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  • Buy-to-Let

    Biding my time - When to return to BTL?

    What you are asking is for us to play Mystic Meg and guess the property market. There are people that do that and they are often wrong.

    You ask a brexit pessimist and they will tell you to hold, you ask a brexit supporter and they will tell you prices won't budge.

    Capital Appreciation (or depreciation) is a gamble, your stake is your deposit/equity.

    You only get in real trouble if prices fall, and eat away your deposit/equity to £0. Otherwise, you just lose your savings, or tray and wait it out.
    Which is why cautious investors always go for lower Loan to Value (LTV) to ensure they have a buffer.

    You should be cautious in London though, some areas are seeing prices come down.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________


    I hear that in general it is best to buy from Oct-jan as people do not want to move during winter. 
    Easter is the best selling time, however this doesn’t always work.
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    Welcome Soopaman!

    I am at a similar stage, but with lower cash pot, working in East of England. There has been no dip here. But, I feel one is coming. That said I tend to agree with Vanessa about the time in market - but that's an easier decision to make here where I buy for yield and returns are less dependent on capital growth.

    Generally, I do feel the fact that prices have kept rising, makes it a harder decision to buy even on yield. I keep looking and opportunities that hit my benchmark for a good deal, are few and far between. Instinctively then my strategy at the moment is: cash-out capital gains & increase savings to build a down-turn buffer and a war-chest for purchases. (it sounds like where you are today)

    But, if a property comes up that delivers great yield, I will probably buy. But I will stick to my key metrics no matter what. I will not buy on speculation that property will go-up alone.

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    I totally agree with that.mI'm not really fussed about capital gain, for me its about making my money work to get extra monthly income for now.
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    Hi soopaman,

    It's interesting you said you are not fussed about capital gains, just making a return on your money.

    Why do you want to invest in Greate London? With that cash you can potentially purchase 10 BTLs with mortgages in the Midlands and get far better yields than in London. What yields are you targeting in Greater London, maybe I'm missing something?

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    I can get a property in east london for £300k with rents of £1450, not sure yield wise, but that looks attractive to me. I also like to have my properties near me Smile
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    That is an excellent return with a 75%LTV mortgage in personal name, sounds like a winner.
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    Do you have 1 or 2 examples of such flats (rightmove links would be useful)

    I usually get around £1300pcm rent on flats valued at £300k (which I pick up between £260k -> £270k), so would be very keen to see what type of property you can get £1450 from

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    I actually know this area well, and you will be lucky to get £1300 pcm for that house. More like £1200pcm.
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