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  1. Thanks for your reply Richard ! Is the Gross yield on HMO very high because the cost of running them is much higher ? I guess HMOs have to comply with yearly requirements with regards to gas, safety, electrics etc. etc. but will that damage significantly the net returns? I don't understand why anyone (who has enough money) would by £300k house and try to rent as a 4 bed student with a 6% gross yield if they can get 12% if they spend an extra 200 to £500k Am I missing something ?
  2. Hi, I am an absolute novice in all this so forgive me if my question is dumb or else... I have a bit of cash on the side and formed an Limited SPV to invest my hard earned cash in some BTL. Initially I thought of buying Cash a property and seeing how it goes but I am now having second thoughts: What happens if I want to buy another property and all my cash is locked into my first property !!? I am wondering what is best for Limited SPV: 1/ Buy the first property with a mortgage which gives the advantage of leaving some cash for a second property. 2/ Buy the first property Cash and ask a lender for a mortgage later to release equity when I want to buy a second property. This has the advantage of making me a cash buyer, which I guess sellers like more. But I have no idea how the equity release aspect will work etc. also I could have a surprised if the lender values my property much lower than where I bought it. However I though that maybe a lender will be more inclined to give better terms if the asset is already bought and (hopefully) tenanted. Hopefully someone with experience in the matter will share their knowledge/experiences .... and I thank you very much in advance. Best regards
  3. Thanks Richard your input is indeed helpful and I will keep in mind the saying "if I am not embarrassed when making an offer, then it is too high!" The property is in around Birmingham where I am not quite sure rental yields should be. For example I see large HMOs in Selly Oak offered at around 11/12% implied gross yield, and I have a feeling that it is too good to be true.... or is it ? Would you say that there may be some underlying issues with these ? Or is it that large HMOs gross yield are generally much higher but the net return will be in par with more conventional BTLs ? Cheers
  4. Sorry I realise that my topic above may be better suited to « critique my deal » would be be great if an admin could transfer it ? thanks
  5. Hello, I am planning to buy to let in Birmingham, hence I am looking for a good/trustworthy surveyor that will be able to (1) perform a solid structural survey, (2) give a fair valuation based also on local knowledge and (3) deliver the report in a timely fashion. A internet research returns only 2 potential candidates: - Marwood surveyors - Allcott Birmingham branch Has anyone had experience with any of them? Alternatively can you recommend a surveyor you were particularly happy with (here or private message) thanks in advance for any piece of advice!
  6. I too am interested at properties in Europe but how do you manage the 2 main issues of: 1- property sourcing. Visiting houses/buildings in Germany or Portugal would need me to take a holiday from my day to day job and it’s difficult to juggle with family etc. 2- language barrier. Anything gets complicated unless you are fluent in the other countries language... I can speak French, sadly the BTL market is crap there (low yields & high capital gains tax). Don’t speak German Portuguese nor Spanish :-( Anyone could share their experiences in more details ? cheers
  7. Hello All... newbie here so please be forgiving! ( apologies if my post is a bit long ... hopefully some will read until the end ) I am looking at some BTL opportunities and found a 3bed house all refurbished to high standards that looks interesting in an area that I think will gain in value. After doing some research I believe that the developers bought the property last year for about £90k. There were a few sales last year at that level actually in the same area. The highest sale achieved in this street was £105k back in 2005 ... so I would guess pre-crisis... admittedly I could be comparing apples and pears . Now that they have refurbished completely the property they are asking for £210k. This is definitely higher than what this area is worth in my opinion ... for example there is a non-refurbished similar house for sale at around £105k I think (I need to call the agent to investigate... but the are closed now) I am doing the following math... which probably make not much sense... please let me know : (a) Fair Value of the house: They bought the house of £90k They have probably spent £15k on refurbishment.... but let's say £25k to be on the safe side Let's assume the area has gone up in value by 10% since they bought, again to be safe so I think a fair value for the house is 110% x 90 + 25 = £124k (b) Looking on internet, I believe that if they rent the bedrooms separately (and manage to have 100% occupancy) a toppish yearly gross rent would be around £14k to £15k As I don't know any builders/architect etc. so I am looking for a ready made investment... hence I was thinking about offering £150k as a cash buyer. That gives them a 21% bonus to what I think the fair value of the house is and a 30% return on their £115k investment. But this is a 30% discount on the value they are asking for with the agent... which sounds massive. So here are my questions: 1/ Is my reasoning flawed and/or too simplistic ? 2/ Their 210k asking price is an 82% return. Are they really hoping to make that type of money ? Is that the sort of return people are looking to make when refurbishing/flipping properties? 3/ Does my 150k offer sound reasonable? Any remarks welcome Thanks to anyone that will be willing to help. Have a good evening.
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