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Property investment strategy - cashbuy, mortgage, crowdfunding?

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Hi everyone,

I have been buy to let market using mortgage for a few years. Now I have some savings and am able to look at other options. I am not sure other options, e.g. cash buy, corwdfunding, are better than my current way. I would like to know your opinions and if there are other better ways than what i know.

1. My current way - apply 80% LTV mortgage buy to let, either 2 or 5 years, rent the property out to provide me monthly income. If the property price increased, i would sell it for some capital gain income or i can keep it for even longer term hoping it will increase more.

2. Cash buy - if the property is £150k market value, sometimes cash buyer could negotiate a good price as the seller urgently need cash. The property could be purchased as £120k or lower. It means after cash buy, i can refinace/remortgage it to recycle the cash. There are some addtional payment, e.g. stamp duty, socilitor fees, etc, but not much. The cash is in theory constantly recycled.

3. Crowdfunding - recently I heard this term and it can provide fixed return of 8-12% in 6-18months, depending on projects. One example, www.sourced.co, they only provide property investment project. Have anyone used them before? It sounds low risk and reasonble return. However, I know that it can't be true and any investment has risks. Anyone has used such method and would like to share your opinions?

Note: There are some pros and cons using ltd company, however, this is not part of the question. The above 3 ways can apply to both personal and ltd company.

I would like to know your opinions on which way produces higher return (obviously higher risk i assume) and if there are other ways. It could end up with similar return and similar risks.

Thanks everyone in advance.

Dawei

 

 

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you'd think this would be an easy response, then again depends where someone as an investor are coming from, your own experience, 'reward for risk'

Personally I go for 'reward for minimum risk' with a 'walk away' exit plan.

For me your point 2 fits my objective.

Inside a limited company, I will buy in a good rental area in a University/college town, that has low unemployment. 

Research areas market prices, look for that 'cash opportunity' to buy below market even if it needs some TLC or a bit of fix up.

Take a 3 bedroom single family convert it to a 4 bedroom roomer.

Either rent the rooms & manage yourself or do a 'lease option' with someone.

Then mortgage the property as a BTL based on income, crossed fingers, you may get close your original investment out based on the rental multiples.

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On 10/9/2019 at 4:37 PM, reinvestor said:

you'd think this would be an easy response, then again depends where someone as an investor are coming from, your own experience, 'reward for risk'

Personally I go for 'reward for minimum risk' with a 'walk away' exit plan.

For me your point 2 fits my objective.

Inside a limited company, I will buy in a good rental area in a University/college town, that has low unemployment. 

Research areas market prices, look for that 'cash opportunity' to buy below market even if it needs some TLC or a bit of fix up.

Take a 3 bedroom single family convert it to a 4 bedroom roomer.

Either rent the rooms & manage yourself or do a 'lease option' with someone.

Then mortgage the property as a BTL based on income, crossed fingers, you may get close your original investment out based on the rental multiples.

Thanks a lot, I am looking at either Birmingham or Nottingham currently and seek the approach you mentioned.

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