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hitman247

Buy-To-Let Boom Held Back By Cash Squeeze

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Ask Phil and Mark Stewardson, two property entrepreneur brothers who have become well known in their native West Midlands.

During the boom years of 2005 to 2007 - when amateur landlords were buying overpriced flats which yielded next to nothing - this cautious pair sat on their hands.

Today they are busy purchasing again, and they are obtaining annual returns in double digits.

'We've never known the lettings market as strong as it is today,' says Phil, 46, who runs Stewardson Developments with Mark, 43.

Between them, the two own 120 properties, all in the West Midlands, that are worth just under £12m.

Think these two need to be put on the watch list. Very good business model that buying all your properties in one area of the Country. Now, how exposed is the west midlands to public spending cuts? Genius. :rolleyes:

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stewardsonFMOS_203x150.jpg

Screwed: Phil and Mark Stewardson have

just realised that without free money from

the government their farce of a "business" is over.

:lol:

property entrepreneur

Oxymoron?

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I can't believe that there are very many people prepared to accept 50% of asking, even in Stourbridge. Lowerst currently on offer is 79K so getting one for 42K is a fluke that wont be repeated.

And 550pm is an optimistic rent for the area as well (HB limit is 450, unless they find someone prepared to use the lounge as a bedroom!)

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I can't believe that there are very many people prepared to accept 50% of asking, even in Stourbridge. Lowerst currently on offer is 79K so getting one for 42K is a fluke that wont be repeated.

And 550pm is an optimistic rent for the area as well (HB limit is 450, unless they find someone prepared to use the lounge as a bedroom!)

Why on earth would you except that offer without advertising it for 60K first?

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Are these journos real sh*t for brains?

do they not have joined up thinking re: housing benefits?

of course they're at record high rents, this is the peak before the fall

Average rents in London are now at their highest on record, LSL says, having risen by 1.1% in September.

Taken with falling or stagnant property prices, these high rents means total returns for landlords buying today are enticing.

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Why on earth would you except that offer without advertising it for 60K first?

Personally I can't think why anybody would accept 25% under asking without reducing by 10% for a few months first, but there are lots of people on this board who think that they should.

Around my way, if a property isn't selling, it is very rare to see a reduction of more that 5%, and if it still doesn't sell, it comes off the market.

tim

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stewardsonFMOS_203x150.jpg

Screwed: Phil and Mark Stewardson have

just realised that without free money from

the government their farce of a "business" is over.

What is it about property speculators, they always look like complete knobs. Do you think there is a special 'property speculator'/estate agent pose that they all seem to adopt to make us all think they are so very very clever.

I just wish we could see how clever they would be if interest rates were at 5%

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Phil made an aggressive offer of £42,000, which the vendors finally accepted.

He will spend £15,000 on the property and will let it for £550 a month, giving a yield of 12%. 'The property isn't finished yet but prospective tenants are already registering an interest,' he says.

gross yield = (550*12)/(42000+15000) = 9.8%

assume 1 month per year void, and 1% per year repairs (I reckon for likely social housing it will be more expensive but I will run with it):

net yield = (550*11)/(42000+15000) - 1% = 8%

I reckon they won't get the rental they reckon an will pay more maintenance:

conservative net yield = (500*11)/(42000+15000) - 2% = 6.2%

worth it for social tennants?

edit: Stourbridge 2 bed semis seem to go for 450 pcm

make that 5.5% yield

and the article said 12% without saying how

Edited by Si1

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You need a new calculator it's 11.57%

tim

b*gger I dropped 10k in my head :(

makes 6.5% my lowest net yield instead, and yeah 11.6% the gross yield for 550pcm

whoops

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  • 239 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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