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Everything posted by EvolutionBlogger

  1. My honest suggestion is that you shouldn't try to time the market. If you've done your research, buy a decent property in a good area, then you'll do very well in the long run. Property is a long term wealth game. If you want to make money in property in a short period of time, then you need to look at development work, e.g. commercial conversions. But that's a more involved skill. I've written a ton of education articles about UK property on my website. I cover a range of strategies, and all articles are 100% free.
  2. You would need to approach your lender 1st and see if they would accept a 2nd charge
  3. The challenge you have is to get £2,500 pcm in profit from BTL. BTL yields aren't very high, so you need to invest a lot of money to get that sort of income. I have a couple of suggestions that could help you to achieve your goal: Have you considered commercial property? Yields of 10%+ are common place Do you have a pension? If you convert it to a SSAS, pension, then you can use pension funds to invest in property I've written articles about these strategies (and others) on my website
  4. Hi Rose. I think you're on the right track. They are all excellent locations, and it's great that you have a limited company. Most investors (myself included) wish we had started earlier. So my main suggestion, is don't wait any longer than you have to. Once you are comfortable with an investment, then jump in
  5. If £240,000 the amount you have for a deposit? You could buy 5 BTLs with that sum.. I would prefer to have two buy to lets. If you only have one property, it gets really stressful if it's empty
  6. I don't have much of an issue with this law. I'm just worried that a future Labour Govt will bring in rent controls
  7. With Commercial Property, it's not difficult to find properties with 10%+ yields. Whether that's retail, hairdressers, warehouses etc. You just need to go out view properties. Find somewhere in a good location, with good foot traffic. In the part of London I live in, residential property yields are under 3%... A more advanced (and profitable) strategy are commercial conversions. This is where you convert an old commercial properties into a modern residential property. The new residential property will often be worth 2/3x the old commercial property. SIPP Pensions can definitely be transferred to a SSAS. Let me know if you want to set up a (free) call
  8. I think we could be headed for something more dramatic than a healthy pause. Rising interest rates will hurt In the US, the Fed Funds rate is now at 2.5% and going higher. If we get 4% interest rates, how many mortgages will become unaffordable?
  9. HI Raman. That is a terrific goal. You might want to consider commercial too. It could help you achieve your goals a lot faster. Stamp duty is much lower for commercial properties. A £500k BTL has £30k of SDLT. A £500k commercial property has £14.5k. SDLT.
  10. Hi Lee. This is a great question. You're definitely thinking the right way to pass on a legacy for your son. So much to dive into: Property Courses Most property courses aren't worth the money. If you're doing BTL, Flips or serviced apartments, then your don't need to go to courses. Learn from free resources. If you want to become a property developer and do commercial conversions, then you'll have to pay for training. There's loads of money to be made in these projects. Nobody will teach you those skills for free. Capital You will run out of capital. We all do. Have you considered converting your pension into a SSAS pension? Inside a SSAS, you can buy property. You can also lend money to yourself, to buy more properties. I have written articles about this on my website. Legacy You can set up ltd co's to own property. These can be passed on to your son. If you structure it right, you can legally avoid inheritance tax BRRR I've got some bad news! BRRR really isn't possible in the UK. It's sold as a property strategy by 'internet gurus' that have never done a deal. It's possible to do BRRR deals in the US. You can buy an old house in Texas for $20k. Spend $50k to renovate it. The revalue the house at $200k. The UK is a small country and land is expensive. BRRR deals really aren't possible. Sourcing profitable deals Returns on BTL aren't high. Commercial yields are much higher. 10%+ are possible
  11. Contact citizens Advice and your local council. They can advise on how to proceed
  12. The SDLT surcharge is designed for 2nd homes and buy to let investors. We are all entitled to have one main home (our principal private residence). The PPR comes with tax benefits, including no CGT and no SDLT surcharge I wrote an article about the tax benefits of principal private residence here You should definitely speak to your solicitor. However, just note that some solicitors are very cautious on these matters and may not apply SDLT tax breaks that you are entitled to. I think that there are over 50 reliefs available in the 2003 Stamp Duty Land Tax Act. Not a lot of people know that.
