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dino v

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About dino v

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  1. I'd suggest areas like Sefton Park and Mossley Hill, although you'll probably be looking at a flat. Both good areas for students and professionals with lots of bars, restaurants etc. Crosby in nice as well, probably more family orientated but some nice looking restaurants etc
  2. There will be a fee for mortgage arrangement. You can usually add that onto the total loan rather than pay it up front. Haven't got to the point of remortgaging yet, but assume you'd have another one if you changed provider. Have a quick look at things like the Buy to Let app that'll give you rates and fees. Solicitor fees - I usually estimate at £2k, but that's for a ltd company which incurs some extra bits. Work somewhere between £1.5-2k - if it makes a difference, it's not worth buying anyway, as it's too tight. Tax is always complex, as if you're not doing it through a ltd company then it sits on top of your current earnings, so if you're a 40% tax payer, it's all at 40%, although there are various costs you can offset including letting fees, insurance and a mortgage interest fee, but you'll need to look into section24 to understand that.
  3. Alex, Only had a quick look at the spreadsheet on my phone so haven't checked the calculation but you've got insurance down as £100 per month. Insurance will be £100-150/year, depending on the property, so I normally estimate at £10/month, so worth checking that. You've said you want yield rather than any growth, so I'd suggest you'd be looking at different numbers than the ones you've suggested. For much higher yield, you could go for an HMO, but probably not the best place to start, so a higher yielding single let would be a better bet. The prices you've got are for a property where I would be expecting to receive some capital growth, so a more balanced approach. To give you some real numbers I'm achieving to help, these are for a couple of properties in the Burnley area: Rent £95pw (£411pm) Letting agent 12% £49.40pm Insurance £10pm Net pm £352pm That sort of property can be bought for c£55k, plus SDLT and legals, so about 7.5% before voids and maintenance without a mortgage. Add in 10% for voids and 10% for maintenance and it drops to about 5.5%. With a 75% interest only mortgage at 4% (conservative but based on a ltd company), you'd be paying an extra £137.5pm, but you'd only have about £17k in the deal, so ROI is about 9.5% after voids, maintenance, insurance, letting fees etc. Could be a couple of rounding errors in there, as done off my phone, but sort of numbers you could expect. Haven't taken into account any tax implications of the above, so something you'd need to consider. Put the money into a S&S or IFISA and you wouldn't have the tax to pay and no boiler breakdowns to worry about, but which is highest risk is for you to determine. Personally, I'd suggest all to limit exposure and spread the risks
  4. I think the city centre prices could be softening due to the amount of supply at the moment. If you're looking to buy as an owner or landlord, there's a lot of choice and something nice and shiny, so why buy the same box that was built 20 years ago? Brexit may be impacting on some buyers, but you've also got the S24 effect with a lot of landlords leaving the market, so again, a bit of over supply. Going forwards, I think the interesting buildings in the city centre will keep their prices i.e. either the iconic new buildings or the nice Victorian ones, but the identikit boxes will be quickly ignored. Unfortunately, there's a lot of the latter appearing. I'm more interested in the suburbs than the centre and no real change in supply there, other than a lot of tenanted or ex-tenanted properties available. What I have noticed is that properties seem to either go within a day or two or they are hanging around on the market for quite a while and often open to good offers. No idea what the Bercow 1604 rule from today means to all this, but at some point Brexit will be over and I expect growth to kick on from that point. Fill your boots!
  5. Something that saves the historic rental prices, just like you get with sales. Appreciate there's no land registry bit, so maybe something that captured the advert and how long it was on the market. And, to follow up on one of my previous topics, an app for doing viewings that captures the basic details as drop down boxes etc and let's you add photos to items. Basically, a way to record the details of a viewing without needing pen and paper
  6. 1) Spend less than you earn. Everything else you can do after that, but if you don't get that bit you'll always be poor regardless of how much stuff you have around you. 2) Buy assets, not liabilities. Use your assets to pay for your liabilities. Probably the key thing from Rich Dad Poor Dad. Doesn'tmatter whether you work for others or for yourself, spend less than you earn and buy assets and one day you'll be free to live the life you want without the job. How quickly is just a matter of scale
  7. I've got a property viewing checklist (Rob D's one) in Word form that I can print out for any viewings, however, it feels like it would be easier to have it straight on my phone, especially if I could attach photos into descriptions. I've had a couple of goes at trying to create something in Evernote, Trello etc but without success, as ideally it'd need tick boxes or drop downs for ease of completion. So is anyone aware of an app that does it or a way of building a form suitable for completion on a phone whilst wandering around a property?
  8. We went to look at a couple of properties in the area and a lot of it is very nice. Coronation Rd between Great Crosby and Brighton le Sands looked a good rental area, with lots of independent shops and wine bars and anywhere from there towards Formby is nice. Formby is very nice and not suitable for letting (unless you're aiming at footballers). Anywhere from Great Crosby to the coast looked ok and the beach is great with the Gormly statues, so looked like it'd be a nice place to live. Closer to Waterloo station looked more iffy, with it looking better further inland beyond the station rather than the coast side or the shopping areas. Further towards the city, Seaforth and Litherland looked less nice, although probably cheaper so depends on your market. Didn't end up buying there and can only describe feelings from having a look around, but feeling was soon closer to Blundellsands station.
