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  1. I'm preparing to buy my first property next year, and am getting my strategy together, and want to keep really good records from the start. I'm confused about when I will start making money. Let's say I need 30k to cover the deposit, legal etc costs, renovations, insurance, all of the costs, and then after paying the mortgage I make £100 per month. In my mind I don't make a profit for 300 (plus extra yearly expenses) months, because my initial outlay was so much, but I technically would have an income of £100 more than my wage. Is it a yearly thing, like i'd make a loss in the first year and then £1200 profit in year 2, 3....., etc? I'm thinking about it partly for tax, as that would become another expense that ate into my £100 per month, but also from a strategy perspective, for when I'd break even. I'm confused about when I call the £100 per month profit.
  2. Hi folks, I'm looking for some guidance from some experienced property developers please. The Buy Refurbish Refinance (BRR) model is an appealing one because of the capital recycling, however, after SDLT, refurb costs and fees etc. from your prior projects, what is a realistic percentage of your capital that you have been able recycle? Thanks!
  3. Hi all, Just helping to enquire on behalf of a friend of mine here in Hong Kong. They are in a position where they hold a flat containing subdivided rooms and have a mortgage on the property. These flats have been refurbished to an exceptionally high standard last year and they are now considering their options in terms of extracting the equity. Just wondering whether there is the option to remortgage the property without raising too much suspicion and whether anyone can assist with this. From what I understand, the property strictly speaking is not fully compliant to local regulations, but has been refurbished according to the general trend in the area in terms of having an "HMO style" property. The reason why the large majority of these types of apartment are not done according to the local regulations is because of the vast costs associated with it, thus making the option unfeasible for the majority of investors. If they were to consider remortgaging the property to extract the equity, this would require a valuation to be completed as part of the process. In turn, they would have to invite a representative to carry out the valuation. Could this indirectly initiate legal action against the owner? Just wanted to be aware of any repercussions. Thank you in advance for any advice.
  4. Hey all, I'm in the process of planning a new venture in property development. Over the past few months I've visited properties, built myself a comprehensive budgeting spreadsheet (that factors in all purchase, finance, holding and remortgaging costs), and gathered enough data to be able to run a simulation of my intended BRR strategy. The result has been discouraging! It would appear that given my starting capital of £100k, I'll run out of funds by my third purchase. Would an experienced developer sanity-check my simulation and confirm this? If this is indeed true, what would you suggest as a more realistic strategy to build a portfolio? A mix of BRR and flips? The BRR Simulation (this is based on figures from an actual property visited, costed, estate agents approached and comparables found) I have starting capital of £100k I buy Property A (a two bed terrace) for £120k. I use a 70% mortgage of £84K, and I put in £36k Purchase, renovation and holding costs for 6 months are a further £36K Hence, my total investment is £72k I have £28k left in the bank The house is remortaged after 6 months redevelopment for £190k The 70% mortgage releases £133k ·After paying back the first mortgage there is £49k equity released I own one property and have £77k capital left in the bank I use the money to complete Property B, which is identical, buying for £120k, again investing £72k I have £5k left in the bank The house is remortaged after 6 months redevelopment for £190k The 70% mortgage releases £133k After paying back the first mortgage there is £49k released I now have two properties, but only £54k capital remaining in the bank, which is insufficient to buy Property C BTS Conversely, if I were to use a Buy to Sell strategy, this 'model' property would make £23k after sales costs and corporation tax on my business, so things are viable. However, my goal was to build a portfolio as quickly as possible, not to flip, as this is intended to be my pension. What would you advise in terms of strategy? Flip for a while to build more capital, then revert to BRR, or to alternate between the two? Many thanks!
