Jump to content

DerekT

Established Member
  • Content Count

    667
  • Joined

  • Last visited

Reputation Activity

  1. Like
    DerekT got a reaction from dannyh123 in £600k to invest - advise appreciated!   
    +1 to Chris' strategy. Difficult to top the tax benefits and potential returns of a SIPP and ISA. There's plenty of decent ETFs and funds generating 10+% year on year in a tax-efficient environment. You compare this against the taxes placed on landlords and the additional work involved. However, it does depend on your personal circumstances and financial needs. 
    If you decide to invest the entire balance into property, then £60k per annum is achievable based on your initial sum, but you'll most likely need a few HMOs to boost the income to get to that level as single BTLs won't give you the 10% return.
    With property sourcers, please do your due diligence on them and the property deals they offer. Ensure you're confident with your numbers and theirs, check the area (demand, comparable prices, developments, crime rates etc) as there may be some unscrupulous sourcers after your funds!  Also, check that they're compliant (registered with ombudsman/redress scheme, ICO, AML, insured).
  2. Like
    DerekT got a reaction from horne-properties in HOT Market- I think I may becoming impatient   
    Congrats Home-Properties! 
  3. Like
    DerekT got a reaction from james-cook in Company Name - quick thoughts   
    Depends if you're going to be reaching out for private financing, direct to vendor mailouts, or Instagram followers. 
    If you're just looking to invest your own funds in the property business, the name doesn't really matter. Banks and agents aren't that fussed. 
    If you're looking to build that brand for the purposes of attracting investors, or interested in creating a following on IG, then perhaps a memorable name is desired to build that relationship and stand out.
    For mine, it's just [Family name] Investments Limited, which outlines who owns it and what it does. I think a company is only as memorable based on how successful (or unsuccessful) it is. If you can show others your experience or what you can offer, then the name becomes attached to whatever you end up calling it. 
  4. Like
    DerekT reacted to horne-properties in HOT Market- I think I may becoming impatient   
    thank you for all you advice everyone so the day I wrote this I actually had an offer accepted a few hours after haha, I am really happy with the property and deal 
  5. Like
    DerekT got a reaction from Mark Rocks in Currently at Uni so I can't invest in property yet, what should I do?   
    Hi Leoa
    Congrats on wanting to get started at your age! I'm guessing you're saying you can't invest in property yet due to lack of income and deposit?
    If so, in addition to educating yourself as Mark's suggested, is there anything else you can do during down time from university? Some examples might be:
    Work experience at a local real estate agent - e.g. helping to do viewings on weekends; Work experience at a local hardware store on weekends - e.g. B&Q, Howdens, Selco - get to know local builders and what they're working on; Networking events / seminars - some are free, some cost £5 - £20 to attend, but provides opportunity to network with property investors; Start to track areas / properties that you're potentially interested in - i.e. pretend you have the funds available and track properties that you would've bought and at what price. Then wait a few months after they've been sold and check on Land Registry / RightMove Sold Prices / Nethouseprices and see what it sold for.  Following from above, by tracking properties, start to learn about the numbers and analysing deals; Depending on the agents (as some ask for proof of funds before viewings these days), try and book some properties to view, allows you to chat to local agents.  Walk around the neighbourhood and see if there are any homes being refurbed / developed, and if available, chat to the builder/vendor to get an insight as to what they're doing. I'm sure there's plenty more, but all depends on how much time you have. Good luck!
  6. Confused
    DerekT got a reaction from EvolutionBlogger in Special case - Ltd Company vs Individual   
    It depends on how you structure the payments out of the limited company. You can have a mix of salary, director's loans, or dividends. Note you get £2,000 dividends tax-free and then 7.5% dividends tax up to the basic rate, so assuming you have no other income, it can work out more tax efficient. In addition, you can claim additional expenses, including mortgage interest that you otherwise couldn't if held in personal names. And there's the annual £150 'event' expense you can deduct, or depending on your age, you could just pump all profits into a pension and draw down the income that way in a tax-efficient manner. 
    As always though, depends on your personal situation and you should always seek professional advice.
  7. Like
    DerekT got a reaction from oumdaldn in Hi, new and eager to learn and have advice   
    I think you can only answer that one oumdaldn!
    It depends on what your goals are, who your target market is, your exit strategy, risk tolerance, how hands on and involved you want to be with the property, how far you're willing to travel, whether you want to use a local sourcer etc...
    You can perhaps spend a week or weekend in one of those locations (subject to lockdown conditions) so you get a feel for the place. Another option, you can punch in RightMove properties up to £200k (based on your £50k deposit) and then limit the range to however far you're willing to travel from your current postcode. That might pop up property locations closer to home. For example, I'm based on SE London, and if I set a max. price of £200k and a radius of 15mi with at least a studio, it returns 1,010 properties for sale. 
