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About wookash

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  1. Hi everyone, I was wondering how you deal with the builder on refurb projets. Specifically in regards to payments and timeframe. I'm interested in: - Do you pay your builder upfront or after the work or maybe you pay installments once defined milestone is reached? - Do you pay deposits before work commences? - What do you do if the results of refurb are not as anticipated? - How do you secure yourself from builder running away in the middle of refurb? I'm a newbie in dealing with third parties
  2. A friend of mine, an investor for Yorkshire who had ambitious and interesting projects in last years is now starting a new project in Leeds. They are buying a massive building and will be converting it into apartments. They are now in the process of gathering remaining funds. If you would like to join this p2p or JV send me a message and we can discuss further. Process is completely legal and transparent. From details I can share now: Loan agreement for 10% APR up to 2 years. 1st legal charge on the property and investor other properties. All process is secured by Solicitors Funds required 900k Mastermind meetings are also possible It is a person a know and I also was joint venturing with before. I'm not having any interest in this, I'm just trying to help my friend. If you want to discuss and find out more details let me know.
  3. Sure thanks. I wanted to do a sanity check if this is the reality of bridging or am I just getting ripped off.
  4. Hi, Recently I came across great opportunity for BRR or flip. It would do well for both. However the best option was to take it by cash or similarly with bridging finance. I decided to sent an enquiry for bridging loan and after assessing the numbers it looks like it's pretty pricey! I'm not 100% sure if I understand all of the number rightly but I was expecting gross interest at around 12-15% max whist my quote exceeds 20%... I copied the quote below and I've got few points to confirm: Net loan £52,578 - so for £85,000 property I can only get financing of 52,578 - That is already a non-starter... Bridging costs £4,921 (as per quote below) Rolling interest 0.89% for 12months - gives us total of £6,450 - presumably if I pay back the loan within 9months this will be around £5,000 (not exactly but let's round the number) Above points mean that taking a loan of £52,578 costs me £11,371 for 12 months or almost £9,900 for 9months, so effectively 21.6% or 18.8% in relation to net loan. Is it normally that expensive? I had the impression that bridging finance is bit cheaper since many investors take this type of loan which makes their deal still worthwhile but seeing these figures there is no chance that I can get any money out of a deal. Please see my reference finance quotation for a property worth 85k.
  5. Well this is what early repayment fee is for isn't ? I will pay that amount it should be fine right? I still would be remortgaging after fixed term is finished anyway.
  6. Hi Guys, What would you use for Refurb-Refinance strategy, a short-term bridiging or simply BTL mortgage with intention to refinance 6-12months later and paying early repayment fees. What do you prefer?
  7. Does anyone know and can recommend a trustworthy refurb team in Sheffield? Completely refurbing whole property, new bathrooms, kitches, flooring, dealing with mould and damp.
  8. First property in LTD? Isn't it more viable to get it as an individual? Saving on accounting a little bit.
  9. Also I'm not sure if that's only me but wouldn't it be more intuitive to have Total inc - expenses = net profit? Rather than expenses as a result?
  10. Well done. It would be great to see the addition of these: - disable or enable StampDuty tax as some might be 1st time buyers - more detailed financing fees including: valuation or survey fees as well as early repayment fees, perhaps mortgage valuation fees
  11. Job loses? People didn't lose the job because the businesses went bust, people mostly got suspended in their jobs because they froze the businesses temporarily. In addition to that many have been furloughed which still give them an income without working. Once everything is back to normal there will be thousands and thousands of job offers on the market. People will come back to work faster than they got unemployed. I'm more than sure. In regards to properties, I sort of agree with what Rob&Rob said on one of the latest podcasts: "People who sell now are the only who have to". And as I observe the market I monitor 7 major cities in the UK weekly in two categories (total no. of offers and within my price range) for over 2 years not many those must sells, literally a fraction of a normal traffic. You can check it yourself on Rightmove or Zoopla. So now ask yourself what drives the property price down? To me it's always a factor which forces sellers to sell, this could be financial pressure or personal life situation. Epidemic could also be a trigger but only if it lasts long, and I mean long like several months where people can't afford to pay off the debt anymore. Not just few weeks like we are experiencing now. Many countries are opening already, take Iran as an example, other European countries or US gov plans for restart, not even mentioning China where people are enjoying bats again already! UK restrictions will be loosening soon as well. Sellers are not and won't be under pressure after these few weeks and we will be back to normal hence it won't imply 'force, must sells' and the price will NOT go down as some are hoping to. They will stay at the same (or show a small growth) level and once confidence will build up after few months we are back on that rocket growth again. The only thing I could question and I didn't evaluate yet, is excessive quantitative easing which happened in US and Europe. This is exceptional and I'm curious how much this will impact the inflation. Surely this will impact the economy but I'm not sure if positive or negative as voices and opinions are divided since QE is a bit controversial topic. I'm not an expert and I'm not educated in economics, this is just my long-winded personal opinion. TL;DR Coronavirus is not a drama, let's think what we spend on those trillions of dollars printed around the globe.
  12. Imo prices won't drop that much since current circumstances are not similar to 2007/8. Back then we had (or US had) a problem with the system. Today system is alright and it is different to what it was prior 2008, it is only pandemic period which freezes things temporarily. Once everything opens back again we get back to previous trends because the whole system didn't change and virus is not affecting banking/properties.
  13. There are limited mortgage options but surely you will get decent offers. Once you get your BTL as your first property you may expect higher interest rates but they should go down once you will get to the end of fixed rate period and have your second property sorted out. Best to speak with mortgage adviser
  14. Nice one. Thanks. I shall contact HMRC then.
  15. Understood. I was lending money as an individual and I'm in a base tax rate bracket. Should I then pay 20% income tax or is it tax-free due to personal savings allowance?