Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
just bought a property for 70k half way theough spending 15k to get it to very high standard, granite worktop the lot in st helens merseyside. Same house on next street just completed sale for 129k but had a conservatory and slightly better better location ( on main road not in close as mine is with benefit type maisonetes oppsite )
in 2 minds wether to put up for sale for 120k for quick £115k sale profit of 30k or rent out for just under 600/month and remortgade at 75% ltv worst case scenario value 100k so leave 85k minus 75k 10k in property
gross profit being around £250/ month so would take 3 years and abit to get my 10k back
or just make quick 25-30k profit witch would take 10 years of btl assuming it was fully tenanted and everything goes to plan for 10 years????!!!!if i go with letting after 3 years isnt everything after that just a bonus as i would of had my initial 10k investment back???
If I thought I could do a flip and get 25K profit consistently on a 70K property I would flip
But at some point I would get tired and my bones would ache
I would then have a big cash pot but no asset base and no income
At that point I may well wish I had done BTL
Because I could then hand over to an LA and enjoy the passive income with no effort for life
I would also get compound interest on the CG on my assets . Again no effort
But if I had flipped I would have to carry on flipping or my net worth would go down
With BTL my net worth continues to go up. Thats why I did BTL
So do both perhaps if you are a refurb king
BTL one and sell one alternatively and have the best of both worlds
Jonathan Clarke. http://www.buytoletmk.com
I’m no refurb king
just stating the facts of my situation thanks for your adivice anyway
Because there’s a decent amount of profit to be made I’m unsure of best tactic as even if I rent out I’ve still made the 25k profit but it’s sitting in the house but im also getting the 250 per month profit ?
Yes and you can extract that equity at some stage and buy another
If you sell its value has gone to someone else
And CG is no longer there and as you say rental income no longer there
I added value to many of my properties
I only ever sold one because the JV partner wanted to . Big mistake
He regrets it now and i say to him with a smile .... I told you so
We made 12K a piece about 12 years ago
We would have made about 100K each by now if we had kept it
AND we would still have an income producing asset going forward
With Brexit coming up I would sell and do BTL after things have calmed down after March. I can't see properties shooting up but there is a risk they will fall after March. However most mortgage companies won't lend to your buyer until you have owned it for 6 months, do depends where you are on that point.
Really ?? I wasn’t aware of this.. i knew I couldn’t remortgage until the 6month mark because I bought with cash but never realised this got passed on to potential buyers
Hi Chris,There are a handful of lender who will lend on a property that has been owned less than six months. Virgin is one of them. It is a case of educating prospective buyers to use a lender who will accept the scenario. Of course, if your buyer is using cash, then no problemo!There are so many costs associated with selling a property, and there are no guarantees that you will sell it at a reasonable profit, so my personal preference is to hang on to the property for the very long term.When circumstances allow, you can re-finance and pull back your cash, but keep the asset and the income.The way I look at it is, you either grow a tree and keep cutting down your one tree, or you grow a tree, release equity when circumstances allow (take a clipping), and aim to grow a forest of trees. The latter is the true way to wealth imho, but it is not quick. One is a job (chopping down your trees), the other is far more passive (managing your trees).See - Buy to let vs. Buy to sell - trying to compare an apple to an orange.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Yes, I've had several buyers in this position. The last one they wouldn't even strart to consider until we had owned for 6 months. Ended up being 9 months by exchange.
Agree with Vanessa, definitely hold. There seems to be a lot of people panicking because of Brexit... prices may drop if there is a huge economic shock but I would bet everything I have that they will recover and then some just as they have done these past 200 years. We're a small island with a rising population and very finite land. Property is as safe as houses
Hold and remortgage... then go again!
I hope the granite worktops don't turn out to be an extra unnecessary expense.
I wouldn't consider doing that in a sub-£250k property and even then there are other great looking alternatives.