Jump to content

I'm really new to this... but taking my first steps now


Recommended Posts

Hi,

 

Just a quick intro. I am new to this all. I've been listening to Rob & Rob for a while now but I have had my own obstacles to overcome. My wife and I have recently taken the decision to get in to property investment. We've just came off the back of our fixed rate with our own property and have remortgaged to take out some of the equity which is allowing us to put down a deposit on our first rental.

 

We're based in Scotland (West) and have taken the decision that, although there are some really good deals further afield, we want to look local just now so we're having a look at Ayrshire and its surrounds. The good thing is there are some really good priced places here which leads to some really good yields.

 

I have a background in business, corporate finance and both my degrees were in finance so I understand a real difference between cost, value and most importantly opportunity cost (as an economist would say, the true cost of something is that which you give up to get it).

 

We've identified a few places around the £50k mark and are now speaking to the agents to get us some viewings and take our first steps.

 

I'd love to hear from people who are experienced, who have ANY advice to offer (I'm about to start the Property Hubs Tax Classes) but I'm interested in how you might force down a price, what I should be looking for (and avoiding) with the properties (internally I mean, we've researched the external stuff - i.e. schools, industry, area etc - as we've only ever bought one house before and we live in that - luckily we also understand there will be a quality difference.

 

All thoughts are welcome and I look forward to joining the ranks of landlords :)

Link to post

Hi Kris

I'm in Edinburgh and in the past year have purchased three properties with my partner. I'm from Ayr originally and have recently been investigating the Ayrshire market because the yields are potentially very high.

I spoke to some agents in Ayr who were of varying usefulness... best was Slater Hogg, the woman I spoke to there was very knowledgable and gave me a good lowdown on the Ayr market - where to buy and where not to buy, etc.

The other thing I looked into was South Ayrshire Council's private sector leasing scheme. I have a couple of my Edinburgh properties on the Edinburgh version of this scheme. The big stumbling block is lender consent, but get past that (or buy unencumbered) and the yields can be very good, with no management headaches.

Good luck!

Richard

Link to post

Hi Kris

 

One point to consider is ROCE & leverage. Buying at £50k reduces the number of BTL lenders available to you. Most work off £75k as a minimum valuation, four lenders at £50k and two at £40k. Of the two at £40k you have Virgin Money and BM Solutions (restricted to three BTL with Bank of Scotland Group).

 

The £50k include TMW,Nat West,Skipton and Leeds.

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

Link to post

Hi Kris,

I invest heavily in Ayrshire (North, East and South) and I'm currently looking to massively increase my portfolio there over the next couple of years.

I am currently working in conjunction with a local property investment expert, who has offices in Ayr, Kilmarnock and Glasgow, to achieve that aim.

Feel free to get in touch if you'd like to discuss your options. We'd both be happy to advise you in an informal context.

Regards,

Andy

Link to post

Hi both,

 

Thanks for the kind words. Ironically just after I posted this we found a motivated buyer, property value of £55k willing to sell for £40k so we're pretty pleased with that - the place is in a decent area and at a good rent. We're getting things finalised at the moment (Simon, I have an IFA who will be sourcing mortgages and he has been talking me through stuff like the value and prices etc).

 

Richard, I have a few contacts in South Ayrshire who I could tap up if you are genuinely interested in that area - I would recommend avoiding mainstream for good deals but head for the likes of 'First Choice' who are well regarded and can provide a really good service. Also if you can direct me to any details about the private sector leasing scheme - I'm sure all councils run something like this (I think Kilmarnock would be East Ayrshire...) but if I knew what I was talking about from other areas then it might give me the knowledge to try to find out who I should be speaking to.

 

Also - nice to see I was one of the featured 'newbies' on the weekely email - Thanks for that - hoping for more help and guidance off the back of it.

 

Kris

Link to post

Lots of helpful advice. Ross, I have been keeping my eye on them and some of the other auction houses but because they get what comes my "needs" as a first timer are a bit different and specific (though I wouldn't rule them out). I can't see myself buying at auction though, I'd be more likely to offer pre- or post- auction.

