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ScaredEitherWay

Btl - Now's The Time To Buy (And The Wilsons Are Held Up As Shining Examples)

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http://www.dailymail.co.uk/property/article-1217528/Buy-let-You-bet-Why-moment-work-market.html

Twenty years ago, two maths teachers bought a small terrace house in Kent to let. The arrangement worked so well that they bought another. Then another. Flash-forward to today and Judith and Fergus Wilson own 910 houses around the county.

They even topped the Beckhams in the 2007 Sunday Times Husband And Wives Rich List and are rumoured to be in line for a £90million windfall when they sell their property portfolio and retire this month.

It is, of course, the ultimate rags-to-riches story. Sound too good to be true

But their story certainly is not the stuff of fairytales. Because Judith and Fergus Wilson have no secret weapons - just a first-class knowledge of their local area and a shrewd eye on the property market.

What's more, now might just be the right time for anyone to start up a buy-to-let portfolio if estate agents are to be believed.

Buy-to-let landlords are cottoning on as one in ten mortgage enquiries now comes from a potential landlord.

The first incentive is the steadying housing market. House prices have risen 7.8 per cent since March, showing we've passed the worst effects of the recession.

Even so, prices are still more than 13 per cent lower than their peak in October 2007, according to Nationwide.

'It's the perfect climate to pick up a real bargain,' says Ed Phillips, Lettings Director at Foxtons. 'Sales are only going to go up and demand for rental properties is huge. If I had a pot of money, I'd be buying left, right and centre.'

Even better for would-be landlords is the ratio of empty properties to tenants. Demand for rental properties is by far outstripping supply with an average of seven applications for every rental property in London alone.

At the same time, fewer rental properties are available. Take Foxtons, which had 3,500 rental homes last year - today, there are only 3,000. That's because landlords have lost their properties - as many as 4,100 over the past year were repossessed.

'This is the biggest drop we've seen in quite some time,' says Phillips. 'But the market for rentals is hotting up because people have been forced to rent until they're in a position to buy.'

But like all booms, there is a downside. For hopeful buy-to-let landlords, the biggest difficulty is securing a mortgage, particularly as the number of buy-to-let mortgages available has shrunk by more than two-thirds in the past year.

Add to that the high, upfront fees you need to pay to get a buy-to-let loan. The reality is that securing a buy-to-let mortgage still involves walking a precarious tightrope.

The luckiest buy-to-let landlords can take home yields of about 12 per cent. Glasgow is tipped to be the most profitable property hotspot, followed by Houghton-le-Spring and Telford, both with average yields of about 10 per cent.

Elsewhere, you can get lucky with 7 to 8 per cent returns. Profits might be slim, but the availability of suitable mortgages is slimmer still.

There's more in the actual article... big of a long 'un

Edited by ScaredEitherWay

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'Sales are only going to go up and demand for rental properties is huge. If I had a pot of money, I'd be buying left, right and centre.'

This is the key bit to me - experienced cash buyers will make money, but BTL mortgages are not that attractive at the moment.

Its the landlords that are on the SVRs at the moment that are laughing. For example, I have one property purchased on minimum deposit/fees for a £15k investment and I'm paying a SVR which is just above LIBOR, and making £4k a year on the property.

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'Sales are only going to go up and demand for rental properties is huge. If I had a pot of money, I'd be buying left, right and centre.'

This is the key bit to me - experienced cash buyers will make money, but BTL mortgages are not that attractive at the moment.

Its the landlords that are on the SVRs at the moment that are laughing. For example, I have one property purchased on minimum deposit/fees for a £15k investment and I'm paying a SVR which is just above LIBOR, and making £4k a year on the property.

£4k a year on a risky highly leveraged investment? You can keep it.

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Its the landlords that are on the SVRs at the moment that are laughing. For example, I have one property purchased on minimum deposit/fees for a £15k investment and I'm paying a SVR which is just above LIBOR, which is now 5%, and losing £4k a year on the property.

How do I get out of the property without paying a £10K early redemption fee - my mortgage broker won't return my calls any more.

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£4k a year on a risky highly leveraged investment? You can keep it.

Planning to keep it and carry on making money on it. It was purchased at just over 4 times the local average salary (property not in SE!).

Probably just keep it ticking over as is (unless interest rates increase rapidly and I'll run for cover by paying some off, take the hit and fix with a new mortgage).

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£4k a year on a risky highly leveraged investment? You can keep it.

yes, a pathetic 10 grand if you're very lucky per annum in rent, that then gets taxed anyway, and the downside to property prices is about 10 x that amount

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yes, a pathetic 10 grand if you're very lucky per annum in rent, that then gets taxed anyway, and the downside to property prices is about 10 x that amount

i have to say i cant get used to this forum layout, not easy to get to grips with at all, why change what worked before? whats wrong with people? change is not always good

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The Mail always has been a sh1t newspaper and much of its "journalism" questionable. It is read mostly by people that want to justify their small minded bigotry and not actually read anything challenging. The thing that struck me was the ability to gloss over why the very successful BTL investors are selling up? I had never heard of them prior to joining this forum. However, there is a bit of an obsession about them on here and its often amusing so I read odd bits and bobs. I recall (please correct me if I am wrong) that our friends are selling up as the gravy train has now parked in a siding?

When someone very successful at something thinks its time to get out you should examine why. They are retiring are they? This, I guess means they cannot get a manager to look after their portfolio and have a healthy retirement income? After all lots of people think having a little rented out place is an ideal way to generate a retirement income. Or maybe these canny investors have seen a wonderful opportunity for their cash with savings accounts paying nearly half a percent in some cases?

There is a story here, an interesting one, but the Mail isn't going to print it.

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. If I had a pot of money, I'd be buying left, right and centre.'

Aye, theres the rub alright and if a Director of Foxtons hasn't any spare to lay around I'm pretty sure the majority of the population has even less.

Bonanza express, currently entering station at speed, about to hit the buffers.

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'Sales are only going to go up and demand for rental properties is huge. If I had a pot of money, I'd be buying left, right and centre.'

This is the key bit to me - experienced cash buyers will make money, but BTL mortgages are not that attractive at the moment.

Its the landlords that are on the SVRs at the moment that are laughing. For example, I have one property purchased on minimum deposit/fees for a £15k investment and I'm paying a SVR which is just above LIBOR, and making £4k a year on the property.

Your right in your last paragraph.

We've got loads of BOEBR + 1% loans with Woolwich, and we are now making so much extra - typical monthly interest cost has fallen from around £500 to £98! Rent is £1200.

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Your right in your last paragraph.

We've got loads of BOEBR + 1% loans with Woolwich, and we are now making so much extra - typical monthly interest cost has fallen from around £500 to £98! Rent is £1200.

we see here why the bankers needed a bailout or two.

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i have to say i cant get used to this forum layout, not easy to get to grips with at all, why change what worked before? whats wrong with people? change is not always good

Try going to the box in the bottom left-hand corner and selecting IP.Board Classic Blue (Import). (Where it says House Price Crash in the picture below).

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post-3600-12587247810327_thumb.png

Edited by Scunnered

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