How much do you owe ?

[Robert_S]

About 100k, hopefully going up to 350k in the next month or so!! My aim in the next 3 years is to owe 1,000,000 but it will be in property so when it's paid off I'll have assets of that, or that's the plan......

Interesting how people seperate their works debt to their personal debt when they own the company. One thing my accountant told me was to look at the real cost of debt, if you own 20k of stuff outright (no finance) for your company but have a mortgage that 20k is actually costing you whatever percentage your paying on your mortgage!

 

R

 

how does that work

 

if you own it outright how can it cost you money? am i missimg something:001_smile:

[ukminch]

how does that work

 

if you own it outright how can it cost you money? am i missimg something:001_smile:

 

Because they may owe the money elsewhere

 

Jo bloggs 1 20k plant owned 80k mortgage 80k owed total

Jo bloggs 2 20k plant on loan 60k mortgage 80k owed total

 

Depending on how stuff is financed either of them could be better off, ie lower interest rate on mortgage or paying no tax on the interest of the loaned plant etc

[Robert_S]

fair enough,

i owe next to nothing on a morgage and thats the way i like it i can stop and start when i want.

[ukminch]

Sounds fair enough to me. My mortgages are currently paid by tenants - thats the way I like it to be, cos it hurts when their not!!!

[Dean Lofthouse]

Debt is debt, it doesn't matter whether it is business or personal, "you" are the debtor.

[ukminch]

Debt is debt, it doesn't matter whether it is business or personal, "you" are the debtor.

 

Definitely and it's a tool to be used wisely I've just joined the FSB and although my accountant is good you can't beat independent financial advice:thumbup:

[Dean Lofthouse]

One thing I have always done is treat my life as a business

 

Income versus outgoings

 

My biggest life business expense at the moment is a wife, a 19 year old daughter and a 17 year old daughter.

 

My own personal overheads are very low

[mark hughes]

About £599 K will all mortgages

[ukminch]

My biggest life business expense at the moment is a wife, a 19 year old daughter and a 17 year old daughter.

QUOTE]

 

Gota be worth trading them in for a couple of hardworking sons soon then:001_tt2: