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I`m after a bit of advice…
This is the situation I`m in.
I have been in business for 15 years, I own the shop I`m in outright, and therefore have limited overheads but the people who own the house above have shown an interest in my shop and want to buy it to make it into a kitchen and another bedroom.
The plumber next door has put his place up for sale. It is big. Has large store, workshop, attic storage and office. He wants £37,000 for it. I reckon I could get £25,000 for my shop. That means taking a loan for £12,000 to buy it.
I am hoping to retire in 15 years at the age of 55ish. The plumbers next door would make a good plot for a house, my shop just now would not.
Do I stay where I am makiing a good living?
Or sell and buy the plumbers next door?
I have thought about this for over 3 weeks now and can`t come up with an answer.Any suggestions would be appreciated.
Barrie
Re: move or stay
If you rented your premises to any interested party the income from that rent could offset your mortgage on the property nextdoor? If you have any capital to use as a deposit then the mortgage payment may just balance out?
Re: move or stay
Would definitely be worth getting an agent in to do the valuations…the mere fact that the people interested in buying your shop are in the property above will add a significant premium to the price 😉
Re: move or stay
this sounds a good idea, with a few variations that could provide you with money at retirement. crunch the numbers and play I say.
12,0000 is not a lot of money and there are tax deductions to be had with a business loan.
Re: move or stay
TBH honest Barrie I’ve been watching this thread and, from the limited info available, I’d have to say that for £12K I’d likely do it. If for no other reason than the prospective future value whether for your business or to sell on at a later date.
I’d say go for it but remember to ask the accountant how much you can offset against your tax liability.
K.
Re: move or stay
Sorry that should have read £12,000. Corrected.
if you are intending laoning the amount over four years about £230.00 a month. I expect we all know of people who are paying in a pension fund simliar amounts over a long time and they may never see the return that may be possible on the spiraling cost of property.
Someone I knew bought their premises a few years back for £ 35,000
Now the place is being rented out with a nice yearly income, the fellas working from home and gets regular enquires to sell the place in excess of £150,000Just goes to show if you can juggle the figures, take a chance it may in the end be the property that you can sell as opposed to the business which is worth only what you can get for it based on the assumption that you can find someone with those knd of sums willing to buy a whitegoods repair business outright.
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