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dino v

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About dino v

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  • Location
  • Areas I invest in
    The north west
  • About me
    Working full time, but looking to be able to retire at 55. Whether I do or not is up to me, I just want to be able to.
    Owner of Lynn Properties. Find me on Instagram: @Lynn_Properties
  • Property investment interests
    Single lets to date. First refurb going through at the moment, so looking forward to seeing how that goes
  • My goals
    Financial freedom 1st (by 2022), then equal salary by 2027.
    Then retirement, or maybe full time set the family up long-term. Who knows.
  • Interests outside property
    Personal finance, football. Oh and the family.

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  1. Taking into account stamp duty, legals etc, you're looking at £120-130k. You won't be able to get a city centre flat for that or in any of the prime areas (Media City etc), but you could certainly get one elsewhere, although I'm a bit less convinced of the attraction for the typical apartment renter. What you will be able to find loads of is 2/3 bed terraces. Again, some of the best areas will already be out of budget but there's still lots to look at. Eccles can be good, although you really want to be closer into Manchester or the tram line and you may struggle to find something that needs little work in those areas for that budget, although from a quick look there's bit around Langworthy Rd in budget. Not my area and a long time since I've been around there, so wouldn't like to say what they're like, but as with any house in that price range in area around Manchester, do some investigation. Heading a bit further out, Walkden is pretty good, Swinton is probably a bit better. Basically, you should be able to find something in most parts other than the SW corner of Manchester and in towards Didsbury and Chorlton. Those areas will get the best growth, so you're always going to be following on, so look for fundamentals - trams into Manchester are popular (although the airport line takes an age once you get past Sale), but you'll find value in places like Droylesden and Failsworth on the tram line but not had the growth expected by the trams. However, as the rest of Manchester continues to rise, those places will become more attractive as people realise the value of an area 10 mins from the city centre by a 6 minute service. Keep an eye on yields - if they're very good, avoid the area. The best areas will barely cover the mortgage stress test (and will be above your budget) so look for something in between. You should be making £2-300/month after fees and mortgage depending on exactly how much you spend, so whilst you may see it as long term and capital gains, that's still a couple of grand a year, relatively unaffected by recession or correction. And you'll still get typical growth of a big city i.e. not London, but not the risk of a smaller town where you'll get better yields but potentially very little growth.
  2. A month's rent for finding a tenant is not unusual, although remember that although the tenant will only change once per year, you won't get a full 12 months out of them, they will probably only paid 10 or 11 months. Some of those other costs won't be annual as well things like the electrical test is only required every 5 years and the carbon monoxide should only be an initial installation and then maybe a check in place then every 5 to 10 years depending on the battery. My only word of caution regarding student accommodation is what's the exit? If the university decides to build its own accommodation on site or much closer in which a lot of universities are starting to do, will you actually have tenants for your property? If the block is designed for students only, you wouldn't be able to let it to anybody else, so have you then got a viable property and is there a market for selling it? I'm guessing this isn't just a student pod, if it is stay well away, but it may not be the best investment and you're unlikely to see the same capital growth you would with a normal property. An HMO that's aimed at students is different, as you could always look to swap it to other tenant types at some point in the future or even revert back to a standard house to either sell or as a single buy-to-let. whilst somewhere within an hour's drive may be convenient free initial reviewing and deciding where to invest you don't need to pick somewhere that clothes as long as you can have a letting agent - once you've bought it you should never need to set foot in it again unless you are really interested in doing the painting and decorating yourself. If you want to be an investor rather than a landlord, I'd therefore suggest looking slightly further afield. Whilst the south-east may always get the best capital growth it's unlikely to be the same on student accommodation, in which case you may as well look further north where you get a much better yield and a more standard type of property where you'll have various options in the future and probably better capital growth.
  3. The two properties are likely to bring in a better yield, as rent doesn't usually rise proportionally with purchase price. Two properties also spreads the risk, as you say and there's a chance that even with a void in one, the rent would cover the mortgage on both. On the negative side, you mentioned flats, so you'd have two service charges, presumably against none, which will reduce yield and is a cost to be aware of in the event of a void. You're also looking at two boilers to possibly replace and regular upgrades of two kitchens or bathrooms. Regarding capital growth, if they're all in the same area, there's probably little difference. Their may be slight differences in terms of longer term desirability, but that's going to be very hard to predict - smaller, cheaper properties may grow more strongly due to need, but if there's lots of flats being built, the over supply could impact price growth and increase demand for family housing.