  5. Hello! That’s my first post and I’m looking for strategy advice. Here’s a little background to my story. Together with my wife we are planning to buy our first investment property by the end of this year. We live in Bristol and plan to buy in Liverpool a 3 bedroom house and renting rooms ideally around £400 each. We have £10k savings and we can have another 10k by November. In August we are going to remortgage our residential property releasing potentially up to £20k. Our main plan is to become financially independent as soon as possible. I earn 35k and my wife 13k with little prospect for any of us for promotion and pushing us into a higher tax band My first question is: would it be wise to invest most of our savings and convert our loft into a 3rd bedroom hoping to increase value of our residential by 30-40k property and releasing more equity in August? My second question is should we buy the house for ourselves or as ltd keeping in mind that gradually as our portfolio builds up we’d like to slow down with investing and live off the money from rent. Many thanks for all your answers!
  6. Before I get too deep in, this isn’t a post about politics, sides of the fence, rights, wrongs or any of that. From a pure investment perspective, how is Brexit affecting people’s thinking or strategy regarding property? Are people holding off buying until after March 29th? Are you confident that the UK is an island with a finite amount of space so property will forever be a good investment regardless of, say, potentially reduced EU immigration? Are you forsaking rental yield in the search of long-term growth? Or is it a distraction having no impact on your future plans? i have the opportunity to make a few investments both now and early 2019, but just weighing up whether to stick or twist while we’re in this period of uncertainty... Welcome any wise thoughts...
  7. Hi all. I currently have 2 BTL both tenanted and doing OK. I've recently been extremely lucky to get a windfall of 129k I was working freelance but I've stopped that ATM to focus on a property strategy. I have two in mind I live up North so my goal is to initially replace an income 1600/2k will be enough for me then in 5/8 years assess any equity for refinance etc. The two strategies I'm thinking is 1) buy cash 80k ish refurb, refinance and pull as much as possible 2) buy 3 off the peg ready to rent and get the cash coming in. I know the pros to recycling cash but with the current Covid' situation, lenders, surveyors all playing different games and me not actually working would I be better trying to get 3 now which would help me get the 1600 mark income. I'm 48, not saying I'll never work again but would like to give this a good shot now. Thanks all
  8. Hi, I'm keen to know if any of you flippers out there have had to revise your strategy in the short to medium term with all the uncertainty around coronavirus? I was thinking about venturing into flipping in July/August and felt I had a strategy that would allow me to reinvest profits over time into BTLs. I'm now not sure it's a good idea and wonder if it's better to research and focus on a different approach. Keen to know your thoughts and plans. Best wishes, Kris
  9. Hi may name is Dal, I'm from Birmingham and am looking to begin my property investment/developer journey. I have no experience but have some skills in DIY. Im not sure which strategy to go with, interested in flips but also like the idea of buy renovate and hold. I guess I'm looking more to invest in my area, is that good or bad? In the next 5 years I'm going to have minimum 10 property portfolio but be financially free in the next 12 months. thanks for reading all. onwards and upwards Dal
  10. Hi, I hope you clever folk on here can point me in the right direction. I’m looking to get started on the properly property ladder. I have around 100k to invest in and don’t currently own a home. My initial idea is to buy a new build on the help to buy scheme in North London with my partner, only put down 5% (say 25k all in), and then a couple of months down the line use the rest of capital on a 2 BTLs in Nottingham or Sheffield, where start up costs should be around 30k each. The hope is, to generate income via the BTL to cover my mortgage payments (or some part of!), and also benefit from capital appreciation by buying in the right area. Does anyone see and issue in doing this, or would advise approaching this from another angle? Ultimately looking for a critique for HTB and any issues that may arise in this strategy. Thanks in advance!
