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The Reason A Property Goes To Auction- Buyers Beware

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Interesting one, we had title + boundary problem but buying from a seller that was unwilling to sort the problem out for no clear reason. It was a bad enough problem that you wouldn't have been able to get a mortgage had you informed the mortgage company which once discovered our solicitor had to do yet it wasn't immediatly obvious, the sellers original solicitor hadn't spotted it and they obtained a mortgage. I can easily imagine this sort of thing being put up for auction and overlooked leaving someone with a right headache.

When we pulled out the EA said they would just sell to someone with a less fussy solicitor so arm yourself with a fussy solicitor!

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When I was at Queens I lived in the Bakery and 152 Malone Avenue. Rent was £750 in both for a 2 bed. Bakery was nice, bit of a trek to the room from the front door, but good location. 152 Malone Avenue was a much smaller block, and also a good location. Maybe worth checking them out. Friends stayed in Quay Gate - Nice flats, but a pain in the **** to get to.

There's nothing on for sale in the Bakery, for some reason. A few are up in 152 Malone Avenue:

http://www.propertynews.com/Property/Belfast/ECSECS36941/Apt-10-152-Malone-Avenue/343992986/

http://www.propertynews.com/Property/BELFAST/TRLTRL74724/Apt-14-152-Malone-Avenue/343992986/

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Thanks Will910, the advice received from everyone on the forum has been really great. I started off looking to " invest" £100k tops for a 2 bed, ( hence the Ashley Courtyard/South Studios idea) so places like 152 malone , the bakery and Stramnillis Wharf out of reach ( just can't bear the thought of all the worry and hassle of a mortgage being involved).

Was very tempted by South Studios actually, but taking advice from here ( and listening to everything the EAs have said with huge pinch of salt!) just settled for renting for now, see where we are this time next year and having found it, use this brilliant forum as a guide !

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Thing is, as an investment, does it really make sense?

Take the example of Malone Avenue...say £170,000 to buy and £750 a month to rent.

Out of that £750 a month you have to take maintenance fees and rates and any other ownership costs. It will be at least £150 a month of costs, probably more.

That leaves £600 a month.

£600 a month on an investment of £170,000 is 4.2% return. Before you take away the tax you'd have to pay. And the landlords insurance. And goodness knows what else.

Would you even get a 3% return? Is it really worth it?

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Thing is, as an investment, does it really make sense?

Take the example of Malone Avenue...say £170,000 to buy and £750 a month to rent.

Out of that £750 a month you have to take maintenance fees and rates and any other ownership costs. It will be at least £150 a month of costs, probably more.

That leaves £600 a month.

£600 a month on an investment of £170,000 is 4.2% return. Before you take away the tax you'd have to pay. And the landlords insurance. And goodness knows what else.

Would you even get a 3% return? Is it really worth it?

No, it's not worth it. The truth is it all rides on capital appreciation, which was almost a law of nature back in the good oul days when we were young. Then water started flowing uphill and the whole business model still looks dodgy.

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No, it's not worth it. The truth is it all rides on capital appreciation, which was almost a law of nature back in the good oul days when we were young. Then water started flowing uphill and the whole business model still looks dodgy.

Yep, BTL was always about capital appreciation.

It will be interesting to see what the budget does to BTL here.

Was talking to a few people at a party last weekend. Older than I am, 40something professionals. A few in to BTL. One said he was selling up (house on Bawnmore BT9) other said he didn't know about any changes.

Edited by 2buyornot2buy

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Yep, BTL was always about capital appreciation.

It will be interesting to see what the budget does to BTL here.

Was talking to a few people at a party last weekend. Older than I am, 40something professionals. A few in to BTL. One said he was selling up (house on Bawnmore BT9) other said he didn't know about any changes.

It's time he did know. Tax at 100% plus? That ought to concentrate the mind.

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The changes are going to affect people jumping into BTL with the use of the banks money. Also, I would say its early days and we don't know the full impact. But for someone with a small mortgage BTL is still profitable.

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The changes are going to affect people jumping into BTL with the use of the banks money. Also, I would say its early days and we don't know the full impact. But for someone with a small mortgage BTL is still profitable.

Nice broad sweeping statement there. Still profitable in what sense? Compared to what?

It's not going to only affect people jumping in now. It's going to affect everyone with a BTL mortgage. Also remember no more wear and tear allowance. That's 10% 9f rent no longer automatically banked.

Edited by 2buyornot2buy

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Would anyone buying a BTL not just buy it through a ltd company? I know lenders for ltd' are thin on the ground, but could save you getting pushed into the highest tax band and getting hammered with the tax.

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Nice broad sweeping statement there. Still profitable in what sense? Compared to what?

It's not going to only affect people jumping in now. It's going to affect everyone with a BTL mortgage. Also remember no more wear and tear allowance. That's 10% 9f rent no longer automatically banked.

You need to read it for yourself pal

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Would anyone buying a BTL not just buy it through a ltd company? I know lenders for ltd' are thin on the ground, but could save you getting pushed into the highest tax band and getting hammered with the tax.

It's not that simple though. Increased cost in company admin accounts etc. How do you get the money out? Tax on dividends is changing. Increased interest rates, PGS, lower LTV. If you already own stamp duty on transfer. It could work for some but not your average BTLer

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The changes are going to affect people jumping into BTL with the use of the banks money. Also, I would say its early days and we don't know the full impact. But for someone with a small mortgage BTL is still profitable.

I would expect this to have an overall drag on prices, if profitability is limited to those with minor borrowings.

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I'd say theres been a few big boys getting in to BTL when everyone else is giving it a wide berth.

i mean i know someone in portadown buying up property at 30-40k and renting it out for 400.

to the opening poster of this thread UPS just listed two x 2 beds in BT9 for 100 and 110 today , could be worth a look

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I'd say theres been a few big boys getting in to BTL when everyone else is giving it a wide berth.

i mean i know someone in portadown buying up property at 30-40k and renting it out for 400.

to the opening poster of this thread UPS just listed two x 2 beds in BT9 for 100 and 110 today , could be worth a look

Incorporated I hope?

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  • 396 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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