House Buying Sanity Check

[mgrover]

No. Every piece of advice given by accounts on here is to do it personally. You'll have to pay tax on the profits when you sell and all sorts so no benefit buying it though company.

That may be an issue depending on the "value" of the house when its ownership is transferred...

realistically even in this market how much is it reall going to appreciate? 10-20% max?

[TheGreenBastard]

Finally, when I sell the house back to myself, I don't plan on making any profit? ie it'll just be the same price. so it should balance out fine that way. Or a bit more given the mortgage payments but nothing crazy.

I think there's a few issues with your plan, some around financial efficiency, i.e. if it's a private residency intended for yourself at some point it will be cheaper and easier to financing in your name - servicing the debt will be cheaper, there are a broader selection of mortgage products, selling your primary residence wouldn't incur tax if moving.

Not adding any asset appreciation when selling back to yourself is very likely fraud. Why not sell it back to yourself at a loss, then offset this against future gains...

[eek]

Not adding any asset appreciation when selling back to yourself is very likely fraud. Why not sell it back to yourself at a loss, then offset this against future gains...

+1 you would need to pay stamp duty when the company sold it to you at the current market value which means any profit will be identified and expected.

The only sane option for the OP is if you plan to live in the property to buy it personally.

[mgrover]

I think there's a few issues with your plan, some around financial efficiency, i.e. if it's a private residency intended for yourself at some point it will be cheaper and easier to financing in your name - servicing the debt will be cheaper, there are a broader selection of mortgage products, selling your primary residence wouldn't incur tax if moving.

Not adding any asset appreciation when selling back to yourself is very likely fraud. Why not sell it back to yourself at a loss, then offset this against future gains...

I mean paying 60k in tax doesn't sound easier haha

But realistically as I'll repeat again, it's purely more so I can afford the property now without stretching myself to breaking out.

On the appreciation, I mean given the current market I can only assume the property would depreciate?

That's what I meant by my comment, I basically mean I'll treat it as I should when selling back to myself.

Anyways this particular strategy won't work due to my SIC code.

[Martin@AS Financial]

Mortgage lenders tend not to like a deposit being taken as any form of a loan including a directors loan. As part of anti money laundering criteria, you may need to evidence your source of deposit showing the build up of funds over say 3 months.

Your accountant will be best placed to advise but when I evidence my clients source of funds (based on them trading through their ltd co rather than an umbrella), I tend to do so via the ltd co bank accounts. That way, if the purchase falls through, you will not have taken out dividends unnecessarily.