Property investment virgin - please be gentle!
Discussion
Bit of a ramble I'm afraid but I'm hoping the gang on PH can help with some valuable reassurance, advice and feedback. And anyway it gives me the chance to get all the things in my head down on paper (so to speak).
After a few years of wasting money on fast cars and women
I am now looking to calm down and put my hard-earned into assets that will (hopefully) appreciate in value whilst also bringing in a passive income. This is with a view to hopefully building an asset base that eventually leaves me financially free (able to retire) by the time I'm 45 - it's a challenge, but one I'm relishing 
. I'm 30 now btw.
One method of doing this, or so I thought, is to start by investing in property (buy-to-let and development) with a view to building a property portfolio. I've been researching via estate agents, letting agents, web resources, books, magazines as well as building up a network of people for any such development project (builders, architects, structural engineers and even spoken to a couple of IFAs - still looking for one that ticks all the boxes).
I am looking to start out primarily in my local area - the North East. I have seen properties in Middlesbrough, County Durham and Hartlepool that all seem to be (on paper at least) good investment opportunities. I'm hoping to be making visits to all these within the next week.
My plan at the outset is to buy a property (most probably at auction) that requires some renovation work or has scope for extension or further development - budget here is up to £125K which includes building and renovation work as well as all associated costs. By doing this I am hoping to get a property that once completed can be either sold for a good profit (and reinvested in the next property/ies) or rented out, giving positive cashflow and consequently any equity in the property can be used to finance the next property investment (by gearing). And so on....
As I am new to the game I am excited about the opportunity, but also apprehensive. This is not helped by the fact that I am unable to use the phone (hard-of-hearing) which can make it doubly difficult when having to use go-betweens quite often. However I am in discussion with a friend who would love to get involved (he has extensive experience and contacts within the house-building trade as well as being the most reliable guy I know). I foresee him being a project manager in the first instance and eventually if he wishes to invest, a partner.
So I guess I am seeking some form of reassurance or perhaps feedback and advice that any others who have ventured into this arena can offer - it would be much appreciated!
One question I do have (for tax purposes) is that when starting out in property investment, is it best to start as an individual and open a separate bank account for property associated investments or as a company (limited or otherwise), given that I intend to build up to a sizeable portfolio over time?
Well, my sincerest apologies for the ramble. I'll let you get off to bed.
After a few years of wasting money on fast cars and women
I am now looking to calm down and put my hard-earned into assets that will (hopefully) appreciate in value whilst also bringing in a passive income. This is with a view to hopefully building an asset base that eventually leaves me financially free (able to retire) by the time I'm 45 - it's a challenge, but one I'm relishing . I'm 30 now btw. One method of doing this, or so I thought, is to start by investing in property (buy-to-let and development) with a view to building a property portfolio. I've been researching via estate agents, letting agents, web resources, books, magazines as well as building up a network of people for any such development project (builders, architects, structural engineers and even spoken to a couple of IFAs - still looking for one that ticks all the boxes).
I am looking to start out primarily in my local area - the North East. I have seen properties in Middlesbrough, County Durham and Hartlepool that all seem to be (on paper at least) good investment opportunities. I'm hoping to be making visits to all these within the next week.
My plan at the outset is to buy a property (most probably at auction) that requires some renovation work or has scope for extension or further development - budget here is up to £125K which includes building and renovation work as well as all associated costs. By doing this I am hoping to get a property that once completed can be either sold for a good profit (and reinvested in the next property/ies) or rented out, giving positive cashflow and consequently any equity in the property can be used to finance the next property investment (by gearing). And so on....
As I am new to the game I am excited about the opportunity, but also apprehensive. This is not helped by the fact that I am unable to use the phone (hard-of-hearing) which can make it doubly difficult when having to use go-betweens quite often. However I am in discussion with a friend who would love to get involved (he has extensive experience and contacts within the house-building trade as well as being the most reliable guy I know). I foresee him being a project manager in the first instance and eventually if he wishes to invest, a partner.
So I guess I am seeking some form of reassurance or perhaps feedback and advice that any others who have ventured into this arena can offer - it would be much appreciated!
One question I do have (for tax purposes) is that when starting out in property investment, is it best to start as an individual and open a separate bank account for property associated investments or as a company (limited or otherwise), given that I intend to build up to a sizeable portfolio over time?
Well, my sincerest apologies for the ramble. I'll let you get off to bed.
Running a property investment limited company is one way of doing it but it does involve a lot more tax planning and specialist advice. You need to talk to an accountant to find out the tax advantages and/or disadvantages of property ownership versus company ownership.
E-mail me on my profile if you would like a general discussion about the ins and outs - to post a full description of the differences would be very long winded.
E-mail me on my profile if you would like a general discussion about the ins and outs - to post a full description of the differences would be very long winded.
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