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  • New Members

    Hello from Tameside

    In 2013 I inherited some money then lost my job.
    Since my technical skills are no longer in much demand I didn't much like the jobs that were available I decided to take some time to get my inheritance (and some savings) working for me.
    I was living in Reading, but decide to go for property in Tameside where I grew up for the higher yields.
    I spoke to a family friend - a builder - who put me in touch with a letting agent friend of his.
    As I had no job I could not get a mortgage, but could buy three properties from cash.
    First was a two bed terrace, then a three bed semi that was a foced sale to pay for care home costs. I refurbished them and they both let quickly. The third was a commercial unit with 2 shops.
    I had enough left over for a deposit on another 3 bed semi but had to wait until the first property had been let for 6 months before TMW would give me a mortgage.
    By that time I had found a nice house in Tameside and remortgaged and let my flat in Reading to pay most of the price (since I could not get a residential mortgage) selling some shares to make up the difference.
    The endowment from my very first mortgage from 1989 paid out and gave me enough for the deposit on a 2 bed end terrace.
    I was limited in the shares I could sell without becoming liable to CGT. I have sold some more this year and intended to buy another 2 bed terrace soon.

    Together these give me enough to live on. I am hoping to get a few more properties to pay for a few luxuries.
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    Hi Peter,

    Welcome to Property Tribes and well done for what you have achieved so far.

    You may be interested to read:

    Converting to full time landlord
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    An update on how things are going.

    I kept the properties mentioned above and purchase the extra one. By then C24 had been announced and my rental income minus allowable expenses wouyld be close to the HRT threshold. So I started a company and made my next purchase (a three bed semi) through it. Unfortunately it was not completed in time to beat the deadline for the SDLT increase. I have sold the last of the shares I had in the US (done in batches to avoid CGT) and am using that a the deposit for a second property for the company. Unfortunately this purchase is taking even longer - 9 months so far. I don't plan to make another purchase this year.

    My first property had a bad year with 2 voids including one from the end of November to February so its RoCE was 2%. My flat in Reading was also under 3% but that should give better growth. Overall though I got 7.4% from the ones in my own name, and 6% from the one in the company. I haven't taken any money out of the company yet, but plan to make a directors pension contribution before the end of its tax year.

    I have a final salary pension set to pay out in 2019 and another with a final salary underpin. With S24 they would push me into HRT territory, So I plan to sell my flat  that year. As I lived in it for 18 years the CGT should be low and by paying down other mortgages I should stay free of any extra tax from S24 whilst seeing my income increase. I am also considering using the tax free lump sum from related pensions to pay down other mortgages in my own name, and maybe mortgaging my commercial property to end up with no resisdential mortgages in my own name.


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