  4. Tax is always complex as it's personal, but generally, if you buy the property in your own name rather than a ltd company, you will pay tax on profits as if they were earnings, but you need to do it through a tax return. Things have changed regarding mortgage relief and how you actually calculate profit. Our properties are in a ltd company so I can't really explain the change, but search for section 24. Things will also be more complex if you're not living in the UK, so you really need to get some expert advice on your situation and the best option.
  5. Have you listened to the podcasts or done the university courses on here? If not, start there. And read Rob Dix's book, complete guide to property
  6. Problem is you can find the best solicitor in the world, but if the vendor's is hopeless, it won't make a difference. On our latest purchase, I was hoping we could get it completed in 6-8 weeks - was over 4 weeks between the offer being accepted and the vendor's solicitor sending out the pack of info and that's for a house that had been on the market for months and had had a previous purchase fall through, so you think all the info would be in a file ready to issue. I've now started using a local solicitor so it's convenient to pop in for signing and then I just regularly mither them to make sure they're chasing. I also keep in touch with the estate agent and get them to push, as they're the one with skin in the game
  7. You say you've got £20k, but you originally mentioned needing some money for the move, so does that come out of the £20k as well. You've also got legal fees, survey fees and stamp duty, so are they all coming out of the £20k? If so, you're probably only looking at £15k as a deposit, allowing a bit for a bit of paint, carpets etc which any house is likely to need. £15k means a £60k purchase price. You might do that in Wigan, it's not an area I know well, but it's unlikely to get you anything closer in to Manchester. At that price anywhere, don't expect great capital growth, but you can get a good yield. We've got properties in Burnley and for £60k there you should see a rent of £425-450. Take off about £50 for management and £70 for a mortgage, £10 for insurance and you're still looking at £300pm before voids. So around 25% before tax, which isn't bad and better than you'd get outside property. I can put you in touch with our letting agent in the area who could find you a good property. Alternatively, have a look at FMP in the progress journals. They operate in areas to the north of Manchester and showcase properties in your price range. Haven't worked with them, so can't give any thoughts, but may be with speaking to
  8. In short, yes. If you're making a profit, even at a higher interest rate hence the stress test, then you should be able to keep the property and sell it when you want. If you're losing every month, then it's dependant on you having the money to keep it afloat. Lose your job and you'd lose the house as well, potentially whilst in negative equity. Appreciate your figures are an extreme for ease of calculation, but I'd say that even 2 isn't a great deal, as you'd be basing everything on capital growth, otherwise you could get much better returns on the £100k. It COULD work now, with growth about to start (maybe), but do it in 2 or 3 years and you may hold on too long. Personally, I'd always go for a reasonable yield whilst trying you pick an area that should increase in value i.e. around a big city like Manchester, Leeds, Liverpool rather than a smaller town in say Cumbria or Wales. Ultimately, they're always going to expand as cities, so the growth will come, even if you have to wait 20 years. Go for a small town and if the local main employer closes (coalmines previously, steel, nuclear plants etc) you could have a property that'll probably rent but will probably never see growth in real terms
  9. Save yourself a couple of days by reading his book. That will fire you up and you'll avoid the hard sell. Then work through the university courses here to learn the detail of what to do. Rob Dix's Complete guide is also an excellent starter book, probably the best all rounder of all the ones I've read. Podcasts - this one, Property Voice, Progressive Property, Inside Property Investing are all generally good and Goliath Sourcing is a good one for sourcing strategies, legalities, websites etc. Hundreds of hours worth of stuff across those to keep you going, so you may want it pick and choose which specific episodes to listen to. PS Search for Samuel Leeds on Property Tribes to get an alternative view
  10. Can't say about Hull, but for Bolton, critical thing is accessibility into Manchester. Public transport is still pretty poor (request/demand from mayor yesterday to have bus regulation like London to try and fix the issues). If the property is either close to the train station or has a decent bus route into Manchester, it works as commuter belt. You then need some local amenities - supermarkets, restaurants etc depending on likely target market. For either town, if the property is very close to a big demand e.g. a hospital, there will always be strong demand, although prices will probably only grow with rent