Nick - I was meaning I'm looking for strategies to help negotiate a few percent off the asking prices etc.

Andrew - going to pick up on your thread.

Kris

Link to post

Hey Kris

The chap I spoke to at SAC is called Paul Cuthbert and he's a Private Sector Enforcement Officer. The info about the scheme is hard to find on the internet, so I emailed them and they sent me the literature by return.

His email is paul.cuthbert@south-ayrshire.gov.uk.

The one in Edinburgh is run by Link Housing Association - it has information online here: http://linkhousing.org.uk/our-services/private-sector-leasing/

Cheers

Richard

Link to post
  • 4 weeks later...

Hi all - just a wee update on my progress.

 

Richard, thanks for the details - I got in touch with Paul but he said that he couldn't help at all (because it was a different council) and didn't reply at all when I asked about East Ayrshire contacts. I finally found someone at East Ayrshire but they said that they didn't do that sort of thing.

 

Anyway, we've bought, agreed to a good deal with the vendor for the place in Kilmarnock. It had to be revalued, we both missed the fact the £55k valuation was done a few years ago, and came out as £42k (ouch!) still, we're getting it below this and it's a wee steal - in perfect order, with white goods and a new heating system.

 

In the meantime (whilst everything is going through solicitors, mortgage companies etc) we are in the process of redecorating our own home, new living room is allowing us to take our couch and some units etc to the new place - we're not sure whether to go the whole 9 yards and get a bed for the place too and just have it fully furnished...? (thoughts welcome)

 

I also thought I'd get a steal on the marketing and put it live on Gumtree today to start taking enquiries, we put a 19th December moving date and thought it might be a week or so until we got any calls. Two hours later we get a call from a medical recruitment agency asking if they can rent it on MONDAY for a locum doctor moving in to the local hospital (which is literally about 3 minutes drive form the property). Had to hold them off for a day or two to try to force everything through as quickly as possible.

 

Would still like some ideas as to what we could do - this could be a long term corporate lease (they often have doctors in the hospital so they could continually rent it and just rotate the doctors/nurses/tenants) but the need it ASAP. Is it worth speaking to the current owners, is there anything that would prevent this from being let whilst we changed contracts/missives...? He did know that it was due to be available on the 19th, should we just work towards that? How long might I expect it takes to turn this around from now?

Link to post

Kris

 

Most tenants have their own furniture including white goods and single lets are usually unfurnished and multi lets/HMOs furnished. Be careful about putting second hand furniture (even your own) as it has to comply with fire regulations.The more you have in a property the more issues you may get.

 

With corporate leases make sure your lender allows them.

Regards Simon

Searchlight Finance Ltd

T:01565 654005

 

Landlord and specialist property finance advisor only dealing with investors, landlords and developers throughout the UK and beyond.

Buy to Let - Commercial Finance - Bridging Loans - Development Finance - HMO Finance - Refurbishment Loans - Multi Let - Limited Company - Student Lets - Portfolio Finance

Link to post

Thanks Simon - I've spoken to the IFA who is setting up the mortgage and he said that there is no restrictions on corporate leases. 

 

I have had a number of interested parties who are DSS, I understand that there might be a bit of extra work involved in this type of client but we are prepared to look at them - the downside is that it is not a market I fully understand (in terms of process). 

 

I would appreciate if anyone had some information/guidance to offer. From those who I have spoken to (before I started this journey) they were complementary about the clients, their advice followed as making sure they were referenced and they have also said that they get paid rent fortnightly which actually works out more payments over the year (instead of 12 months you get 26 half payments - 13 months equivalent).

 

What I don't understand is how this gets set up - does the client get the money, does the money get paid straight to me, what extra work do I need to do in order to get this set up with the relevant benefit agency? As always, any help is appreciated.

 

Thanks :)

Link to post

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...