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  • Deal Finding

    My 10 streets - granular on investment patch



    I operate mostly my BTL in what I call the Ten Streets

    They are in fact the Streets I grew up in and My Family operated a number of Corner shops for a number of Generation's

    The area has been a good Area to rent in the past 30 years steady yields over the years has worked well Capital Values well that's another story

    But since new year I have never seen as many new property coming to the market I think in round terms its gone up three fold and from what I can see 95% are Landlords selling up

    With this number of properties coming to the market  it has to depress the values

    My guess is the canny Landlord will sit and watch this unfold

    Agents I think are trying to inflate the prices buy putting property on the market - And the Property just doesn't sell

    My guess is the Property will be reduced in price until it hits a low where the Experienced Landlord can buy again

    I believe in my area we are seeing a turning point.  I think the Penny is starting to drop and Landlords are going to sell due to S24 and regulation

    Even I may be tempted to buy again via my Company if I can get a yield of around 9%

    The interesting thing here is what will Landlords to will they reduce a property to sell it. Or will they decide to remove the property from the market  and  face the reality of S24 and make no profit

    Or and this is a major but most of the property on the market is empty and they will be paying council tax and mortgages

    So Landlords are in a position where they can't win

    The storm is building now I can see it with every new property that comes to the market and this will hurt home owners of every sort ... be it Landlord or Home Owner

    Mr Osborne you are yesterday's man but you have left a real mess!

    (*Moderator note:  Learn more about DL's property journey at Dislexic Landlord's greatest hits and tips *).

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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.

    I don't think you can gauge the national situation on a sample of 10 streets. It may be a local issue. I live in the South West, in an ex council estate, and property here is very stable. I'm investing in South Wales, where it can be good, but there are also areas as you describe.

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    It’s only a snap shot of what I see Gary

    but something has changed the propert for sale are good renters they are TYNESIDE flats with zero service charge and have gardens

    and parking this is going to be interesting to watch and see who buys them my guss is it won’t be the FTB who are buying new help to buy property

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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.

    Are they empty because landlord doesn't want to sell with tenant in situ? If so could be a buying opportunity if tenant demand is good

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    Slowly working towards financial freedom

    Most of the adds so no chain and then give the market rent which the EA thinks could be achieved

    I know one thing properties came to the market last year and did not sell more properties have come to the market since January at a similar price  so they won’t sell either

    its the BTL flat market which is haveing issues and the more that come it will drive down prices

    on the up side every property I have had as a void has rented well and at higher price

    the prices advertised today are about 25% higher than I would pay for me to be tempted to buy so they have a long way to fall

    I don’t see home owners buying

    either

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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.


    Good morning DL,

    At first glance zero service charges seems like a great attraction to buy but what happens when common area works are required? On a more mundane note, who is going to maintain the gardens? Some owner/tenants will, but some won't bringing down the appearance of the block.

    James

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    I have never had a major problem to be honest

    the common areas are only footpaths. Some gardens are lovely others are not so good

    the money I save on service charges covers a garden tidy ect it’s better in you own a pair which in general I do then it’s a cake walk

    I find owner occupied properties can be the worsed hard to belive but true

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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.

    Property prices in my area, Central SE London are definitely falling and imo they have a further to fall before the realisation of S24 and greater landlord regulation sinks in. 

    According to my figures they are down the best part of 10% from a year or so ago (of course EA will disagree, but then they have their own agendas). 

    I don't think we will have a property crash as their is now a floor on house price thanks to the BTL market, but I see at least another 10% needing to come off of the prices before I will start to get excited about purchasing more.

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    Knowing your patch is vital for mitigating risk, so this is a good system DL.

    This method has some similarities to Jonathan Clarke's Pick ten streets strategy

    Pick 10 streets near you that you know quite well.

    Check on right move whats for sale and what has sold

    Walk the streets and look at them from the kerbside.

    Work out what sold and whether it was good value compared with those around

    View the ones for sale and delve a little bit deeper as to what is good value.

    Knock on the doors of the ones that have sold and offer them £20 to view and chat about their reason to purchase at that price. 

    Within 1 month you can become an expert in those 10 streets

    You will know more about those streets than anyone because no one else has done that exercise.

    You are the go to person to ask about value on those 10 streets

    If a seasoned property investor came in from a town 10 miles away you are in a better position to advise him/her than anyone else. 

    Your local knowledge exceeds their experience. You have done the legwork

    Use your new knowledge, find a motivated seller in those 10 streets via an agent, leafletting or advertising and you will be able to buy BMV. 


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    DL, How do you suggest people who want to move forward in property investing move forward then or keep moving forward ?

    I'm fairly quiet on this forum but have been registered for a while and nearly every post on this subject is doom and gloom sadly, Now I understand you have masses more experience in this field than myself as Im 35 years old and kind of feel into property by accident 3 years ago, In that time I have bought 23 Flats/houses, 9 commercial units and \i am currently developing a derelict church into 20 dwellings, I'm based in Scotland so I'm whacked with ADS on my property's as well, But I have found a business model that works for me.

    I buy mortgage suitable residential property's, Refurbish them then let them out to the local authority furnished with small-wares for more than I could rent them for privately, They manage them monthly and deal with any headaches that crop up.

    My commercial property's are in FRI leases and tenanted with a waiting list so they run themselves hassle free.

    I understand that I am not getting as much of the pie as I was getting before S24 was introduced, But with anything in business i have certainly found is adjusting and adapting keeps you moving forward.

    Using my business model that works for me I've found property investing fairly easy and straight forward and a good way to generate yield and growth, all be it less than it was, But coming from a motor trade back ground when the VAT changed from 17.5 to 15 to 20 percent it killed our profit margin and with dealers selling cars cheaper than ever It wasn't like we could put more profit onto the cars to cover it, So we tweaked the model to make it viable so we could continue trading rather than just giving up and stop buying cars, I didn't protest doom and gloom about it at any given chance though.

    I enjoy your posts and the insight you give on other subjects , I understand financial planning is more key now than ever and using ltd company's as well as pension funding is the smart move, But for a prospective newbie looking in on the subject the negativity towards the industry you write would put me off investing if I wasn't already committed to the extent I am.

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    Where do I start

    I think the key today is to put more cash into a deal

    leverage is the problem

    if you use leverage in a company you end  up paying more tax in the long run

    so if you buy in your own name with a large cash deposit as possible you can still make it work

    think of it this way if you purchase for cash 90% of the new rules will have no effect

    borrowing is the issue

    I’m all for BTL but with low levarge and high yields

    and don’t rely on capital growth

    see growth as a plus

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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.