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Dino V

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  • Location
  • Areas I invest in
    The north west, concentrating around Manchester
  • About me
    Working full time, but looking to be in a position to retire at 55. Whether I do or not is up to me, I just want to be able to.
    Owner of Lynn Properties.
  • Property investment interests
    Single lets to date. First refurb done, finished at the start of the pandemic and still in the 'never again' stage
  • My skills
    MSc in Project Management that I haven't used in a long time.
  • Interests outside property
    Personal finance, football. Oh and the family.

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  1. For any property, you'll have a maximum you'd pay, based on rental, refurb costs etc. Just make the fee part of the costs when working out what you'd pay. Agree that I don't understand why buyers go down this route, as it means the agents make a lot more, hence the seller makes less. That's the case with a traditional auction, but they offer certainty of sale based on a date. I've seen these modern versions that have been on Rightmove for months, presumably because buyers don't like the look of them, so harder to sell and you end up with less money.
  2. Gross income is meaningless, especially on a holiday let. How much do they make after paying council taxes, utilities (elec, gas, water, WiFi, Netflix) etc? How much of every booking goes to Airbnb or similar? What are the cleaning costs after every changeover? After that, what's their annual maintenance costs? I imagine they're high for a holiday let, as everything needs to be good quality or it's an instant bad review that will impact future income. Once you know all that, you'll at least know your real ROI, although don't forget the tax on profit and that regulations are likely to come in meaning licensing or similar. If it still makes financial sense then, then maybe consider it, but what's your out? Assuming it's a decent earner, the current owners must have decided they don't want the hassle anymore, which is their prerogative. Without being able to mortgage it, they're selling options are limited to a cash buyer. In 5 years time, 10 years time, or whenever you want rid, your only option will be a cash buyer as well. That's likely to affect the market value, meaning less capital appreciation compared to investing the same in a normal BTL (or a S&S ISA). The total returns may therefore end up less than a standard BTL, so it depends what you're after - if it's monthly income then it may meet your goals, but if it's something to sell in the future, maybe not.
  3. Did you do the course or just listen to some podcasts about it? Considering rent is continuing to increase and property sales have been mad for the last year, where are these landlords who are fed up and want rid of their properties but couldn't work out how to so far? Let's say you do find one, you're only going to make money by converting the property into either an HMO or a short-term holiday type let. Either of those is going to cost a lot of money, both in the refurbishment to the required standards but also in furnishing. You could possibly do it for the £15k, providing the property wasn't in too bad a state to begin with, but for an HMO you might need planning permission, you need to upgrade smoke detectors and ventilation etc, so not as cheap as simple as a normal.refurb. You will also be paying rent on the property from whenever you take it on, but won't have any income until you get the first tenants (and remember the letting agent will probably take the first month), so you need to have enough left to cover that. And don't forget the legal fees in getting the PLO drawn up in the first place. I'm sure it's possible to make money from PLOs but it seems a lot easier to make money selling courses about them...
  4. In simple terms, you can get more than 1.14% in easy access accounts at the moment, so would make more sense to put it into savings accounts until your current deal ends. Mortgage rates are high at the moment, especially for fixed rates, so although the base rate may go up, you may not get a better deal now. Although that's something you'll only know for definite in retrospect. Also, consider inflation. Not the cost of electricity etc but your salary - if it's going up by more than 1.14%, the amount you owe us going down in real terms so why pay it sooner? There's then lots more to consider that's difficult to put into a response (and not expecting you to put personal details on here in response), but have you got an emergency fund, have your got any investments etc. You've mentioned a previous change in circumstances but if it happened again, would you rather have £100k in savings/investments or only £30k left on a mortgage but that the bank world still expect repaying regularly with money you may not have? Paying down a mortgage is something most people look to do, but don't put yourself in a position where you have no other savings for the short term but also think long term with pensions ISAs etc
  5. Whilst December is bad time for trying to get a new tenant in, apparently January is a busy time for all things property related, particularly new tenants - the stress of Christmas is often the final straw, resulting in lots of people looking for new accommodation in January. If it's a smaller property suitable for a (newly) single person, it could be the ideal time. Depending on the amount of work required to make it ready for let (don't forget things like gas safety checks and electricity certificates), completion in late December may not be too bad as you're likely to find tradespeople are very busy in the run up to Christmas, as people want jobs doing before family visits (have a friend who used to work for a carpet manufacturer and December was a nightmare trying to get stuff out for the shops to fit so people could have someone spill red wine on it). Come January, only emergency works are going to be done, so you may find decorators etc are available.