  11. Hey all, By way of introduction my name is Indy - recently stumbled across the property hub podcast and have been addicted since - listening throughout lockdown with most episodes repeating throughout the day. i recently was fortunate enough to purchase my first property that I currently live in . Starting at zero again and putting my goals and strategy onto paper I have come to a road bump - I need some advice / guidance if anyone could be so kind ; My aim is to save as hard as I can , possibly a grand a month for 2/3 years , in that time I would have built some equity to remortgage and here is the crux say I came into 50/60 k - I want to get into a buy to let strategy - however I’m aware that most mortgages are only 75% - which leaves me with a purchase price of 200k ish the south east England / west London - where I’m based - it’s really hard to find anything for 200k - so what would you do if you was me ? Would you wait to save a bigger deposit / find a new property to live in and remortgage the house I’m in now to a buy to let ? etc etc Does anyone know of any clever ideas / tricks ? Would be good to hear if anyone is in a similar situation . thanks indy
  12. Hi All, I am new to property investing and looking for some general advice early on in my property journey. My sister and I have £1 million in cash to invest and would most likely look to do this through using a limited company as a SPV. We both have limited time available to dedicate to property investing - I work long hours in a full time job and my sister is looking to set up her own non-property business. Ultimate personal goal: Ensure financial freedom, so I have enough passive rental income to quit my day job and and set up my own (non-property) business. General strategy: Diverse portfolio to minimise risk - aiming for a mixture of capital growth and rental income properties. Initially invest in professional lets with no renovation required due to minimal free time. Eventually want the option of expanding to HMO & holiday rentals when (hopefully) we have more time to dedicate to our property portfolio/business. We are first time buyers who live in Yorkshire and therefore would like to invest locally where possible, with an example portfolio shown below. Location Price No. properties Total mortgage value Total cash deposit L:V Goal London £500,000 1 £375,000 £125,000 75% Long term capital growth Leeds £100,000 6 £390,000 £210,000 65% Rental income Manchester £100,000 6 £390,000 £210,000 65% Rental income York £200,000 3 £390,000 £210,000 65% Capital growth Our eventual goal is to achieve a net rental income of £10,000 pcm. ~~~ Obviously we are very early on with regards to developing our strategy. In the next 6 months the aim is to purchase our first 2 BTL properties in/around Leeds. We aim to refine the specifics over the next few months and i'm sure our strategy will evolve to include more 'exciting' investments (HMOs etc) as we gain experience. I was wondering whether: 1) The general feel of this portfolio makes sense to more experienced investors out there? 2) Are we being too ambitious or too cautious? 3) What are the major strategy decisions we should make now before starting our journey Any feedback would be greatly appreciated. Kind regards, Johnny W
  13. I currently work in London as a Management Consultant, where I earn 60k a year. Over the last 4-5 months, I’ve developed an interest in Property from a desire to supplement my earnings with passive streams of income. By the end of the year, I will have £30k ish saved. I’m not interested in buying my own place, as I like/need the flexibility in renting - and so am going to start to build a Property portfolio with that money, probably start with a BRR in Liverpool, and continue to funnel money into other deals from my day job. However, I’m still very new to Property and am without any relevant practical experience. Even with my £30k, I’ve concluded that I’m going to need more cash flow to put into other deals and accelerate the process. £60k a year won’t get me where I want to be fast enough. So, I want to start a side Business in Property. I have been playing with the idea of the following three: Deal Sourcing - the strategy I’m most interested in, however, it seems like everyone and their Nan is a deal sourcer - which makes me question whether it is too saturated of a market. Has anyone had success Deal Sourcing within London? I’ve read that it tends to work better selling with deals further North to London investors. If so, would you not need to be close to the houses to source them? How hard is it to start from scratch as a Deal Sourcer? Especially now. If I learn my shit, will it matter to an investor that I don’t have my own portfolio? Or would you suggest I go for the JV route from the off? Rent-to-Rent Did anyone else start their Property Career with Rent-to-Rents? If so, I’d love to hear from you about your experience. Lease-Option-Agreements - these seem the most elusive of the three - but potentially the most lucrative. Did anyone else start off their Property Career with Lease-Option-Agreements? If so, I’d love to hear from you about your experience. At this point in my property journey, and with so little practical experience, I’m finding it hard to pick one. So any direction or insight would be much appreciated. What’s your favourite? If you started again, what would you do? Even if you don’t have answers to my questions, please feel free to message. It would be great to meet some to some like-minded people. Best regards, Josh
