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It's Btl Boomtime - Todays Moneymail

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Sinead Donnelly is buying her second BTL Property in North London.” I kept my first property when I moved out and used it as a rental flat. Then in January this year I found anther two bedroom flat in the same block” says Sinead, 30, an accountant.

The article then goes on to explain how she’s remortged and with whom, and the profit margins – small! Then -and this is the clincher that made me almost piss myself!

“Sinead has also put a deposit down on two new properties being built in Dublin, and will be looking for finance for these as well…..”

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Sinead Donnelly is buying her second BTL Property in North London.” I kept my first property when I moved out and used it as a rental flat. Then in January this year I found anther two bedroom flat in the same block” says Sinead, 30, an accountant.

The article then goes on to explain how she’s remortged and with whom, and the profit margins – small! Then -and this is the clincher that made me almost piss myself!

“Sinead has also put a deposit down on two new properties being built in Dublin, and will be looking for finance for these as well…..”

Ahhh Sinead listening to the folks at home to be sure to be sure

She'll be sitting on a pot of gold in no time.

Repeat after me 'Our father who art in heaven, property be thy name"

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The redistribution of wealth away from these amateur property speculators is the trend that I shall watch closest for the next few years.

Perhaps Sinead will feature in more articles in the coming years...

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The redistribution of wealth away from these amateur property speculators is the trend that I shall watch closest for the next few years.

Perhaps Sinead will feature in more articles in the coming years...

Good job shes an accountant for those expenditure and income accounts :lol:

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`Sinead, 30, an accountant.`

Would that be a Turf Accountant?

horace. :)

I could well imagine the average turf accountant being much more switched on to economics. I'm an accountant and I can tell you that the training is short on economics which I did my degree in.

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I could well imagine the average turf accountant being much more switched on to economics. I'm an accountant and I can tell you that the training is short on economics which I did my degree in.

Even so I remember that there was quite a lot on investment appraisal methods etc so there is no excuse for any qualified accountant to be so foolish.

Makes me wonder if her definition of accountant means "works in the accounts department"

Edited by Young Goat

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Even so I remember that there was quite a lot on investment appraisal methods etc so there is no excuse for any qualified accountant to be so foolish.

Makes me wonder if her definition of accountant means "works in the accounts department"

That could be right. Some accountants can get very twitchy if the purchase ledger administrator refers to there self as an accountant, I don't mind. When I'm out and nobody knows me I claim to be a marine biologist or an airline pilot so who am I to complain?

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Makes me wonder if her definition of accountant means "works in the accounts department"

It wouldn't suprise me.

Funny how the middle classes are often the thickest section of society in the real world, the rich are rich because they're savy, the poor tend to know every scam going, but the middle classes just plod along paying there taxes, jumping onto band wagons when they've already passed etc.

On the train yesterday I was listening to two young chavettes chatting away, about their divorced mothers boyfriend who was moving in and selling his house "cause he reckons they're gonna fall alot now".

Interesting situation where a supposedly intelligent, well educated middle class professional is commiting financial suicide and a supposedly stupid blue collar worker ( if he works at all ) is busy exiting whilst the going is good. Maybe he's even selling to her?

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Sinead Donnelly is buying her second BTL Property in North London.” I kept my first property when I moved out and used it as a rental flat. Then in January this year I found anther two bedroom flat in the same block” says Sinead, 30, an accountant.

The article then goes on to explain how she’s remortged and with whom, and the profit margins – small! Then -and this is the clincher that made me almost piss myself!

“Sinead has also put a deposit down on two new properties being built in Dublin, and will be looking for finance for these as well…..”

clueless

i give up

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clueless

i give up

I agree.

I just don't understand how anybody can be BTLing at the moment. A good yield is now 5.5% gross, that's less than a typical mortage rate.

You can get almost as good a return by putting your money into the bank, shares are a much better bet and neither of these needs a good 3% margin built in to cover agents costs, voids and repairs etc.

Anybody buying on less than a 9% yield is an utter fool.

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The great thing about the Internet is that these articles will be available forever (or at least, for quite a few years to come). So twenty years from now anyone who knows this person will be able to point to the articles and laugh at them for being so stupid.

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Even so I remember that there was quite a lot on investment appraisal methods etc so there is no excuse for any qualified accountant to be so foolish.

Makes me wonder if her definition of accountant means "works in the accounts department"

Edit: Having seen the article I have to concede that she is a fully qualified accountant.

That said I can't see how she's making the figures add up. She is making £130 per month profit (note that the mortgage appears to be interest only) but that's before voids, fees and maintenance. Agent's fees alone should pretty much wipe out the profit and she's not even thinking about the return on her own equity.

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Love it.

Her mortgage costs £1,070 now against £1,200 monthly rental income. On a £233k mortgage if rates go up just 0.75% from the current rate then she won't be covering the mortgage.

Hope there are no other monthly costs on a rented flat. Oh that's right, there will be management charges and ground rent !!!

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She does say she's managing them herself - so she'll only need to worry about interest rate hikes, void periods, repairs and insurance.

Edited by Bedsprings

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She does say she's managing them herself - so she'll only need to worry about interest rate hikes, void periods, repairs and insurance.

That is, of course, except you can't put a price on your own time and the hassle of managing it yourself.

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Not all BTL investors are going to be loosers. The thing about VI spin is that to preserve their reputation when the roof tumbles in they are likely to pick winners to demonstrate the veracity of their position (this was in the paper version 3 days ago).

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That is, of course, except you can't put a price on your own time and the hassle of managing it yourself.

Given that she's contracting she should be able to put a price on her time. The accounts temping market is strong at the moment but if there is a downturn in the market (say to 2002 levels) she could find that pay rates drop 30% pretty quickly. I hope she has positive cashflow from the 'investments'.

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Sinead Donnelly is buying her second BTL Property in North London.” I kept my first property when I moved out and used it as a rental flat. Then in January this year I found anther two bedroom flat in the same block” says Sinead, 30, an accountant.

The article then goes on to explain how she’s remortged and with whom, and the profit margins – small! Then -and this is the clincher that made me almost piss myself!

“Sinead has also put a deposit down on two new properties being built in Dublin, and will be looking for finance for these as well…..”

is she on interest only loans?? nice fat lump sums to repay,doesnt mention taxes in her calculations of profit.

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  • 301 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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