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  1. Thanks again David. I am now beginning to think that over the long term, the realistic ways to maintain a particular LTV across a portfolio (eg. 70%) would be to either: A ) sell properties (thus realising gains) and take out new debt against new properties, or B ) continually expand a portfolio, thus making it more likely to meet loan terms for refinancing because the money will be used for further acquisitions. Option A ) sounds expensive and I don't see how it's actually any less risky to lenders compared to just increasing LTV on an existing property. Option B ) is all well
  2. Thanks David, I hadn't thought about the terms of the loan, thanks. If equity is released through a loan I assume that would not be recorded as a profit, and so in which case a dividend cannot be issued on this? That would leave salary only. I am beginning to think that an SPV is an effective vehicle for continually building a portfolio, but once the desired portfolio size has been reached, how can one go about keeping a decent amount of leverage without adding more properties? (assuming value goes up, but there's no reasonable ground for increasing the loan size). If one was in
  3. While it seems common place to refinance properties owned in an SPV and use the proceeds to fund the deposit on further properties, what options are there to access that equity if one doesn't want to grow there property portfolio any further..? Since equity released by refinancing is not a profit, I imagine it is therefore impossible to extract the equity through dividends - one would instead have to sell a property and record a profit?? This seems like a significant drawback to me compared to owning property in my own name, considering that I don't intend to just forever buy more and mor
  4. Hi @mattd1, Those are some interesting observations. You are right that my 2% assumption seems lower than what most others are saying. 5% does seem like an often quoted figure and you have shown with the data that you processed that history has actually seen much higher increases than this. Let's think about what fundamentally drives changes in house prices. For this I am going to assume that people will pay as much as they can afford to pay. So what affects what one can afford to pay..? A ) Income (which on average is linked to economic activity) B ) Mortgage affordabilit
  5. Hi, I am not an experienced property investor but I have done a lot of research and thinking for my own aspirations, so here's my thoughts for you: 1) Firstly on your model, I know you've read my post on macro-economics and house prices, so you can probably guess I think your 6% assumption for price growth is very optimistic. In my models I use 2%. Because this is multiplied by mortgage leverage, whatever number you assume is going to make a massive difference to your predicted return, so be cautious and don't kid yourself. Also in the real world you have to wait a bit before your ca
  6. Hi, thanks for reading my post and sharing your thoughts! I think what the report I linked to made me realise is that at the point of rates being changed there is then a one off of response in house prices (which may in reality take months or years to be visible). Once the transition to different prices is complete, real prices will in theory then be stable at the new level until rates are moved again. For example, a base rate of 0% might support house prices at 8x average income, whereas base rate of 6% might support house prices at 4x average income. Each time the BoE changes inter
  7. Hello, I'm looking for some advice around making offers on properties which may be suitable for conversion. I'm interested in converting commercial properties to residential but I'd also be interested in what people with purely residential development have to say. I've not bought a commercial property before and I'm wondering about the following actions and whether they would normally be conducted before making an offer or after an offer is accepted: - Appointing a planning consultant to advise on permitted development for change of use. - Appointing an architect and having them
  8. I’d like to start a conversation about macro-economics and the effects that it might have on property investing. In particular, I’m going to challenge the notion that house prices always go up and highlight that the price rises which have been enjoyed by property investors for the past generation have been largely due to the steady decline in interest rates. Ultimately I’d like to find clarity on the question of whether property investment is still a good idea today and if so then is the same formula that worked previously still the best approach. I’ve tried to research this topic thoroughly b
  9. It's not pre-pay, it's a normal meter with a digital screen to take meter readings from. The screen has stopped working so I'm told the boiler can't be serviced because a flow reading needs to be taken. The meter was only installed a couple of years ago
  10. Yes I've been told they're doing emergency site visits only. But the meter is just not responding, there is no gas leak. If we already had tenants in and couldn't renew the gas certificate because of this then surely there would be a way around.
  11. We are on the cusp of letting out our flat except we cannot currently get a gas safety certificate because the gas meter is not working and the energy supplier says it can't be replaced or repaired because of Covid-19 restrictions. (The meter is outside so I don't see what the problem is but that's what they've said). The gas meter needs to works so that the flow rate can be measured when servicing the boiler. So we have an empty flat which is getting free gas but can't get the certificate. Can anyone think of a workaround? If the flat was occupied and the safety certificate ne
  12. I don't know the answer but have been wondering the same thing, though sadly I don't have a £1M portfolio. My guess is that you're analysis is correct, but interested to see what answers others might come up with. I'm also curious about the possibility of getting into a sticky situation where the amount of CGT you owe might even make it impossible to sell. For example, if you've seen big price growth, remortgaged and then there's a dip in prices, you might be left with more capital gains tax due than you have equity left. You could potentially end up in a situation where you don't have e
  13. I would think that your five year minimum is easily long enough to justify owning over renting from a purely financial point of view, and it sounds like you've run the numbers and come to the same conclusion. It's also worth asking whether you aspire to own a house in the long term future. If the answer is yes, then you may consider it is safer to buy now so that you're in the market and protected against future price rises. Prices could of course go down, but in that scenario you're still able to buy something as your future home would most likely also have come down in value. The value
  14. I've been interested in property for a few years now but only recently discovered Rob & Rob and their Property Hub and so have been learning a lot more. I've been thinking more fundamentally about where money comes from in property and the appeal of investment and the promise it seems to offer people to 'make it in the world' or become 'financially free'. A lot of people like me are interested in using property to make more money, putting in the effort, but not in doing it full time. With the rental model it's fairly straight forward: you buy something, put down money and take on ris
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