BTL, is it still viable?
Discussion
Bought this on 1st March this year. £5k.
https://www.google.co.uk/maps/place/40+Laverockhal...
It's brought in £600 so far (£150pcm). Expenditure zero.
Can't find anything close to btl as viable investment for income. But would welcome suggestions.
https://www.google.co.uk/maps/place/40+Laverockhal...
It's brought in £600 so far (£150pcm). Expenditure zero.
Can't find anything close to btl as viable investment for income. But would welcome suggestions.
drainbrain said:
Bought this on 1st March this year. £5k.
https://www.google.co.uk/maps/place/40+Laverockhal...
It's brought in £600 so far (£150pcm). Expenditure zero.
Can't find anything close to btl as viable investment for income. But would welcome suggestions.
Where do you find properties like this to buy in the first place, auction presumably? https://www.google.co.uk/maps/place/40+Laverockhal...
It's brought in £600 so far (£150pcm). Expenditure zero.
Can't find anything close to btl as viable investment for income. But would welcome suggestions.
Do you think it would be possible to buy something like that and manage it from down South or do you need to be up there? I bet a lot of your tenants pay cash etc which could rule out 'remote' management.
terrydacktal said:
Where do you find properties like this to buy in the first place, auction presumably?
Do you think it would be possible to buy something like that and manage it from down South or do you need to be up there? I bet a lot of your tenants pay cash etc which could rule out 'remote' management.
Auctions can be funny places. Better to buy their stock pre-room. These days I just buy stuff that falls into my lap. Do you think it would be possible to buy something like that and manage it from down South or do you need to be up there? I bet a lot of your tenants pay cash etc which could rule out 'remote' management.
That one was bought from a bloke who walked into my office and said I knew his uncle who had told him I buy property. He was right twice.
Management is always better done by a firm local to the property. Doesn't mean you have to be there tho'.
I don't handle any cash at all.
Ps: If you like auctions this is coming up in a day or two. Sort of fancy it and just might if it doesn't go in the room.....
http://www.futurepropertyauctions.co.uk/property_d...
Thanks drain. Not often someone walks up to me and offers me a ~30% return so won't sit here waiting for that to happen...!
Yes I could see the appeal in that one, be interested to hear what it actually goes for. I've only got resi stuff so far but am temtped by a small commercial property.
Yes I could see the appeal in that one, be interested to hear what it actually goes for. I've only got resi stuff so far but am temtped by a small commercial property.
BTL has not been a good investment, outside central London, since the 1990s. Prices and costs are too high. Most are vanity purchases.
Having said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
Having said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
Yipper said:
BTL has not been a good investment, outside central London, since the 1990s. Prices and costs are too high. Most are vanity purchases.
Having said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
HMOs take a special kind of landlord. I've done a lot of it and it's not something 99% of people are cut out for / would want to do.Having said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
Yipper said:
BTL has not been a good investment, outside central London, since the 1990s. Prices and costs are too high. Most are vanity purchases.
Hmm, I'd disagree pretty strongly with that. I go as far as to say that BTL in central London is all about assuming capital appreciation as the yields are poor whereas there are plenty of good yielding properties elsewhere. I get a return on mine I could not get anywhere else and a good appreciation in capital too.
terrydacktal said:
Thanks drain. Not often someone walks up to me and offers me a ~30% return so won't sit here waiting for that to happen...!
Yes I could see the appeal in that one, be interested to hear what it actually goes for. I've only got resi stuff so far but am tempted by a small commercial property.
LOL! 30%? Crap.! Try this one: Yes I could see the appeal in that one, be interested to hear what it actually goes for. I've only got resi stuff so far but am tempted by a small commercial property.
https://www.google.co.uk/maps/@55.8623849,-4.20580...
Cost £2.5k. Rent £3kpa
Think the other one went in the room. No prob. Usual rule. Miss one, 3 more turn up......
Edited by drainbrain on Wednesday 14th June 19:58
terrydacktal said:
Yipper said:
BTL has not been a good investment, outside central London, since the 1990s. Prices and costs are too high. Most are vanity purchases.
Hmm, I'd disagree pretty strongly with that. I go as far as to say that BTL in central London is all about assuming capital appreciation as the yields are poor whereas there are plenty of good yielding properties elsewhere. I get a return on mine I could not get anywhere else and a good appreciation in capital too.