  11. I don't know those bits of Liverpool, so can't comment on specifics - may be worth asking in the Liverpool sub-forum. We have got a property in Aigburth and when we started looking we did a Google on something like 'areas in Liverpool to avoid'. You'll get lots of differing opinions, but you start to get a picture. You may also find that some of the areas are student areas, which explains all the rentals, but be aware that there's a lot of posh student flats being built close to the universities which could lead to problems either finding tenants or buyers in the future. If you go to NOMIS you can download previous census data and look at ownership v rented, percentage in work or unemployed etc. In a cheap area, you need to accept it's not going to be full of well paid people but compare it to some areas you do know that you would and wouldn't buy in and see how they stack up. Rough demographics and a few years out of date but a further data point. Have a look on Rightmove at the properties for rent - what sort of condition are they in, particularly ones with rent agreed. If they look cheap and tatty, you'll probably rent anything out but may not get to be choosy about tenants. If they all look very nice then chances are you'll need to make the effort to get a tenant but can expect more professional tenants. Ideally speak to landlords active in the area, but failing that, try letting agents. Accept they may be economical with the truth, but if you can find one that covers a couple of the areas from one branch and say you're looking for something in those areas for them to rent out, you may get guidance of where to go and where not to - they only make money if it's rented, so they may as well push you towards the easy areas for them. We've got a few properties around Burnley and after the first one (that we've had for 13 years) we spoke to the letting agent about where else to buy and they were able to guide us to the right sort or property in the right area and we've had only one void so far that was for a couple of weeks. We had the relationship, which made it easier to have an honest discussion, but I suspect we could have got a lot of the way there without the prior relationship. One consideration with any cheaper property is that the cost of repairs won't be very different than a more expensive property - a boiler in a £50k house is probably the same as in a £200k house, roof repairs will cost the same etc but the rent is a lot less. You therefore need to allow a higher proportion for maintenance, which reduces the net yield, so don't be too seduced.
  12. Create an advert on Spareroom and see what sort of demand you get. You can always apologise and say the room has gone. Additionally, have a look on Spareroom at how want rooms are available in the area and keep an eye on how many go over say a 2 week period to get a feel for what's happening
  13. Some areas will be less desirable, but I don't think you can necessarily pick a property value and question everyone below that. We've got a property that was bought for £100k with a sitting tenant. They'd already been in for about 3 years, chose not to buy for whatever reason and are the perfect tenant - they've asked permission to decorate and improve the garden in the 6 months we've had it. They're a professional tenant and must have spent £1000 of their own money on the property this year. Why didn't they just buy it, no idea. At the same time, you'll find streets where many of the houses are boarded up. Whilst there will still be some good people in those areas, new tenants are likely to be the desperate ones, either due to poor credit or previous issues. Ignore the price and yield, research the area and look at the street - I'd recommend driving around them, unless the StreetView is very recent
  14. Whether you want capital growth or yield, or a mix of both, is up to you and your goals. Unless you work out what you're trying to achieve, no one can answer that for you. In terms of capital growth, it's not guaranteed. I don't care if you buy in prime London, there's no guarantee it'll be worth more in real terms next year or in 20 years. I can show you plenty of properties around Manchester and Liverpool that are worth no more than in 2007, many actually less in absolute terms before you even take into account inflation. Add to that the new build risk, where I suspect many of the units are already overpriced because of the number of investors and it's not a strategy I follow. If you think an area is going to outperform the market, ie a city centre, an existing apartment feels safer - it already exists, so no risk of the developer going bump; you can work out the value based on previous sales in the block/area and also rental values and; you get yield from early on. I also think a good conversion of a fabulous old building is probably better long term than another square box that'll blend into the others when they're all built. Exception to that could be new, iconic buildings e.g. Beetham Tower in Manchester that was the highest residential block in UK (poss Europe) when built, although the residents are now complaining about the taller new build ruining their view...
  15. I've found costs from three places and built them all into a spreadsheet. I then fill each one in with what I think needs doing and look at the costs, usually taking the average, although if one is a long way different, I average the other two. Can't prove any of them are correct yet, so will have a better idea once I finish removing woodchip. (I'm not sure I'll ever finish removing the woodchip...)
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