  13. I definitely think we're headed for a slowdown. Interest rate rises are a sure fire way to reduce house prices I rather think it's a good thing. House prices need to come down. In London, property is unaffordable unless you're an oligarch
  14. If you want the money to be paid back, then it's not a gift. Some lenders have issues with gifts too
  15. If someone is selling their property via an agent, then it will be sold at market price (by definition). This forum doesn't have many threads on commercial. I have some articles on my website. If you have a pension, then you can convert it into a SSAS pension. A SSAS Pension can own commercial property. You can also lend money from your SSAS pension to yourself, in order to fund property purchases. You essentially become your own bank, and can use your pension funds to boost income outside of your pension. It's a very powerful tool. One very popular strategy is commercial conversions. You can convert commercial property to residential, under permitted development rules. This can be very profitable, but you will need to do some education
  16. The internet is full of 'property gurus' who say you need to find 'motivated sellers' and buy 'BMV'. Most of these people have never done a deal, and look like they haven't hit puberty It's not just in property this happens. It happens in every niche. As I run my blogs, I keep abreast of SEO, content marketing etc. So many people write guides on 'how to make money online', when they have never made a penny themselves. Most of the strategies are copied from others and don't work - or haven't worked since 2010! Long story short. the internet is (mostly) full of ****
  17. If you're going to fix for 10 years, then £999 won't make much of a difference in the long term.
  18. I'm going to flip your question on your head. What you want is a property that will go up in value? There can be loads of reasons why this happens: You pay a low price in a down market (e.g. covid) You buy in a location that is primed for growth You buy in a period of economic growth You buy into a property sector primed for growth, e.g. warehouses over the past few years Personally, I would focus on 3 things: Which location is primed from growth Which strategy is best for you Choose the right property structure My two cents: Don't invest in BTLs in West London! SDLT in £30,000 for a £500k property. In West London, that **might** get you a garden shed! I personally like commercial. Yields of 10%+ are easily obtainable. SDLT is much lower for commercial Think seriously about investing with a ltd co. Corporation tax of 19% vs up to 45% income tax I have a blog with tons of free articles where I talk about these ideas in more detail. Link here. I'm not sure searching for elusive BMV properties will work. Why is someone going to sell you a property for BMV? Would you sell your property for under market value?
  19. If your timeline is ASAP, then you will need to find more capital to invest and invest in more profitable projects. With BTLs, you're not going to achieve financial freedom for a long time. The yields aren't high enough. The 3% SDLT surcharge is also very costly. HMOs are more profitable and could be a possible solution. You need to find out if there are article 4 restrictions in your area. If so, then the Permitted Development rights for HMOs won't apply. Do you have a pension? You can convert it to a SSAS Pension, and then use your pension funds to invest in property. I wrote an article about it. You can also lend money from your pension to your ltd co at a rate that you choose. I was able to borrow from my pension at 0.75% in the past (beat that!).
  20. You're in a bit of a pickle here. The doubling of ground rents isn't good and makes it difficult to get a mortgage on a property. Your lease sounds particularly bad. Your conveyancing solicitor should have picked this up However, the sum of £8,500 looks to be far too much. There are online calculators to estimate the correct number Have you read your lease?
  21. You would need to speak to a broker. But I imagine you would be fine to obtain a buy to let mortgage, even if you don't own your own home. As long as your credit is fine, you shouldn't have an issue. There are mortgage products that require you to own your own home, but certainly not all.
  22. A lot of people (myself included) find that buy to let doesn't provide good returns these days. My preferred solution is commercial property - yields are much higher and SDLT is much lower. I've written loads of free articles about commercial property and other investment strategies on this page. Other people look into serviced apartments or HMOs. Is there any particular problem that you're having at the moment?
  23. Probably just a way for the company to extract some more fees without most people noticing. Loads of companies do this. It all depends on what alternatives you have
  24. Prices have gone up since the pandemic. Hostmaker charged 12% + VAT, before they collapsed. London is probably a more competitive market than Warwickshire, so prices may be higher there. I don't quite understand what you're saying about the clean. On Airbnb, the guest pays you for the clean. You then reimburse the property manager for the clean. There are a ton of Airbnb management companies in London, though I doubt any operate in Warwickshire. One thing to note is that Airbnb management companies aren't held to the same standards as letting agents. Letting Agents are well regulated (these days), but Airbnb management companies are not. It's basically the wild west. Also note that the Airbnb host damage protection is basically worthless! I have never known someone that has made a successful claim. Serviced Apartments do have higher yields, but there is a lot that can go wrong too.
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