Property Development


L

luke

I currently run my own company(computer related, ltd company). I have £250k
in the bank(business), £200k estimated profit in the next financial year. I
have £45k in personal savings(tax paid) and I live in a rented house. I'm
paid by salary and dividend from my business which totals around £35k per
year. Anything else I want from the business account is taken as extra
dividends and is liable for income tax. My mum and Dad are soon both
quitting their jobs(in their 50s) and they've often talked about going into
property development, I too would like to do the same as a side line, but
obviously keep my current business as my main source of income. I am very
inexperienced when it comes to starting a business, being only 25, my
current business, although successful is hardly what you would call a
professional operation. I'm slighlty unsure about the best way to move into
properly development, should I create a new LTD company? and how should I
fund it? I have a fair amount of personal savings, and a large amount of
cash in the business account but I'm unsure of how best to use the cash and
go about purchasing a first property for development? Do I need to look at a
loan or should I use the money I already have? Can anyone look at the
information provided above and give advice based upon what they would do
with the same figures?

many thanks, luke
 
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D

DoobieDo

I currently run my own company(computer related, ltd company). I have £250k
in the bank(business), £200k estimated profit in the next financial year. I
have £45k in personal savings(tax paid) and I live in a rented house. I'm
paid by salary and dividend from my business which totals around £35k per
year. Anything else I want from the business account is taken as extra
dividends and is liable for income tax. My mum and Dad are soon both
quitting their jobs(in their 50s) and they've often talked about going into
property development, I too would like to do the same as a side line, but
obviously keep my current business as my main source of income. I am very
inexperienced when it comes to starting a business, being only 25, my
current business, although successful is hardly what you would call a
professional operation. I'm slighlty unsure about the best way to move into
properly development, should I create a new LTD company? and how should I
fund it? I have a fair amount of personal savings, and a large amount of
cash in the business account but I'm unsure of how best to use the cash and
go about purchasing a first property for development? Do I need to look at a
loan or should I use the money I already have? Can anyone look at the
information provided above and give advice based upon what they would do
with the same figures?

many thanks, luke
<first thoughts>
you don't mention (important) things like your pension provisions.

Get some proper (paid for) advice...

we used to chuck the company excess profits into a self administered pension
scheme and get the scheme to buy the property(ies) The pension scheme collects
the rent, particularly good if it's you living there...

Not sure of current taxation laws on this... as I say, Get some proper (paid
for) advice...


p.s. Paragraphs are good, please consider using them.
 
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P

Peter Saxton

I currently run my own company(computer related, ltd company). I have £250k
in the bank(business), £200k estimated profit in the next financial year. I
have £45k in personal savings(tax paid) and I live in a rented house. I'm
paid by salary and dividend from my business which totals around £35k per
year. Anything else I want from the business account is taken as extra
dividends and is liable for income tax. My mum and Dad are soon both
quitting their jobs(in their 50s) and they've often talked about going into
property development, I too would like to do the same as a side line, but
obviously keep my current business as my main source of income. I am very
inexperienced when it comes to starting a business, being only 25, my
current business, although successful is hardly what you would call a
professional operation. I'm slighlty unsure about the best way to move into
properly development, should I create a new LTD company? and how should I
fund it? I have a fair amount of personal savings, and a large amount of
cash in the business account but I'm unsure of how best to use the cash and
go about purchasing a first property for development? Do I need to look at a
loan or should I use the money I already have? Can anyone look at the
information provided above and give advice based upon what they would do
with the same figures?

many thanks, luke
Issues dealing with property are very complicated. You need to sit
down with your accountant and go through them.
 

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