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  • Property-a-holics

    Are the first three houses the hardest?

    My own view is we have gone from Jet Pilots to Train Drivers

    unless you are in this position in the first place and you have the cash to buy a Jet ??

    If you have a lot of cash and you want to scale up why not use it for deposits

    But you need the cash in the first place

    This is the Major change in BTL

    Show me you have 200k in the bank and I could show you an income around 29k a year not including running costs

    but would you want the work an hassle for the 29K gross

    today it all depends on how much cash you have to invest to start with

    I believe the more you have the lest risk you have

    I've been through some worrying periods in the past years and I have always fell back on strong cash flow

    Its the engine of any business

    The running costs are rising and Capital growth values will be low going forward

    as members know I dont consider capital growth in my Business Plan unless I was selling which I am not

    stick in a good deposit get a good yield and spread risk


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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Hi dl just after some advice if that’s ok. Im now in double figures but in fortunate position that I’ve got about 100k in bank. I’m not worried about capital gain as it pretty non existent in north east as you mentioned. I want to make it full time but, think gone wrong way about it just bought a standard 2 bed for 39999 that needs full refurb probs 10/12k then will rent it and re mortgage but can only do 2 a year like this and will take forever. Am I better off buying houses that’s are done then just renting. But that way can only really buy for 4, other  way can buy 2 a year forever really. Any advice appreciated
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    Hi

    I can see your delema

    I know when I have been buying I try to go down the road of light refurbishment

    Time costs you money and the referb can take a lot of time and can be costly

    Personalty I like to buy a property where I can turn it round within a month

    New Kitchen New Windows bathroom ect ect  If I can

    You will be paying a Mortgage and paying council tax from the day you exchange

    A landlord in the NE as you have said can not depend on Capital Growth as you have said

    so the only way to expand is to save a deposit I know its slow But it will build a stronger business with good yields

    Im not sure if i have helped you DL

    Capital Growth will be what it is and it will take care of itself in the long run your right not to worry about it




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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Yes definitely helped thanks dl appreciate it going to stop looking for houses that need a full refurb as you say takes to long kitchen bathrooms and a month in and out. This sounds like better plan, thanks
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    Does the NE have much in the way of rent appreciation. I know my rents in the NE have not moved in the past 6 or 7 years. I know CGT is not really an issue in the NE, but I would like rents to keep pace with inflation.

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    Yes but not massive and some have rapidly declined that I have blocks on small 1 bed flats that I was only landlord out of 18 units now seem to be full of btl from people from down south. Houses are slightly increasing in right areas. I tend to put rents up when tenants move out not massive latest one from £495 to £545 and got it within a week

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    Lack of rent appreciation signals a marketplace that is not too healthy.

    If you believe inflation is 2% then not raising by at least this means you're losing money year on year.

    Lack of rental increases plus no capital growth is not a healthy place to invest!
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    I like the phrase: goes like a train. It may not be as fast to grow but the compounding opportunity is still there. Yesterday I made £122 whilst sitting in the sun enjoying a cold one. Today I will make more, whilst out for a walk...
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    ``Yesterday I made £122 whilst sitting in the sun enjoying a cold one.`` 

    Nice one - I love these sorts of dynamic  ways of  expressing income 

    They are good motivators

    I made 20p whilst typing this post

    My secretary  would have  only made herself 0.04 p though if she had typed it

    Thats why investing in property and escaping a job is a worthwhile goal in life


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    Jonathan Clarke. http://www.buytoletmk.com

    Before S24 came in to stir it all up I liked my - buy 10 and get 4  properties for free strategy - 

    When sitting down with the broker we were deciding whether to go 75% or 85% LTV .

    They would sometimes be more reserved than me and steer me towards 75% but my gut said 85%.

    They still work in an office . I dont

    150K would give me 10 x 100K properties @ 85% LTV = 1 mil portfolio

    150K would give me  6 x 100K properties @ 75% LTV = 600K portfolio

    So 4 extra rents coming in which easily covered the slightly higher % loan rate

    Also 4 extra chances to buy well maybe just 5K BMV so 20K extra made

    Also 10 extra chances to add value say 5K per property so another 20K made

    Prices go up say 5% and the 1 mil portfolio makes you 50K

    The 600K one only gives you 30K so another 20K made

    So that was  60K extra as well from the outset plus extra rental income

    Adding value , buying well, saving rental income and  natural capital growth  would mean that within 3 years my portfolio would be at 75% LTV anyway so it was a small time lag  to wait really to get 4 free properties .

    So you are now at the 75% LTV but with 10 properties not 6

    Compound interest and inflation over  time made those bold decisions taken early on very worthwhile.

    The gap widened between the 75% ters and the 85% ters

    Time is very kind to property investors

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    Jonathan Clarke. http://www.buytoletmk.com