Is it all about the money dum dumeny dum???

I'm hoping for some opinions on our situation and to do this I have to lay our financial position and figures here on the table.

We have a business to sell, It is on the market for 200k but to be honest we would take 100k if we were offered. It is a specialised business so I'm not sure if that will put people off. (It has been on for sale for 3 months) We would not consider running it from the other side of the world (if anything went wrong we are still responsible) and there is no one we know who could manage it.

Anyway to cut a long story short....I am now getting either quite irrational or brave and now thinking to just "go for it" book a flight ticket for August and go regardless!!!..either giving the business away or something else. We received PR 1 year ago.

If we went without selling the business we would have a $137k deposit, that's is after buying cars, 6 months full living costs buying fees etc etc. Just not sure if this would be enough for a deposit. (although the calculators say yes)

My reasons for backing this "going in faith" is that I do not like the secondary school my daughter has started attending and don't want her to start another year. I also worry that the older she gets boyfriends may come into it and may cause problems. The whole reason for this was for the kids to "grow up" there and who knows how long the business may take to sell. Also the flights for August are really cheap to book now (yes I'm grasping at positives here!) Oh and yes...I do not want to have to go through another winter here!!!

As we are looking at Brisbane area as most jobs for hubby. we are looking at house prices no more than $400. With this in mind we would be worse off than we are now. I could get a job but we were hoping that wouldn't have to happen - obviously the business sale would help massively and in turn we would be better off.

My heart says go, we will make it happen but my head says I must be mad and we should wait.

I totally understand I am going to get a mixed bag of replies but...... what would you do?? Wait it out or just go for it.

Thank you.....Adele x

Hi Hun.

Can you sell it from over here? I don't see the point in giving it away as it's quite a sum of money to throw down the drain. If it's possible to still try and sell it from here I would take that option and hold off on buying a house until the money comes through.

Have you sold your house? If not you could always use that as a fall back.

'Personally I would go for it as I agree as your daughter gets older she is going to be more reluctant to go, and now seems a perfect time.

Try advertising it on the for sale section of the forum, who knows someone going back may fancy a business to walk in to.

Any links to the business? Is it profitable? I Know a few people who might be interested.

Anything you can get for your business would be good and as others have said you don't want to give it away.

$400k unfortunatoey will not get you a lot in Brisbane these days. $500-600k on the other hand is a different matter!

If you would take a lot less than 200 then reduce the price. Advertise it as reduced. People like to think they are getting a bargain. But try not to walk away. You need that money. $400 is not going to get you much house.

It's good that you are prepared to walk away from it because this now means you can reduce your price ( 150k ? ) and not be to bothered if you get a cheeky offer.

Something is better than nothing tho, so keep it simple and try get something for it.

I'm hoping for some opinions on our situation and to do this I have to lay our financial position and figures here on the table.

 

We have a business to sell, It is on the market for 200k but to be honest we would take 100k if we were offered. It is a specialised business so I'm not sure if that will put people off. (It has been on for sale for 3 months) We would not consider running it from the other side of the world (if anything went wrong we are still responsible) and there is no one we know who could manage it.

 

Anyway to cut a long story short....I am now getting either quite irrational or brave and now thinking to just "go for it" book a flight ticket for August and go regardless!!!..either giving the business away or something else. We received PR 1 year ago.

 

If we went without selling the business we would have a $137k deposit, that's is after buying cars, 6 months full living costs buying fees etc etc. Just not sure if this would be enough for a deposit. (although the calculators say yes)

 

My reasons for backing this "going in faith" is that I do not like the secondary school my daughter has started attending and don't want her to start another year. I also worry that the older she gets boyfriends may come into it and may cause problems. The whole reason for this was for the kids to "grow up" there and who knows how long the business may take to sell. Also the flights for August are really cheap to book now (yes I'm grasping at positives here!) Oh and yes...I do not want to have to go through another winter here!!!

 

As we are looking at Brisbane area as most jobs for hubby. we are looking at house prices no more than $400. With this in mind we would be worse off than we are now. I could get a job but we were hoping that wouldn't have to happen - obviously the business sale would help massively and in turn we would be better off.

 

My heart says go, we will make it happen but my head says I must be mad and we should wait.

