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T Barratt

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  1. Hullo! I have been unable to listen to the podcast for sometime now as I keep on getting the following error "Unable to retrieve data file" when I try to play them. This has repeatedly and reliably been the case over a period of time and on multiple devices e.g. laptops, tablets, smartphones all of which I have previously been able to listen to the podcast on. Has anyone else had this problem? Anyone have a solution?! I'd normally put down to user error or out of date system files but I've tried my newest devices (which are incidentally android marshmallow and nougat) and even I can press a button! I have emailed R&R and await a response. Any suggestions appreciated... getting frustrating. Many Thanks Ginge
  2. FYI.. I have been conservative on the revaluation value as can't guarantee capital growth, however, would be confident at it being greater than 130k.
  3. I'm just getting into this property thing, having been an accidental landlord in London. We sold the house last year to release equity for various reasons and are looking at re-investing some in the Notts area. I am currently looking at a 2/3 bed townhouse in an area that I have long considered to be a growth area. It is currently going through a regeneration program (that links in with others such as 'the gateway to the City') and has seen investment from private p. development companies buying up plots of land for eco housing etc. The schools are improving, its located near the river, new tram link, great road links, business parks, city and hospital. It is also next to the town which I live, that is extremely popular (with property prices going over the 550k mark for a 4/5 bed semi) and becoming rapidly too expensive for many. The ripple effect has already started with house prices having increased 50-60k over the last year. Those selling in the 'old' part don't hang around and prices have been driven up 20-25k since the start of the year. Wish I'd been able to get in earlier! Anyhow the property I am looking at is in the 'newer' part, which is currently not so sort after. However it is on a lovely, quiet and well maintained cul de sac with lots of off street parking. It is less than 5 mins walk to the tram stop, riverside and there is a bus stop around the corner. The City Centre (and train station) is a 10-15 mins walk and it has castle views! There is easy access to the ring road and other main link roads and motorway. All of which, I think is great. The property itself is approx 30-40 years old. It's a 3 storey townhouse with off street parking and a car port/garage on the ground floor. It is marketed as 3 beds "with flexible living" but in reality the room on the ground floor has the only garden access, is small and isn't really suitable as a bedroom. The kitchen and lounge are on the first floor and the bedrooms on the top floor. The garden is a decent size and probably too big for rental, as lets face it tenants don't look after them! My thoughts are to offer cash BMV, put in some carpets and paint then rent out whilst planning etc., is obtained and a builder becomes available (long waiting lists!). I have been told £675 pcm. Then when the planning comes in turn the car port into a double bedroom and extend into the garden (no planning) making another proper double, with a separate hallway and access to the garden. There is also a downstairs toilet that I'd look into converting to a shower room. I have had one quote for a builder for 40k (inc VAT) for this. The work would be solely to the ground floor so it is possibly feasible that I could rent as a 2 bed at a reduced rate whilst the work is completed, as the top 2 floors would be unaffected (other than noise and inconvenience)? My question is whether the figures add up and how to calculate the ROI after refurb and refinance. I'd be buying cash. We would also have the cash for the refurb or could do a company to company loan at 3%. I have had a go at using a BTL BRR calculator but unsure I have filled it in correctly? Property is on the market at 120k. Screenshot below. Any thoughts would be appreciated!
  4. Hi Richard Thank you this is very helpful, however, I am still in analysis paralysis as I can make this and potentially more on a S&S ISA... and that's not taking up my valuable time! As such I am very hesitant about taking the plunge In terms of costs I did have quite a few of those you have accounted for hidden away in my s/s but others not, so good to have those pointed out e.g. survey and gas certificate etc., costs. What are the 'other costs' (£3750) for though? I'm not planning on using a sourcing agent or buying through auction. Would this be the initial letting fees (which I wouldn't have with LHA...)?
  5. So would you consider a 12.2% ROI and 3.9% net yield at asking price, (potentially 14.2% ROI and 4.6% net yield cash offer at 10% BMV/Asking Price) a good investment? I'm currently looking at one such property in Notts and am wondering whether to take the plunge. I could get away with minimal to no work and let to LHA tenant. Council will pay the rent direct, no letting fees and low risk void. I would self manage. If I went for a private tenant I could get a bit more (£550pcm) Asking Price = 87,500k Rent £500-525 pcm (tenant pays one off top-up to rent in addition to LHA) Tenant Profile: LHA family Refurb: None needed but I'd look at putting in a combi boiler and some additional kitchen storage. Say 2-3k (5k furnished?) Whilst I would buy cash I would then get a mortgage, so these figures are based on a LTD Company Mortgage at approx 3.2%, 10% maintenance pot and £200 pa insurance (its a small 2 up 2 down). It's close to the city centre, excellent transport links and facilities, good rental area and is showing some signs of improvement being in a possible 'ripple' area.