  8. Like
    DerekT got a reaction from jacquichall in ROI calculation   
    I kind of view cost of voids at the backend of the calcs, given that they're not guaranteed compared to the other expenses. This will depend on the area, demand, managing agent. The maintenance one covers annual certificates etc and squirrelling funds away in case the boiler breaks.
    Once all the knowns are done, then I look at the estimated annual profit and see if it can cover 2-3 months of no rent. If it does, then happy days.
    There's a field for insurance in there, just that you didn't specify the cost of it. I tend to use £200-300 as an estimate if it's a house,  depending on rebuild value. If it's a flat then the service charge you pay generally covers the building insurance, then it's up to you if you want extra.
    Yes, you'll still be subject to 3% if under £125k and through a limited company. 
  9. Like
    DerekT got a reaction from AdamPH in £32000 salary, 30 year old Male, Single. Options for a FTB to Enter Property Market.   
    Like the two Adams have suggested, the lodger option would probably be the route I'd take.
    With your budget of £200k, you can get some decent 2 bedders around London, depending on which area you prefer to live in. As you're currently single, it also makes life easier as you're the sole decision maker on who the lodger will be. The lodger provides up to £7,500 in tax-free income which will help build your next deposit, or help pay off the residential one which in turn helps build your savings/equity. It'll also help you learn about property (i.e. going through the purchase/conveyancing process, managing and maintaining the property etc). 
    Owning your own home first will also open you up to more lenders and/or better rates. Also, 
    Finally, if you're buying in London. as it'll be your first home and your principal place of residence, you can avoid the extra stamp duty which makes a difference in London where prices tend to be higher. Then if you decide to invest in a BTL up North, where prices tend to be lower, the stamp duty impact will be less. 
  10. Like
    DerekT reacted to Adam Hosker in Transfering Leasehold Flat into SPV - Questions About Process   
    Yes, deposit is in the equity.
    You do not have to have £25k in the company account.
    The limited company lenders that do this are very content with the process.
    In addition the amount of equity/deposit is typically noted on the Companies Book's as a Directors Loan. So it can be paid back in a tax efficient manor.
  11. Like
    DerekT got a reaction from Adam Hosker in Transfering Leasehold Flat into SPV - Questions About Process   
    Hi Te0
    Before doing so, have you reviewed the tax implications of doing so?
    As it will be a sale to the Ltd Co., you may trigger some capital gains and therefore be liable for capital gains tax. Also, stamp duty will be applied when the Ltd Co. purchases it with the extra 3% surcharge. 
    Regarding the solicitors, not quite sure I understand. Assuming you do the transfer to the Ltd. Co in two stages (transfer then mortgage), you can probably use your preferred solicitor for stage 1 (transfer). Then once that's done, stage 2 you'll approach a mortgage broker to arrange finance and you'll most likely use a solicitor that's on the lender's panel for the Ltd Co advice, plus you may need additional solicitor advice to cover off the director's guarantee depending on the lender.  
    Quite a few assumptions there, and I am not a solicitor or accountant, so as always, seek appropriate advice. 
  12. Like
    DerekT got a reaction from Adam Hosker in £32000 salary, 30 year old Male, Single. Options for a FTB to Enter Property Market.   
    Like the two Adams have suggested, the lodger option would probably be the route I'd take.
    With your budget of £200k, you can get some decent 2 bedders around London, depending on which area you prefer to live in. As you're currently single, it also makes life easier as you're the sole decision maker on who the lodger will be. The lodger provides up to £7,500 in tax-free income which will help build your next deposit, or help pay off the residential one which in turn helps build your savings/equity. It'll also help you learn about property (i.e. going through the purchase/conveyancing process, managing and maintaining the property etc). 
    Owning your own home first will also open you up to more lenders and/or better rates. Also, 
    Finally, if you're buying in London. as it'll be your first home and your principal place of residence, you can avoid the extra stamp duty which makes a difference in London where prices tend to be higher. Then if you decide to invest in a BTL up North, where prices tend to be lower, the stamp duty impact will be less. 
  13. Thanks
    DerekT got a reaction from harry_j in £32000 salary, 30 year old Male, Single. Options for a FTB to Enter Property Market.   
    Like the two Adams have suggested, the lodger option would probably be the route I'd take.
    With your budget of £200k, you can get some decent 2 bedders around London, depending on which area you prefer to live in. As you're currently single, it also makes life easier as you're the sole decision maker on who the lodger will be. The lodger provides up to £7,500 in tax-free income which will help build your next deposit, or help pay off the residential one which in turn helps build your savings/equity. It'll also help you learn about property (i.e. going through the purchase/conveyancing process, managing and maintaining the property etc). 
