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Brighton Btl Property On Rightmove


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http://www.rightmove.co.uk/viewdetails-136...=1&tr_t=buy

being marketed as BTL flat with rent of £380 pm

Birmingham midshire will give you a £60,800 loan on that at say 5.19% fixed with £900 fee. that's £262 per month IO payment

deposit of £39,150 lost interest at say 3.7% net is £120 per month.

tax due on rental income less loan is £25 a month

lease payments or property related bills around £50 a month I reckon

so we have a monthly loss of around £80 a month not including any repair costs

better hope you get some capital appreciation here.

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http://www.rightmove.co.uk/viewdetails-136...=1&tr_t=buy

being marketed as BTL flat with rent of £380 pm

Birmingham midshire will give you a £60,800 loan on that at say 5.19% fixed with £900 fee. that's £262 per month IO payment

deposit of £39,150 lost interest at say 3.7% net is £120 per month.

tax due on rental income less loan is £25 a month

lease payments or property related bills around £50 a month I reckon

so we have a monthly loss of around £80 a month not including any repair costs

better hope you get some capital appreciation here.

Thats not even taking into account the following:

Voids

Letting Agent Fees

Redecoration and Maintenance

Legal Fees / Professional Fees

So with everything taken into account the purchaser will lose at least £5,000 in the first year and then around £2,000 a year thereafter.

Now somebody could say "well you could sell in 5 years for £120k and you would have made about £1,000 a year after selling costs". The question would have to be asked "Who are you selling to for £120k?". A studio flat would never rent for more than £400 a month and nobodys paying £120k for a room.

This is happening across the board in Brighton. Still like lemmings so called "investors" are buying these. So the way I see it is in a years time when all of these people sit down in the cold light of day and look at the figures they will want to sell. Unfortunately at that stage their wont be any more amateur BTL investors and so their original purchase price will look ridiculous like this one does to us here on HPC. As a result you will be looking at taking a loss of say at least £20k on this flat before it looks anything near the right price for anybody to buy it. If IR's are a lot higher it may be nearer £30k.

So therfore think around 30% drops across the board on these kind of properties and in fact all 1 and 2 bed flats in Brighton and Hove.

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Thats not even taking into account the following:

Voids

Letting Agent Fees

Redecoration and Maintenance

Legal Fees / Professional Fees

So with everything taken into account the purchaser will lose at least £5,000 in the first year and then around £2,000 a year thereafter.

Now somebody could say "well you could sell in 5 years for £120k and you would have made about £1,000 a year after selling costs". The question would have to be asked "Who are you selling to for £120k?". A studio flat would never rent for more than £400 a month and nobodys paying £120k for a room.

This is happening across the board in Brighton. Still like lemmings so called "investors" are buying these. So the way I see it is in a years time when all of these people sit down in the cold light of day and look at the figures they will want to sell. Unfortunately at that stage their wont be any more amateur BTL investors and so their original purchase price will look ridiculous like this one does to us here on HPC. As a result you will be looking at taking a loss of say at least £20k on this flat before it looks anything near the right price for anybody to buy it. If IR's are a lot higher it may be nearer £30k.

So therfore think around 30% drops across the board on these kind of properties and in fact all 1 and 2 bed flats in Brighton and Hove.

Its second best feature is a "Versatile Hallway" wtf is that!

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http://www.rightmove.co.uk/viewdetails-136...=1&tr_t=buy

being marketed as BTL flat with rent of £380 pm

Birmingham midshire will give you a £60,800 loan on that at say 5.19% fixed with £900 fee. that's £262 per month IO payment

deposit of £39,150 lost interest at say 3.7% net is £120 per month.

tax due on rental income less loan is £25 a month

lease payments or property related bills around £50 a month I reckon

so we have a monthly loss of around £80 a month not including any repair costs

better hope you get some capital appreciation here.

I am surprised that a property website would put this information onto their website. It is like saying: Warning BTL disaster zone

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The question would have to be asked "Who are you selling to for £120k?". A studio flat would never rent for more than £400 a month and nobodys paying £120k for a room.

I really hate to say it, but people are - it's all part of the madness !

http://www.rightmove.co.uk/viewdetails-567...=9&tr_t=buy

and this for 132k ! :blink:

http://www.rightmove.co.uk/viewdetails-142...12&tr_t=buy

and this 'ideal buy to let' at 135k...

http://www.rightmove.co.uk/viewdetails-131...13&tr_t=buy :o

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I really hate to say it, but people are - it's all part of the madness !

http://www.rightmove.co.uk/viewdetails-567...=9&tr_t=buy

and this for 132k ! :blink:

http://www.rightmove.co.uk/viewdetails-142...12&tr_t=buy

and this 'ideal buy to let' at 135k...

http://www.rightmove.co.uk/viewdetails-131...13&tr_t=buy :o

Christ...£99k seems an absolute bargain then, I might get the cheque book out now.

TBH there are quite a few studios going for this and being bought by the 2006 desperate FTB's persuaded by the media that prices were set to rocket again like it was 2002. I have spotted that Brighton has its fair share of these but not enough to prop up the market.

These kind of properties will be going for £55k in about 2 years time.

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This is just SO reminiscent of the last crash.

BE

Most of them are to young to remember it...

They might of been around but you must of been.

I just sold a web url for £4000 pounds so I am laughing.

I was thinking of selling virtual villas, then people could virtually buy to let them :)

http://cgi.ebay.co.uk/ws/eBayISAPI.dll?Vie...em=160080539182

One born every minute

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  • 442 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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