  6. I agree with Mr Moore and have recently asked the same question. I too am a newbie. I am currently looking in the Notts area and am finding it very difficult to find anything with decent net yields... if honest about the costs! Maybe I am being too conservative with my figures but most 2 bed places are coming out at around 3.3-4.5% net yield, for single lets. OK I am looking at LHA, which I appreciate will give me a lower yield but the figures don't massively increase if I look at average private rental. I have seen some where yield of 6-7% is promised (never higher) but they always turn out to be gross when you drill down! ROI doesn't seem so bad, coming in more around 9.8-12.4%. I'd like to buy in areas with capital growth potential, which the numbers don't really show..but the obvious problem there is that this is often reflected in the price! I have 4 properties on my radar at the moment. I have also noticed that house prices have shot up around 15-20k since the start of the year without any real reason. Agents say it is because the market is hot, but I'm not sure I agree. The difference in property quality and size in the same area is massive. Houses that were on for 80-90k are now on for 100-115k and they just don't seem worth it. Available selling prices certainly don't seem to back it up. Are we heading for a (regional) wobble? I guess I am nervous about taking the plunge! I would be buying in cash and getting a mortgage at 75% LTV later on through a LTD Company. I'm currently using R&R Property Comparison s/s (which I guess doesn't take into account what I can claim against tax e.g. interest etc)...
  7. Hi Rob Currently looking into this myself and my accountant advised not to mix trade (flips) and investment (BTL) as HMRC don't like it, so probably best to have 2 Ltd companies, one for each. Just started on mortgages, which I feel the need for hand holding due to all the jargon and acronyms.. but there do seem to be quite a few out there for LTD companies (and LLPs, which my accountant also mentioned)...both for single lets and HMO depending on your model. They do appear to look at the directors earnings as a whole, so not specific to the new business. I am a director of another LTD company so my understanding is that they would look at that and at my personal tax return to ensure I could cover the loan. I'm in early discussions with a couple of brokers and am happy to keep you posted on what they tell me. Rates I am being told about are around 3.2 - 3.6%? Would be interested to hear what you're being told. Hope that helps. Thandi
  8. Bugger! Thought that would be the case...darn that pesky taxman! Thanks Mike
  9. Hullo! I think I know the answer to this but just wanted to double check as I can't find this specific example in the HMRC guide to stamp duty surcharge (although admittedly I may have missed it as I became glassy eyed half way through!). So I am planning to set up a SPV Ltd Company for my BTL portfolio. I currently don't have any BTL but I do jointly own a house, which is my main residence. My question is will my 1st BTL, purchased through a LTD Company be considered my 1st or 2nd home.. or in financial terms... will I have to pay 3% SDLT or 0% (assuming it falls under 125k)? I'm at the number crunching stage so want to ensure I have my facts and figures correct! Until now I have been using the Which BTL Stamp Duty calculator with some confusing results.... Thank you in advance Thandi
  10. Hullo! I'm hoping there are some landlords out there with experience in leasing property through Housing Aid who can give me some advice? I would like to be both a socially conscious AND profitable landlord. Whilst I appreciate my profit margins will be a lot less, I strongly feel that anyone of us could easily fall on hard times and would like to help families who have. I have meet with my local Housing Aid department, who are very keen to get landlords on board. They have a massive demand for 2 bedroom homes to house families. There are many pros and I'm sure cons: Pros: - V low risk of void periods as demand is so high - No letting costs (the council do it) - Low insurance (the council in the process of working with an insurance company to cover this) - Cheaper properties, cheaper areas - Low uptake on the security bond by landlords (6%) to pay for damages etc. - Direct rental payment - Feel good factor - Council very open to negotiation Cons: - Vulnerable, high risk tenants? - Low rent (£470 pcm for 2 beds, however, can charge more with the tenants topping this up) - High maintenance - Furnished - I'd like to hear of some! From talking to people there is a belief that your property is more likely to be trashed if you have Housing Aid tenants. I'm not convinced... in my experience wealthy private tenants, with rich Daddy's are the most problematic! Also the council vet everyone and those classed as high risk e.g. with a history of substance abuse, criminal records, no employment history etc., are not processed through the Housing Aid route. Also the low uptake of the councils security bond would suggest that the tenants look after the property. However, I don't want to be naive so would really like to hear from anyone with experience in this area. As a bit more background... I'm looking in the Nottingham area, would look at self managing and will plan to negotiate with Housing Aid regarding the selective licensing that is shortly due to be introduced in the city. I will also probably hedge my bets and look into getting one or two more profitable HMO's at some point! Muchas gratis Ginger
