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Everything posted by onkar

  1. 2 bed apartment, buying in cash. Are you buying a studio with a mortgage?
  2. Hi, I have also invested in this development towards the end of last year through Residential Estates. Practical Completion was due to be issued nearly 2 weeks ago... but there seems to be a delay. I hope it is issued soon... Do you have updates?
  3. I think realistically, if you have a steady cash input and a good chunk of time to dedicate to property, you could plan to invest in 2 BTL's per year. If you hit that target, based on 1 BTL = £250 cash flow per month, you could potentially achieve £1000 pm cashflow in 2 years (4 BTL's). £2000 pm cashflow in 4 years (8 BTL's). £5000 in 10 years (20 BTL's) and so on. If you invested in more than 2 BTL's per year then you would hit those targets quicker. Bear in mind, the above calculations are based on quite a few assumptions and it is extremely difficult to give an accura
  4. Hi, What you will find is that some investors aim for around £200-300 rental profit per month per BTL. (Can vary depending on property price and area, also who you ask). Using the lower end £200 figure, you can say you need 5 BTL's for £1000 net profit per month, 10 BTL's for £2000 and so on. One big factor with your starting pot would be consideration of the prices of the properties you are looking at. So if you was looking at 100k houses, you would need around 30-40k per property (based on 25% deposit, stamp duty, broker and legal fees, potential refurbs etc). With
  5. Hi there, To enable advice in this matter, we must assume that you have already obtained 'Consent to let' on your residential mortgage, if not then this would be classed as fraudulent behaviour. In your scenario though, the only way you can pull equity out from your first residential mortgage would be to re-mortgage to a BTL Product and in parallel re-finance to pull out equity. If you was still living there, then you would have to option to re-mortgaging to another Residential product and also re-finance to pull out equity to fund investments or house improvements etc. Don't th
  6. Welcome Tej. I have you on Instagram and listen to some of your podcasts.
  7. Hi Lee, I am reading this thread just for knowledge and not looking in Crewe, but just want to tell you I think your post is extremely valuable for anyone interested in that area. Nice one!
  8. In addition to Julia's comments above, if a HMO will be your first investment property then I would certainly check your lending options if you are planning on borrowing. Some lenders require you to have an existing BTL property or Landlord experience before being granted a HMO mortgage.
  9. onkar

    Stamp Duty Query

    If replacing your main home with a new residential residence, you will not be liable for the higher stamp duty.
  10. This has been brought up a few times and technically it's possible! Bear in mind that the point of bounce back loans is to help businesses that are affected by the Corona virus... So with this in mind, it would be down to your morals if you wanted to go down this path.
  11. I would tread carefully in this area. If you took out a bounce back loan of let's say 50k, this will show in your transactions/statements. Even if you took out the bounce back loan from a trading company, then loaned it to the SPV, this transaction will be queried and most likely sourced back to the loan. If a lender sees that you are using a loan to fund your deposit for a property, then I think I know what their reaction would be...! It's all speculation at the moment as I have not come across anyone experiencing this scenario, so who knows! If you try it, let me know the resu
  12. Hi, This makes sense. But if you sell the property to your company, this will be treated as a normal transaction. E.g. It will come with your normal costs such as Broker fees, Solicitor fees, Stamp Duty etc. What you need to do is calculate how much this will all cost and compare it with the savings you would make from a personal tax savings perspective. Then see if it is worth doing. Personally, I ended up selling my 2 personally owned BTL's and starting fresh with my Ltd company!
  13. Hi, This is quite a common requirement with off plan purchases, especially where a % of the purchase price is required as a deposit at exchange of contracts. I am also in this position for a few purchases that are coming to practical completion over the next few months. This is one area that you particularly need to focus on during the reservation stage before putting down any money. Usually, it involves an initial discussion with your broker and identifying lenders that should lend based on your personal circumstances and also taking into account the specifics of the off plan proper
  14. Ah I see, that's good to know!!
  15. Hi Lynn, You would only have to satifsy tenancy requirements and provide a tenancy agreement IF you was remortgaging across to a different lender. As you are buying the property, there are no such limits as to how quickly you should get a tenant in. The renovation could take a week, or it could take 3 months. As long as you are able to repay the monthly mortgage, it shouldn't be an issue.
  16. I think he meant something like "I will buy my first property and I am worried about it because of the fact that I will be renting a couple of properties, but for the banks it might stand as an expense which will affect my mortgage availability."
  17. @DerekT That's a beautiful and valuable table you have there! Did you create it yourself?
  18. Hi Paul, I haven't had any experience with the typical one man band "property sourcers". There are plenty of them out there and I if you considered using one, make sure you do your background checks and proper due dilligence. I have used Property Hub's sourcing services for 2 properties and I am in the middle of the transactions. Based on what I have seen, the opportunities are great, they have had a tonne of research / background due diligence performed on them, which makes the opportunity itself very reliable and stack up over the long term. Based on this alone, I feel it makes up
  19. Hi Paul, Sure no problem! Not sure if there are any more units left but I will put you in touch with the Estate Agent Consultant. Can you message me your email address?
  20. Not sure on any specific legislation. But if you are going to let it out and there are potential children, then I would 'child proof' it.
  21. If it's a good deal as it stands, then plough ahead. Do you want to risk losing the deal? If prices do dip, remember that property prices will continue to increase over the long term! In terms of the existing tenants' situation, perhaps you can try and find out if they are still paying their rents as expected. Or if they have been impacted etc. This would help with your decision.
  22. I second Craig's comment. Adding to the mortgage will maximise your return on investment as you're paying less as part of the deal upfront. If you want to invest in multiple properties as quickly as possible, you will want to save as much cash in your wallet as possible. Some people pay the fees upfront, so that they pay less interest overall. But typically, these people will also be focusing on paying off the mortgage to reduce the debt. If you do go with adding the fees to the mortgage, hopefully, the capital appreciation of the property should take care of the fees that you add on
  23. Ahhh, even so, based on this comment "I'm planning a property purchase (additional to property I already own)", you will still pay the additional Stamp Duty. IF you was living in a Residential property that you owned, and was going to replace by another Residential property, then you would not pay the additional Stamp Duty on the new property. However, considering your existing property you live in is rented by yourself, and you already own other property, your purchase of your new Residential will be liable for additional Stamp Duty. I was in a similar scenario to you, I was li
  24. Hi Cass, IF you sell your current property, and replace with a new one, then you pay the reduced SDLT. Considering you are buying an additional property, and keeping the existing, then you will be liable for the additional Stamp Duty.
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