  14. Hello All, I have been working my butt off for the last two years on flips in the South. I work a 9-5 and have carried out nearly all the work myself, so i have learnt A LOT. Luckily the flips have been really successful and I am now in the fortunate position where i am able to withdraw some of the profits from those flips to invest in BTL properties. The next step is completely new to me. I want to keep my 9-5 (for the time being) and find BTL properties up North with decent yields but i am more focused on long term growth. Two questions; should i be looking at areas that will benefit from the HS2 line? Realistically how many properties will 60k cash get me?! I don't want to waste all the valuable lessons i have learnt flipping properties, so I will still be flipping properties in the South to hopefully generate more income to purchase additional BTL properties up north. What do people think of this strategy? Love the podcasts and visiting the forums here! Thanks in advance! E
  15. Good morning guys and girls I recently bought my council house with my mum through the right to buy scheme. Paid £199k house is worth 310k. I have 30k In saving which was originally for my first house until we decided to buy this one. I now want to buy a house cash (my mortgage is 1k a month so don’t want a btl mortgage aswell ideally) . My plan is to buy a 2 bed terraced in Grimsby for 34k and rent it out give it 6months then get a 100% remortgage and buy another and get 2 streams of rental income and have only 1 remortgage to pay (still paying residential obviously) . However talking to people they all said selling them sort of houses are fairly difficult. I’m looking for a second opinion or another strategy. I can’t take out no equity for 5 years (part of the deal with the council). Also I want to purchase these house in Grimsby through a LTD company . (Just turnt 24 this year ) would like to be financially free as soon as possible. Any and all advice welcome
  16. Hi All, I've been using 14days in an isolation hotel to research, educate and prioritise my investment strategy, to ensure a secure and free future. This forum has been trailed, books read and umpteen brilliant Podcasts listened to, so thanks firstly to Rob + Rob for their inspirational effort and to everyone else involved on this forum! Background: I'm a single 34yr old expat, but although I live abroad it's not essential to my job, so I now intend to move back to the UK at the end of this tax year. Seemingly a hard decision to ponder, but when taking advice and simply writing a page of pro's and con's... Blighty was the clear winner at a score of 8/2. I work on a month on / off basis when the going is good, I'm a sparky by trade, useful and experienced in a site environment, plus my brother is a builder. I currently have no property to my name and will have 200k - 230k in cash savings by the time I get back to good old GB. My salary is meant to be just north of 120k but is currently chopped due to the obvious. Now... onto the strategy (in brief form) Short Term Goals (2.5yrs) Move back to the UK and purchase a modest private residence with the aim to refurbish, create equity + keep until I feel the need to upgrade Purchase x5 BTL properties (each 60-80k) using an SPV by means of directors loan(s) and BRR strategy Continue working away + reinvest all SPV profits Mid Term Goals (5yrs) Have purchased x10 BTL's using compounding rents / BRR / directors loan model Upgrade private residence, be building good equity and overpay mortgage if possible (life may get in the way here) Continue to enjoy my away job + reinvest all SPV profits Long Term Goals (10+yrs) Company owns 20+ BTL's with a mixed spread of high yield / capital growth focus Primary residence has low mortgage repayments / high equity Option to scale back my day job from being staff to contractor and pick my jobs as and when At this stage I hope to be able to re-evaluate my portfolio and either press on investing or take some equity through sales, pay off chunks of finance to move closer towards a monthly passive income of 5k. I will adjust along the way and the numbers are not set in stone... ie If some of the portfolio has gained some capital growth and the money may be better elsewhere, then I intend to be as fluid as I need to be, because at 45 - 50yrs old, yield will be priority. I have the rest of this year to fine tune this plan but that's the general strategy right now. I would really appreciate some general feedback, thoughts, experiences, criticism and anything you this is good for me to hear. Thanks for reading and good luck. Jon
