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Everything posted by ChrisRush

  1. Hi, I currently have a pot of money of around £50k that I want to put towards a flip. The issue is that the sweet spot in my area in terms of likely purchase prices are around £65-70k. This means I won't satisfy the needs of a bridging loan as most are minimum of £50k. Alongside this most in this territory will charge 0.9-1.1% per month. As I am only in need of around £25k in finance I feel a great option for me would be a personal loan. I could take one out at around 3% per annum interest and pay it all back once I have sold the property. I know this isn't the done thing or what the loans are technically created for but is it illegal to do this? I feel like taking a £25,000 loan out with Sainsburys @ 3% p.a. and then being allowed to overpay/settle whenever I want is the best option over paying £3,000 per annum on a bridging (which I can get on £25,000 anyway). Many thanks for any help. Chris
  2. Just a couple of things for Rob and Rob as they discuss Robert Kiyosaki in there next podcast. 1. If we should follow what Warren Buffett does, instead of says why don’t we all just buy Berkshire Hathaway shares? 2. Buffett selling bank stocks is due to the low interest rate environment and this being bad for bank margins. This probably gives us a better indication that Buffett thinks low interest rates will remain for a while. He can use gold as a hedge to this in case inflation does creep up which will supercharge gold returns before any noticeable interest rate increases benefiting banks. 3. And most importantly. Warren Buffetts mentor was Benjamin Graham who in Intelligent Investor warns against the fictional figure of ‘Mr Market’. This charcterises the forecasters and hypothesisers of the day predicting what’s going to happen in the future. This often results in an investment push towards niche assets due to the doom or irrational optimism they have about the future. Whilst common sense, time honoured, and logical investment often wins over such niche investments. I would suggest Robert Kiyosaki is falling into the poor dad mould with his current outlook.
  3. Hi, I am currently purchasing my first buy to let property with a tenant in situ. The tenant has rented the property for 12 years and owned the property for the 12 years prior to that. When viewing the property I got on really well with the tenant but said to him that I didn't think the rent he was paying was high enough to make it a valid investment. The tenant then admitted to me that he knew what other people in the area paid in rent and that he was happy for it to be increased to that amount. That means that I would have a long term tenant, who sees the house as his home and looks after it accordingly, paying me a 10% yield on the property. This all stack up excellently for me, however I am concerned about completing prior to have the tenancy agreement finalized with the new rental amount. 1. Is this standard practice where a tenant in situ signs a new tenancy agreement before completion of sale? That would be ideal for me for piece of mind. 2. Should I be getting a solicitor to draw up a tenancy agreement or is that something I could/should do myself? I won't be using a letting agent on this property. Thanks for any help
  4. I have a pot of money to start investing and I am currently looking at either cash purchases to refurbish, re mortgage, and rent or just straight immediate rental properties that I would purchase through a buy to let mortgage. I currently work in a job that makes me a higher rate taxpayer. However in 6 months time I will leave this job and potentially have no or little income (I would definitely be a lower rate tax payer even with rental income). My question in with regards to securing a mortgage, tax, and deciding whether I purchase properties through a limited company or as an individual. My initial concern is not tax but securing a buy to let mortgage. If I get to a stage whereby I have no earnings and I am trying to get a buy to let mortgage will I struggle? Of course for me personally there are a lot of benefits purchasing properties as an individual not a limited company due to my income situation. However, if I need some proof of earnings it would make sense to purchase through a limited company, put my wife as a director of the company (who is a higher rate taxpayer) and secure a mortgage that way. Rates are obviously much better buying as an individual. My tax situation would also mean it would be beneficial to purchase as an individual. However I am just concerned about my future income and securing a mortgage or a number of mortgages? Any advice on how you think is best to proceed in my situation? As a caveat would it make sense to try and secure my first buy to let mortgage whilst I am still earning in the next 6 months? Would that then help me secure mortgages as a 'experienced landlord' in the future regardless of my income situation? Any help would be much appreciated.
