  There were some folk who were plainly out to flog their products who came across as creepy as you can get.  I was talking to one nice chap who spent nearly £21k on going on courses..................and was interested on going on another..............

Spoke to a few chartered accountants and am now getting with them to go through details of the existing setup and what set up is best in the future.  I'll be keeping a keen eye on the next budget than I would normally do and am starting to get the feeling I'll be collating a lot of paperwork in the not too distant future to allow the accountants to get what they need.

This forum is very handy and confirms what my Dad told me about.  It's all about people and keeping your paperwork in absolute order, if someone doesn't give references or papers aren't signed - just walk away.  So many of the posts I see on here are about "the paperwork never came back" or not knowing what the exact agreement with agents are or just giving too much control to agents as a way to manage the property so a thank you to all the contributors.

I'm put down for the next Landlord show in London (Wednesday) whilst I collate information for the accountants so if anyone is going let me know so I can have some company or at least someone to laugh with during the seminars!