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Everything posted by Beachbabe

  1. I agree with the above but it still doesn't necessarily make sense to keep the BTL even if one bought years ago. I always work my yields out on what the value of the property is now, not on what it was when I bought. For example I bought 3 properties in 2000. Cost in total £221k (about half on mortage). I let them out as holiday flats. Income £38k/annum, therefore yield roughly 17%. Income is now roughly £45k/annum but the properties are 'worth' £750k, therefore yield now 6%. I don't just sit on my backside and watch the money roll in - I run the business myself entirely so it does require
  2. I let mine out all year round so they're classed as a business asset and therefore subject to business asset taper relief. I've owned them for more than 2 years so my chargeable gain will only be 25% of the net profits. By the time my accountant's done his bit it shouldn't be too much. (I have a great accountant!) In any case I'm not complaining. Happy to pay what I have to: I've had a return on investment of almost 500% in the six years I've owned them.
  3. Thanks Bootsox - that was at the back of my mind originally. However amazingly CGT is fairly minimal on holiday lets. Any amount I would save would probably be more than wiped out by waiting a few months to sell the second one. That is of course assuming prices fall! Even if they don't it only works out at about a couple of thousand. Not enough to persuade me to put my life on hold. I'm bored with them now and want to get on with my next project!
  4. Update from St Ives: BF is an estate agent - she says gazumping has started again in the past couple of weeks. This hasn't happened for a couple of years. People are offering £10k or more over asking price. Now even I am getting jittery. I haven't felt that a crash was likely to happen before now. Stagnation yes, but not a crash. I still don't think a crash will happen in St Ives, which appears fairly recession proof, but St Ives is largely propped up by the London market and there's bound to be a ripple effect if prices in the South-East start tumbling. I think the signs are that we real
  5. I haven't looked at, or posted on this site, for about a couple of years. Out of interest I logged on to see what people were going on about now, given that a crash hasn't exactly happened. Much the same thing really. We're all basically doomed. And I'm sure if I logged on again in another couple of years, I'd be reading exactly the same. Meanwhile people not plunged into fear by some of the entries on this site will have got on with their lives and bought a house. To live in and enjoy, not in expectation of a great financial gain because we know that isn't going to happen. I disagree wit
  6. Hey! I seem to have the 0% and five blocks now! Does this mean we're part of some dubious club?
  7. Hi CP Aren't you involved in some eco-friendly new build? How's it going? It sounded like a brilliant idea, from what you were saying. We need a lot more enterprise like that in Cornwall. We have an interesting situation in Carbis Bay where they're building some 'affordable housing' flats - but no-one wants them! It doesn't seem to have occurred to the planners that people generally need houses because they have families - not bedsits that you can't get mortgages on in the first place. No matter how 'cheap' they are!
  8. The last couple of months have seen loads of places for sale here in St Ives. Whereas in the spring if you logged on to Rightmove at least half the available properties would be under offer almost immediately, now I'd say less than 10% are showing 'under offer'. General stagnation across the Penwith area then, but, in the last couple of weeks I've seen signs of the market starting to move again, to my astonishment. Maybe this is a last gasp before prices plunge south, but I'm starting to have my doubts. Until I see signs of panic selling, I really can't see prices moving down more than abo
  9. I bought my last BTL in 2000. Cost £100,000. Spent £5k putting in new kitchen, decorating etc. I let it out as a holiday let and get about £18k gross income. ie about 17% yield back then. (I don't use an agent, therefore low overheads.) It was last valued in May (exactly 4 years since I bought it) at £325,000. Probably worth a little less now. So yield now only 5.5%. Yes, considering holiday lets requires putting in the hours (unlike true BTL) in many ways it would be worth selling up and putting the money elsewhere.
  10. RJG - no-one is suggesting you go out and buy a house right now. It is clearly the wrong time in the housing cycle. But your point about the average salaried person being able to live in an average house etc is a valid point. Except that you seemed to imply that you should be able to do that as an FTB. I suggest it would be a more 'normal' market for the average person to be able to afford the average house in their mid to late thirties - after having lived in maybe two houses before. You have to take into account capital accumulation, and not just mortgageable ability. If you know what I
  11. RJG: I have enormous respect for your posts - and your grasp of economics is clearly superior to mine - but I disagree with one aspect of your recent post. Logically I agree that if one is in the top 10% of earners you 'should' be able to afford a top 10% house. But not in your mid-twenties! Most people who live in expensive houses have an awful lot of equity/capital in them, built up over a number of years. As an example, in 1987 along with my then husband, we bought our first property. The only thing we could afford was a very small flat. My husband was 23 and earning £19000 a year -
  12. I smoke. Get all mine either duty free or order them via the internet. Illegal I know, but I refuse to pay UK prices. Even so I spend at least £100 a month. However come Monday - I'M GIVING UP. Seriously - have been building up to it for at least a year and now I'm definitely going to do it. Wish me luck.
  13. Jokes on me: believe me I'm quite happy for there to be a price crash. Remember age makes a huge difference. I'm 43 - therefore was the right age to build value in property. I'm on here because for the last couple of years I've been thinking of buying another property, but have withheld because I just couldn't see these prices being sustained. I always do loads of research before investing - ended up finding this site. Unfortunately it's quite addictive! Just as this stage of the housing cycle has come to an end - there'll always be another bubble building somewhere else and in something
  14. 1. Basic salary - £6k 2. Non regular/other annual income - £20k 3. Income from dividends - £200 4. Annual rental income - £20k 5. Income from other investments 0 6. Capital currently in property - £735k 7. Capital currently in shares - £30k 8. Capital currently in commodities 0 9. Capital currently in other investments 0 10.Cash in bank, savings, ISAs etc - £190k 11. Annual gross interest earned on savings - about £6k
  15. 1) Bear (30%) 2) OO and BTL (holiday lets) 3) South West 4) Chiropractor 5) Degree 6) 43 (OK - so not much of a babe then. )
  16. Hi VP Thank you for your kind comment. However you actually sound like a much nicer person than me - in that I believe house guests are like fish - they go off after 2 days. I deliberately make sure my house has 2 offices, an ironing room etc, so that I always have the excuse that there's no room for anyone to stay! Well done you for being a lot more accommodating than me!
  17. Rockdoctor - quite! In St Ives we have the situation where people who bought their council houses only a few years ago for about £30K are now selling up and getting a minimum of £250K. For a an ex-local authority house! They only have to move about 5 miles down the road to buy a better house for half that. They suddenly have more money than they could have dreamed of. I don't hear them moaning or refusing to sell to 'Londoners'. But doubtless their children are those moaning about being unable to afford a house in Cornwall.
  18. Hi VP I totally agree that Cornish holiday home owners will price themselves out of the market if they're not careful. This season has not been the best, I believe, because of your point that cheap flights and weekends in Prague, for example, are hugely competitive. I know that the price of £170 a day seems horrendous. There are certainly examples of this. The trouble with the UK weather, is that most holiday providers have only a few weeks to earn the majority of their income, which then has to last them all year. I can hear you weeping! One of my flats is part of a stunning period
  19. I've been reluctant to register on this forum (knowing how involved one can get - I feel BBB is almost a personal friend) but having just read the post from Vacant Possession I now have to reply. I live in St Ives, and some of what VP says is very true. But the most important thing is to remember that everything is cyclical. While prices are outside the reach of many FTB's in Cornwall, this won't always be the case. It just is now. When the crash happened in the early 90's, it took Cornwall 10 years (till 1999) for prices to recover to what they had been back in 1989. The same could well
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