  6. A regular BTL is going to generate £200-300 a month in profit. Can be a bit more in particularly high yield areas although hard to work out at the moment with the much higher mortgage rates. You can therefore work out roughly how many properties you'd need to achieve your goals and multiply that by the amounts of deposits required etc. If you want/need higher yields, you'll need to look to HMO or serviced accommodation/holiday lets. Never heard of the trainer, but make sure you're not paying for some expensive course, especially the upsell if it's something 'free' at the weekend
  7. The 18 years is the average, rather than every one following an exact 18 years. Question is therefore how long the boom phase will last. There have been some signs indicating we were heading into the silly season bit - removing some of the affordability tests, reducing SDLT again, however, it's not clear what the impact of the govt policies going against the BoE plans, thus pushing interest rates up further will be. The signs therefore suggest a slowdown, correction and potential crash, but then with high inflation, asset prices would be expected to hold up. Throw in suggestions and policies related to BTL - the current govt has hardly been friendly to landlords; you've had the Scottish govt decide that landlords need to fix prices due to the cost of living (but not Tesco, Shell etc) which has caused some build to rent operators to step back; and then Labour are making more noises. If landlords continue to leave the market, there may be less upward pressure on house prices, but then rents will rise due to supply, and there may be more demand if people can't afford mortgages, which makes being a landlord more attractive again. So in short, no idea what happens next 🙂
  8. That's the one we used, but couldn't remember the website. Put us in charge with a solicitor somewhere in Yorkshire and we did a Teams/Zoom type call with them
  9. Ask the solicitor you're using, depending on the mortgage company you can often use the same one to give the advice. If not, have a Google for personal guarantees - we used a company that provided a solicitor via Zoom for a fixed fee. It's a nonsense anyway - "do you realise you'll be personally liable for the mortgage if the company didn't pay it?" And that's the extent of the advice...
  10. It's the same buildings insurance, you just need to put the name of the limited company on it. Most of ours are through Alan Boswell although we've still got one with Discount Landlord Insurance, unless your wife can amend the one she's done in her name.
  11. Used Searchlight Finance several times, Simon Allen is a member on here. Experienced with BTL and ltd co etc and really helpful in advising on the best way forward based on your strategy/plans etc
  12. Bought a property in 2020 (completed 23rd December!). Tenanted since, 8% gross yield, gone up about 30%. I'm more than happy with that.
  13. 1) It depends what your strategy is and what you're trying to achieve, plus your age. If time is on your side, buying a property in a high growth area and then saving for the next one, using the rent to help will take a while, but ultimately you'll have a portfolio of properties that are growing quickly and probably have decent rents. Once you have 'enough' you can start to draw the profit or you can sell some of the properties to pay off any mortgages leaving you with unencumbered properties paying rent, or sell the lot and invest the money elsewhere / blow it etc. Inflation is an important part of all that and whilst it's worth working through all the podcasts, I'd recommend having a look at some from this year sooner, specifically some of the recent ones around inflation. An alternative is higher yield properties where the rent will build up more quickly, allowing the portfolio to build more quickly. That could be cheaper property in high yield areas or something like HMOs. You probably won't get the same levels of capital growth which ultimately will mean the total return is likely to be lower, but if you want the income, that may not be a concern. Finally, the quickest way to do either is to force the appreciation on the property to allow you to remortgage to a higher value and pull your deposit back out. Usually that means some sort of refurbishment but will often mean you need the cash to buy, pay for the refurbishment and hold for a period until the remortgage is complete. 2) Finding tenants is the easy bit. You can use something like OpenRent to create you own advert, put it on a local Facebook group etc. The bigger problem is compliance, both as you get a new tenant and throughout the tenancy, plus being the direct contact for the tenants for any issues. People will argue both ways, but whilst I'm working, I don't want another job as a letting agent, so I'm more than happy to pay some of the rent for that service. 3) Not that I've ever found, annoyingly. In fairness, there's usually less negotiation on rents, so properties will usually go for what they're advertised at, assuming it's a market level rent. If there's one outlier, don't base your expectations on that, but if similar properties are advertised at similar prices, you can assume it's about right. As a check, you can ring a letting agent, explain your looking to buy and see what they suggest the rent would be. Depending how honest they are, they may suggest on the high side. Some would suggest ringing back as a potential tenant moving to the area, describe the sort of property you want and see what they say you'd need to pay in rent. You might find that's a little low, so the real answer will be between the two.
  14. Have a Starling account for our limited company and really happy with them. We already had a business account and a property before transferring to them, so didn't have any issues setting it up. If it's a problem without an existing running business, try opening an account with another bank first - we had Santander for a year whilst it was free and transferred from there. It's all automatic with any direct debits etc transferred over, so not an issue for the business
  15. Considering the value of your flat has probably gone up several percent since you agreed the offer, I'd set a date for exchange of completion in reasonably short period, say next Friday. If that's not done, tell them you'll put in back on the market.
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