New to the property game

[Scottha93]

I’m a 28 year old looking to start a buy to let business Im very skilled in the art of doing a property up as I’m in the trade. Just finished reading the book property investment by rob Dix. I’m on to my second project I have been doing my own home up then moving on to the next but it’s time to re morgage and buy a buy to let are we about to have a housing market crash or am I safe to start right away thanks Scott 

[Mark Rocks]

Hi @Scottha93

Welcome to the forum! Happy to have you here, especially given that you're already thinking of moving onto your second project

The idea of waiting for a crash before making your next step is something that's been on a lot of people (including our Hubbers') minds. That's why we've written this detailed article about why it's actually sometimes dangerous to wait for a crash before investing. https://propertyhub.net/dont-wait-for-a-crash/

Ultimately it depends on your goals, but even in the 2008 recession, house prices weren't down for very long, as this graph demonstrates;

How quickly are you hoping to purchase your first BTL - would it be within 2022?

[Scottha93]

Yes I will be looking to buy one this year or at the latest the start of 2023 in the Nottinghamshire area we’re house price are relatively low 

[Scottha93]

Also my partner is a first time buyer so we was looking at buying a house in her name with a low deposit renovating it then was un sure if to sell and take profit or make that a buy to let property 

[jeanetterose]

I also want to startup

[Ravinder Teji]

On 6/21/2022 at 5:10 PM, Scottha93 said:

Also my partner is a first time buyer so we was looking at buying a house in her name with a low deposit renovating it then was un sure if to sell and take profit or make that a buy to let property 

You could definitely flip it. If she wanted to make it a BTL it might be more difficult if bought with a normal residential mortgage   

[johnpk]

Hey guys, sorry to jump in on this but I couldn't find the answer after trawling through everything and it will hopefully still be useful to newbies (I'd imagine).

I know that everyone has different financial goals etc but what is a general consensus on the following:

a) ideal profit margin on a flip

b) ideal rental yield

 

Thank you in advance and my apologies if this has been covered somewhere else.

JP

[barry hughes]

Johnpk,

I am a property investor with 15 properties and i can't advise on  Profit margin on a flip as i never done one but i have read other posters on here saying to tread carefully now with flips as the market may be entering into a period of cooling off and prices possibly dropping so that would not be ideal for flips.

However on point b hence ideal rental yield, i never focus on the yield i always look at what my net ROI will be after all expenses this is more of a true figure of how much of a return you are getting on your own money that you put into the deal and then you can compare this ROI with other traditional investments to get a comparison of ow hard your money is working.

 

Happy to answer any questions from my own experiences.

Barry

[haf1963]

You should be looking at about 20% for a flip due to the numerous costs and taxes involved - other variable are whether you took out a loan or if the project takes too long etc

On yield - it depends - but around 8% is a good target

[johnpk]

On 11/10/2022 at 5:27 PM, barry hughes said:

Johnpk,

I am a property investor with 15 properties and i can't advise on  Profit margin on a flip as i never done one but i have read other posters on here saying to tread carefully now with flips as the market may be entering into a period of cooling off and prices possibly dropping so that would not be ideal for flips.

However on point b hence ideal rental yield, i never focus on the yield i always look at what my net ROI will be after all expenses this is more of a true figure of how much of a return you are getting on your own money that you put into the deal and then you can compare this ROI with other traditional investments to get a comparison of ow hard your money is working.

 

Happy to answer any questions from my own experiences.

Barry

 

On 11/10/2022 at 5:33 PM, haf1963 said:

You should be looking at about 20% for a flip due to the numerous costs and taxes involved - other variable are whether you took out a loan or if the project takes too long etc

On yield - it depends - but around 8% is a good target

Thank you guys, very helpful!!

[fosterwest]

It`s interesting idea. Good luck!