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James S

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  1. Thanks Mark. Any local investment tends to be beneficial. I think I’m going to stay there for a weekend to see what it’s all about! James
  2. Hi, I’m currently looking at Bridlington as a potential investment area, simply from a cashflow perspective. Like most seaside towns, I’m aware that it may have issues with employments and drugs but putting those aside, I’d love to hear from someone that has either invested in Bridlington or perhaps has lived there or in the proximity previously. I live down South in Brighton and I’ve never even been to Bridlington, so I of course have quite a bit of research to do myself, but before delving deep into it, I just wanted to see if there was any advice on here. I’m currently looking at self contained flats around the harbour and the yield is very impressive, however, it won’t be that impressive if the properties sit empty or if I have bad tenants! Doing some very casual armchair research I can see that the demand on spare room etc is relatively good and the properties that I’m looking at already have long term tenants. Any advice would be much appreciated. Thanks again for your time. James
  3. Hello Hubbers! I hope everyone is safe and well in these weird times. I wanted to see what people thought about leverage, I know this is a bit of a random topic but I wanted to know where people's 'safe zones' are. In my opinion, being able to use the banks money to leverage up on an asset is one of the best things about property as an investment vehicle. What % LTV do you think is safe? I appreciate everyone has different risk tolerances, but it would be great to get an overall picture. I personally don't see an issue with leveraging up to 75% LTV, but would that make you nervous? Do you think that's leveraged too highly? Of course having a property unencumbered is risk free but when you're trying to build a portfolio, this, in my opinion is counterproductive. You sometimes hear about property horror stories when investors have leverages too highly and it all goes bang because of this, but how does that actually happen? The only way I could see this happening from poor money management, an increase in interest rates or empty properties, or perhaps a mix of all three! If you have a portfolio leveraged up to 75% and it's cash flowing nicely and you've got buffer, how can things go downhill so quickly? If you do all the correct DD on your properties and make sure they stay in positive cashflow even if rates get to 5-6%, where are your risks? This isn't really a representation of my own portfolio, more a conversation starter. I'd love to hear from someone that has lost it all from property, and if that's the case, how? (Providing you're comfortable sharing). Thanks for taking the time to read, I look forward to your replies! James
  4. Evening all, Thanks for the advice and opinions on this post. I thought I would let you know what I've ended up doing short term - I've decided to lock into a 5 year fixed rate at 2.09%, not pulling any equity out. The lender is a provider who is open to offering additional finance after 6 months, this gives me the options I need should I want to use that money at some point in the future. In the meantime, I'm going to continue to keep an eye on the market and grow my cash pot. There's no harm in slowing down, reevaluating things and then moving on. As a lot of you have stated, time is on my side, so I'm just going to see what happens over the next 6 months. Thanks again, James
  5. Hello all, I'm looking for some advice, I'm 25 and I've currently got a portfolio of 3 properties. My strategy this year was to carry on buying, but after having a meeting with my accountant he said perhaps it's worth me slowing down to see what changes brexit could bring. Everyone seems to have slowed down and I personally think this is a great time to try and take advantage of a slower market. Anyway, below is my current portfolio, if you need any further info please drop me a message - Property 1 Purchased for £214,750 Outstanding mortgage £140,000 Current value £250-£260 Net PCM - £525 Property 2 Purchased for £92,500 Outstanding mortgage £75,500 (Have refinanced) Current value £100,00 Net PCM - £226 Property 3 Purchased for £92,500 Outstanding mortgage £69,375 Current value £100,000 Net PCM - £330 My plan was to remortgage property 1 and pull some equity out to buy a further 1 or 2 investment properties. I've worked really hard to build this portfolio and I don't want to ruin it all by putting a foot wrong somewhere. I could potentially pull 50k out of property 1 and add it to my savings, to have a total of £100k ready to put towards new investments. Do you think I'm over leveraged? Do you think my strategy has holes in it? I would love to hear other investors opinions. I'm not in a massively high paying job, I earn over £25k but under £40k. I still live with my parents (believe it or not!) so my outgoings