kent614 reacted to lilla d in BTL mortgage refused “not fit for rental“
Yes, your understanding is correct.
It depends. If the deal for the £50k ends on 31/12/2020 and the deal for the £20k ends on 30/06/2022, then you could:
- just take a new deal from your current lender for the £50k to start 01/01/2021 (or a few months earlier, if the current lender allows it) and take a new deal for the £20k when that finishes, etc., i.e. you will be out of sync on the two deals all the time OR
- remortgage the whole £70k to a new lender as of 01/01/2021 and pay the early repayment charge (ERC) applicable on the £20k. This will consolidate the two parts into one mortgage and avoid being out of sync and being restricted to your existing lender's deals, but you'll pay ERC.
Granted, there are deals with no ERC, but whether you can get a further advance deal with no ERC will depend on what your lender has available.
kent614 reacted to Adam Hosker in is a 100% mortgage possible?
Well no, though many in press and property industry call several things 100% mortgages. Such as:
#1. Multiple Finance - You cant in one 100% LTV Mortgage instead you would have to take a a first charge mortgage for most of the loan.
Then take out a Unsecured Loan for the rest but have a first charge mortgage lender that allows it. In addition to meet lender affordability to support both loans.
Such lenders is rare-to-none.
#2. A concessionary purchase. With gifted equity from the vendor or family, in which a lender allows that gift to be used as deposit.
#3. Cross Security. Many lenders market mortgages where the deposit is secured as a 2nd charge on another property, typicayly a parents property or money in a savings account. Technically not 100% LTV but many market it as such.
#4. Other People's Money. Perhaps its a joint venture with someone else? Technically not 100% LTV but many market it as such.
#5. Lease. Many property gurus call rent-to-rent or subletting as "property ownership with no money down". You don't own the property so technically not 100% LTV.
You probably don't want to do any of them, well #2, #3 would be nice and #4 is just working with other people. Your best bet is to cut expenditure to the bone, (even if that means moving into a bedsit) and working hard. Build up a deposit and get into property the proper way, with savings, low expenditure and maximise income.
kent614 got a reaction from Adam Audi 0000 in Early 20s wanting to start out for long term gain
Good to start young !!
I wish I knew at 23 years old, what I know now. But learning and discovery is part of the journey that makes it interesting and keeps you growing. My tips for you would be :
- Do not stop learning. Both in your professional work career, and your property investing life. Learners are earners, so keep learning. In my early years, I didn't really see property to be an exit strategy from working life. So I dedicated to my career, grew myself professional, and the better I got at work, the more I earned, and that income funded the properties. I enjoy my work, and intend to continue to work, and the knowledge of if one day I lose the passion here - I can walk away.
- Network. Professionally at work, and in your property life. As well as helping to learn faster, it can also open doors and open your eyes. Many times the smallest comment from wise people in my network have set me in motion to achieve big things.
- Take Action. The biggest ideas, the best plan, the most complete strategy all count for nothing without execution. At some stage, to achieve anything, you will have to do something. An average plan well executed is better than the best plan only on paper.
Approach your property adventure as a business - be professional about it and do it well. Hence my tips are for both your professional career and property investing life.
kent614 got a reaction from ben sewell in First buy to let - accountant questions
My calculations suggests if you are close to the threshold, likely to go over, then an LTD is worthwhile as income from the LTD would be taxed at corporate tax rate and not the higher tax rate.
Good for building up assets in the LTD, and re investing
But getting money out the LTD, beyond the dividend allowance will be taxed too.
kent614 got a reaction from matt hall in Other podcasts
House Planning Help - only if you're interested in self-build (I am slowly planning to build my own home)
Progressive Property Podcast - little bit salesy, but interesting perspective sometimes
The Bottom Line - Evan Davis, new business topic discussed each week
FT the Big Read - looks like they have stopped new episodes
Goldman Sachs Exchanges - quite hard-core finance
Private Equity Funcast (only dip into this, but if you are in PE, it is useful)
Masters of Scale with Reid Hoffman - LinkedIn founder. Great advice for building businesses
The Disruptive Entrepreneur - Rob Moore, who should be taken with a pinch of salt, but some decent topics
The Economist Editor's picks - weekly summary of news. I have found it is much better than reading news daily!
FT Start Up stories - basic stuff on starting businesses
Freakonomics Radio - if you like geeky economics stuff
FT Money Show
Money Box (hit and miss)
Money - more Rob Moore, some good stuff, some sales
Economist - Money Talks
TED Talks Daily - really interesting short talks taken from TED conferences. Often very inspiring
50 Things that made the modern economy
Entrepreneurial Thought Leaders - US lectures
Tropical MBA - hit and miss, very American, occasionally interesting
The Side Hustle Show (ditto)
The Inquiry - BBC current affairs
More or Less: Behind the Statistics - looking at the numbers behind the news.
kent614 got a reaction from james cockburn in Is a mentor a must?
You do not NEED a mentor, but it can help. In the context of my professional career, I have learnt so much and have been helped a lot by mentors. I feel that we can get to where we want to be faster if we have someone who is there and showing us the way. But this doesn't have to be a mentor - it can be through a network and social groups. Make sure you are connecting with people more knowledgeable and experienced who can pull you up - and remember, "You're the average of the five people you spend the most time with"
kent614 got a reaction from Stu52 in Paralysed by indecision over goal!
My current situation is that I am working full-time, and so do not need the additional income. Being of an accounting and business background, I did some calculations and simulations, and for the investments I was looking at, it seemed to be either Yield or Growth - and it was difficult to achieve both. In the long term, it also appeared the greater return was from Growth rather than Yield. So therefore I focused on long term Growth.
The objective is to have passive income to be able to stop working in 10 years time through growing my portfolio. My current portfolio focus on growth, and then nearer the time, I will look to re-finance my properties to invest in cash flow properties.
I feel that capital growth can help grow my portfolio more efficiently in the long term through re-financing and reinvesting, whereas if I went for an approached more focused on yield, it would take more time to save the next deposit from rental income, whilst that income would also be first subjected to income tax which would reduce my ability to save.
kent614 got a reaction from tiffany b in I've Joined The Gym!!!! First time at 37
From my journey - it is important to know the rules of the game, and the routes to success.
I spent a long time trying to get into shape with zero results, and it wasn't until I learnt the rules of the game, and learnt how things work, that I started getting the results. I wasted a lot of effort with nothing to show for it.
Turns out the Golden Rules was simple : Calories Deficit
Track your calories (I use myfitness pal app), manage yourself and discipline and control.
You can not out train a poor diet.