Joint Ventures Are Good For Sharing Risk And Success
Hi Everyone,
I hope you all had a successful week just gone.
We have been moving fast towards the legal exchange of contracts for a building that we offered on recently and that the seller accepted, subject to a quick completion before the next UK Government budget.
The reason for that is that the UK Government is likely to put up Capital Gains Tax on property, so just a few days may make the difference between a lower or an increased Capital Gains Tax bill. Because the owner has held the property for 22 years it is likely that there will be a significant Capital Gains Tax bill to pay, so the seller is thinking, why should they pay more than they have to for Capital Gains Tax.
This is a win win, because it does not cost us any more to buy quickly, arguably there is slightly more risk, however this is the third round of negotiations we have done for this building, and after visiting it 2 years ago and trying to secure it in 2022 and again in 2023, i never imagined that we would secure it.
It is strange how me suggesting to the seller that they would be better of selling to me because of the likely increase in Capital Gains Tax has actually produced a great result for us and also for the seller, a real win win.
Now we will execute the project using a joint venture to share the risk and the profits.
I wish you all a successful week ahead wherever you are in the world!
Cheers
Alan
Recent Comments
9
Sounds like you have been busy with this Alan, all the best with your negotiations here. I hope you get what you want out of it! :)
Hi Kyle, Thank you very much for reading and commenting. I am hopeful that I will get a lot of leverage from this deal as I have interested one of the top property gurus in the UK to invest in it, cheers Alan.
Hi Abie, Thank you very much for taking the time to read and comment! Have a great week ahead! cheers Alan.
See more comments
Persistance pays off!
Thank you George, yes it certainly does, have a great week! cheers Alan.