Millionaire Challenge

lessonlearned

Hi tinktay

Well done on getting so organised.

Hope you don't think I'm being rude here but I thought I would pass on something I learned when OH and I were running our own companies before he became ill - his was IT, mine was foreign property.

I used to keep a check on all the finances for both companies and do all the books etc before passing them on to our accountant. In the early days I simply handed everything over to the accountant and left him to it because, having always been pretty hopeless at maths, I didn't think I was good enough and I just assumed he would know best etc.

After a while I gradually gained a bit more confidence in my abilities and started to double check everything he did and to question anything I didn't fully understand.

One year I really got the bit between my teeth and spent a couple of days going over everything with a fine toothcomb, constantly phoning the accountant for clarification etc, "Can I do this, what happens if I do that" The end result for my diligence was a tax rebate in excess of £2000 - not bad for two days work.:D

Apparently Madonna, for all her millions, will not allow anyone to sign cheques etc for her, she insists on double checking everything for herself before parting with a penny. So, I'm in good company then.:rotfl:

One of the lessons I have learned was to employ good professionals but not to abdicate all responsibility to them. Keep a tight hold of the reins - makes me sound like a control freak I know. But .......it was our hard earned money.;)

Great news about the distinction.:T

PS Any accounting or business changes I made were all strictly legal.

tinktay84

i totally agree, i am still keeping check on cashflow and like to know exactly whats what. for my personal account I can tell you on any given day how much money will be in my bank and what is due in/out.

and no I dont think youre rude, you are making a good point that may well help one of us (even if we dont know it yet)

COOLTRIKERCHICK

ok here is a link to a a few questions etc that i need some advice on

https://forums.moneysavingexpert.com/discussion/3285936

i know alot of you are hopeing to be millionaires by having a property portfolio, so what do you think ?

lvm

COOLTRIKERCHICK wrote: »

i am in a bit of a turmoil at the mo... basically i am saving like mad to try and get my dream property, but i seem to be saving, and getting nowhere fast...

so was just wondering about investing some of savings to buy a property to let..and just see how it goes etc and if i find the experience ok, them maybe think about buying another property etc

basically i have seen a property for just under 50k..... if i put the 25% down i can get a mortgage for 35k ( just needs a refresh, basically no major spends)

the monthly repayments would either be £124 a month interest only or approx £245 per month repayment...

the average rent for this type of property is around the £400 to £450 per month...

i was just wondering... as a guide line how much would landlord's insurance be etc..... would you start off with having an interest free mortgage on the property? do you work on a 9 month year? to cover the house being empty?

with this type of property ( mid terraced) would it be better just to let a letting agency/estate agent do all the work in finding a tennant and small repairs etc and pay their comission etc?

would really appreciate any thoughts and advice on how people started on the buy to let road..

thanks

Hey cooltrikerchick!

I'm totally in the same boat as you right now - had a look at a couple of properties yesterday but they were in need of way to much work to be worth the hassle.

You say you've found a property for £50k - do you know if it's actually worth this? Have you had a look at sale values of similar properties in the area?

I would definitely work on the 9 month year just to be on the safe side.

It's personal choice on the letting agents. Personally, I wouldn't do it. I worked for one for 2 years and to be honest I feel that they are never going to care about your property as much as you do. It's a huge investment for you so if you can, try do it yourself. Only exception is maybe if you live too far away. Would definitely recommend going on a letting course so you know what you're doing (I did one with Letwise whilst I worked for the company.)

Interest of repayment - think this is personal choice again. Interest only would certainly help cash flow and help you save for another deposit for your next property.

I've no idea about the cost of insurance - I was looking into this myself but I couldn't get quotes without being very specific about a property I didn't even own.

Whatever you do, good luck with it! x

Witlim

Hi all,

sorry for the delay in posting. my internet has been down for a week!! I am in the middle of the think and grow rick book - its very good but a little ranty in places!! haha. im thinking of ideas for my fortune. for me it will be to upskill in some techy area, not sure what yet. i also fancy writing a book and seeing if its any good. two completely different things i know! im also thinking about inventions - hmmmm perhaps i need to focus on just one thing!!! haha

TheMatrix_2

Jacka87 wrote: »

Oh just a thought, anybody wanting to accept the millionaires challenge may wish to read "Think & grow Rich" I have unfortunatly never read the full book, as I just get so far through and end up getting distracted with busy life. However it gives a guide on the principles of succeeding in becoming rich or achieving big goals.

You have to read it 3 times :D:D

COOLTRIKERCHICK

i done a landlord insurance on one of the properties we have seen and the insurance was approx £230

going to see another property this morning, its a bit closer than the other ones, IF we do decide to try this, i think i would def use a local estate agency to let it out etc....IF we see this could be a workable option for us to raise cash/investments whether it would get us in a position to buy our dream house or not, then it would help us with out retirement, as we are in our mid to late 40's and have no pension provision...

so which ever way you look at it, if it does work out ok, then we would benefit..


Flip the way this year is flying by.... we will be old and grey before we know it .......hang on...... we are old and grey now:rotfl:

tinktay84

I have had a few people tell me that interest only mortgages are a must for buy to let (and often all thats offered) as you can only offset the interest against any profit so whatever you pay a month above taht will come out your own pocket rather than out your rental income.

On our property we pay around £16 a month for landlords insurance and thats an all in package with insurance against non payment as well as stuff like building cover and public liability.
We have used an agent to let our property but only on a collection basis, they advertise, find the tenant, vet the tenant and collect money and pay us ours... this costs us around £26 a month. Any repairs we organise ourselves as we are lucky to know a lot of trades people and my huband is gas/plumber.

With regards to the interest only mortgage the idea is that most landlords buy and sell property so at the end of the 25yrs they wont be stuck with the full mortgage amount to find as they will most likely have sold it on. We are not on interest only but our payments are quite low so we can cover it ourselves anyway.

lea123e

Good morning folks,

Been a bit quite on here of late, nobody had any millionaire breakthroughs?

Nothing much to report from my side still hard at the savings and investments which are to start off my property empire

Have decided to re-train in order to begin a part time business which will pretty much double my income once I am established, that will be a very big help in getting towards where I intend to be.

Good luck all!

glenpud

I have a couple of ideas recently that I reckon could work really well...unfortunately i dont really have the skills to do it. But i know that they havent been done (well they may have been tried, but I cant see anywhere).

I will keep my mouth shut (sorry)- and look into it. Once I realise that I won't be able to do it i will let you know.
Maybe i should pitch the ideas on Dragons Den, and get told where to go for not being prepared enough. Who knows?
Good luck in becoming Millionaires all