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About el_porto

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  1. Don't know what i've done wrong in life, but i'm not able to have zero income and drop £1mio+ on property!
  2. You have very naively forgotten the tax element. presuming you are a higher rate tax payer - you must pay 40% on the gross rent, so £1000 per month to the tax man. Even at basic rate 20% you pay £500 a month. Add in additional costs and your probably losing money each month. So, You are just about covering the interest only, meaning an effective 0% ROI. The interest rate kills the deal. SE is a very challenging property market, this particular deal i would not go anywhere near. You are presuming prices will go up consistently and significantly in the long term - far from guar
  3. My BTL mortgage is fixed for the next 4 years, but i want to extract some equity due to the recent increase in value. I have had the mortgage in place for over 1 year already. Would i have the ERC to pay, or would it just be usual admin fees etc? Secondly, would this further advance be treated as a separate agreement - the current BTL mortgage is capital repayment, but i would want the further advance to be interest only. Would appreciate peoples thoughts!
  4. Every deal sourcer or company i have seen have not offered anything i couldnt find as good, or better, on rightmove. In fact, i've negotiatied better deals and prices than some of these so called sourcers. Ask yourself, is the sourcer just someone searching on rightmove, or do they genuinely have such a unique way of finding BMV deals that no-one else can. And if they have such a good way of finding BMV deals, why are they not snapping up themselves if they are so successful?
  5. Was just going to say exactly the same. Why would someone hand over tens of thousands to someone who has no experience. Huge risk and i would never ever consider doing that with my money. Be realistic about your property goals, but you need to have skin in the game.
  6. Inform your tenants that they will be charged for reparation's if they don't change their ways. Give it a figure as well - maybe £500, maybe even £1000 if it is severe. Should hopefully give them a kick up the backside to change their ways.
  7. Yes i've been flexible, and found tenants are trying to get back up to zero arrears. It has been a difficult period for everyone, and i think its a better business decision to allow flexibility. if there is no chance for them to ever pay/get back to zero, then they could easily just give up and then cause even more headaches. I really dont think it is the time to be raising rents either. This is a people business, and thinking otherwise shows naivity.
  8. Yes - as above, you haven't included tax you would have to pay which would probably take you into a loss each year. Dont forget, tax is based on the gross rent. £650 pcm for a £100k property? Even in the North this seems really high. Also, the legals seem quite high to me - more than i have paid. The £1000 legal fee should include all searches. £650 gross, -£130 (at 20% tax), -£400 monthly fee's = +£120 pcm profit - i'd suggest this is very tight margin considering it is an interest only mortgage.
  9. I'd be very keen to get all parties out of your property - and quickly.
  10. Absolutely not. I too do not think agents do a lot to earn their fee, but they would not just increase rents without the landlords say so. What if the rent increase pushed the tenant out, who would be at fault then?
  11. More options can only be a good thing. It's very niche, but probably very helpful to those who need it specifically.
  12. Steer well clear of L11
  13. But that is not what the market dictates. That is just your opinion, which ultimately, does not dictate rent costs. You are absolutely right that it is saturated - I think very quickly the country (not just Liverpool) will be oversaturated with HMO's and investors will lose money if their model is based on full HMO occupancy. Your first sentence shows this is probably the case as demand for single let properties has pushed up the price (because of increased demand).
  14. 100% Correct - follow this advice.
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