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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
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.
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
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.
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
``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
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