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  • Buy-to-Let

    Reflections on investing in the North East



    I was out doing my rounds this morning looking over properties that I own ? And I noticed a sale agreed sign next to a property I own The very same design and build

    I ran the agent to ask the Price achieved and I was informed it had completed at a sale price of £83,000

    When I returned to my office I had a look at how long I had owned the same property and what it cost me to purchase in 2009

    I paid £59000 for my property so It looks as if I have made around £24,000 gain of around 40% in ten years

    When I looked at my yield it was around 10% with a positive cash flow of around £280 per month

    So the Figs stack up quite well

    Capital Growth £24000

    Cash flow positive £33600

    Total Profit if I sold the property would be in the region of £57000 not bad for a 25% deposit of £15000

    But bear in mind I purchase this property in 2009 after the crash and in 2007 it would have sold for around £95000

    But I do think you can have your cake and eat it if you buy on a good yield and the right property

    But If you had invested in 2007 You would still be in negative equity in 2019

    This sort of property is the foundation stone of my own business

    Compared to the SE, the capital growth will be low but when you take into consideration the Cash flow I think its an OK investment.

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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.

    ``Compared to the SE the capital growth will be low but when you take into consideration the Cash flow I think its an OK investment``

    Yes you are right its an OK investment . But Ok is not good or very good or brilliant 

    In the SE during that period you could also have your cake and eat it and have second and third slices

    The  SE was better for CG and  cashflow

    2010 bought for 82K  80% LTV = 16.4K down 

    2016 sold for 163K so 99% gain or 81K 

    Cashflow around 400 pcm 9.5% yield

    So with roughly the same money down the SE beats the NE hands down

    Even if our cash flow was as low as yours the extra CG is worth about 17 years of your cash flow

    17 years of trying to catch up with the SE  is a big ask for the NE

    SE was the place to be after the 2007 crash for CG and cashflow

    Sorry you missed out

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    Jonathan Clarke. http://www.buytoletmk.com


    I haven’t missed out in my opinion

    I am more than happy live like a Queen in  the ne thank you

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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.

    Only missed out in pure monetary terms when comparing like for like

    You  brought the NE/SE subject up again so you tempted me to show off

    But yes I`m sure you haven`t missed out in life as a whole DL

    A healthy balance sheet helps happiness  - but it does not automatically lead to contentment

    Happiness within is the best  - so fortunately we both have a result there

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    Jonathan Clarke. http://www.buytoletmk.com

    Your right

    I lived in London in the 80s and it was good

    but I prefer my home in NE

    I can be on the coast in 10 mins the air port in 15 min and I can be in the heart of countryside in 25mins

    we don’t have the congestion

    and an average person on an average wage can buy a home

    it’s not like the rat race of the SE and that’s what I love about my city

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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 can be on the coast in 10 mins the air port in 15 min and I can be in the heart of countryside in 25mins

    It’s not like the rat race of the SE and that’s what I love about my city``

     You shouldn't really put the whole of the SE in that stereotypical rat race bracket

    It you have a busy stressful job you are racing to every day you are in the rat race be that in the  NE or SE

    Its people who cause themselves to be in the rat race not a destination

    Coast is 2hrs away for me so im jealous of that 

    Airports are noisy things with planes going over  and i dont fly so not jealous 

    25mins to get to the countryside!! - Ouch that would be a no no for me then . I would feel trapped 

    2 mins walk for me to get to  the countryside and the river and see sheep cows horses ducks swans

    That`s freedom to me 

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    Jonathan Clarke. http://www.buytoletmk.com

    You see your blind to the fact

    i own a lot of property and I have very good cash flow

    my money is not tied up in capital values as they are in the south

    you can live a millionaire life style in the NE with cash flow alone I will try and show you what a million can buy in the NE

    Have a look at this link and compare it to the SE cost

    https://www.rightmove.co.uk/property-for...59402.html

    I would say a landlord like myself could live in a very swish property

    The life style is achievable in the NE

    The average landlord in the SE would maybe get a semi detached for the same money

    Cash flow give a landlord a standard of life the more cash flow you have the easier it is

    The NE is cash flow positive I don't need to sell to achieve my goals such as the house above

    as I said I can live like a queen here If I was in the south it would be much harder to achieve

    My profits come from the sale of the tins of beans in the shop I don't need to sell the shop to achieve them

    The very last place I would ever invest is in the SE with all the changes ahead S24 Stamp Duty PRA has larger effects on the SE of England than any other area in the UK

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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.

    You don`t have to show me DL I can check out rightmove

    And I`m not blind to that fact that you are a ( multi ) millionaire .

    You mention it  virtually every day so I`m very very aware .

    You seem blind to my  figures i showed you which shows SE was better than NE at that time

    If you did what you did in the NE in the SE you may have become a billionaire

    Missed opportunity though

    You sometimes remind me of  Larry in Wall Street when he tells Gekko he could buy him out 6 times over

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    Jonathan Clarke. http://www.buytoletmk.com

    I said at the beginning the south would have made more money

    my point is The NE had done ok

    when I look at the deals I did after the crash

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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.

    Yes the NE has done Ok. You have done very well

    Many of your historic posts though talked about low yields in the SE

    High yields was your compensation as you saw it in the NE for low CG

    But it simply wasnt true as 10% yields were common in the SE until relatively recently

    For 15 years or so I was getting 8- 12% yields

    Now yields are lower because of that CG yes

    But yield on debt would be the same and that is what really counts

    I hope you get massive growth over the next 5 years then the SE can kick off again

    But I think the inbuilt north/ south divide will not be eradicated any time soon tbh

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    Jonathan Clarke. http://www.buytoletmk.com

    Your so right very different markets indeed

    but it’s because of such high growth rates in the south was the reason why s24 and stamp duty have been brought in by the govt

    I think of the old saying what you haven’t had you don’t miss

    we haven’t had the growth so o really don’t factor it in

    as long as I can sell the tins of beans I am happy

    it pays me a few bob and pays the bills JC

    0
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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.