  11. Hi Taj I'd tread carefully, any sniff of knotweed and both mortgage and insurance companies tend to run a mile! We recently sold our property in London and the lazy surveyor noted 'possible knotweed' in his report and everything stopped dead. We knew there was no knotweed, the garden was merely overgrown due to the property having been vacant over the summer months (whilst it was re-furbished), but had to pay for a specialist company to come out and verify that there was none. Thankfully there wasn't.. but it cost us financially. I would check with mortgage and insurance companies first to see if you'd be able to get cover. I'd also pay to get a specialist company to survey the garden should you decide to offer (approx £500). Knotweed is very nasty stuff, spreads quickly and is extremely difficult to get rid of. Once it is known in an area it will tend to be labelled as a black spot. Sorry. Hope that helps Thandi
  12. Hi Everyone I'm currently researching social housing, for asylum seekers in particular. I have been put in touch with a company based in Leicester, called Live Management, who are apparently partnered with G4S on the COMPASS Contract. However, I can find very little information on this company... which concerns me. Also with it's association with G4S and all the surrounding bad press, I wondered if anyone had come across them and had any feedback or advice? Many Thanks in advance Ginger
  13. Hullo I am currently selling our old house, which we have a HMO license for and was hoping for some advice.... Firstly, Do I need to notify the council that we want to terminate it? Secondly I have just found out that the buyer is going to have to rent whilst they are out of the country. They initially said it was residential, although he clearly plans to flip once he's done it up. I wondered if I could transfer the HMO (there are 4 years left) and potentially get a bit of cash for it? Can't find anything on it so suspect not. We didn't sell it as an ongoing HMO as it is in more of a residential area/property. Thanks in advance
  14. Hi All Just to let you know that I have been in touch with admin and the property strategy content is back online http://thepropertyhub.net/strategy. It's a bit of a mess format-wise, but they will be correcting that over the next few days! Ginge
  15. Hi K So sorry, only just seen your response! Thank you so much... have decided to leave this one for the moment, however, it was a useful exercise! Ginge
  16. Hullo! Pls can you do an Ask R&R or podcast on research tools? As a newbie I seem to waste too much time trying to find decent calculators to help me with my property research, as they all want too much information! All I want is a rough calculation of: BTL Mortgage Rates/Interest payment BTL Stamp Duty Landlords Insurance (Buildings, contents, rent cover etc)* Legal Fees Broker Fees Etc They all expect you to provide full information and personal details, when I don't want to be bothered by some salesperson trying to quote or sell me some product at this stage! I doubt I'm the only person who feels they get bogged down by this. I want to be realistic in my costs but don't want to spend hours and hours on it at the research phase. *Insurance is a particular nightmare as they ask questions you can't possibly know before you own the property and want to know re-build costs etc etc. Thank You Thandi
  17. Hullo! Wondered if anyone could recommend a good decorator in the Nottingham/Rushcliffe area (who won't charge the West Bridgford premium!)... ideally with good plastering skills and/or contacts? Initially this will be for our own house, which desperately needs a lick of paint, but the plan is to add them to my property 'team' list if they are any good! In the set-up stage of my property journey and thought this would be a good way of testing some tradespeople out. Any recommendations (or don't touch with a barge pole) would be greatly received. Thank You! Ginge
  18. I'm having the same problem....has anyone had an update on where the resources are?!
  19. Hullo! I'm new to this too, however, have just walked away from a Grade II property I was looking at as an ongoing FHL. This was in good nick and on the surface didn't need any work doing to it, however, I spent some time crunching the numbers and they basically didn't add up as a good investment. We would barely make enough to cover the costs. Remember that with Grade II not only are you having to potentially jump through hoops to comply with historical regulations, but also you're paying a premium on insurance, mortgage etc. Additionally with it being a very old property, the repairs are likely to be more frequent and your utility bills sky high (obviously not an issue if your looking to flip). Not that I qualify myself as knowing what I'm talking about... but something to think about. Ginge
  20. Hullo! Massive thanks for all the feedback and apologies for the radar silence...been galavanting in the South of France. But back to reality as of tomorrow! Planning on going to the hub gathering in the evening, children and behaving permitting. So hopefully see some of you there.