are fairly minimal, giving me a good chance to save as much as I can. There are 4 main strategies I see as options - 1 - Buy 3/4 £60-£80k at 75% LTV properties up north, Manchester, Sheffield, Liverpool etc, this should cashflow around £1000-£1200 PCM. I would also expect to see some good capital growth here 2 - Buy 1 HMO property for £250-£300k at 75% LTV, this should also cashflow a similar amount 3 - Pull out a smaller amount of equity from property 1 and fix it on a 5 year deal. Add this money to my savings and put down a 35% deposit on a property, this should make about £675-£750 PCM. Purchase the new property on a 5 year fix and then aggressively pay the property down by £7500PA for 5 years to reduce my overall debt 4 - Fix Property 1 on a 5 year deal, sit tight and do nothing. This is the answer I fear the most, although I want to play things safe and not put a foot wrong, I also understand that to develop myself financially I need to take a certain amount of risk to increase my earnings. I'm currently on option 3, as it increases my cashflow and also mitigates risk as much as possible. Which one would you choose and why? I welcome any advice and opinions from other investors. Thanks for reading. James
  6. Hi all, Just looking for other investors opinions on a potential deal I've been looking at - 2 bed terrace in Kingstone, Barnsley Asking price - £75,000, expect to get it for £70,000 - numbers based on £75k though Rent - +£450 (tenant in situ) Interest only mortgage at 3% on £56250 -£140 Management at 7.5%+ VAT -£35 Buildings Insurance -£12 Total NET - £263 PCM Money in - £22,300. I would appreciate your thoughts. Thanks, James
  7. Appreciate the replies. I should have been more specific in my first post, my current goal is to replace my wage for a passive income. Nearer to the time I will have a look at each specific route and go with which one suits my lifestyle/goals the best, I was just putting the feelers out there to see what people would choose if they were me. I completely understand everyone's goals and situations are specific to them, this was more a general overview of what's best. Thanks
  8. Hello all, I would be interested to see which route you would go down and why? Please see scenario below - By May of next year, I will (hopefully) be in the fortunate position of having about £100-£120k cash, I plan to use this to buy property. Now here comes the tricky part.... I've been fixated on using this money to buy one big HMO property costing around £300-£325k and producing roughly net £1000-£14000 PCM, however the more I think about it, the more I wonder - should I use the money to fund 4 vanilla buy to lets or even a refurb? Option 1 - Buy a large HMO for £300k-ish Net £1200 PCMish I'm aware HMO properties scare many landlords away, but my Father has a substantial HMO portfolio and has shown me how to manage them successfully should I need to do so. Option 2 - Buy 3-4 single lets, 85k-100k each If I chose this strategy it would give me a chance to save up an additional £20k over the time it takes to purchase them Net £1000 - £1200 PCMish I'm thinking this could be a more beneficial approach as it increases chances of capital growth Option 3 - BRR Method (Buy, Refurb, Refinance) Look for a rundown building and bring it back to life This method should allow me to grow my finances by a considerable amount, providing the project goes to plan. Being based down in the South East and having limited finances, this could prove tricky. Could look at doing BRR further afield though.. I'm looking to increase monthly cash flow as much and as quickly as possible, giving me more options in my professional life. I'm 24 at the moment so having problems like this, well lets face it, it could be worse.. Any feedback would be much appreciated, I would love to hear about what you would choose in this scenario! Kind regards, James
  9. Hello Charles, I'm intrigued by what sort of property investment offers such a large return in such a short amount of time? Is that £60-£90k including capital appreciation or is that simply from rent? Seems pretty ambitious to me but I'd love to be proved wrong on this one.. Look forward to hearing more. Thanks, James
  10. Hi Stacy, Very interesting question and one I've found myself seeking an answer to too! As all the others have said above, it's completely down to your attitude to risk and what helps you sleep at night. I personally use interest only mortgages because it's helps me increase my cash flow, therefore making the next purchase easier. I do think it's wise though to pay down your mortgages once you have increased your cash flow, not only to provide more of a monthly cash flow but to also protect yourself and open up better mortgage deals. I feel comfortable at 50-65% loan but I'm not against the standard 75/25 split. I would be interested to hear how you get on, so keep me in the loop! All the best, James