  9. Nicholas, Even if you're not flipping, you're either re-financing at the higher value to pull as much money out as possible or just keeping as a cash asset. However, does it stack up taking the risk and doing all the work if the final value is only purchase +refurb? The only reason to then do it is because you can't buy refurbed properties as everyone is holding onto them. There are clearly people making money at the cheaper end of the market - look at all FMPs posts in the progress section, but still struggling to get the numbers to work on paper
  10. Currently got two IO mortgages, although both are less than a year old. May end up selling one of the properties towards the end of the current boom, as think the capital gain will make the ongoing yield not worth it, so that will help cover the mortgage on the other, but that's not the real intention, just a nice offshoot. Plan with the other one is to keep it long term, 20+ years and probably for ever (as far as my life is concerned). Don't need the rental income currently, so will look to pay down the capital at times when we're not buying, bit the real plan is to let inflation do its job. The capital owed doesn't change, so it's devaluing at 2% a year at the moment. The rent should rise, although it's not linear, so you've got what you owe devaluing whilst what you earn is remaining the same or potentially increasing. Wait long enough and one month's rent would pay off the mortgage - the average house price in the 1930s was £600!
  11. I don't expect a cut in rates, unless the economy absolutely tanks come April (or whenever this finally ends). They may need to keep rates the same to avoid impacting consumer confidence, but they need to increase the rates soon to improve the value of the pound and also ready for the next recession. Suggestions seem to be that that will come around 2025, so feels a distance away, but interest rates probably need to be around 5% by then to allow them to be reduced again. That's roughly 1% a year and I'm not sure the economy is strong enough for a 0.5% raise at the moment. Brexit itself won't be a complete disaster, but the issues the last two years have caused for where we are could have lasting implications whatever happens in terms of a deal or not. Whether 2 or 5 year, I'd suggest keeping some cash built up as the next recession could be as bad for us as the last one, meaning banks could want money back but could also mean some very motivated sellers of very cheap property.
  12. Can't tell you about Leeds, but can advise with Manchester. £250k properties have a tendency to have a worse yield than cheaper ones, although that's clearly not a main concern. However, if you have one property and get a void (which you will), you've got no income and will have to cover the mortgage yourself, so make sure you're ok with that. For £125k, you'd get £550-£650 in rent, at £250k, I suspect it'll be closer to £900 unless you go with a city centre apartment, although you've then got service charge to consider. £250k will get you a family house in a number of nice areas, so schools etc will be very important when looking as it'll be a major draw for families. On that basis I'd recommend anywhere in Trafford, as they still have the 11+, so free grammar schools, hence lots of parents wanting to live there. That said, you'll be more limited in areas at that price and make sure it's a good primary school, as that's the thing that determines success at 11+. More generally, anywhere on the southern side of the city is generally a better bet than the north in terms of capital appreciation, say Worsley round to Stockport. Good transport links into the city are also good, particularly tram stops or train stations (buses are pretty poor, although the trains are generally Northern, so...). Places being touted as up and coming that should be in your price range: Urmston is being mentioned and if you can get near the town centre, you've got a train line to Manchester. Eccles is performing strongly, although it's a bit of a mix with a lot of HMOs or cheaper properties (the £125k mark) but good links to Manchester, close to Media City (BBC etc) at Salford Quays etc. Closer in to the centre, the northern quarter/Ancoats have taken off recently, but you may now struggle to get anything other than apartments in your price range. Go 1/4mile further out and a lot cheaper, but much more risky. HS2 (if it happens) will be at Piccadilly, so potential for growth around there, but mainly apartments and prices seem high. Happy to answer any other questions relating to Manchester
  13. Inform the vendor you'll only complete on a vacant property. I've bought with tenants in situ previously and we had to have a new tenancy agreement in place for the completion day, otherwise there's no agreement between you and the tenant. In this instance, it's unlikely they'd sign and, even if they did, why would you want them. I suspect if you took this on, you'd end up in a world of trouble, as you'll be trying to evict them with no agreement, so what have they done wrong? As a final point, there's a chance the tenant will cause damage when they leave, so you're going to need to work that out with the vendor, as you may want to renegotiate the price
  14. Hi Piero and welcome Firstly, things like ETFs are pretty complex investing and you should only go down that route if you've got at all the basics in place. If you haven't already, have a listen to the Meaningful Money podcast or look at the website for some saving/investing tips. In terms of the property questions: Mortgage broker - there's loads, but find one who specialises in BTL. If you have a look in the mortgage section in here, you'll find lots of recommendations. You don't need to own your own property, although it can make it easier. Again, a decent broker will be able to help. Ltd company. No straight answer to this one. There are advantages around mortgage interest, but there are issues, too. Mortgage rates are generally higher but the key one is how do you get your money out? If you're planning on building a portfolio using the profits, it can be effective as you pay less tax, but you still need to consider how you're ultimately going to get the money out, as you'll be paying corporation tax (currently 19%) and then dividend or income tax. Basically, do your research and speak to an accountant. As one final thing, you mentioned a repayment mortgage. Generally, if you're planning on building a portfolio you're better going interest only, as you get more profit allowing you to start off and capital growth and inflation will mean that the amount you owe will shrink in real terms. The last few property hub podcasts have been about getting started, so if you haven't listened to them, start there.
  15. Taking this slightly off topic, but if buying for £30k and spending £15k doing up and at the end it's only worth £50k, what's the point? Appreciate if you're planning on renting out it doesn't really matter, but for anyone selling, they're making probably £3-4k after fees and regardless of how quick they refurbish them, you've still got 2-3 months for it to sell. An unforeseen problem and the profit has gone. So any tips for a would be doer upper?
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