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Everything posted by mpbackhouse

  1. Some really good posts in this thread I am currently buying my first property, so thought I might add my perspective. My thought is simply to invest anyway. There will always be reasons to delay starting, and Brexit is simply the latest of these. I don't want to get into the habit of waiting until things are perfect, so I am going to just pull the trigger. To keep things safe I plan to protect against the downside by not over leveraging and ensuring that the fundamentals are solid (but I would have done that anyway!). I also think there may be cause for optimism. Aren't good investors supposed to be greedy when everyone else is fearful? Hope this helps!
  2. My guess is that when people buy somewhere to live they tend to be a bit older, and as such they mostly want to live somewhere quiet, with a bit of green space, good schools, and parking. But they also need to be reasonably close to work, so they look for somewhere in the suburbs. Since most buyers are residential, and since demand drives price, it kind of makes sense that the long term growth of the suburbs is stronger than right in the centre. Further, if you buy right in the centre, who will you eventually sell it to? Probably an investor - and as such the price will only increase if rents (yields) increase, in which case you may as well hold onto it! I am also buying for growth not yield, and as such I'm looking around Manchester a bit further out from the centre. Just my 2c Michael
  3. Hey HS2 completed in 2026 and HS3 starting in 2022 seems to line up almost perfectly with the winner's curse phase of the cycle. Aren't these kind of ambitious projects exactly what we should expect at this point in the cycle? If so, this puts us currently slap bang in the middle of the cycle. Which means that there should have been a small amount of growth over the last 4-6 years - hence the 'great' deals from 2013 now being merely 'good' deals - more confirmation of where we are. To me, it doesn't look like things are being skewed at all. But I do get the point you make about the mania. Particularly in Manchester, high rise flats are going up all over the place, and everyone has been tipping it as a good place to invest for so long that parts of it may now be running on speculation. Personally, I think the satellite towns will continue to offer good value. Southerners who are reluctantly investing up north because London is too expensive will probably want to stick to places they've heard of, leaving the satellites to pick up a nice ripple. I'm also curious to hear others' thoughts on this Michael
  4. I am considering using a ltd company structure from the start. Here is my reasoning: At some point I will probably become a higher rate tax payer. At that point it will be extremely favourable, if not vital, for me to transfer properties into a company - but this will be expensive. I can avoid this. I do not need the profits from property at this point in my life, and as such I will be reinvesting most of the property income. I can therefore grow much quicker using a company. BTL lending for limited companies is becoming more common/competetive, so I would not lose out on the benefits of leverage as I would have done before these products were more available. Further, would acquiring an unencumbered property within the company make it easier to get lending? Am I missing something? I would be interest to hear your thoughts on this, in particular wether or not my last point is true.
  5. Are you looking at the new builds along that road? I see the attraction of that part of Salford, because it is right between media city and Castlefield/city center. Have looked at a few places around there myself. I am a little put off by a couple of things. Firstly, Ordsall itself seems a little rough, stuck in an in a deadzone between the quays and the city. And secondly, they is a very large number of riverside apartments being built there and I am concerned about oversupply pushing down rents an prices in the short to medium term. It could go the other way, and the regeneration pushes out the locals and prices rise, but I think this is speculation. I am looking a bit further up the river, near Salford central station. What do you think of that area?
  6. I too have been looking at Manchester -good to hear that Eccles is not too far out. Was looking in the Salford area. What is the deal with the chimney pots development? Has anyone on here been involved with it? https://www.manchestereveningnews.co.uk/news/greater-manchester-news/residents-leave-landmark-salford-regeneration-13742443 That area does look ideal because you get media city/quays and its not too far to the centre.
  7. Hi Richard, I too am in the "what should be done with starting fund X". I found your podcast/article really useful - in particular the "climb up the property food chain" part which I had not considered previously. I think it is a particularly attractive option that you don't hear talked about all that often. When starting out, I imagine each deal will take a great amount of time and effort because everything is so new. Added to that, us newbies are going to agonise over many decisions, so deal velocity will be low. It will take years to get all 100k invested if just buying very small properties - why not get it all invested within 3 months? However, risk is higher, and there is probably less room to add value to larger properties (proportionally). And cutting one's teeth on the smaller properties will allow one to learn faster... Thanks for the input!
  8. Good evening all I just wanted to pop on here and say hi, give some info about me, and put some of my short-medium term goals out there. ABOUT ME I am a 23 year old guy who has the summer off, as I recently quit my job and will be starting a PhD in October. As such, I have lots of time to spend pursuing property. I have enough saved to do some deals, so will be hoping to get at least one property under my belt by October, if not more. As far as previous experience, I do not really have any - kind of why I'm here . Investment area wise, I am most likely going to pick up somewhere in west Manchester, as I know the area and from what I can tell it is primed for growth over the next few years. Ultimately it would be nice to get places in London for long term growth, but right now I would like places that yield well. Unfortunately I don't have any skills or knowledge that other members may benefit from. I know the areas Warrington/Manchester/Cheshire reasonably well, as well as a bit of SW London (think Hammersmith & Fulham through to Kensington and Chelsea). Cheers! Michael
  9. Hello! I would be interested in hearing R&R contrast focusing on one small area (a single street or group of streets) vs not limiting oneself to any particular area and just going where the deals seem the best at the time. If this has been covered previously then my apologies - I have just started going through the show (which is great btw - really down to earth). Thanks!
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