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pipllman

Btler Seeks Advice On Next Property Move

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Whilst the advice is being sought elsewhere (property tribes), there is no reason at all why an investor in such a position should not benefit from advice offered here too

http://www.propertytribes.com/advice-on-next-property-move-t-127621610.html#pid237601

Basically, investor has 4 properties purchased for £949k, current market value £1.16m, mortgages £471k, gross rental income £51k (41% LTV, 4.4% yield at current value)

The question is:

Would you be happy with what you have or try to push on?

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you forgot to add ... and buy some new build flats is SW8, massive opportunity for capital growth, stella rental returns and some are selling at below market value. But you will need to move quickly as they are flying off the shelves.

... and do it now, before you miss out.

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My advice, was I in a position to offer it (which I am not and don't wish to be) would be this:

Your LTV against purchase price is 49.6% and that is, imo, right at the top end of where it should get to (have in mind prices may well fall below your purchase price)

Sit tight and accumulate as much cash as you can, ideally clearing the oldest mortgage completely to leave with you an unencumbered property in your portfolio

Do not, under any circumstances, switch to interest only mortgages or push your LTV >49%

In the run up to the new budget changes being implemented, keep an eye out for a bargain property that you are happy you could let out at 9%+ yield and that you could buy for cash or, worst case, without pushing your LTV >49%. Consider any such opportunity on a case by case basis

Continue to work hard at being a good landlord

Edited by pipllman

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And not one mention of the budget changes. Funny that.

"...releasing the eligible equity funds and utilising that freed up cash as deposits for additional property purchases is a method which many large portfolio landlords have used successfully in the past."

Ain't that the truth lie that refuses to die. The future success of this strategy is what ought to be considered, eh Mark?

edit.

Edited by Cry and Regret

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sell. for $### sake sell.

Yep, do this, retire, live worry free.

Funnily the people on the linked site think MOAR PROPERTY is the order of the day. I guess when you're a hammer everything looks like a nail.

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No word about the tax changes, and apparently professional advisers recommending increasing leverage.

Unless this is in a Ltd company, his leverage and income are about as high as they could get and remain viable.

If advisers really are advising increased leverage without proper consideration of the new tax rules, then I would not want to be their professional indemnity insurer.

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My advice, was I in a position to offer it (which I am not and don't wish to be) would be this:

Your LTV against purchase price is 49.6% and that is, imo, right at the top end of where it should get to (have in mind prices may well fall below your purchase price)

Sit tight and accumulate as much cash as you can, ideally clearing the oldest mortgage completely to leave with you an unencumbered property in your portfolio

Do not, under any circumstances, switch to interest only mortgages or push your LTV >49%

In the run up to the new budget changes being implemented, keep an eye out for a bargain property that you are happy you could let out at 9%+ yield and that you could buy for cash or, worst case, without pushing your LTV >49%. Consider any such opportunity on a case by case basis

Continue to work hard at being a good landlord

:lol:

It's no wonder we've clashed a few times. Keep up with the BTL wisdoms Pipllman. BTW I'm not interested in your posts with your 50 dishwasher mate landlord pal. Is that person actually you?

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:lol:

It's no wonder we've clashed a few times. Keep up with the BTL wisdoms Pipllman. BTW I'm not interested in your posts with your 50 dishwasher mate landlord pal. Is that person actually you?

clashes... Yes, if you want to call them that, why not.

I can see that you disagree with my position: that responsible landlords providing high quality, well maintained housing, at sensible prices, with secure tenancies are an essential part of the housing mix. Moreover, that providing that is a legitimate way to make money.

I can also see that I disagree with your position: that all landlords are bad and residential property letting is the work of satan and his followers, so anyone who even thinks about doing it should be smashed to pieces.

Yet still, somewhere in between there, we sometimes agree on some things discussed here... How about that!?

And no '50 dishwashers' (it is 100 washers as it happens) isn't me.

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clashes... Yes, if you want to call them that, why not.

I can see that you disagree with my position: that responsible landlords providing high quality, well maintained housing, at sensible prices, with secure tenancies are an essential part of the housing mix. Moreover, that providing that is a legitimate way to make money.

I can also see that I disagree with your position: that all landlords are bad and residential property letting is the work of satan and his followers, so anyone who even thinks about doing it should be smashed to pieces.

