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cashinmattress

Uk Buy-To-Let Market Is Doubling Fast Says Assetz Boss Law

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The UK buy-to-let sector is reviving fast. Stuart Law, Chief Executive of Assetz, told OPP this week that “the buy-to-let sector is recovering at a remarkable rate with investors eager to take advantage of lower prices and strong rental growth.”

“We have seen business double in the last 12 months with up to 40% of our clients being cash buyers and not represented in the latest positive figures from the UK's CML (Council of Mortgage Lenders.)”

“The average deposit for a buy-to-let mortgage is 25-40% and in the majority of cases applicants have a proven track record repaying loans. Risk averse lenders are being drawn back to the market with many making no secret of their preference for these low risk buy-to-let mortgages over comparatively higher risk first time buyer mortgages.”

And, says Law, “we expect to see annual house price growth of 5% in 2011, which will further entice investors looking for strong capital gains into the market.”

Steady there Stuartz, steady.

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And just now from email

Residential Investment Opportunity (allsop.co.uk)

Two Portfolios in the North East subject to ASTs

To be offered for sale by Private Treaty on behalf of

Portfolio 1 - 64 Properties located in Gateshead, Byker and North Shields

64 properties located in Newcastle

A mix of Semi-detached, Terraced and Tyneside Flats

Subject to 62 Assured Shorthold Tenancies and 2 Vacant

Gross Passing Rent of £254,467 per annum

Total Gross ERV if fully let £263,787 per annum

Very strong gross initial yield with potential to increase further

Portfolio 2 - 54 Properties located in County Durham, Stockton and Cleveland

54 properties located in County Durham, Stockton and Cleveland

All Semi-Detached or Terraced Housing

Subject to 50 x Assured Shorthold Tenancies and 4 x Vacant

Gross Passing Rent of £213,628 per annum

Total Gross ERV if fully let £230,298 per annum

Very strong gross initial yield with potential to increase further

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I have seen a fair bit of evidence of rank speculative amateurs with a thin grasp of numbers getting into BTL, so SL may have a point; however, they are merely taking over banks' bad debts, and hardley presaging a revival in the market - future yields still look poor

SL reminds me of B&B in 2007; doesn't understand that the funeral march music currently being played is NOT an overture to another game of musical chairs

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Maybe they mean the buying of BTL property from LL who go bust?

indeed

seeing as SL is a mortgage broker then he will not process landlord insolvencies, therefore neglecting the algebraic total of (new BTL mortgages) - (foreclosed BTL mortgages)

what a tw1t!

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The property investments company Assetz says "the buy-to-let sector is recovering at a remarkable rate with investors eager to take advantage of lower prices and strong rental growth."

And my barber says now is a good time for a haircut.

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And just now from email

Residential Investment Opportunity (allsop.co.uk)

Two Portfolios in the North East subject to ASTs

To be offered for sale by Private Treaty on behalf of

Portfolio 1 - 64 Properties located in Gateshead, Byker and North Shields

64 properties located in Newcastle

A mix of Semi-detached, Terraced and Tyneside Flats

Subject to 62 Assured Shorthold Tenancies and 2 Vacant

Gross Passing Rent of £254,467 per annum

Total Gross ERV if fully let £263,787 per annum

Very strong gross initial yield with potential to increase further

Portfolio 2 - 54 Properties located in County Durham, Stockton and Cleveland

54 properties located in County Durham, Stockton and Cleveland

All Semi-Detached or Terraced Housing

Subject to 50 x Assured Shorthold Tenancies and 4 x Vacant

Gross Passing Rent of £213,628 per annum

Total Gross ERV if fully let £230,298 per annum

Very strong gross initial yield with potential to increase further

£2-£2.5 million each max based on rentals? About £35k/property?

Average rental is about £300 pm in portfolio 1, £330 for portfolio 2.

Big risk for not much income. I wonder how many similar-sized portfolios are out there? Can't imagine there will be many willing to take on the whole lot.

Edited by cheeznbreed

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£2-£2.5 million each max based on rentals? About £35k/property?

Average rental is about £300 pm in portfolio 1, £330 for portfolio 2.

Big risk for not much income. I wonder how many similar-sized portfolios are out there? Can't imagine there will be many willing to take on the whole lot.

Can you imagine the potential maintenance costs of 50+ rundown Victorian semi/terrace houses.

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Can you imagine the potential maintenance costs of 50+ rundown Victorian semi/terrace houses.

I can imagine the amount of maintenace that won't get done.

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£2-£2.5 million each max based on rentals? About £35k/property?

Average rental is about £300 pm in portfolio 1, £330 for portfolio 2.

Big risk for not much income. I wonder how many similar-sized portfolios are out there? Can't imagine there will be many willing to take on the whole lot.

Your figures would assume, what, a 10% yield ?? seems a bit high. I would assume 6-7% that putting the capital at nearer 4 million.

If so a 5% depreciation is 200k which pretty much wipes out your rent.

Edited by goldbug9999

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Why dont Assetzzz produce their house price index anymore? I assume it's because they don't show what the bullish Stewie wants them to.

I'm looking forward to checking his prediction from here:

(one year from October 2010)

James F: Down 5%.

James W: Down 5% to 10%.

Stuart: Up 4%.

Henry: Down 9%.

Ed: Down 5%.

http://www.moneyweek.com/investments/property/moneyweek-roundtable-what-next-for-property-prices-50727?utm_source=newsletter&utm_medium=email&utm_campaign=Money%2BMorning

James Fergusons 5 year prediction has just been reached already according to Halifax.

James F: Five years – down 30% in real terms. But as there won't be any inflation, real and nominal are the same thing.

So far since the article was written in October prices are down 2.75% according to the land registry (to march) not looking good for Stewie.

Edited by Pent Up

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I can imagine the amount of maintenace that won't get done.

Maybe the maintenace is the issue that is forcing them to sell. More rules and regs are happening in the rental sector and these landlords are going to be forced to maintain the propeties. Taking the figures given in other post's on this thread a new boiler in one of the house's would wipe out any rent for a year.

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Maybe the maintenace is the issue that is forcing them to sell. More rules and regs are happening in the rental sector and these landlords are going to be forced to maintain the propeties. Taking the figures given in other post's on this thread a new boiler in one of the house's would wipe out any rent for a year.

Indeed the fire alarms will need to be hard wired next year?

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Steady there Stuartz, steady.

Reads like pure evil. I wouldn't want to be of his ilk when the dust is blown from the guillotine.

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detroit is a realpenny share opportunity;

http://usa.assetz.co.uk/property-detail.htm?propID=6845

Why Invest In Detroit?

In recent years Detroit, the largest city in Michigan, has been hugely affected by the economic downturn, experiencing a record number of property repossessions and bank foreclosures, which in turn has led to a huge shortage of affordable family homes. This has created prime investment conditions, as properties are now hugely discounted, and in high rental demand, over 9,000 city residents are currently waiting on government housing lists.

You what Stewie?

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You what Stewie?

experiencing a record number of property repossessions and bank foreclosures, which in turn has led to a huge shortage of affordable family homes. This has created prime investment conditions, as properties are now hugely discounted, and in high rental demand,

:angry::D

err...

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  • 284 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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