Small biz investing money in property

dorset_nurse

Hi Guys,

I have been thinking about what to do with the cash my limited company has made as profits. I'm due to meet with my accountant in a couple of weeks to discuss this among other things but I thought I'd see if you clever people have any ideas or points I should think about and discuss with him.

My company is likely to have enough funds after tax etc this year to purchase a buy-to-let property outright. The account this money is currently sitting in returns no interest and as I am not interested in withdrawing this money in the long term I wondered if this would be a good option for the company to make some interest.

I am aware that I may need to set up an umbrella company and incur further accounting costs, along with the tax on profits and usual landlord responsibilities.

Can anyone see a huge flaw in my thinking or recommend another investment for me to look into?

Thanks in advance!

bengalknights

Depending on the value you could take the safe route of deposit of certificate or fixed treasury bonds.

Kanoona

From personal experience and opinion DON'T. It is so much more trouble and cost than its worth. It may just be my experience and others experiences that I know however it can be an absolute nightmare being involved in buy to lets.

I found I was constantly chasing payment even through, eventually, a lettings agency. The seemingly 'good' tenants in the beginning seem to do the most damage leaving you with costly work trying to get it right for the next tenant. Then theres the repairs etc and insurances.

Hopefully someone will come along that can offer you better advice and that may have had a better experience than me. However my situation didn't get better tenant to tenant. In the end I gave up and sold on. It just wasn't worth the hassle and cost me more money than the 'income'/paying for itself that it was generating.

Unless of course you can get someone you know to move in that you can trust.