Saturday, September 6, 2008

Btl Bargain Anyone??

for sale £3000

There is a very good opportunity here for anyone interested in acquiring this property for a very small amount of money

Posted by waitingtobuy @ 01:55 PM (1427 views)
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16 thoughts on “Btl Bargain Anyone??

  • Hello waitingtobuy.

    Is it your house ?

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  • I’m giggling so hard here there are going to be a few typo’s

    Roll up, roll up. For only £3000 you can aquire a BTL property that has an income of £675pcm. You will owe £145k on a property worth £162k and falling like a stone. You will be in negative equity by the spring and you already have to pay out at least £75 a month on the shortfall between income and outgoings. So you are already losing money before the ink on your signature dries, in a market that is writhing around on it’s back with it’s legs in the air, playing dead.

    Bugger me, I’ll take half a dozen.

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  • Hi housebear
    No, Im waiting to buy,not desperate to sell!!!!

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  • Poor sod. Not just bleeding cash, but delusional as well.

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  • Shouldn’t he be offering the taker 3000 to take it of his hands??

    Does he really think someone is going to pay him for a loss making investment!

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  • win win??? how would the buyer win? they would lose up 50% when prices bottom out….

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  • ” …I would like to live somewhere else now”

    Just hand keys to Bank – easy.

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  • You also buy a mortgage of £145,900,so it is for sale at £148,900, assuming the mortgage co lets him transfer the mortgage – generally they don’t,

    On a rental yields basis, it can’t possibly be worth more than £135,000 (6% gross yield), at that is the pre-crash peak value. To get a net yield of 7%, and you want at least that, because you can get 7% from a bank, you should pay no more than £90,000. To get a higher yield to compensate for the higher risk of this investment vs a bank deposit account, reduce the purchase price accordingly.

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  • I would say this is a typical BTL mathematically(over the last few years) and just goes to show what a money loser this game is. Investment ? Only for the set-up merchants who arranged all this. Easy money for them and hard work for the investor to simply break even.
    He/she has come up with a reasonable plan,just a question of offering at the right price(only that’s more a huge question now).
    Anyway this is good to see.I like it! Let’s see lots of clever and innovative ideas to help bring prices down to a respectable level and give people a chance in life.

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  • I have to admire the marketing genius of the seller to to put such an obscuring spin on a deal that would loose any fool buyer £120 per month, before any ongoing HPC is taken into account. I want him for my sales team. Pity any poor fool who gets conned by this, though.

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  • Hi Housebear,
    No , I am waiting to buy, not desperate to sell ! I have been against btl mortgages from the begining, so I think the advert is hilarious.

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  • nubbers @ 7

    ” Pity any poor fool who gets conned by this, though” – The trouble is, recently, the amount of fools who either heavily remortgaged, or simply paid the going rate for a property, will soon find out they have been “conned” as the negative equirty they have bought into starts to make them feel very poor!

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  • His mortgage will have to be redeemed and the buyer take out a new one (do charges apply?). Now, based on a purchase price of £3,000 and a max LTV of 85% the buyer can borrow – £2,550 regardless of rental income.
    Or – sale price £148500 with mortgage of £145500 = LTV of 97.8%, not suitable for BTL and outside just about every residential mortgage product available.
    Also, regardless of LTV, BTL now need 125% rental cover for a workable deal, so rental income of £675 means max monthly mortgage payments of £540. At say 6% max lending = £108,000. A 100% rental cover deal is usually available atover 7%, so max lending £116,000 at best.
    No wonder the guy wants to ditch it!

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  • Nooneo, I guess those BTLers who are pulling their heads out of the sand are already feeling poor, nay stuffed.

    Bit more investigation on houseprices.co.uk shows that the seller probably bought it at £162,500 on 7/10/2005. There are other sales in the same building on or near this date, so maybe he/she bought up a few. I would love to know what the local EAs are valuing them at now. Clearly a lot less than £148,000 or he would not be pulling such a desperate stunt. Even if he does manage to sell at the effective price of £148,000 the total loss per property from start to finish would be in the order of £25,000.

    Another thought. Is it really possible to transfer a mortgage like this or is the seller deluded?

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  • well spotted

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