  17. Hi PropertyHubbers, I'm new here and wanted to say hi. A short summary of my situation: I'm currently living abroad and own a property on the outskirts of London. Thinking of moving back to London in the summer and weighing up possible strategies that would enable me to work part-time and focus on property investment/trading the rest of the time. There seems to be a lot of knowledgable members on here and I would be keen to listen to any advice that might help. Initially, I was thinking about focusing my time on flipping property and then reinvesting profit into BTLs (I appreciate this is harder than I've just made it sound!). Given everything that's happing with COVID-19 though, I'm wondering if I'm better continuing to work full-time and investing in property to hold onto for the medium term before trying to add value and sell. Another couple of things one of you may be able to offer advice on: 1) I'm still trying to get my head around tax implications with owning a property already and whether it's worth setting up a ltd company? 2) The property I own is mortgage free. Would I have difficulty releasing the equity it if I was working part-time? Thanks for your time guys. If you have any thoughts, experience or suggestions, I'd love to hear them. Stay safe. Kris
  18. Hi all, Newbie poster here (...go easy on me). I have one property (3 bed house) that I rent 2 rooms in with consent to let from my lender (residential mortgage).I moved away with work, so rent the rooms out whilst I'm away. Consent to let was granted based on this property being my only/main residence. As a result I hope to get tax relief in the form of the Rent a Room Scheme. I will probably switch this onto a BTL when the fixed period ends, and I'll rent the entire property out. I would now like to step further into property investment. My Mum and I wish to go 50/50 on a 2 bed flat, buy to let mortgage. Haven't worked out whether I'd prefer interest only or capital repayment mortgage yet...advice welcomed! I want to ensure I set up this correctly from the start. As soon as I declare income from a 2nd property will I no longer be eligible for the Rent a Room Scheme? How will the 50/50 ownership on a BTL mortgage work, should I set up a LTD company, will the tax changes make the venture unviable...plus many other questions! The Rob's speak a lot about the importance of setting a clear strategy, and being set up 'right' from the beginning. General advice on how to achieve this in my circumstances would be great! James
  19. Hello, I’m after some advise on my strategy. I have 2 options. I currently rent out one property and have done for 5 years. I am currently living in rented accommodation at the moment. What would be the best option without going into too much detail I have summarised the two options below: Option 1: > Continue renting out my rental property. > Continue living in rented accommodation. > Buy another investment rental property for around £100k (add money by renovating) and rent out. Option 2: > Continue renting out my rental property. > Buy a house to move into and live in for around £250k (add money by renovating). I would base the return percentage as being the same for both new properties within the options. Any advice on the above would help. Thanks
  20. Hi everyone, just looking for some advice on a strategy I'm looking to go ahead with this year. Also would like to know people's opinions on wether to go down the personal route or buy through a ltd company in my situation. So me and my dad have £50k saved to invest, we are both lower rate tax payers, my dad owns his own property that he lives in, I don't own my own property. We are both self employed. Our plan is to buy a run down property, flip it and make a profit. We plan on doing this 2 or 3 times depending on how much profit we make. We will then purchase a bmv property to renovate then let out and remortgage, pulling out some of or most of our deposit. I think I am right in saying after 6 months of owning a btl you are considered an experienced landlord and are eligible for a HMO mortgage with certain lenders. If this is the case the plan would then be to buy a run down 4 bedroom house, convert in to a high end 5 or 6 bedroom HMO, let it out, remortgage to a commercial lender, and go again, building up a portfolio of HMO property's. This is a very rough strategy, but just wondered your thoughts on how this would work, and also if it would be best to start up a ltd from the beginning, or leave everything in our personal names. Bearing in mind our plan is to use the profits made from the HMO's as income. look forward to hearing from you Scott Laws
  21. Hi i am currently evaluating different strategies and was wondering if anyone knows of a model to evaluate different strategies? Happy to share my thinking thanks M
  22. Hi Hubers, In the latest "TPP 324: Is buy-to-let dead?" Rob mentioned this in regards to tax changes: I would like to build my portfolio for the next 15 years from now and I would like to start tomorrow . Does it mean I should set up an LTD Company and keep buying properties via the company? If yes, then what is going to happen with all that income from these properties? Keep it on saving's account for the next 15 years ? I was thinking maybe I could employ my partner in the LTD company and she would take that income instead of me . What do you think? What are your ideas about it?
