Buying a residential property company - what will I pay?
Hi all,
Unsure if this is the correct subreddit for this but I have built up around £200,000 of cash and I’m looking to get into residential property.
I’d prefer to buy a company that owns the property, rather than buy the property outright. I do have some questions.
My understanding is I would pay 0.5% tax instead of SDLT on the properties if I bought them seperatly (please confirm if true!)
My understanding is that landlords looking to exit the market will generally offer a discount on their companies since you are taking all the property off of their hands in one go. What is the general discounted rate? (I know this is a very broad question.)
How exactly is the value of the company evaluated? Is the price of the company generally considered to just be the assets - liabilities? Or is it more complex?
Are these purchases typically made in cash all at once? I don’t necessarily have a problem with that, but just wondered if an outright purchase in cash was typical for this sector.
I invite any and all feedback and really appreciate the help. If anyone can direct me to a more appropriate subreddit or resources please do
Kind regards