Property Developing. Limited Company or Not?

SquatNow

Agreed, Being abusive does not make you big and clever.

At the same tmie it's important to point out when people have made mistake to prevent others copying those mistakes.

It's also important to make people aware of the moral implication of their financial actions as it's far too easy to be blinded by greed.

The OP in this case is quite morally trying to make money by improving property, which I commend, but may not have been aware that the previous profits he made were not from the improvement but were the result of HPI.

We are morrally obligated to advise him of these facts.

It would be a shame to see "you told me to start a company but no-one ever told me I would lose all my money" posts on here simply because people wanted to be PC.

Doozergirl

You don't know the OP's circumstances. You decided on them simply by asking if they were a builder. Oh, and telling them to get bleeping accountant, I think.

It's less to do with moral obligations and more about trying to make people look stupid.

SquatNow

The "bleeping accountant" wasn't me it was someone else.

And if they are asking if they should start a company that renovates properties, "are you a builder" is a pretty important question.

Don't want to make the OP look stupid, just need to ensure he makes an informed decision rather than one based on a TV program he saw telling him buying run down properties and doing them up was easy/profitable.

mr.broderick

SquatNow wrote: »

The "bleeping accountant" wasn't me it was someone else.

And if they are asking if they should start a company that renovates properties, "are you a builder" is a pretty important question.

Don't want to make the OP look stupid, just need to ensure he makes an informed decision rather than one based on a TV program he saw telling him buying run down properties and doing them up was easy/profitable.

You see squat now, you're getting a reputation, you're even getting blamed for other people's abuse. I think this post was pretty fair..

Doozergirl

Ooh look, all three of you. :rolleyes:

I know exactly who referred to the bleeping accountant.

mr.broderick

Doozergirl wrote: »

Ooh look, all three of you. :rolleyes:

I know exactly who referred to the bleeping accountant.

Strange goingson on mse

hearts

SquatNow wrote: »

If your not a builder, who is going to do all the work?

OK, I'll explain how it works to you.

You know all those programs on TV where people buy at auction, do the place up and flip it a few months later for £50k profit...? Well they're garbage. The "profit" on the house wasn't as a result of their hard work doing it up it was a result of A) Buying at a discount at auction and House Price Inflation.

Doing work to a house can only increase the value by the amount you spend on doing the work... period. Obviously if you do all or some of the work yourself you'll save money employing builders.

You can't make big profits by project managing a house refit.

The people on TV would have made the same profit if they had simlpe left the house alone for 3 months... in some cases they would have made more, as decorating a house, beyond a simply coat of bland paint, rarely adds any value. Now house prices are not going up, (possibly going down) you would be hard pushed to make anything from HPI.

Even if you can get all the workmen etc to do all the work on-time and on-budget, you'll be pushed to make a profit. (And if you could get it done on time and on budget I know a few building firms that will offer you a highly paid job...)

I'de suggest you sell it as fast as you can and cut your losses.

This is in fact a very sensible post. Right on all counts as far as I'm concerned.
Beyond that though.
I'm asuming though that you have managed to aquire a property cheaply in some way and that you think there is a profit in doing it up. Unless you think you are likely to get more of the same on a regular basis then going "limited" would be a lot of hassle for nothing in my opinion.

Doozergirl

mr. b, or whoever the hell you are at this minute, I don't know whether you think you're funny or what. I'm that close to doing what I should have done ages ago, so please, get over yourselves.

SquatNow

I think I missed something...? Does Mr Broderick have an alias? Or am I barking up the wrong tree?

dolce_vita

Doozergirl wrote: »

mr. b, or whoever the hell you are at this minute, I don't know whether you think you're funny or what. I'm that close to doing what I should have done ages ago, so please, get over yourselves.

I've always had my suspicions about that mr b

He's up to something I tell you.