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ahmed i

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  1. Are you purchasing from an auction? Why is there a 28 day deadline to exchange. Your solicitor will not let you exchange if your planing on getting a mortgage. Lenders are trying their best to progress applications but they have a backlog due to surveys only recently being allowed. You will risk losing your reservation fee. Maybe speak to the agent and tell them to inform the seller that things mistake a little longer due to the current climate. Any sensible seller will understand.
  2. Considering they have been saying we are in the 'mid cycle wobble phase and the 'explosive' phase is next. It's a big statement to then say a crash will happen in 18 months. Whilst it's his opinion, I do find it odd the comment was made without any reason given...
  3. Hi All, I listened to today's podcast and thought it was interesting to hear Rob say that he believes there will be a crash or correction to the property market in the next 18months! This does not follow the 18 yr property cycle theory. What are people's thoughts on this??? Should we hold back on investing further at the end of the year? Interesting...
  4. Hi I would like.to.use this too. Precise offer this too. It's called a light refurb mortgage. You can download a PDF file from their website which explains it well and includes the rates. Hopefully next few months I can try this out and provide feedback.
  5. I agree with Dennis. In today's market it will be very hard to convince a surveyor that you have increased the value of the house by 70K in 6 months. The surveyors will not simply look at comparables in such a short timescale, they will take how much you've spent and add on how much you spent in refurb, which will be 25K to 30K in your example. So you will more likely get a valuation of circa 150K. I'm surprised you are able to find a house with such a large margin of 70K (market value when refurbed minus purchase price). I'm struggling to find 35 to 45K margins where I am. The BRR
  6. Hi, At This present time I use an interest rate of 3% for assessing deals. You can probably do a little better if buying personally not via Ltd company as you've highlighted. Also remember to factor in the 1k mkrtgage arrangement fee. Is the Natwest mortgage a 2yr fix? So when calculating ROI, include mortgage arrangement fee. Estate agents fees have recently risen. I've seen this on a couple of my BTLs in the last month. They have increased their management fee from 9% to 10.5%. The initial tenant finder/referencing, inventory etc fee has risen by £120, so it's £400 now. That's why
  7. Hi Simon, Looks like an ok deal. I do however have a few questions as I think I the ROI you have calculated may be too optimistic. Are you using a mortgage or are you buying them for cash? If I assume your figures are based on 75%LTV mortgage. Then your mortgage interest assuming 3% is £190 pm. Estate agents are charging a min of 10% for management so that's £62.5pm Then you have to allow for maintenance and void, let's say one months rent out the year, which works out as £52 pm Your service charge is approx £100pm. Not sure how much ground rent you
  8. Hi Sam, I too started off in a similar way to you buy changing my residential property into a BTL through CTL initially. I think you have the right idea about building your portfolio just a few issues that you need to consider/adjust. 1. Releasing equity for further buy to lets: On your residential property this can be done fairly straight forwards, based on the values you have given, looks like you have about 20K equity today, which can increase of course in two years time due to the market and you paying down the loan. I would not increase the LTV personally to gi
  9. Hi, Thanks for sharing. Looking at the figures it looks to be a decent deal I have tried to calculate your ROI assuming a few things: Rent: £1300 Mortgage Interest @2.79%: £435 Management (10%): £130 Maintenance and Insurance: £120 Voids (1 month per year): £110 Net Profit (before Tax): £505 Annual net Profit (before tax): £6060 ROI (based on total put into deal): 7.1% Overall I think it is a decent deal. If the area you are investing in has high rent demand and good level of capital growth in the long term then its good. I would as
  10. Good Afternoon All, I have been reading your comments on this forum and found them all to be very informative with great content. I am excited about joining the discussions. I would like to share a current BRRR (Buy Refurbish Refinance Rent) deal I am closing in on, please let me know if this stacks up. 3 Bedroom Mid terrace House in Birmingham that requires modernising (no structural work, just new kitchen, bathroom, replaster and decorating. This is a probate sale where the owner has sadly passed away and his three sons selling, Asking Price: £130,000 Negotiated to £
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