    Owning your own home first will also open you up to more lenders and/or better rates. Also, 
    Finally, if you're buying in London. as it'll be your first home and your principal place of residence, you can avoid the extra stamp duty which makes a difference in London where prices tend to be higher. Then if you decide to invest in a BTL up North, where prices tend to be lower, the stamp duty impact will be less. 
  14. Like
    DerekT got a reaction from Adam Hosker in Interesting property 'cropped up' on RightMove   
    Thanks all for clarifying the RightMove ad and quick SOLD STC notice. All makes sense.
    It is impressive the different lens an agent can put on a property when advertising it. They could've mentioned that it had 'good ventilation' as there's ducting everywhere! 
  15. Like
    DerekT reacted to Stuart Phillips in Interesting property 'cropped up' on RightMove   
    Yeah defo repossession and it was a cannabis farm. You can always tell a repo because anything of value is gone and rubbish remains. You literally get a time and date from the bailiff and whatever is there when the locksmith arrives will be bagged up and supposed to be available to collect for 14 days or something. No one ever does though i suspect. usually pipes, boilers, cookers etc are gone. I once saw a repo where the ex owner had drilled and wired the float in the attic water tank. For 30 days it sat showering water down every wall in the house. Cash buyers only. As Adam says, these days you dont want unnessasary viewings.
    The bit i love about this is the agents optomism: "entering into the hall you will notice the high ceilings and original cornicing". Nope, thats not what im noticing thanks. Im noticing the fact they cut holes in the floors and theres a room full of soil!! Its hilarious they didnt even allude to any of this!
  16. Like
    DerekT got a reaction from Adam Hosker in Interesting property 'cropped up' on RightMove   
    Received a RightMove alert today for this interesting property as it's not too far from one I own.
    Think the previous tenants were horticulturalist judging by the photos.
    Question is - why would the vendor / agent list it if it was SOLD STC on the same day?
    Also, why would you include the internal photos (i.e. why not just take the usual external shot of the front, similar to auction properties)?
  17. Thanks
    DerekT got a reaction from jayw in Microsoft Excel   
    Hi Jayw
    To add to the above, there's loads of free Excel courses, with a variety of levels, on Udemy - https://www.udemy.com/topic/excel/free/ 
    Otherwise, there's always Google/YouTube if you have a specific problem or issue within Excel you're trying to resolve. 
  18. Thanks
    DerekT got a reaction from jayw in BRR Excel Spreadsheet   
    Hi Wayne
    Of course, just click the link and if you want to download a version for yourself, you can request access and I add you to the editor list.
    There's no fees or charges, just sharing what I use. 
  19. Like
    DerekT got a reaction from jayw in BRR Excel Spreadsheet   
    Hi Rob, I have a 'deal analyser' tab on my Property Calculator Google Sheets here. You can try and give that a go to see if it helps? 
  20. Thanks
    DerekT got a reaction from lj_p in Move bathroom upstairs?   
    Hi lj_p
    Without knowing the layout of your home, is there a way to make the downstairs space larger? Open a wall up / French of bi-fold doors? If the feedback was the smaller downstairs space as opposed to an upstairs bathroom, maybe see if you can rectify that instead? Again, will depend on costs vs. benefits, but might be cheaper and quicker than relocating the bathroom upstairs.
  21. Like
    DerekT got a reaction from jayw in How to approach?? Buying an empty property that's not for sale   
    Try the address, they may have mail forwarding on. You can try knocking on the neighbours' door if the property has any, or if it's been derelict for a while, it might be on the local council's empty homes radar.
  22. Like
    DerekT got a reaction from pauldavies in Assured returns?   
    Hi Max
    Most likely the assured rent and no expenses have been factored into the purchase price, or they're being used as sweeteners to try and shift the properties. 
    Some things to consider besides the headline figures:
    As they're student accommodations, you're limited in terms of exit - i.e. selling to another investor. What's the end goal/exit plan? What's the local market / competition like? i.e. for the same level of rent and purchase price, what else is available? Are there other purpose built student accommodation available / being built causing over-supply? Who's assuring the rent? The agent, developer or insurance policy? If it's the agent/developer, what happens to the assurance if they go bust? Continue to do your due diligence and see what else you can find.
  23. Like
    DerekT got a reaction from AdamPH in Increasing the value of your property   
    If you have some time on your hands, trawl through Rightmove based on your postcode area +1/4 and then 1/2 mile and include those that have been marked as 'Under Offer / Sold STC'. 
    Check those that have been sold, how long it took to sell and what condition they were in. If those that are sold with a higher price have been modernised to a certain specification, then take note of the floorplans, photos, description etc. After a few, you can build up a picture of what's selling in your area and for what prices. Also note if there's a particular agent that's selling most of them and give them a buzz. 
     