 

I totally understand I am going to get a mixed bag of replies but...... what would you do?? Wait it out or just go for it.

 

Thank you.....Adele x

If I were you I suspect I would come but leave my 'deposit' money in the UK in the hope that the exchange rate improves in 2018. Renting until you get a feel for the areas might be more sensible too especially as your $400k price budget is not going to get you a great house imo. You might find that you can stretch that budget later and live somewhere that you like.

No real advice on the business. I assume it has been independently valued. The problem can be if much of the valuation represents Goodwill as this can be dependent on the business owner so much of the value to the business is your husband.

It is a specialised business so I'm not sure if that will put people off. (It has been on for sale for 3 months)

No, being a specialised business isn't going to put people off. That's what you need. If it's a general business that anyone can set up and run then they can just set up and don't need to buy your business. Selling a business is not like selling a house it can take a lot longer so don't be discouraged after only 3 months - although publishing a price reduction (say from 200k down to 150k - that's assuming it was independently valued at 200k or more) wouldn't hurt.

Also if you get to a point that you're desperate to go offering stage payments (effectively offering to finance someone's purchase of the business) might be the way to go. There's a big risk the buyer will default on the later payments but if you were prepared to walk away with nothing you're not actually losing anything.

Hi Hun.

Can you sell it from over here? I don't see the point in giving it away as it's quite a sum of money to throw down the drain. If it's possible to still try and sell it from here I would take that option and hold off on buying a house until the money comes through.

Have you sold your house? If not you could always use that as a fall back.

'Personally I would go for it as I agree as your daughter gets older she is going to be more reluctant to go, and now seems a perfect time.

I agree on both counts @ThePomQueen Now is the perfect time to go but also it is a lot of money to go down the drain. Then I keep telling myself...it is not all about the money, it is about a new life! I am just so torn, I hate not having a goal or date to focus on.Being in limbo is just not nice for me.

We went to look at the Lockyer Valley, Kensington Grove, Regency Downs and we loved it, the house prices are really low so if hubby could secure a job in Towoomber/Ipswich then we wouldn't have to shell out too much on an house. Unfortunately the figures above did include the proceeds of the sale of our house.

We wouldn't sell the business from Overseas as I think the staff would be too nervous with the situation and possibly leave - that would be a problem from the other side of the world.

Thank you for the advice - particularly your last line!! :hug:

Any links to the business? Is it profitable? I Know a few people who might be interested.

Hi There @movingback, I will PM you a link. It is in Sheffield. Thank you

If you would take a lot less than 200 then reduce the price. Advertise it as reduced. People like to think they are getting a bargain. But try not to walk away. You need that money. $400 is not going to get you much house.

Hi @rosiew I totally agree with you and I did suggest that, but they said that reducing a business by such a lot causes the buyer to think that something is wrong/dodgy with the business and tends to put them off. (I never really thought about that) Maybe reduce it slightly and then if they negotiate lower, then accept that. x

We did see some nice houses at Springfield Lakes for around the $400 mark although not big gardens or as big - but I suppose it is do-able and I thought the area was nice too.

Thank you for your advice x

I'm going to be a dissenter here, as someone that moved to Australia thinking it was all about the lifestyle and money didn't matter I got a rude awakening.

The $500k house we thought we could buy in Perth just didn't exist in the areas we would want to live - those for sale turned out to be in need of renovation beyond a 'make over', in some cases the only real option was demolition so our housing costs were much more than expected and the lower income certainly bit. There was just nothing so great about Australia to make it worthwhile.

I do understand the dilemma about your daughter though, how old is she? Much as we don't want to upset our children up to the age of 16 they don't have a lot of choice in the matter & the likelihood of a boyfriend at that age being 'the one' is pretty unlikely so unless your daughter is 15/16 I'd let the sale of the business take it's course. If you'd accept £100k though I would be dropping the price a fair bit to generate the interest.

It's good that you are prepared to walk away from it because this now means you can reduce your price ( 150k ? ) and not be to bothered if you get a cheeky offer.

Something is better than nothing tho, so keep it simple and try get something for it.