  23. Hello I'm a business management Graduate with a good knowledge of locations in Brighton, Guildford, Farnborough and London. I do not own property yet and I'm a newbie in the arena. I've been reading up on property for 12 months and have some capital; now I am trying to figure out what my strategy is but i'm not yet sure what the best route/ best locations are for me. My current ideas A) Serviced accommodation in Brighton or elsewhere 2 -3 BTL properties in Manchester or Liverpool Buy 3 bed BMV in London (Looking at areas in zone 2-3 with new crossrail stations set to open) Live in and modernise swiftly Rent out the two other rooms Refinance the property & withdraw funds Repeat the process My goals: To reach a net cashflow from property of 4k per month within the next 1 - 5 years (Ideally ASAP) Grow my account Hoping to find some sound advice in the community and will reciprocate where/ when i can. Look forward to speaking along the way! James
  24. Hi, First time poster here but long time member.. Here’s my current situation I own 2 apartments in Manchester City centre – one I live in and the other on CTL. Property 1 – purchased for 137k now worth 160k. Property 2 purchased for 130k now worth 140k. LTV of both is around 80% I am 27 and see myself right now in capital growth phase and want to continue expanding portfolio and keep raising deposits. Until eventually (20 years time) have around 2k profit coming in every month. I see several options to expand portfolio: Q1 - which one would likely result in the best net position in 20 years time? I’ve tried modelling each scenario but still no clearer.. Of course lots of variables in between but i see this next step as one of the biggest decisions to get right as it will influence all the next years... · Refinance both properties in around 2-3 years time (to take into account property cycle) to 90% LTV – Use the released equity to buy a buy to let approx 250k purchase price. Advantage I see here is that I still get to keep residential mortgages that are being paid down with possible capital growth in future. Disadvantage is that I may then be too highly leveraged in next downturn. Q2 - Is this possible to refinance both residentials? · Sell one property in 2022 and purchase a buy to let approx. price of 200k. I wouldn’t want to sell both as I need to keep one residential to allow purchase of BTL’s. · Keep situation as is and keep paying down both mortgages – will be paid off in 20 years time and will own both outright. The income from buy to let will go straight into savings and go towards new deposits. If I can buy BMV on the next property then even better. Q3 – any strategies that I have missed ? Thanks for reading and your advice appreciated, Sam.
  25. Hi all, My wife and I have been interested in the idea of property investment for a number of years, however have only really started to research it properly the last 12 months. Having attended seminars, read a lot of literature and researched online, we decided to go for it at the beginning of 2019! We had £20k in savings, so having consulted a mortgage broker decided to remortgage our house and release £30k, bringing the total to £50k. Mortgage repayments have gone up, however it’s more than affordable so we feel confident with our decision. We’ve then set up a ltd company which we’ll use for the purchases and have an accountant who will support our tax obligations. We’re now in a position to begin viewing potential properties in the Greater Manchester area (focusing more in the north, as the South is out of our price range). We’re also from Manchester so feel confident to complete our first purchase in this area. Our strategy is to purchase a property in the region of £100k (less if we can negotiate), put some money into it to modernise e.g. carpets, decorating etc. and then put on the market for rent. We plan to apply for a 25% interest only mortgage. As we’d continue to save with our current jobs, we’d look to repeat this again by the end of the year. By this time, we’d be able to remortgage the first BTL, release some equity and go again (with additional savings) and so on and so forth. Appreciate location and fundamentals are key with any purchase and these will be considered when making our purchases (as will ensuring cash flow is positive). To us, this feels like a good strategy to stick to, however appreciate there always risks. To the more seasoned investors, do you think this makes sense and are there any pitfalls that we should be thinking about before we make the big decision to purchase? Thanks for your help! Jim
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