Should we buy this holiday let business?

JonathanA

Apologies if I missed it somewhere in the posts, but have you asked the current owners why they are selling, and what was their response?

franklee

chickmug wrote: »

No audit required/expected but 'signed off' accounts, from Chartered Accountant (hopefully the sellers use one) important.

They could do their own accounts, or use an inexperienced book keeper, which does happen and in which case UGH.

I DIY (differnt business), having started with an accountant for the first few years till I knew the ropes, I think that's pretty common, but then I don't have anything to sell. If it took off and looked anything like sellable then I'd get an accountant back in pronto.

fc123

The only thing I can add is the debt (mortgage) sounds too high for a newbie business to me.......esp one that has triplets.

I do write from perspective of someone who had 2 babies (~now big and even more pricey than babies ever were) and had start ups/own business throughout their upbringing. Sometimes I longed for PAYE security (oh and holiday/sicky pay) but the flexibility was handy.

I feel, after reading the thread, that a London perspective is being put on things and that is The Achilles Heel. If the cottages don't pull in enough, there will be a hefty mortage to cover and that would mean hubby having to go back to work + live in London and commuting back for weekends.


Are there local jobs that could pay one person enough to cover such a huge mortage? I doubt it.

Triplets is a lot of work...I do know someone who has them and she just gets by day to day.
Finding a visiting nanny of some sort would be OK (and you could help with admin whatever) but would take a mega nanny to cope with all 3.

And trumped up accounts. I know of someone who got caught out with these and bought a cafe. He knew within 6 weeks he'd been done.


No disrespect rockport, but it feels very daytime telly dream and the sums are seriously huge. Not now if hubby is on 150k (just guessing)...but later on, when he isn't.

Madmel

As someone who is currently working in the business the OP is considering, I feel I have the experience and knowledge to help.

Chickmug, you have taken offence at my posts for some reason. You have posted about 6 month lets which are not being discussed here, yet you have decided to make me out to seem inept by continuing to raise them as an issue.

Whilst I am not questioning your previous experience, as far as I can see you are not working now in this business, so why you feel you can criticise me is unclear.

I will not post further on this thread as I refuse to argue with someone who neither understands this particular business nor knows how to either type or punctuate. I am not in your words "pathetic". I fail to see how someone whose signature describes them as an Estate Agent with 40 years' experience can be so inept in their use of the English language. I am not picking "silly holes". I am quite offended by your post as I have tried to be helpful and share my experience, yet all you have aimed to do is to undermine me and the OP with a series of scare tactics.

Rockporkchop

JonathanA wrote: »

Apologies if I missed it somewhere in the posts, but have you asked the current owners why they are selling, and what was their response?

They said they are retiring to Abu Dhabi to be with their daughter and new grandson and don't want the worry of keeping any property in the UK.

Rockporkchop

fc123 wrote: »

Triplets is a lot of work...I do know someone who has them and she just gets by day to day. No disrespect rockport, but it feels very daytime telly dream and the sums are seriously huge.

They are absolutely great and no trouble most of the time but sometimes (mainly bath and bedtimes) another pair of hands is a godsend. Unfortunately I have been at work for the last three days full time and thanks to a combination of work and the trains, the earliest I have got home is 7pm, which is when they go to bed. After just three days my house is an absolute tip, my "to do list" is endless and all of us are really stressed and miserable. My DH doesn't want to be a SAHD any more than I want to be a full time working mum so I just can't see how this is going to work out. The idea of leaving it all and moving to Norfolk just sounds so appealing at the moment.

Oh yes it is definitely a bit daytime telly dream!! But there has got to be more to life than living and working in London.

fc123

Rockporkchop wrote: »

They are absolutely great and no trouble most of the time but sometimes (mainly bath and bedtimes) another pair of hands is a godsend. Unfortunately I have been at work for the last three days full time and thanks to a combination of work and the trains, the earliest I have got home is 7pm, which is when they go to bed. After just three days my house is an absolute tip, my "to do list" is endless and all of us are really stressed and miserable. My DH doesn't want to be a SAHD any more than I want to be a full time working mum so I just can't see how this is going to work out. The idea of leaving it all and moving to Norfolk just sounds so appealing at the moment.

Oh yes it is definitely a bit daytime telly dream!! But there has got to be more to life than living and working in London.

I don't know how old they are yet, but I totally understand the flaking out bit...all too much sometimes and I only ever 'did' one at a time. 3? I wouldn't have known where to start.;)

Having said that, I used to go to work for 'rest' too. The rest coming from the feeling of control over ones working day rather than the random chaos of toddelrdom.

It gets harder as they get older as they learn to talk and then, object to childcare and other things......if not by saying it, then in other ways.

On the plus side, I guess they stick together ...sis in law has twins and they used to do that so not miss mum as much.


My view would be to purchase something with maximum debt (as that is what it is..mortgage always sounds friendlier) of 100k. Then, if it doesn't pay off you have lovely home and a realistic chance of covering that mortgage without having to do the high pressure, high earning stuff.

Might just be 2 cottages instead of 5.


Why not rent in the area first to get a feel for it? Just 6 months. We relocated for work (keeping London home) and rented..best thing ever as we got to know so much about area whilst living in it.

This is in Suffolk @2500 pcm.

All I would say is stuff can happen when you have a kids..hopefully not but best not to be overcommitted in any way.

Ignore the 'equity' against the debt (as that's now very noughties ) and just feel the pressure of one income (a self employed one) and that amount of debt. Doesn't make any difference whether the estate is 'worth' 800k or 3 million...your are in it for £380k (I think you said?).

Also we have been in a boom last few years. Many sectors have seen a drop in turnover (some just starting this year) and I can't believe holiday lets are any different......so you may take it on just as the T/O is set to drop 30% for a few years.

fc123

Rockporkchop wrote: »

.

Oh yes it is definitely a bit daytime telly dream!! But there has got to be more to life than living and working in London.

Yes there is but London salaries are generally much bigger. I would live there for a while and get to know people locally, get all the gossip.
It's a lot of dosh and a big decision so worth the research.

chickmug

Madmel wrote: »

As someone who is currently working in the business the OP is considering, I feel I have the experience and knowledge to help.

Chickmug, you have taken offence at my posts for some reason. You have posted about 6 month lets which are not being discussed here, yet you have decided to make me out to seem inept by continuing to raise them as an issue.

Whilst I am not questioning your previous experience, as far as I can see you are not working now in this business, so why you feel you can criticise me is unclear.

I will not post further on this thread as I refuse to argue with someone who neither understands this particular business nor knows how to either type or punctuate. I am not in your words "pathetic". I fail to see how someone whose signature describes them as an Estate Agent with 40 years' experience can be so inept in their use of the English language. I am not picking "silly holes". I am quite offended by your post as I have tried to be helpful and share my experience, yet all you have aimed to do is to undermine me and the OP with a series of scare tactics.

Well that's me told