@Wa7 Yes we would be happy with £100k its just how long do you wait until you chuck in the towel. Sometimes I wish we had a cafe or shop that anyone could buy. I agree something is better than nothing and blood sweat and tears have gone into that business!!!! Thank you for your time responding it is appreciated x

If I were you I suspect I would come but leave my 'deposit' money in the UK in the hope that the exchange rate improves in 2018. Renting until you get a feel for the areas might be more sensible too especially as your $400k price budget is not going to get you a great house imo. You might find that you can stretch that budget later and live somewhere that you like.

 

No real advice on the business. I assume it has been independently valued. The problem can be if much of the valuation represents Goodwill as this can be dependent on the business owner so much of the value to the business is your husband.

@Gbye grey sky Exactly what I am thinking of doing! Leave the money over here, rent for a long time and hopefully the rates will have improved. I'm actually like a mad woman checking the rates every day!

Luckily the value is in assets and profits not goodwill, I told the valuer to value it not for me to be pleased with it but what it was REALLY worth to sell, as I didn't want to be wasting time with an un-realistic price when the priority was to sell quick. He informed me how it was worked out and looking at the figures it was right the right valuation - however, it is only worth what someone is willing to pay isnt it?

Thank you x

No, being a specialised business isn't going to put people off. That's what you need. If it's a general business that anyone can set up and run then they can just set up and don't need to buy your business. Selling a business is not like selling a house it can take a lot longer so don't be discouraged after only 3 months - although publishing a price reduction (say from 200k down to 150k - that's assuming it was independently valued at 200k or more) wouldn't hurt.

 

Also if you get to a point that you're desperate to go offering stage payments (effectively offering to finance someone's purchase of the business) might be the way to go. There's a big risk the buyer will default on the later payments but if you were prepared to walk away with nothing you're not actually losing anything.

@Ken What a good idea Ken!! We could take a £100k initial and arrange £xxx at a later date/s. If they default we got what we wanted anyway. That's an excellent idea. I will put that to the agents if they think it is worth advertising this. Thank you x x x

A hundred grand is a huge sums of money. Two hundred is life changing. I think you need to just wait it out.

Dont forget, your husbands qualifications are not going to be recognised and even once he gets work, he will need to start as a trade assistant (like and apprentice with a reduced salary to match) I am not sure on QLD licensing, but he may need to do some expensive courses.

Take the the time to do this properly and it will pay dividends later.

@Gbye grey sky Exactly what I am thinking of doing! Leave the money over here, rent for a long time and hopefully the rates will have improved. I'm actually like a mad woman checking the rates every day!

 

Luckily the value is in assets and profits not goodwill, I told the valuer to value it not for me to be pleased with it but what it was REALLY worth to sell, as I didn't want to be wasting time with an un-realistic price when the priority was to sell quick. He informed me how it was worked out and looking at the figures it was right the right valuation - however, it is only worth what someone is willing to pay isnt it?

 

Thank you x

A follow up point to this is that there is a phenomenal amount of house/apartment building going on in Brisbane and surrounding area (so much so that I worry a lot about infrastructure and the effect on the character of the place) that I think it very unlikely that the price of houses will rise much if at all in the next few years so even more reason to delay purchasing.

On the business one thought I had was your husband offering to sell off most of the business whilst retaining a minority shareholding. He could also be available as a minority shareholder/partner to the new owner in an advisory capacity. Set up correctly, as the business generates profits you could receive dividends, and the new owner can buy out his share at any time in the future. A potential buyer might find this attractive as the initial downpayment will be lower, your husband is implying confidence in the future profitability by retaining a share in the business, and the new owner can turn to him for advice if needed.

... and don't overlook capital gains tax planning ...

Best regards.

... and don't overlook capital gains tax planning ...

 

Best regards.

@Alan Collett - Oh Alan - dont get me started on that. Our accountant informed me that if we sold the business for £100k we would have to pay capital gains tax on £200k as that is what it has been valued at!!!!! - I have never heard something so absurd in my entire life. Paying tax on money that you never got!!! What?????

Only our tax system could screw you over like that!

.......and breath!

