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willv

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  1. Thanks @adiel stephenson To be honest, the attractive part of off plan and RW Invest type of flats is the hands off approach, especially since I don’t know the area. I won’t be committing to anything before having been to the city and had a feel for the area (that’s going to be easy, thanks Covid), but even once I’ve decided a few areas I’m happy with, auction houses are probably not a good idea for me (I have no experience in property). Second hand though, maybe.
  2. I don’t know because I lack any good comparison. I’ve somehow never managed to get PropetyHub to send me any of their flats in nearly a year despite asking a few times. I also only checked out 1 and 2 beds, not studios. Because I haven’t been able to go and visit Liverpool and Manchester and I’m not ready to invest where I haven’t spent a few days, I have only kept an eye on what’s going on, and RW Invest are very active.
  3. @haf1963 that’s an interesting chart; do you have the original source? Would be interesting have the context and to see whether they take dividends into account, whether those dividends are reinvested or not etc. Makes a big difference over 20 or 25 years. But anyway, I do think the question here is BTL v REITs as you want to discuss different products with the same underlying (as long as you consider residential REITs of course). Stock markets are completely different and may well perform better, but we could then talk about commodities, VTCs, cryptos and all sorts of other invest
  4. Right, so after watching the video suggested by @david slater, I decided to do my own spreadsheet and the picture is suddenly much clearer: BTL dwarfs REITs on the long run, but the net return income (excluding tax in both cases) is much better with REITs in the first years. With an average mortgage rate of 3%: - you start getting a better income after 7 years - after 25 years, the BTL value is 250% that of the REIT's With an average mortgage rate of 5%: - you start getting a better income after 18 years - after 25 years, the BTL value is 200% that of the REIT's
  5. Sorry to dig this up but I’m wondering exactly that. I honestly don’t see any massive downside to REITs compared to BTLs (yes you can struggle to sell them in the middle of a crash, but you would struggle to sell your property too, and you should always make sure you don’t need to sell during a crash) and even if they are mildly less profitable, they also offer a much wider exposure so a reduced risk. And obviously the time cost is virtually nil. The only big difference I can see is if you can’t get a mortgage to buy REITs, in which case you can’t leverage on that. But that
  6. Morning, I’m curious: if someone has an SPV with a number of properties and ongoing mortgages, and for whatever reason they wanted to stop property investment, would they be able to sell the SPV as a whole ? Would that allow the buyer to avoid paying SDLT (as the properties would technically be owned by the same owner : the SPV)? And conveyancing? Would it be a headache to get the mortgages transferred to the new director of the SPV? And if that is possible, do people look to buy such SPVs (to save on SDLT, and not have to source their properties themselves, have tenanted p
  7. Hi there, I’m looking at Liverpool L1 and Manchester city centre to buy a couple of 2 bed flats. I’ve been browsing RM and Zoopla and I’m quite astonished by the amount of new build investment aimed properties offered by the likes of RW Invest. It looks like more than 90% are off plan properties. I’m very new to property and I know some would argue there’s a lot of demand for rented property, but this doesn’t seem particularly healthy to me. There are also quite a lot of listings dating a while back (2019, sometimes, much further). What do you make of this?
  8. Very helpful, thanks @Stuart Phillips
  9. Hi guys, Sorry if this is dumb but I haven’t found the answer to this question: if I buy a property through an SPV, does the SPV repay for the mortgage or do I, as a director, repay the mortgage? In other words, if the SPV repays the mortgage, do I need to inject some funds into the SPV first for it to be able to repay (as you could assume you won’t have income straight away, and in any case, you’ll need funds to pay for fees and SDLT etc... Thanks
  10. OK so if you assume: - you re-invest £250k (£70k deposit) - 3.5% mortgage interest rate You end up with £20k in favour of Repayment (vs £125k if you don't re-invest) With charts: vs if you don't reinvest: NB: the Repayment vs IO difference is now on the right axis for better clarity. Finally, I've added the R vs IO difference and the IO Net worth when reinvesting on top of the no reinvestment chart: @daniel-john I've imported the spreadsheet into Google sheets for you to use, but I haven't checked it's 100% correct (the orig
  11. Yes, I'm going to try and find a specialist who can help out with this. Many thanks Debbie
  12. Sorry, hadn't realised someone had posted an answer! Thanks @TaxAntics - I don't have anyone who could lend me significant amounts so I'll just play it safe. Given the rates are so desperately low on saving accounts, it's really not worth it.
  13. Hi Debbie, thanks for your feedback. Is that a typo (SUV instead of SPV) or is SUV an acronym I don't know? If the former, do you know if it's possible to have both our names on the SPV and take the money out of the company to my wife only by paying her a salary? I only hear about dividends when it comes to SPVs, but if it's a limited company, I guess any directors could have a salary paid to them, couldn't they?
  14. Hello, I've tried to find the answer to this question but no luck so far; I'm quite surprised as I think my situation probably applies to a quite a lot of people. Is it possible to set up an SPV where all dividends would be paid to my wife (as she's in a lower tax bracket as myself) but with the mortgage still being in my name? Ideally, we'd have equal shares of the SPV (ie equal power) but dividend-wise, all would go to my wife. If that's not an option, I struggle to see how investing in property (BTLs) can be worthwhile if you're cash rich/time poor and living in London (to
  15. Hi there, I've done a spreadsheet comparing Interests Only with Repayments mortgage. It's something I've looked for on the web but couldn't find so I hope it can help others. I'd love to have some feedback if you think some things need challenging. Worth noting that Rental yield and property value increase over time have no impact on the final; only the mortgage interest rate does have an impact. 1.5% interest rate gives £46.500 in favour of Repayment 3.5% interest rate gives £124.500 in favour of Repayment 6.0% interest rate gives £222,000 in favour of Repayment
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