  21. Got it! Thanks... worth a viewing then. The property comes furnished but we'd probably want to modernise it a bit when it needs replacing. There is an additional bedroom possibility but I suspect the listed nonsense would make it unnecessarily complicated. Darn history buffs .. Think I've worked the yield out.. I'd already done the A*B bit but called it something else (I think). Gross is approx 7.3% assuming the asking price (which we obviously would want to improve on!). Thanks for all you help Ginger
  22. Well spotted.. that would be my fat fingers/confused touch typing! 105 days does make it look better. Unfortunately the 167 days was for 2013... it has been on a downward slope since then (see the other worksheets)! Pls can you send me the Deal Critique link as it didn't come through... I'll take a look. Otherwise a massive thanks! Ginger
  23. Thank you, this is really useful. Currently crunching the numbers and not feeling quite so bullish. They have failed to meet the FHL condition of 150 days for the last 4 years (admittedly only just) with only approx 35-40% of the year booked out... not breaking even by your calculations! It has been a pretty manual process as I have only been able to get the basic booking schedule screen shots off the sellers and have had to work out average letting costs by looking at the property on Cottages4You. I have tried contacting Cottages4You for more detail and their costs but they have to check the owner is happy to share this first, so no joy yet. I hope you don't think I'm cheeky BUT.... I have attached my workings so far. I am a bit confused how you work out the seasonal rate etc., as the rate seems to change for every week of the year! The house sleeps 6 in 3 bedrooms. Pretty please could you give me some guidance? If I can see it worked out once I'll better understand how to apply it going forward I haven't been precise with my calculations but conservative e.g. if they have booked it out for 22 days of the month I have rounded down to 21 for an easy 7 night multiple. I have rounded up on a few but only where they are 1 day off a 3 or 7 night multiple, so hopefully it evens out. Maths is not my strong point! Also I have used the dates on the schedule I have to ascertain whether a holiday rate has applied or not. Obviously I don't expect you to say 'Yes' but it would be fabulous if you could! Thanks so much either way. Ginger FHL Cottage Calculations.xlsx
  24. Thank you! I will certainly take you up on the offer One question straight away.... do you fully manage your properties yourself? I'm happy to do some of it but am not keen to be called up in the middle of the night or learn all the rules and regulations (straight away anyhow). Is it possible to get an agent to do this whilst I ensure the tenants are good and properties are being looked after, without an exorbitant fee? Ginge
  25. Hullo! My name is Thandi (otherwise known as Ginger). I'm new to this, haven't bought anywhere yet but am planning to as soon as our equity is released! We are selling our old house in London, which we have been letting out for approx 6-7 years. Hope to re-invest in several properties for a higher yield (and a bit of capital gain would be nice) in and around the Nottingham and Midlands area. Not sure Nottingham is the best place, what with the abundance of purpose built student properties, article 4 and newly introduced landlord tax but it is where I live and know. Thinking of Loughborough but would welcome thoughts and suggestions. Might also look into the odd holiday let (FHL) further afield due to the self use perks and tax benefits. Currently educating myself using the free training and reading Rob's book. Also plan to become an accredited landlord so there is more training there.. which will hopefully plug the gap. I do however have a project planning/analysis background which will hopefully help (although ironically finding setting my own life goals not so easy!). The project plan is coming along nicely and I am actually completing tasks! Planning on running through a Limited Company. We already have one for the day job (although the plan is for this to become mine) and a good accountant with experience in the BTL world. I will be focusing on setting this up, whilst the husband brings in the pennies and I look after the kids and ailing parents. As such am hoping to achieve financial stability, flexibility and work-life-balance in the long term. I want to have bought our first property by the end of the year and hopefully a couple more in 2018. Any tips welcome. Thx, Ginger
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