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James S

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Everything posted by James S

  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
  16. Hi Steve, Sounds like you've got an exciting opportunity on your hands, great to have a property so close to the station. I'm currently living in Hurstpierpoint and have done for the last 15 years, I have been investing in local areas such as HH, I know the market well and would be interested in this. Could you send me the details please? Kind regards, James
  17. Hi All, I have a question regarding a recent opportunity I've spotted. There's a commercial spot for sale by auction close to where I live, it has absolutely huge potential for development and has had lapsed planning permission for 6 x 2 beds and 1 x 1 bed with basement parking granted. It sits 3 minutes walk from the local train station which has a direct line into London Bridge in 55 minutes, so as you can imagine it would be very popular. It currently has a business occupy the building at a rent of £14k per annum and they need 3 months notice before it's deemed vacant, this basically rules out any bridging finance. So where does that leave me? I don't have enough cash to buy the building outright let alone complete any building work, but I find it hard to let an opportunity like this just pass by. I was initially thinking about trying to find the funds from investors (most likely family members) but I don't think that's going to be an option. I then started to wonder if there was any sort of development crowd funding where investors would benefit from the sale of the units but I am unsure if this is an actual way of attaining funding? The beauty of this investment is that it doesn't have to be developed straight away as it's already achieving a 7% yield, which granted isn't huge but at least it gives you time to get your ducks in a row in terms of the development. This could be a great opportunity to start a Joint Venture with another investor and I imagine the Property Hub is an ideal place to find one.. I've also thought of this option, which I would appreciate some advice on - Buy the plot using short term bridging finance and then once secured attain a mortgage on it? I would be open to any suggestions on how I could make this work and would be happy to talk with any other investors/developers potentially looking for a JV. Thank you for your time, I look forward to your responses. Kind regards, James
  18. Hi all, I was just wondering if anyone on here has invested in Nottingham? I'm based in Brighton and I'm looking to start building a portfolio up north from me and have settled with Nottingham. I'm going up there next weekend (28th) to have a look around and touch base with a few agents to view properties. Has anyone had any experience investing in Notts and hold any advice on where to go and where to avoid? I'm looking to build up a portfolio in a relatively short amount of time therefore these properties will be priced between £70-£90k, looking at flats and terraced houses to begin with. There seems to be a good amount on the market for that price but I obviously need it to rent all day, which is why I'm here I guess, just to get a second opinion other than the agents. NG7 postcode is my first choice currently and then anything I can find in the city centre (which isn't a lot for that price range). Any advice would be much appreciated! Also, feel free to touch base with me if you're interested in a JV, as I'm coming up it could be a good opportunity to meet? Kind regards, James
  19. Hi All! Sorry about the delay in getting back to you, for some reason the Property Hub didn't notify me of anyone commenting on this topic. Thanks for all the comments I really feel like Manchester could be a good place to start for me. Thanks csherratt001 for the figures, it's always good to see actual numbers that other landlords are achieving. In terms of progress nothing too exiting has happened yet, I've put a few offers on property down near me (Brighton) but they haven't come through. In the interim period of looking for places I've taken on a part time job to try and create more opportunities financially, this does mean working A LOT but I'm hoping in the long run it'll pay off. Now I've seen that people have responded to this, I'll try keep it updated with progress and any other questions I guess. Appreciate all the comments! All the best, James
  20. Hi James, I've actually got started exactly like you plan to, I'm 22 and I purchased a flat near Brighton initially to move into and then rent the second room out, however after figuring out I had a few more years of home cooked meals and £100 a month rent to the old man it became a no brainer! As far as I know it is slightly unconventional to start off with a B2L and is viewed as more of a risk to the lenders, but having looked into residential mortgages since buying the flat, it doesn't seem like it'll be too much of a problem. Lenders do prefer for you to have a residential mortgage first as it proves you can manage your money correctly, but as far as I'm concerned it's all about personal circumstance? Either way I think your main concern should be to get on the ladder as that'll help you regardless of your decision. (In terms of capital appreciation and how you're looked at by lenders) Wish you all the best and look forward to an update! Kind regards, James
  21. Hi all, Just looking for a bit of advice really, If I was buying a flat worth £155k with a residential mortgage (putting down 10% deposit), however I know that I'm not going to be living in it for a long period of time between (8 months to 1 year) as I would be looking to purchase a house to live in after this time period but I would like to keep the flat and rent it out after. I understand that the rates change when you're asking for consent to let, but my main concern is the short time frame? If the lender turned around and so no to consent to let then I would be stuck paying a mortgage for a property that has no rental income and one that I'm not even living in! Would I be able to change from a residential mortgage to a BTL in such a short period of time? Any help would be much appreciated. Kind regards, James
  22. Hi Bing123, Unfortunately I can't really help you with what you need but I did have a question for you. Where is the property worth 80K based? Looks like a decent return to me. Thanks, James
  23. Hi all, I'll give you a little run down on my current situation before I start with the question. I'm 21 and based in Brighton still living with my parents but have a two bedroom flat that I'm renting out which was purchased 6 months ago and is doing well for me. Living with my parents gives me a great opportunity to save 90 - 95% of my income each month. I'm looking to start a portfolio but the prices down South are huge compared to those up North, yet properties up North seem to have good yields and rental demands. I know that I want to start my portfolio in the North, however I'm finding it pretty difficult to pinpoint which city because each agent I talk to obviously recommends the one they're based in. Currently Birmingham and Manchester seem to be my first port of call because of the good yields and big universities, also the HS2 has the potential to really open things up. My current budget is 150k top, and ideally I'm looking to receive yields of 10-12%. I would like to use the rental return to continue purchasing properties and any capital appreciation would be a bonus. One thing I'm concerned about is moving out of my comfort zone of knowing the market, I know the market in the South because I've lived here for 15+ years but in the North it's a completely different story, having said that breaking out of your comfort zone is often the path to growth. If anyone has purchased in any of the above cities have you experienced capital appreciation, if so, at what rate? I guess I'm just looking for some advice from other property investors who have invested in these cities. In terms of my target tenants I'm actually pretty easy, they could be professionals or students or young families (as long as they pay!). HMO's and student properties interest me because they seem to produce some of the better returns however I'm under no illusion that they're hassle free. My Dad owns multiple student properties in Brighton and receives £100 per week per room, is this the same in Manchester, Birmingham? One more thing, I've been looking at www.property118.com that sells pre tenanted properties which seems like a fantastic idea to me, has anyone purchased a property through this site? Please view the link to a certain property I like the look of http://www.property118.com/?post_type=property&p=79995the yield isn't that high but the investment is relatively small compared to my 150k budget. What are your thoughts on this property? Any advice will be much appreciated. Thanks for your time, James
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