Yet still, somewhere in between there, we sometimes agree on some things discussed here... How about that!?

And no '50 dishwashers' (it is 100 washers as it happens) isn't me.

You should have declared your landlord VI, imo. Then I would have known which position you were looking at it from. That 50-100 dishwasher inherited portfolio, safe from tax changes, quite warm towards your 'pal', looking at how to hand portfolio down, was pecking my head.

Yes, there is worthwhile discussion to be had, but I would have preferred to have known your landlord VI.

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clashes... Yes, if you want to call them that, why not.

I can see that you disagree with my position: that responsible landlords providing high quality, well maintained housing, at sensible prices, with secure tenancies are an essential part of the housing mix. Moreover, that providing that is a legitimate way to make money.

I can also see that I disagree with your position: that all landlords are bad and residential property letting is the work of satan and his followers, so anyone who even thinks about doing it should be smashed to pieces.

Yet still, somewhere in between there, we sometimes agree on some things discussed here... How about that!?

And no '50 dishwashers' (it is 100 washers as it happens) isn't me.

Psst, do you wanna buy my unicorn? Edited by 25 year mortgage 8itch

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You should have declared your landlord VI, imo. Then I would have known which position you were looking at it from. That 50-100 dishwasher inherited portfolio, safe from tax changes, quite warm towards your 'pal', looking at how to hand portfolio down, was pecking my head.

Yes, there is worthwhile discussion to be had, but I would have preferred to have known your landlord VI.

I remember that story and the, ahem, 'self made' entrepreneur.

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I remember that story and the, ahem, 'self made' entrepreneur.

no one claimed any element of 'self made' in that story: it was clear from the start that any entrepreneurship (if there was any) was by the previous generation

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I've never been on Propertytribes before now until I clicked on the link in this thread... the first thing I see on there is a banner ad proclaiming ''See your btl bloom with gauranteed rent'' and the ad is illustrated with... a tulip bulb.

They obviously don't do irony.

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no one claimed any element of 'self made' in that story: it was clear from the start that any entrepreneurship (if there was any) was by the previous generation

It wasn't clear which is why I had to ask the question in the original thread.

I don't suppose people normally ask. By the time you get to the own 90 houses bit, most people's flanges will be leaking and their eyes glaze over at the sheer awesomeness of it all.

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It wasn't clear which is why I had to ask the question in the original thread.

I don't suppose people normally ask. By the time you get to the own 90 houses bit, most people's flanges will be leaking and their eyes glaze over at the sheer awesomeness of it all.

I suppose there is a certain type of person out there that finds it awesome.

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I've never been on Propertytribes before now until I clicked on the link in this thread... the first thing I see on there is a banner ad proclaiming ''See your btl bloom with gauranteed rent'' and the ad is illustrated with... a tulip bulb.

They obviously don't do irony.

Disabled adblock just for this :)

http://postimg.org/image/chr1g6lpl/

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...I can see that you disagree with my position: that responsible landlords providing high quality, well maintained housing, at sensible prices, with secure tenancies are an essential part of the housing mix. Moreover, that providing that is a legitimate way to make money...

We don't have any truly secure tenancies in the private rental sector in Britain, so no landlords are actually providing that.

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We don't have any truly secure tenancies in the private rental sector in Britain, so no landlords are actually providing that.

And sensible rental prices tend to be high rents that landlords likes to reap/extract from tenants. We also need a big RPC too, to smack down the portfolio landlords from their 'legitimate way to make money' / 'I'm totally safe in market' complacency.

24 Jun 2015

Rents in Britain have dwarfed those across the rest of Europe as tenants in the UK pay almost double the amount of their continental counterparts, according to new research from the National Housing Federation.

UK rents averaged €902 (£750) per household per month, compared with the European average of €481 (£400).

Even in countries where earnings are similar to those in Britain, such as Germany and Holland, rents are around 50pc cheaper at €600 and €625 respectively.

Many prospective first-time buyers and young families in the UK are trapped in rental accommodation as the chronic lack of homes - particularly in the London and the South East - continues to prop up house prices, making it more difficult to get on the property ladder.

http://www.telegraph.co.uk/finance/property/11694273/Revealed-The-most-expensive-rents-in-Europe.html

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