  5. Hi All, I have been looking at the rent to rent strategy within the area I am currently looking to invest in but it doesn't seem to have as much upside as renting a property and letting it out as a holiday let. I've done a quick google search on this topic but can't really track any info down with regards to its legality and key considerations. I see a genuine upside in my investment area in terms of long term rent of a property and the upside of holiday letting, however don't have the experience or a mentor to understand the process more. Is there anyone who have experience in this area or could point me in the direction of someone or resources that may help?
  6. In the next few months I will have a £75,000 pot of money to start buy to let investing. I intend to purchase 3 properties with this pot of money (probably spread over a 6-18month period). I also intend to place a 25% deposit on each of these properties and borrow 75%. I have a number of individual circumstances surrounding this that I need advice on so I can work out the best way to proceed. Myself and my partner are both higher rate tax payers and therefore satisfying the initial borrowing criteria of income >£25k pa will be fine. However my intention is to step away from my job in the next 9 months and although I will continue to work in some form it maybe very part time, definitely have me in the lower rate tax payer bracket and is unlikely to provide an income that satisfies the >£25k pa figure. It appears that the best way to proceed and apply for a buy to let mortgage (as a joint application with my wife who will continue to be a higher rate tax payer) would be beneficial from a mortgage point of view but negative from a tax paying point of view. With all this in mind I wondered if the following plan would work (which is focused on minimising tax on interest payments) in terms of securing buy to let mortgages. 1. Apply and purchase 1st buy to let property in my name whilst I am still earning my current salary (say before April 2021). 2. Apply and purchase 2nd buy to let property in my name whilst out of current employment (say December 2021) and earning a low salary (e.g. £15,000 pa) 3. Do same as point 2 but in April 2022 Ideally I want to do this all in my name because of the tax benefits of me having such a low salary once leaving employment however I guess my main question is would doing that and not a joint application with my wife hinder me in securing a buy to let mortgage. I will be looking to use a mortgage broker but just interested in some initial advice from you knowledgeable souls.
  7. Thank you really appreciate all the advice. You couldn’t direct me to where best to look at those bridging finance deals that offer the ability to loan refurb cost could you? I’m still a year off starting and I think I would ultimately go down the broker route for that but the more I can look at things now the better. Thanks again
  8. Lets say I get a buy to let mortgage on a property that I am going to add living space to. Its already habitable therefore I should get a mortgage because it offers the normal rental opportunity. However I am going to add living space to that property over a 4 month period, not let it out at any point, and then sell it. So basically flip it. I know that depending on the mortgage product there could be early repayment charges so this could be a potential negative to doing this. However my main question is - does getting a mortgage on a property and then selling it within a few months and repeatedly doing that get you blacklisted/in trouble with mortgage providers. Or is this a totally viable strategy without any downsides (bar the normal finding buyers, correcting valuing etc) bar early repayment charges. Is this method a better method than bridging finance if there isn't a time stress on getting the loan? Many thanks for any help you can give.
  9. That's fantastic Alastair, thank you. I'm a bit of a geek when it comes to getting base knowledge in as many areas as I can and hopefully those books will improve my ability to assess a properties values and renovation needs prior to a surveyors report. Many thanks for your help. Chris
  10. I've read through the book recommendations on the site and watched some of the videos. Some of the books are great and I have been motivated to move into property investment and educated on how best to do that to fit my goals. The strategy that I want to pursue will focus on refurbishment/renovation as I am currently gaining the skill set to do a lot of that type of work myself (currently on a City & Guilds plastering course). However I wondered if anyone could recommend the best books on property refurb/renovation. What I'm looking for is a guide on how to view a property and create a basic assessment of its needs (I understand I still need a surveyor as well) and then how to effectively price up that work. Basically a more practical guide on this work as I feel I have a good grounding on some of the more 'softer subjects' such as goal setting, strategy, financing etc. Any help would be much appreciated.
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