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Ellski

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  1. Thanks Sam! Info is located here: https://www.choices.co.uk/advanced-rent-option/ The fees are quite heavy by the look of it, there's an offer of 5% + VAT for the first 6 months but I think after a year this could become quite unappealing and like you say we would have to compare to finance.
  2. Hi all, I was wondering if anyone had any experience with using Advanced Rent Options? I've seen it advertised where the agent pays you a year up front in discounted rent and then manages the property and finds a tenant as they would with a normal management service. It seems like it could be a good but costly way of expanding quicker... Thanks, Elliot
  3. Thanks @julia urquhart
  4. Hi @sam_f3 Thanks very much for the detailed reply. Sorry - I did actually mean a HMO targeting students although I'd be open to professionals too (I understand it would have to be one or the other). Your points are very helpful and gives me a fair bit more to think about. The main reason we're looking at this is to try and maximise our ROI with the cash we've got, we've already purchased 1 vanilla BTL, another one would likely wipe out our working capital and it would take 2-3 years before we would have enough to go again so we're almost frozen with analysis paralysis...
  5. Hi All, I was wondering if anyone has experience of high end student lets in the midlands? Myself and business partner are looking to increase our cashflow for next investment and we think high end student lets (potentially in Coventry) could be the way to go. Any thoughts/comments are welcome! Thanks, Elliot
  6. Thanks Derek, I thought you had to have an EICR on every new tenancy so good to hear. Total annual costs are the total sum of; Rent * Management Fee * 12 Rent * Repairs kitty (5%) * 12 Service/Ground Rent Annual Costs Flat Running Costs The void period costs per week * amount of void weeks Its not inclusive of the mortgage, the mortgage cost is calculated like this: Amount to borrow + (Mortgage fees /2 based on two year fixed) * Mortgage rate / 12 Annual Profit calculated as sum: Annual income - Annual Mortgage Interest Costs - Total Ann
  7. Thanks Julia. We had the "as long as it doesn't cost money" in mind so its good to hear that from someone else.
  8. Good to know, I'll have a word with my accountant!
  9. I don't quite know the in's and outs however I recall speaking to my accountant about doing this exact same thing (as well as claiming other expenses through our SPV) and he told me it wasn't possible because its an SPV not a standard LTD Company. One thing you could ask is if you can set up a separate LTD company as a sister company to your SPV and "use their services" for your SPV although I fear the tax man may be clamping down on this. I would still speak to your accountant though as I may have interpreted mine wrongly.
  10. Would anyone be able to run my numbers in their spreadsheet to see if they get similar numbers? I've tried to be as conservative as possible (maybe even too far?) in order to look at the worse situation. Annual costs are calculated on the basis that there would be a new tenant every year with a 4 week void period (I find this unlikely at the moment as it would be a 3 bed family home in a half decent area). Flat running costs are for the accountant/email/software etc and these obviously won't take as much of an effect on the ROI once I have more and more properties.
  11. This looks really interesting Simon - is this aimed more towards self managing land lords?
  12. Hi All, I had a question in regards to the 18 year property cycle and remortgaging. What is the best approach when it comes to fixed terms on the BTL mortgages and avoiding negative equity if you are building a portfolio and refinancing at the end of each fixed term to take advantage of capital growth? Would it be wise to offset your fixed terms between properties to try and lower your risk to hitting negative equity if prices drop? I know Rob B mentions that you should use short term fixed mortgages instead of longer fixed term in order to take advantage of an interest r
  13. I 2nd on Millionaire Teacher by Andrew Hallam - great book.
  14. Yeah I think you may be right - probably better not to dwell on it. After a bit of research it turns out it was a sole buyer for the whole top floor so a 5% discount is understandable like you say but some of the other flats were still below the advertised price. I bought mine off plan at a point where the foundations and framework were there but that was it.
  15. Hi All, I purchased my own 1 bed apartment earlier this year, I had originally offered £225k on the £240k list price of the new build apartment however this was declined on the basis that they don’t give discounts because the price isn’t inflated to do this and it’s high spec is taken into account. As well as this I was told (in writing) that they had “taken reservations at the advertised cost on all apartments”. All of this was fine with me so I completed at 240 however I’ve noticed on the land registry that the apartments above mine were sold with a 10% discount and the one next do
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