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Everything posted by haf1963

  1. What are you basing the 75k auction price on as auctions are very unpredictable and i have seen properties go much higher than expected?
  2. I think its the deansgate deal itself that you need to look at rather than where it came from. RMP as a property sourcer are probably better than most given what rob & rob do for the investment community so I personally would not worry about them delivering the deal. For me the question is more around how will the actual property deliver what was advertised and will the numbers stack up when it comes to yield/costs/etc. The sourcer can only do so much when it comes to these things and its more about demand/supply/etc. Clearly RMP track record in picking hot spots and generally being being very honest about investing is pretty impressive but as the saying goes - the apst is not a guarantee for the future' PS, while i am a big fan/follower of property hub, i have not personally used their services as a sourcer as i have a different business model.
  3. Fundamentally, from an investment perspective, renting out a 315k house for 1100 pcm is not a great return and the stress testing is doing its job. My properties are typically 150-200k for 800+ pcm and get through stress testing without any problems. Maybe you should look at selling the 315k and then getting some BTL where the numbers work?
  4. There is a list of whats allowed as company expenses on HMRC website and this includes things like a phone/use-of-home and general items that are exclusiveky for the use of the business. You have to be sensible and not take liberties plus your accountant should be your main point of advice. Clothes is pushing it for sure
  5. i'd say yes is the short answer - especially if you are looking to refurb and then value the property at a higher amount when you mortgage. There will always be some specialist mortgage provider who will do it quicker but most likely at a higher rate of interest.
  6. really depends on how hands-on you are going to be. I handle everything from maintenance to management myself so keep all the profit while others off-load everything and are very hands-off so reduce profit but have less hassle and spend less time. You also need to factor in tax which gets you into personal versus ltd. Basically it all depends but you can probbaly say 100 per month on management/maintenance on thst sort of property
  7. Firstly I am amazed that you haven't had a clear answer to a basic question. i.e if you transfer your existing home to a ltd company then you are indeed eligible for stamp duty. Ltd companies pay stamp duty on every purchase and you are effectively selling the property (at market value) to your Ltd company. I have been through this process already. You need to have a proper look at the numbers as you will also be paying a higher mortgage rate in a ltd company and there will be other extra costs. My persona view is the Ltd only makes sense if you are planning to develop a decent size portfolio rathe than just 1-2 properties but at the same time there are some good upsides if you do. Any accountant can do this for you and its all very straightforward. Mine is local to me so not sure if thats much use to you but rob&rob have the 'property hub tax' business so i'd start there
  8. Many times and the top tip is to get a solicitor to review the legal pack. There is a reason why properties are sold in auctions and in many cases this is because there is something 'wrong' which would be picked up by solicitors/surveyors etc of you baught through an estate agent but can easily be missed in an auction. I know one example where the legal pack was missing the 'coalmining report' and turns out it was deliberate as there was a (propely saled) entrance within 50 meters which can afect mortgagability and another where there were certain rights excluded in the land registry documentation. On BMV then it depends on where you are as in my area of the midlands its impossible to get anything more than 10% BMV due to demand being so high in the decent areas. Thirdly I would read the contract super carefully as many sellers include all of their costs in teh contract so you can easily end uppaying 5-10k more than the bid price Auctions are a tough game and i would definitly thing carefully and do lots of due diligence. Having said all that its not a bad wayto buy property especially if you are looking at the refurb end
  9. I have looked at the 'black country' a few times including the areas listed - as well as north walsall. There are always loads of auction properties in those areas so its not difficult to get one - you just need to be super careful about which area you buy in as there are loads of 'run down' areas where you will not get a decent profit after flip. Obviously the properties in the decent areas of those towns will not be at the bottom end of the price range. In the end I decided to stay a bit further south in north birmingham as its got more potential and less risk but will cots more for initial purchase. I am sure its possible to make things work in the areas you mention as long as you due plenty of research
  10. It does come down to three things 1. how hands-on versus hands-off you want to be 2. how the numbers stack up in your local area. 3. income versus growth as a priority If you are totally hands-off then better to go where the best yields/growth i.e north. Similarly if you are down south where the numbers don't stack up from a mortgage stress test etc perspective then no point doing it just to be local. Same if you want a good yield. Personally I am in the midlands so can stay local while fitting the other criteria as well.
  11. There i sno right or wrong answer here but if your primary goal is income then HMO's make sense as part of the strategy. As always there are some downsides to doubling the income versus BTL but its do-able. Over capacity is always a risk but given the increase in 'single' populaion and the lower cost of HMo i.e no bills then there will always be demand. Much like student accomodation, competition will come from purpose built blocks with onsuites etc so low end terrace hmo's will be hit moe than the higher end - is my thinking...
  12. Yes she can be an employee rather than Director but you are then into minimum wage and other regulations. Best confirm with accountant
  13. Just doing my first HMO after 5 BTL and going for the low end professional so onsuite etc but not in an average area. My plan is that the rooms will be virtually self contained so I can switch to single lets without too much hassle if i need to further down the line. The income return from a BTL with mortgage is pretty slim these days so if you are income focussed versus capital growth then HMO should be part of the stratgey. I'm also planning on converting one of my single lets to a hmo if things go to plan.
  14. I am paying 4% for Ltd mortgage so 3.72 seems reasonable
  15. My strategy is the opposite i.e buy property's that can be extended and then do the extensions to add most value
  16. Agree - same view from my accountant. I did a job description etc to make sure I was paying an appropriate rate for the work being done.
  17. I did ask my solictor about this when i was looking to do something similar on a cash bought property in order to get individual mortgages but my solicitor said i had to sell and couldn't simply split into leashold and keep hold of the flats. I got the impression it was a relatively straightforward process but didn't pursue it. Hopefully someone moe helpful will provide more info
  18. The 80% is a better option if you were looking to build a portfolio in a shorter time frame but if its early days for you and a few years delay is not a problem then 60% is indeed a good option
  19. Costs aside, I suspect it wil be a while before you will get enough house price growth to make it worth re-financing so why don't you get a 80% LTV and use the 20% saved for next property?
  20. I am doing something similar in birmingham so message me and i will let you know who i use - hopefully you have at least worked out how/where/size/etc and have a plan that sbeen thought through as this is a pretty complex area..
  21. Agree - can't see it getting past brum untill well into the futre - if at all. Not sure I would start investing in cities on route up north anytime soon.. though some folks may feel braver
  22. a commercial valuation of 380k says to me its a workable project. The banks aren't going to lend on anything with risk thesedays and with any commercial loan its about the returns rather than bricks & mortar. Nothing to stop you offering 290 or something and seeing if there is scope to reduce the price. I am in the process of converting a 100k property into 8 bed costing 150k more and I am not worried about bricks and mortar value as the returns stack up
  23. I included with the form a copy of gas cert, epc and deposit confirmation. May as well pre-empt any comeback
  24. Its on the goverment website - form 6a https://www.gov.uk/evicting-tenants/section-21-and-section-8-notices
  25. yes this is a big advantage of going LTD - especially if you are happy to pay upto the NI limit as that means no tax or NI...
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