  24. Like
    DerekT got a reaction from lozd in Have you got any questions for a chartered surveyor?   
    Hi Mark / James,
    Few Qs from me please if I may?
    Do investor packs help the CS's job in terms of valuing the property? e.g. showing before/after photos, compiling local comparations. Valuations seem to be more on the 'cautious' side these days, which makes sense given the current pandemic and economic outlook. Is there any particular insight James can provide, or offer his opinion of the current property market and what to expect over the next year or so? Does the quality of fittings/appliances impact the value? e.g. do you value the same property differently if it had a premium, hand-made kitchen as opposed to a flat-pack kitchen from B&Q, or is a kitchen just a kitchen?  Thank you!
  25. Like
    DerekT reacted to Stuart Phillips in A broker vs a direct approach to mortgage companies   
    @EvolutionBlogger I (unsurprisingly?) dissagree. The vast majority of options are not available direct when it comes to buy to let, especially limited company products. I think the effort in finding a broker thats sound, is a far better use of time than trying to understand the rules and criteria yourself.
    Back in the 80's knowing how to maintain a car was sensible. Today, its much more complex. If you recommended someone spend time learning how to change a clutch in a modern car you'd say they were mad! One thing ive learned about business is how to judge the value of your time versus the cost of an expert, and this is one of those times where finding someone good is far better value than trying to keep up yourself.
    Searchlight is a good shout, but there are plenty of good BTL specialist brokers around, just make sure they promote BTL as a speciality because your average broker wont do much of it and simply wont know the details.
×
×
  • Create New...