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Its-Already-Crashing

12?% Yields - How Do They Do That?

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That's actually very sound advice

but no need to go further than

1. Aim for a 12 per cent yield.

If the monthly rent is £500, add two noughts (£50,000) and try not to pay more than that.

basically says that this is not the time to buy.

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Is used to be 20% including HPI, so I suspect 12% these days is about right.

I think you will find that yield is cashflow and HPi is MtM capital gains until realised. Not quite the same thing.

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Regardless, the two are often added together to demonstrate the potential return. Same as any other investment.

other commodities are far more liquid therefore mtm gains can be realised with relative ease - how long does it take to sell a house? the MTM risk is much higher.

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Regardless, the two are often added together to demonstrate the potential return. Same as any other investment.

I'm fresh up out my coma

I got my momma and my daddy and my granny in my corner

It's gonna take a miracle they say

For me to profit again and buy again but anyway.

I get, fronted some keys, to get, back on my feet

And everything that nationwide said, came to reality

Livin like a baller loc

Havin money, and blowin hella chronic smoke

I bought my momma a Benz, and bought my Boo-Boo a Jag

And now I'm rollin in a nine-trizzay El Do-Rad

"Just remember who changed your mind

Cuz when IRs start -trippin, that ass mine"

Indeed, agreed proceed to smoke weed

Never have a want, never have a need

They say I'm greedy but I still want mo'

Cuz my eyes wanna journey some more, really doe.

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I think you will find that yield is cashflow and HPi is MtM capital gains until realised. Not quite the same thing.

You are wasting your time.

TTRTR has about as much understanding of economics as a 2 week old tumor.

Recently he posted the fatuous statement (as if it was some incredible genius-like economic insight!) that:-

"when are you lot going to realize that growth is more important inflation".

Even a 12 year old when I was in school could have pointed out that it is the DIFFERENCE between growth and inflation that is really important.

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I'm fresh up out my coma

I got my momma and my daddy and my granny in my corner

It's gonna take a miracle they say

For me to profit again and buy again but anyway.

I get, fronted some keys, to get, back on my feet

And everything that nationwide said, came to reality

Livin like a baller loc

Havin money, and blowin hella chronic smoke

I bought my momma a Benz, and bought my Boo-Boo a Jag

And now I'm rollin in a nine-trizzay El Do-Rad

"Just remember who changed your mind

Cuz when IRs start -trippin, that ass mine"

Indeed, agreed proceed to smoke weed

Never have a want, never have a need

They say I'm greedy but I still want mo'

Cuz my eyes wanna journey some more, really doe.

:lol::lol::lol::lol:

Can't picture TTRTR being snoop styled bad-ass BTL pimpin mo-fo!

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Regardless, the two are often added together to demonstrate the potential return. Same as any other investment.

You are having a laugh right?

Same as any other investment? Only when you are talking to fraudsters & charlatans, no competent individual would do this.

You can't add in expected capital gains to get the yield up, quite simply there is no reason to suspect that your going to get those gains. This is economic illiteracy of the highest order, the sort of reasoning that generated the bubble in the first place. You are in effect saying that house prices are high becuase house price inflation is high, this is circular logic.

Yield is simply the annual rental divided by the capital cost. In my area it is now sub 5%, to make sense it needs to be closer to 10%.

Time to raise the rents by 100% (or bring prices down by 50%)

Edited by Young Goat

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He's basically saying buy £30K ex-council houses in rundown streets and let to the social. Which is a great place to be if/when it goes wrong.

Some of his assumptions are good, like ignore property seminars unless you are a total novice, in which case what are you playing the game at this time for ?

He has a £10M property portfolio, right, so what's that then - how much is actual cash and how much is tangible money he traded out - he'll be at least at 85% leverage and you can easily see those council houses losing 15% of their value - in effect he's got sod all unless he locks the money in by liquidating.... - though from what he's claiming he's taking £1.2M a year in gross income and therefore say 6% on the mortgages, he's making £600K a year - in which case, why bother setting up an accounting practice ?

This is the sort of flim flam you get, he may be the alchemist, he may ride it just right, but I just can't see it.

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Is used to be 20% including HPI, so I suspect 12% these days is about right.

What about if you bought to let today hmmmmmmmmmm?

Guy at my work got a flat city centre edinburgh. The rent doesn't cover the mortgage.

Thats ok though, cos its an investment... :lol::lol::lol:

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This is on the home page of MSN UK

http://lawpack.money.msn.co.uk/1366D9463D9...3B04D81572.aspx

This BTL guru suggests (from his top 10 tips to profitable property) only buying properties giving 12% yields.

OK, where the hell are you going to find a 12% yield deal in the UK?

If anyone can tell me I would love to know.

Did you not see at the footer that he provides the self employed with proof of wages through his accountancy firm? Just thought I`d mention it. ;) Anyhow, here`s my friends at Moneyweeks take on yield/BTL

http://firstrung.co.uk/articles.asp?pageid...articlekey=1326

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"And it's not just consumers feeling the pain. Banking giant Barclays saw bad debt provisions surge 44% to £1.57bn during 2005, driven mainly by overstretched UK borrowers defaulting on their credit cards.

Let's think about that for a minute. That's £1.57bn that Barclays expects it will never see again. Annual turnover for the entire group came in at £18bn, so that's not peanuts by any manner of means. "

That's naughty, playing the stats and mirrors game as well I see.

The money spent through Barclays is probably nearer £18bn a week than a year. So, 1.57Bn is basically sod all compared to money spent - probably less than most businesses bad debt provisions - it's still a massive amount of money, but not horrific.

I know people default on cards first - they much prefer it to defaulting on their mortgage (sensibly), but it's more evidence of where some of the bigger societal problems lie with spending in the UK....

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What about if you bought to let today hmmmmmmmmmm?

Guy at my work got a flat city centre edinburgh. The rent doesn't cover the mortgage.

Thats ok though, cos its an investment... :lol::lol::lol:

I hear the old investment argument a fair bit, can someone give me a good lists of what the flaws in this argument are?

Houses for pensions...

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  • 302 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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