X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • Buy-to-Let

    New builds

    Hi

    was buying are 7th btl and the lady as just decide not to sell so anoying this as we have lost money on fees.

    so having a look for the next and have seen a lovely new build in nice area 174 grand it’s a 3 bed town house on 2 floors. I reckon we good get about 850 in rent do not amazing. The question is I’m aware new build cost more and want to try and buy well so would you try for new build if so what discount should I try and get.

    do you think it’s to risky in this climate to go for new build I know its the easy option. Should I buy older on maybe 40 years old. Not into renovating will do small work but nothing to much as I work for my husband and takes up my time and also managed the 6 houses my self do all paper work.

    so just a question go for shiny new build or not hard one as I know that new ones are over priced it’s in a good spot near outstanding schools.

    this will be second btl in are company thankyou

    0
    0

    This is a very risky climate top be buying more property. Many will find themselves under pressure and will be forced sellers over the next 18 months or so.  The economic and financial meltdown is just around the corner. If you have cash spread it around the banks, as when the banks get hit they will be able to call upon the customers deposits. Remember this has been in place for a very long time. -Cyprus. No such thing as secured bank deposits.

    1
    1

    Hi Love Property

    It doesn't seem that Douglas Lambourne shares your name!!

    Clearly a lot of landlords are selling - but 6% gross return on a new build is I would have thought okayish - especially IF it is local so that  can easily manage it yourself, in a good area to easily attract decent tenants (ie you are well above the benefit tenant market which getting slammed by Universal Credit ruthless attack on the vulnerable) and if it is lovely three bed then you might be taking the view that you can sell it to owner occupiers.  But if you already have six BTLs you don't need me to tell you this.  If you are in a financial position that you can borrow long term at cheap fixed rates, and time limited, then I could see how this would make perfect financial sense and fairly low risk long term investment.

    Against this one can get much, much higher returns - eg pushing 15-20% in say Blackpool but it is lot of hard, risky work.  New builds tend to fall in price for the first sale - like new cars, and are the first to tumble if the economy turns sour as the banks may force the developers to liquidate.  I am personally incredibly pessimistic about the economy with the risk of a no deal (or any for that matter) Brexit - but even t don't think that the banking system is likely to collapse as Douglas says.  If push comes to shove the government will simply hit the printing presses to bail it out as shown by five years of Quantitative Easing.  And if it did get anywhere nearly that tight then you would probably find it hard to borrow funds, so only cash rich people could get the bargains..  But I understand where he is coming from, as I think that all the signs are that the market is going to get tough but I realise that not everybody shares my view and I am surprised by how buoyant the economy is this close to the "cliff".

    To get the best deal on a buy to let new build it is like any property - select three with different developers - and tell them that you are putting offers in on all three.  That way you can the best deal and stay completely unemotional and be an accountant - it is not your home but a cash flow calculation, with a different required return rate depending on your assessment of the risk.  But as a former developer (60 flats) - I was very reluctant to heavily discount for fear of annoying previous buyers and making it harder to sell the remaining flats at a good price, and most importantly to avoid jeopardising the valuation of the remaining flats for the bank loans.  The last units on a development are often going to be the best bargains as they will want to stop paying any onsite sales marketing team.  Egregiously cheap bargains on new builds are only likely to be in distressed sales, or in deals to associated parties.

    0
    0

    Thankyou for such a great answer , yes so true. Went looking at new build today would not budge on price.

    shocked , so started to look on open market again.

    They would do me a deal on one , but was bit expensive it was 238,000. She said she could do me a deal on this one but we didn’t want to spend that much. She would knock it diwn to 221,000, but she would need to speak with manager.

    Was a lovely house though, big semi looked as big as detached. I would think I could achieve 950pcm.



    0
    0