  11. Hi All, Could someone please recommend me a good Mortgage Advisor based down South (I'm in Brighton). I have a few that I have used but would be interested in having a few more options. Thank you in advance! Cheers, James
  12. Hi Anthony, I have purchased two buy to lets and I'm still living with my parents. Although it's not a huge help not having a residential mortgage it can certainly be worked around. I think the best bet for you would be to talk to a good broker, they'll show you which lenders will lend, and which won't. FYI my two properties are with NatWest but I know for a fact there's a handful of lenders that'll do B2L for FTB. (Lots of acronyms in there < ) Cheers, James
  13. Hi Gosling12, I've been wanting to do exactly the same! I'm based in Brighton and my Dad has HMO's here but recently he's started venturing into Nottingham, a place that isn't massively accessible from where we're based. Having said this once the purchasing process is completed, he just hands it over to an agent who manages it from there, of course they're taking some of your profits with a managing charge but it's not over 10% and if factored in from the start this model works really well as an armchair investment. His HMO properties are mainly targeted around students, Nottingham has 3 Universities so it's not a bad place to start... Hope this has helped, please keep us in the loop or feel free to private message me if you want any more info! Cheers, James
  14. Hi all! First off, l hope everyone had a great Christmas and NYE. I wanted to get a bit more information about R2R, as far as I can see it's deemed a bit of a taboo subject. Through the various threads I've read about it, people seem to view it as a get rich quick scheme but I wanted to see if it's more than that in reality. If you don't know what rent2rent is I found this article that sums the basics ups perfectly - Rent 2 Rent – find a large property that could be rented on a room by room basis and rent the property from the existing landlord on a whole house basis. The landlord gets the benefit of a guaranteed, single, long term tenancy to you at a reasonable rental value. You get the ability to rent out each room individually, usually converting the receptions rooms to gain additional bedrooms, and taking the difference in room by room rent, less expenses and the rent agreed with the property owner as your profit. Detailed knowledge of the area is required to know what type of property would be suitable and profitable for you, and what maximum rent you can afford to pay for the property to still make your own margin. After reading this I felt a little confused, why would the LL allow someone to do this and profit when they could just do it themselves? The only reason I can see someone doing this is if they're extremely time poor and just want an armchair investment with a steady guaranteed income. It seems like it could actually work for both parties but it would take a fair amount of effort for the tenant to fill the house with tenants! Anyway, I just wanted to see if any of the hubbers had anymore information about this, or in fact divulge in rent2rent themselves. If so I would be grateful if you could try and answer my below questions - Isn't this illegal as most lenders would need you to have an HMO license to let out individual rooms? Who pays for the work that is essential for having an HMO? i.e fire doors etc.. How many rooms should a house have to make it suitable? I would imagine 3-6 rooms and then try and convert living space if possible for additional income? How do the letting agents react to this and how should you approach them with this offer? Apologies about the bombardment of questions, I would just be interested to see if this could be a legitimate way to build an income without putting down a hefty deposit or not. Thank you for your time and I look forward to any replies. All the best, James
  15. Hi Dave, I too have been in the situation quite a few times now, so I really understand your want to speed up the process! Previously I have used the saved money and put it into stocks and shares, ideally bluechip ones that you know are pretty secure. I've also used ISA's before but the returns aren't fantastic if I'm honest. The Santander 123 account is arguably the best bank account with good incentives and cash back rewards, here's the link - http://www.santander.co.uk/uk/current-accounts/123-current-account I came across this company a while back and thought it would be perfect for anyone at the start or in the middle of saving for a property investment, here's the link - http://www.buy2letcars.com/ They offer some pretty decent short term returns and may be the perfect solution to your problem? Another good suggestion is to become extremely frugal, which in short doesn't sound much fun, however in the long run could really add up. Have a look at your expenditure and see what could be cut down or even taken away. Saving £1000 a month is pretty decent so well done! Keep going mate, you'll get there! Hope this has been helpful. Cheers, James
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