Thanks Alan (and for the good work of Go Matilda getting my Visa :-)

@Alan Collett - Oh Alan - dont get me started on that. Our accountant informed me that if we sold the business for £100k we would have to pay capital gains tax on £200k as that is what it has been valued at!!!!! - I have never heard something so absurd in my entire life. Paying tax on money that you never got!!! What?????

 

Only our tax system could screw you over like that!

 

.......and breath!

 

Thanks Alan (and for the good work of Go Matilda getting my Visa :-)

Hi Adele!

Maybe get a second opinion on the CGT position?

Best regards.

A hundred grand is a huge sums of money. Two hundred is life changing. I think you need to just wait it out.

 

Dont forget, your husbands qualifications are not going to be recognised and even once he gets work, he will need to start as a trade assistant (like and apprentice with a reduced salary to match) I am not sure on QLD licensing, but he may need to do some expensive courses.

 

Take the the time to do this properly and it will pay dividends later.

@VERYSTORMY Yes deep down I totally agree with what you are saying, it is alot of money and we need to wait - I just feel like every day is wasted and hate living in limbo. You speak sense! :-)

Luckily my husband is not an electrician which requires all the lisences he is an electronics technician who works on circuit boards in equipment and not live mains. - this doesnt require any "official" qualifications or lisences so we get away with that one! (Phew!)

Thank you x

@Alan Collett - Oh Alan - dont get me started on that. Our accountant informed me that if we sold the business for £100k we would have to pay capital gains tax on £200k as that is what it has been valued at!!!!! - I have never heard something so absurd in my entire life. Paying tax on money that you never got!!! What?????

 

Only our tax system could screw you over like that!

 

.......and breath!

 

Thanks Alan (and for the good work of Go Matilda getting my Visa :-)

That does not sound correct, Adele.

There is a greater likelihood that selling the business well below market value will attract an enquiry from HMRC because in many instances the business passes to a related party and tax avoidance is at play.

You would then need to satisfy them that the business was actually sold at that price, that the transaction was with an unrelated party conducted independently and properly through a 3rd party, and the reason for selling the business below the market value.

If all is good though then the price received would supersede the market valuation. You might want to seek a 2nd opinion on this or at least challenge your accountant to show you the basis for his advice on this.

@Alan Collett - Oh Alan - dont get me started on that. Our accountant informed me that if we sold the business for £100k we would have to pay capital gains tax on £200k as that is what it has been valued at!!!!! - I have never heard something so absurd in my entire life. Paying tax on money that you never got!!! What?????

 

That would only apply to related party transactions (say if you gave/"sold" the business to a close relative) otherwise a business is only worth what someone will pay you for it regardless of whatever valuation anyone else wants to put on it.

I'm hoping for some opinions on our situation and to do this I have to lay our financial position and figures here on the table.

 

We have a business to sell, It is on the market for 200k but to be honest we would take 100k if we were offered. It is a specialised business so I'm not sure if that will put people off. (It has been on for sale for 3 months) We would not consider running it from the other side of the world (if anything went wrong we are still responsible) and there is no one we know who could manage it.

 

Anyway to cut a long story short....I am now getting either quite irrational or brave and now thinking to just "go for it" book a flight ticket for August and go regardless!!!..either giving the business away or something else. We received PR 1 year ago.

 

If we went without selling the business we would have a $137k deposit, that's is after buying cars, 6 months full living costs buying fees etc etc. Just not sure if this would be enough for a deposit. (although the calculators say yes)

 

My reasons for backing this "going in faith" is that I do not like the secondary school my daughter has started attending and don't want her to start another year. I also worry that the older she gets boyfriends may come into it and may cause problems. The whole reason for this was for the kids to "grow up" there and who knows how long the business may take to sell. Also the flights for August are really cheap to book now (yes I'm grasping at positives here!) Oh and yes...I do not want to have to go through another winter here!!!

 

As we are looking at Brisbane area as most jobs for hubby. we are looking at house prices no more than $400. With this in mind we would be worse off than we are now. I could get a job but we were hoping that wouldn't have to happen - obviously the business sale would help massively and in turn we would be better off.

 

My heart says go, we will make it happen but my head says I must be mad and we should wait.

 

I totally understand I am going to get a mixed bag of replies but...... what would you do?? Wait it out or just go for it.

 

Thank you.....Adele x

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