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Friend Is Taking His First Steps Into Btl

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I had a discussion today, and a friend is hoping to complete on his first BTL paying cash for a three bedroom detached house in a modern estate in Rhyl , North Wales. He has paid 69k and it has a tenant in situation, producing a gross return of approx 7- 8%.

The virtually identical house next door was sold for 95k in March 2012.

I advised him against BTL a year ago, but this looks a pretty good deal on paper. House is for sale due to divorce and was bought for 40k new 17 years ago.

I have some cash, still staying away from property, but not making much money elsewhere.

Comments welcome!

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It's a gamble which may or may not pay off financially. Personally the whole thing just sounds like a total headache. Yes you're getting a good return on paper but what about voids, unsavoury tenants and worst of all, spivvy estate agents. None of us are here forever and I wouldn't want to spend year after year worrying about this sort of stuff.

However, if you arent a person that is easily bothered by such things then it may be for you.

Good luck whatever you decided.

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also Rhyl is a ******ing hole filled with junkies

I'd be very surprised if he doesn't turn up for an inspection after 6 months and find the place looking like a scene from Trainspotting and with all the copper stripped out of it.

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I had a discussion today, and a friend is hoping to complete on his first BTL paying cash for a three bedroom detached house in a modern estate in Rhyl , North Wales. He has paid 69k and it has a tenant in situation, producing a gross return of approx 7- 8%.

The virtually identical house next door was sold for 95k in March 2012.

I advised him against BTL a year ago, but this looks a pretty good deal on paper. House is for sale due to divorce and was bought for 40k new 17 years ago.

I have some cash, still staying away from property, but not making much money elsewhere.

Comments welcome!

Should've bought gold :ph34r:

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Ask him how its going in a year when you will have the actual yield the investment produced and will also learn how hard he had to work to get it.

You shouldn't touch less than 10% *actual* yield, not some multiply paid rent by 12 fantasy income number based yield.

The better yields now are only available in places like that and that is where the hassle comes from, all in all it's still not worth doing.

Here's my vague guess... actual yield is probably more like 5%, he just hasn't accounted for everything yet, which makes the property only worth buying to let out at half the price he paid for it. And even then I wouldn't do it due to the hassle. What you want is 10% and decent tenants, and no morals, then you should go for it. It was like that not so long ago and will be like that again in the future.

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  • 238 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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