Maximising my current position....

[Oh Behave]

So, I'm 37 and have invested in properties ever since I graduated and in the last few years I have got on the buy to let ladder, this is in addition to my day job (oil and gas) which pays well but not mega bucks, plus the industry has been pretty flat the last few years but before that was very good. I initially concentrated on my own property through buying and selling renovation projects but I don't have aspirations of living in anything bigger than a 4 bed property. Hence why I put money into buy to lets. Apart from my own properly which I have 650k equity in (and 300k mortgage), I own another house outright valued at £250k and then have one valued at £125k in a limited company, which I also own outright. I could have placed smaller deposits and bought multiple properties but for my first ones I wanted the security of owning them outright. The buy to let I own in my own name is really a back up/security, for whatever reason (I know it would be more tax efficient in my ltd company but that's putting all my eggs in one basket). For my limited company, my plan is for the rents to build up enough to put down a deposit for another property and so on but its a slow burning process (approx. 5k per year profit). I try and save some of my salary to top it up but a 14 month old son and partner who is working part time doesn't allow me to save much these days!

So my question is, given where my money is invested, would you do anything differently to maximise its current/future potential? The reason I invested in property to begin with is because I love anything to do with properties and think I have a good eye for it, both buying and renovating. I don't do any of the big work myself but always to do stuff where I can to save on costs.

Thanks in advance for your input, I realise I'm in a good position but your opinions are genuinely welcomed!

[CSLM3CSL]

Profit seems low based on what you've said. How much rent are you getting on the properties?

[NickCQ]

Oh Behave said:

The buy to let I own in my own name is really a back up/security, for whatever reason (I know it would be more tax efficient in my ltd company but that's putting all my eggs in one basket)

If you are really worried about having all your eggs in one basket I would sell a property and diversify away from the UK housing market.
I don't think it makes a difference to the risk whether its in your ltd or not given that there's no mortgage on it.

[2Btoo]

NickCQ said:

If you are really worried about having all your eggs in one basket I would sell a property and diversify away from the UK housing market.
I don't think it makes a difference to the risk whether its in your ltd or not given that there's no mortgage on it.

I'd be getting out of housing generally. I'm not going into the 'will there be a housing price crash' debate but there is good money to be made elsewhere which looks a lot safer to me.

[anonymous-user]

NickCQ said:

diversify away from the UK housing market.

^ ^ ^ This.

[Oh Behave]

2Btoo said:

I'd be getting out of housing generally. I'm not going into the 'will there be a housing price crash' debate but there is good money to be made elsewhere which looks a lot safer to me.

What other options are there? Stocks and shares?

[Oh Behave]

CSLM3CSL said:

Profit seems low based on what you've said. How much rent are you getting on the properties?

£600 and £950 per month, 5k profit for ltd company was taking into account accountant fees, tax etc. Both properties are let through an agent as I don't live close to them

[2Btoo]

Oh Behave said:

2Btoo said:

I'd be getting out of housing generally. I'm not going into the 'will there be a housing price crash' debate but there is good money to be made elsewhere which looks a lot safer to me.

What other options are there? Stocks and shares?

Dozens. Have a look through the finance and investing threads on here for a place to start, and go from there.

[Mezger]

Oh Behave said:

So, I'm 37 and have invested in properties ever since I graduated and in the last few years I have got on the buy to let ladder, this is in addition to my day job (oil and gas) which pays well but not mega bucks, plus the industry has been pretty flat the last few years but before that was very good. I initially concentrated on my own property through buying and selling renovation projects but I don't have aspirations of living in anything bigger than a 4 bed property. Hence why I put money into buy to lets. Apart from my own properly which I have 650k equity in (and 300k mortgage), I own another house outright valued at £250k and then have one valued at £125k in a limited company, which I also own outright. I could have placed smaller deposits and bought multiple properties but for my first ones I wanted the security of owning them outright. The buy to let I own in my own name is really a back up/security, for whatever reason (I know it would be more tax efficient in my ltd company but that's putting all my eggs in one basket). For my limited company, my plan is for the rents to build up enough to put down a deposit for another property and so on but its a slow burning process (approx. 5k per year profit). I try and save some of my salary to top it up but a 14 month old son and partner who is working part time doesn't allow me to save much these days!

So my question is, given where my money is invested, would you do anything differently to maximise its current/future potential? The reason I invested in property to begin with is because I love anything to do with properties and think I have a good eye for it, both buying and renovating. I don't do any of the big work myself but always to do stuff where I can to save on costs.

Thanks in advance for your input, I realise I'm in a good position but your opinions are genuinely welcomed!

Firstly, well done OP, you've clearly worked hard to put yourself in this position.
Are all your investments/assets in property, or have you invested elsewhere? If not, I'd be looking at other asset classes and ones that give you global exposure, a simple example VUKE (tracks FTSE 100) will pay you almost 8k per year in dividends on 200k invested, with zero renovation efforts.
Yes, the capital amount will indeed fluctuate up and down, but long-term 10-15yrs+ it's likely to appreciate plus you will have had the dividend payments which you could re-invest and let compounding work it's magic.