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Yes you are right DL they are taking a breather now before the next spurt
Good time to buy
8% pa is great but happy with 2-5% average pa over next 25 years
Got potentially a 4 bed for sale - offers over 200K if anyone interested
Working tenant in situ @ 1000 pcm so 6% yield . I can manage it if you like
Cash flow about 600 pcm gross @ 75% LTV for a 50K investment plus buying costs
So north of 20% ROI gross including CG and yield . Cant be bad
Anticipated value in 25 years at least 400K maybe 500K .
Rent by then may be 2k pcm .
You pays your money - you takes your choice
Jonathan Clarke. http://www.buytoletmk.com
If you get 2’5@ and inflation I’d 3% your not keeping up with inflation
and then when you sell you pay a boatload of of CGT
o am not sure that’s a good deal
rental yeild is the key not capital growth
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.
``rental yeild is the key not capital growth``
Inflation affects all investments though
Inflation erodes debt over time so more debt more erosion of it
CGT is fine as a tax in principle as if you make 100K you get to keep a massive 72K of it
If you have no capital gain you pay yes zero CGT but you are in fact 72K worse off
I know which I would prefer
So Yield and CG is the key to growing a portfolio
And of course after 5 years you can release equity and put that down as a deposit on another and get infinity return on any rental income.
High yield is good yes but it takes much longer to build and save for your next deposit
Buy well and the CG along with a good refurb which adds value means you can buy maybe 6 mths - 2 years later
With a higher yield even say it was pulling a healthy 200 pcm more - that takes 10 years to save 24K
6 mths wait is significantly better than 10 years before you buy your 2nd property me thinks
Question please ?
Would you prefer 8% yield and zero pa growth as in the NE perhaps
Would you prefer 6% yield and 3% pa growth as in the SE perhaps
I know where my yields go JC and it’s not deposits for BTL
as I have never sold a property the capital value is just a fig on a balance sheet
I never remortgage now so it’s jusy a fig
I live on yeild
``I know where my yields go JC and it’s not deposits for BTL``
Your yields do go on BTL`s though I thought you said
You are building 40 BTR`s over 4 years and letting them out so they are in fact BTL`s
A CG balance sheet is important though even if its just a figure
And of course much much healthier if it shows 100K not zero per property
Even if you never cash it in yourself you can pass it on to your loved ones....
Good equity is like a contingency fund or a war chest - Brings peace of mind