In this new series Shaz covers everything you need to know about starting a property portfolio and begins in this episode with looking at - Should you buy and hold or buy, refurbish and sell? Along with great advice and tips about whether the business should be in your own name or you should create a limited company.

Property is a tried and tested way of achieving extra income and there are lots of different strategies but the buy and hold and buy, refurbish and sell are two of the most easily accessible to those who are just starting out so Shaz’s great tips on pros and cons of both strategies are exactly what anyone needs to decide on the right strategy and get started.

 

KEY TAKEAWAYS

• Buy to let is a long-term strategy that is relatively low risk.
• It gives regular cash flow and there is also the advantage of capital appreciation.
• When you have a rental property, there are maintenance costs and wear and tear from tenants.
• Buying and developing has a higher risk when you begin because the amount you add through development is less known.
• If you can buy below market value, add value and can sell quickly you can achieve good returns.
• With buy to sell there are no ongoing costs with tenants but also no regular cash flow.
• Buy to sell is more sensitive to the property market and you will need to build a team that can support you in the refurbishment.
• Buying in your own name means you are subject to section 24.
• Having property in your own name is more flexible but you do have unlimited liability.
• If you have a limited company then you are not personally liable and you only pay corporation tax.
• As a limited company, there is a more restrictive choice of mortgage products.

 

BEST MOMENTS

‘Property is a tried and tested way of achieving extra income’

‘Usually, the buy to let strategy needs to be scaled up to achieve the best returns’

‘It can often take the less experienced developer longer to refurbish than they think it will’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

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•   Instagram
•   YouTube.