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  • Buy-to-Let

    Opinions please!

    Morning everyone,

    Didn’t want to start a new thread really as I know there are similar posts but my situation/numbers are quite specific.

    I’m looking? for opinions on my next step please.

    I have 6 BTL (3 in Ltd company) currently producing 1000 cashflow (some repayment) a month and 100k available. Currently doing a flip which should produce another 30k. I also own my own home on a mortgage.

    Looking to replace my income ASAP so thinking of buying another 4 BTL in my area to produce another 1200 per month.

    Just nervous about going all in at the moment with Brexit and section 24 etc but also keen to get where I need to be (3k a month cashflow) asap. Also not sure if 10 BTL in the same town is wise.

    Half of me says go for it and half says wait and see what happens over the next 2-3 years?

    Thanks in advance.

    David

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    Good morning David.

    I will let the more educated talk about Brexit. Just a few options spring to mind.

    1. Move all properties into registered company.

    2. Change to interest only on all properties.

    3. If you are managing the properties, I would guess you are as you want to replace your income so therefore save on expenditure, then 10 in the same geographical area sounds sensible for me. (Of course I don't know what town)

    4. Use the B2L & FLIP strategies to compliment each other. make sure your lender deals are the best you can get.

    5. Good time to buy, especially from LL getting out.

    If you don't risk anything you risk.............you know the rest. (R.Moore) - Good ;luck buddy.


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    Thanks mate!

    The costs involved in transferring the ones

    from my own name outweigh the beneifts so I’ll keep them there for now but all future purchases will be in my company for sure! Love your upbeat outlook! Are you doing the same? 

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    Hi.

    I assume you means the costs due to SDLT. There are options around this, it take a few months but well worth the weight. Not for everytime mind.

    Why be downbeat. Too many like that.

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    The asset price correction is coming and many will be wiped out big time. Leveraged buyers will get fore closed on and property prices will adjust downwards by 20/30% min.

    Now is the time to consolidate, reduce debt, maintain cash flows and just sit back and wait.

    Many opportunities will be on offer over the next 2/3 years.

    Many fail to realize the serious nature of current economic climate. The next fall out will not see joint action by governments across the board but each will look after themselves regardless of the problems of others. Look at Brown's recent comments- that make very good sense. He was not a good PM but understood the banking crisis very well.

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    Doug,

    Thanks for the reply. 

    Houses in my area (north east) are at circa 2003 levels! Surely they can’t go any lower from here?? 2 very different replies adding to the confusion! Smile

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    > prices will adjust downwards by 20/30% min

    do you think this will happen across the board in London? So properties valued at £400k will suddenly be worth £320k?

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    Prices where I have most of my properties went up by 6% last year and I see no reason why that should not continue for another 2/3 years as the boom in Manchester has not yet ended.

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    Everyone has a view, lets see in a years time. Manchester as you state was 6.1% over last 12 months, last three months 2.7% , one month 0.5% - i think the trend speaks for itself.

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    Hi Lamby,

    Have you considered a holiday let?  These are not subject to Section 24 and occupancy levels are on the increase in my experience.

    See - Holiday let - every portfolio should have one

    If you have a dream one day to retire to the sea, buy that property now and use it as an asset, buying at today's prices, with a view to eventually moving there (using the correct mortgage products of course).

    If you buy in the right area, you can enjoy significant occupancy in a holiday let, and the income - averaged across 12 months - is typically double what you could achieve for a single occupancy property. 

    See - Guide to sourcing & setting up a holiday let 

    ​Food for thought?

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