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£200k to invest - what would you do ?

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    #41
    Originally posted by Zigenare View Post
    I'll never sell the house where my mother was born, and where I hope to live forever until I die as a rich man! We can get by quite well on four thousand francs! I'll buy a mule, a load of miner's tools, and some dynamite to blast this damn rock! In a year I'll pay off the mortgage, and we'll be set!
    I'm sure some of that is racist.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

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      #42
      Originally posted by northernladuk View Post
      But also come with a host of other problems. The increase in yield just isn't worth the potential pitfalls IMO so I've stayed away from those setups.
      To be fair NLUK, I am not aware of the other issues that come with them, if you want to PM them to me if you have experience, that'd be great and i'd appreciate any insight.


      Nice. Have you taken tax in to account there as well as any future changes including reduction of mortgage interest as an expense for example? Landlords are being hammered at the moment which creates quite a bit of uncertainty. I'd also expect a massive correction in house prices over the time period you are looking so there is the gamble of what the market looks like at the specific time you are exiting.
      The mortgage has been stress tested to 5% and the property still turns a profit. I've set aside a monthly maintenance allowance (12% of rental income) and included management fees in my calcs.

      I've setup a ltd. to hold the properties; as long as HMRC don't decide to come after limited companies holding property as well (only a matter of time I guess..) then I think I'm in an okay position. CGT and personal taxation against the investments can then be mitigated to some extent.


      If you can achieve those numbers the you've done very well but I'd also work a plan for the worst and make sure that fits your long term goals.

      Don't get me wrong. I'm a big believer in property as well but the years have taught me it rarely follows the best case plans.
      I've tried to plan without having any rose tinted glasses on and plan everything around a medium to worse case scenario. I also think you're right and the market is due a correction, but, analysts have been saying that for years and it still hasn't arrived. My strategy is to rely on rental returns rather than price increases to make my money. If I manage to sell up for a large profit at the end of it, more the better!

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        #43
        Originally posted by mattfx View Post
        To be fair NLUK, I am not aware of the other issues that come with them, if you want to PM them to me if you have experience, that'd be great and i'd appreciate any insight.



        The mortgage has been stress tested to 5% and the property still turns a profit. I've set aside a monthly maintenance allowance (12% of rental income) and included management fees in my calcs.

        I've setup a ltd. to hold the properties; as long as HMRC don't decide to come after limited companies holding property as well (only a matter of time I guess..) then I think I'm in an okay position. CGT and personal taxation against the investments can then be mitigated to some extent.



        I've tried to plan without having any rose tinted glasses on and plan everything around a medium to worse case scenario. I also think you're right and the market is due a correction, but, analysts have been saying that for years and it still hasn't arrived. My strategy is to rely on rental returns rather than price increases to make my money. If I manage to sell up for a large profit at the end of it, more the better!
        Dude, I've done sh1tloads of this. Let me know if you need any help.

        A great piece of advice: find someone you want to marry and make sure she is excited about the property journey. As a team you will go much further.

        Otherwise, yes the sector is under attack and loads of LLs are jumping ship. So you should bargain hard for the right property.
        Look at yield and look at potential to convert/extend/HMO.
        Don't buy leasehold unless it's virtual freehold / long-lease.

        Take your time; you're young and it's great you have a 10 year or so plan.

        Ltd Co is the way to go to avoid S24 tax that now destroys personally held portfolios (how the F&&k did Osborne get that bill through?). But in the future, if you plan to work only on the property side, then it's worth having some properties in your & wife's personal names, if you can keep your total personal income within the basic rate tax bracket (currently £50k each so £100k total for a couple).
        Last edited by ChimpMaster; 1 May 2019, 13:00.

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          #44
          I was put off BTL by the experience of mates/colleagues.

          Two had to take tenants to court to get them out. They lost thousands in unpaid rent, and in both cases the properties were left in a right old mess. Another had a tenant who accidentally set fire to the place.

          I've probably also watched far too many episodes of "Nightmare Tenants, Slum Landlords" on Channel 5.

          Comment


            #45
            Thanks for the replies regarding B2L - it's likely this will be the main investment for the available money. Just need to do some more research...

            Any tips on identifying the better areas to buy in - up & coming ? new rail connections ? is it better to stick closer to home ?

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              #46
              Originally posted by Spoiler View Post
              Any tips on identifying the better areas to buy in
              I would pick areas where it doesn't take long to evict people if you have to. The experience of my mates in London is that the courts are clogged up and it can take up to 18 months to evict. Rogue tenants know this and game the system.

              You can speed up the eviction by getting it transferred from the County Court to the High Court. It's more expensive but can save thousands in unpaid rent.

              Evicting tenants (England and Wales): Eviction notices and bailiffs - GOV.UK

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                #47
                When I looked Uni towns are good. Lets are per annum (with less than 80% occupancy) and generally better behaved as you have redress to the Uni if the students misbehave.

                Comment


                  #48
                  Originally posted by northernladuk View Post
                  I'm sure some of that is racist.
                  Seek clarification from OG, he's the "Racist Finder General" when NAT isn't around.
                  Old Greg - In search of acceptance since Mar 2007. Hoping each leap will be his last.

                  Comment


                    #49
                    Originally posted by Spoiler View Post
                    Thanks for the replies regarding B2L - it's likely this will be the main investment for the available money. Just need to do some more research...
                    Yep
                    Any tips on identifying the better areas to buy in - up & coming ? new rail connections ? is it better to stick closer to home ?
                    A lot more.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

                    Comment


                      #50
                      Originally posted by stonehenge View Post
                      I would pick areas where it doesn't take long to evict people if you have to. The experience of my mates in London is that the courts are clogged up and it can take up to 18 months to evict. Rogue tenants know this and game the system.

                      You can speed up the eviction by getting it transferred from the County Court to the High Court. It's more expensive but can save thousands in unpaid rent.

                      Evicting tenants (England and Wales): Eviction notices and bailiffs - GOV.UK
                      I'd say this is pretty irrelevant. It's a pain in the ass anywhere so a very minor point (it at all) to consider. So much so that's the first time I've heard anyone mention this in decades of letting.
                      'CUK forum personality of 2011 - Winner - Yes really!!!!

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