Most of mine have a good return and capital appreciation is strong if you buy the right property in the right area
dogz said:
terrydacktal said:
Yipper said:
BTL has not been a good investment, outside central London, since the 1990s. Prices and costs are too high. Most are vanity purchases.
Hmm, I'd disagree pretty strongly with that. I go as far as to say that BTL in central London is all about assuming capital appreciation as the yields are poor whereas there are plenty of good yielding properties elsewhere. I get a return on mine I could not get anywhere else and a good appreciation in capital too.
Most of mine have a good return and capital appreciation is strong if you buy the right property in the right area
Yipper said:
BTL has not been a good investment, outside central London, since the 1990s. Prices and costs are too high. Most are vanity purchases.
Having said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
You're talking bHaving said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
ks again.I've bought all mine since 2008 and none are in Central London.
Bought at 6-7% yield on 75% LTV. That nets me 14% ROI. In the time I've owned then they have gone up in value 50%.
For every 30k invested (average deposit) I've been getting about 4k profit per year, and the capital has grown to nearly 100k (I tend to ignore capital growth though).
Show me a better investment for my money that carries anything like a sensible level of risk.
Investing now is different though, you are unlikely to get a good yield, and property is overpriced IMO.
Interest rates held but 3 MPC members votes for a rise. Lenders like pricing in future non events, but with inflation at 2.9 %, the BoE will need to sort itself out, if it dares...
Naturally higher costs = different dynamics.
http://www.bbc.co.uk/news/business-40288125
Naturally higher costs = different dynamics.
http://www.bbc.co.uk/news/business-40288125
98elise said:
Show me a better investment for my money that carries anything like a sensible level of risk.
What type of risk? A typical leveraged BTL investor with a few properties has little diversification, and is exposed to liquidity and interest rate risk. How are you measuring sensible? Yipper said:
BTL has not been a good investment, outside central London, since the 1990s. Prices and costs are too high. Most are vanity purchases.
Having said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
1990!!! God some people post some BS in this place. Ignore sweeping generalisations like this OP. Having said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
BTL still makes sense for a lot of the UK capital gains aren't what they used to be but rents rarely go down.
Interest rates will only go up too so watch that but it has pro's and con's for BTL it means buyers still can't buy so demand will remain high for properties but your borrowing costs could go through the roof unless you fix hitting your profits.
Good luck if you do take the plunge plenty of threads on here on the subject.
Derek Chevalier said:
98elise said:
Show me a better investment for my money that carries anything like a sensible level of risk.
What type of risk? A typical leveraged BTL investor with a few properties has little diversification, and is exposed to liquidity and interest rate risk. How are you measuring sensible? Mine were all bought between 107k and 130k. They are all reasonably modern 2 or 3 beds in the South East, 3 miles to the station, and 35-45 minutes to London. I was never really going to lose money on them.
drainbrain said:
I love the international section, hoping for maybe a costa, or a cote but no its Cramlington.98elise said:
Derek Chevalier said:
98elise said:
Show me a better investment for my money that carries anything like a sensible level of risk.
What type of risk? A typical leveraged BTL investor with a few properties has little diversification, and is exposed to liquidity and interest rate risk. How are you measuring sensible? Mine were all bought between 107k and 130k. They are all reasonably modern 2 or 3 beds in the South East, 3 miles to the station, and 35-45 minutes to London. I was never really going to lose money on them.
Derek Chevalier said:
98elise said:
Derek Chevalier said:
98elise said:
Show me a better investment for my money that carries anything like a sensible level of risk.
What type of risk? A typical leveraged BTL investor with a few properties has little diversification, and is exposed to liquidity and interest rate risk. How are you measuring sensible? Mine were all bought between 107k and 130k. They are all reasonably modern 2 or 3 beds in the South East, 3 miles to the station, and 35-45 minutes to London. I was never really going to lose money on them.
Edited to add.....to be fair the once below 130k needed work (redecoration + new kitchen) but no more than 10k was spent on each.
The one for 130 needed minimal work.
Edited by 98elise on Friday 16th June 20:05
Yipper said:
BTL has not been a good investment, outside central London, since the 1990s. Prices and costs are too high. Most are vanity purchases.
Having said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
Total bHaving said that, know someone in Bedford who makes reasonable money from multi-occupancy near the rail station. Bought a 3-bedder and turned it into somewhere for 5 persons. Student houses in Oxford and Cambridge are also something he is looking at. You can squeeze 6 students in a small house and get good money, but they usually trash it, so there are costs involved.
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