Property Development

[bigbaddom]

Hi

I was looking for some friendly advice and had some basic questions that I was hoping you could help me with!
I know there are a couple of developers on here and wanted to check that what I was thinking was correct.

I have set up a ltd company and plan to buy properties with the purpose of doing them up and reselling them.
The are I am interested in is SW London purely because it is local to me.

The venture will be funded by a directors loan (how do I go about this? Does the money actually need to go into the biz account or can I simply purchase the property with my money but buy it in the companies name? Where do I need to show the directors loan is there?)

I also presume that I will need to register for VAT as again I presume the property purchase price counts towards the turnover therefore putting me well over the threshold before I have even begun.

Does anyone have any recommendations for accountants around the Wimbledon area?
Can anyone tell me what I should expect to pay? What reasonable fees are?

Thanks
Dominic

[bigbaddom]

Thanks Eric, as always it seems with accounting threads, I was hoping you would post.

The question can be put much simpler.
How does a director go about making a loan to a Ltd company

[bigbaddom]

Hi

Yes there is no lending involved at present. Maybe after a couple of years and more experience I will leverage up.

I am purely doing residential at present.
The property I am interested is a simple extension and refurb job and I won't be splitting the property at all so it will remain a single residence.

I was hoping that this simplified the VAT rules significantly.

Thanks for the link and I will take a look.

As I said I am not averse to paying for advice. I am just wondering if there was anyone with someone local they could recommend and give me a guideline as to what reasonable fees are.

Thanks again!
Dom

[bigbaddom]

But do I not need to be vat registered in any case as my turnover will be over the threshold.
Even if I can't reclaim it or charge it?

Thanks

[bigbaddom]

Thanks for all advice guys!
Thats perfect, looking a little less complicated now and I am a little less fearful about messing up.

Would still like some help from a pro if anyone can recommend an accountant near me?

Thanks
Dom

[bigbaddom]

Thanks for all of the words of advice.

I don't really want to get into an argument as to whether or not it is worth doing tbh.

I think it is, and it's something I enjoy doing. If I massively lose out to a falling market I can afford to both take the hit or wait it out.

In any case the money would always be reinvested, so even if the market did fall as long as there was some return from the work you did. You would be able to buy a nicer (bigger, better area) run down property. If you follow my drift.

I know of a couple of people who do this quite regularly with the main homes. I don't see why it shouldn't work when it isn't.

[bigbaddom]

Yes thanks
But you only pay tax on it as a venture if you make money

Zero profit zero tax

I thought from the msgs previously you were implying people didn't make a profit - well that's how I interpreted it.

[bigbaddom]

Ok fair point

I would like to think in the 2 houses I have lived in I had added about 20% in value but maybe I am deluded.