29/02/2008 by info.

Currently sellers of properties with mixed use (a shop with a house attached), Guest House etc do not need a Home Information Pack.

However this will change in October for all commercial properties when all commercial properties will need an Energy Performance Certificate.

If you are thinking about selling your business our advice is to put your business on the market now. Firstly because we are approaching the time when most businesses are sold, and secondly because if you wait you will need to spend hundred of pounds in a few months time.

Another reason to place your business on the market now is to get a lead on other business owners who might have the same idea in August and September 2008.

If you want to discuss putting your business on the market in the East Anglia, Essex or London area simply give us a call Horizon Business Agents

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10/10/2007 by info.

Yesterday the Chancellor announced changes to Capital Gains Tax rules, a tax increase under any other name.

Basically, if you are selling a business then all you are concerned with is the net proceeds you will receive after all fees and taxes. Solicitors fees, Agents fees etc.

If you sell a business and do so after 6 April 2008 you may pay more tax, meaning that your net proceeds will be lower due to the fact that taper relief is being abolished.

Our advice is, if you are thinking about selling your business in the next few months then put your business on the market now if you are expecting to sell it at a price higher than your purchase price. You could save 8% in tax.

Alternatively, your business could already be on the market perhaps with another agent or at a higher price. Maybe you should think about reducing the asking price this will improve your chances of selling without affecting the net proceeds from the sale.

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15/09/2007 by info.

Increasingly statistics are showing that house prices are starting to fall as demand falls due to increasing interest rates and credit tightening by mortgage companies. There is also a direct link to the earnings of the population as a whole and the value of residential property, a relationship which is currently imbalanced. www.Housepricecrash.co.uk

The value of residential property will fall in the short term however the value of businesses are not falling.

The value of a business is based upon the ongoing profits of that business and this value has not changed in the last decade at between 1 and 2.5 times profits.

True some businesses may have reduced profits during this time, but there are plenty that are doing very well.

Even if the business is located within commercial freehold premises the value of these premises will not fall if residential property prices fall. Why? Because the value of the premises in the area are often linked to long term rental agreements. So the return on investment for investors is set for the forseeable future.

So if you have spare money to invest, perhaps now is the time to invest in businesses and commercial property investments rather than residential property.

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20/06/2007 by info.

Is the residential property market going to continue to rise?  All the indicators show that by the end of the year in the vast majority of the country prices will be falling.  Indeed in the Midlands this is currently happening.  So if you want to make an investment what should you do? 

Perhaps you should consider buying a business rather than buying a property.

The price of a business is not based upon comparative residential property prices so if there is a property crash then the value of your business will not fall.  It is based on the profitability of that business.  There are many businesses that are recession proof such as bicycle shops for example. 

Indeed commercial property prices do not change quickly because often business owners have signed long leases and the returns are constant. 

So instead of investing in residential property perhaps now is the time to increase your business portfolio instead. 

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11/01/2007 by info.

So interest rates have risen in the UK for the second time in 6 months, but what does this mean if you are either trying to sell your business or are thinking about it.

What it means to the general population is that because it will cost them more in debt repayments, the general population will have less disposable income to spend in your business.  Possibly therefore your turnover and profits will be lower, lower profits equal a business which has lower goodwill and is worth less.

Secondly for the person interested in buying your business, it will cost them more to borrow money.  As they can no longer afford the higher price due to higher debt repayments, they will be more likely to offer a lower price for your business.

Thirdly, a lot of business purchases have recently been financed by remortgaging property, higher interest rates mean lower house prices and less equity to buy your business.

So what does it mean to you?  Well it’s bad news as it means that you may, after today, have a business worth less, and if you want to sell, you may have to be more realistic with your price expectations, or run the risk of not selling at all.

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