Could I have done better.
Discussion
Could start a whole new topic on this, but am currently planning to sell said previously mentioned house and buy properties at auction to buy and do up with a pot of circa £60k which would be for the deposit + renovation funds.
What would be the best way to go about this? Short term auction type finance or? Never really looked into this much so just starting my initial research now. Failing this I'll probably stick into 2 £80k flats....
What would be the best way to go about this? Short term auction type finance or? Never really looked into this much so just starting my initial research now. Failing this I'll probably stick into 2 £80k flats....
Mark Benson said:
For us it's been 1 bed 'quarterhouses', they were popular in the 80a and early 90s, 4 houses built in a single block.
They cost little more than a flat (ours were £80-£100k in West Swindon in the mid-2000s, comparable 'off-plan' 1 bed flats were being sold for around the same) but they rent for around £100pcm more as tenants get a front door and a bit of garden as well as a parking space outside their house.
Currently selling for £140k or thereabouts if in decent nick, the flats that were being sold at the same time still hanging about at £110k.
Nice. I've never heard that term before but one of my flats is like this. Quite good as feels more like a home with your own front door, and a bit of garden. Backs out onto a park too which is nice. Bought at a bargain for £52k now worth around £75k min after refurb. Wish i could find a few more like this tbh.They cost little more than a flat (ours were £80-£100k in West Swindon in the mid-2000s, comparable 'off-plan' 1 bed flats were being sold for around the same) but they rent for around £100pcm more as tenants get a front door and a bit of garden as well as a parking space outside their house.
Currently selling for £140k or thereabouts if in decent nick, the flats that were being sold at the same time still hanging about at £110k.
lewisf182 said:
Could start a whole new topic on this, but am currently planning to sell said previously mentioned house and buy properties at auction to buy and do up with a pot of circa £60k which would be for the deposit + renovation funds.
What would be the best way to go about this? Short term auction type finance or? Never really looked into this much so just starting my initial research now. Failing this I'll probably stick into 2 £80k flats....
Some bridging finance providers can take a charge on the equity on your current property so you can use those funds to buy cash at auction, refurb then sell on (assuming you are selling on) or refinance onto longer term mortgage product. Might be worth looking into. What would be the best way to go about this? Short term auction type finance or? Never really looked into this much so just starting my initial research now. Failing this I'll probably stick into 2 £80k flats....
Also products available that will allow you to buy somewhere, lender can agree in advance what they will value it at after works, you put up the deposit and fund the refurb, but when done the lender will then immediately lend at the initial agreed after works value, meaning you can release your refurb costs...
"This product has been developed for clients purchasing or refinancing residential property with the intention of
completing some minor decorative refurbishment before letting out the property. This is a 3/ 5 year option for
the client where we will lend 75% of the lower of purchase price and market value with a retention held for up to
75% of the after works figure (released after subsequent valuation provided and confirmation that the property
is tenanted). "
Worth speaking to a good broker!
trowelhead said:
Nice. I've never heard that term before but one of my flats is like this. Quite good as feels more like a home with your own front door, and a bit of garden. Backs out onto a park too which is nice. Bought at a bargain for £52k now worth around £75k min after refurb. Wish i could find a few more like this tbh.
In Glasgow and surrounds there are loads of them. mostly built post war by The Cooncil. Make great renters. Usually basically well constructed. Sometimes of non-standard construction. And known, imaginatively as "4-in-a-blocks". Usually the ground floors have doors at the front of the building, and the upper flats are accessed from a side door and a stairwell. Almost all 2-beds. And at about the same money you're talking, tho obviously real dumps needing a £20k refurb can be as cheap as £30k+/-Nice. I've never heard that term before but one of my flats is like this. Quite good as feels more like a home with your own front door, and a bit of garden. Backs out onto a park too which is nice. Bought at a bargain for £52k now worth around £75k min after refurb. Wish i could find a few more like this tbh.
I too have one in Chelmsford paid £50k 12 years ago top price but in very good condition ground floor 1 bed room,own front door with very nice garden never spent a penny on it fully rented,I have never had it valued ,but the top going rate is about £175,to good a monthly income to sell,over the years purchased a few bits but could not find another like it.
I too have one in Chelmsford paid £50k 12 years ago top price but in very good condition ground floor 1 bed room,own front door with very nice garden never spent a penny on it fully rented,I have never had it valued ,but the top going rate is about £175,to good a monthly income to sell,over the years purchased a few bits but could not find another like it.
leginigel said:
Nice. I've never heard that term before but one of my flats is like this. Quite good as feels more like a home with your own front door, and a bit of garden. Backs out onto a park too which is nice. Bought at a bargain for £52k now worth around £75k min after refurb. Wish i could find a few more like this tbh.
I too have one in Chelmsford paid £50k 12 years ago top price but in very good condition ground floor 1 bed room,own front door with very nice garden never spent a penny on it fully rented,I have never had it valued ,but the top going rate is about £175,to good a monthly income to sell,over the years purchased a few bits but could not find another like it.
Sounds good, hope it carries on treating you well!I too have one in Chelmsford paid £50k 12 years ago top price but in very good condition ground floor 1 bed room,own front door with very nice garden never spent a penny on it fully rented,I have never had it valued ,but the top going rate is about £175,to good a monthly income to sell,over the years purchased a few bits but could not find another like it.
Can I ask some advice from experienced BTLetters?
I've been looking at student BTLs in Nottingham which I know well, having lived there for 4 years.
I have about £50k to put down as a deposit, which could get me something along these lines: http://www.rightmove.co.uk/property-for-sale/prope...
That would generate ~£15k rental income vs. ~£7k mortgage (on a 2 year fix). I would let an agent manage the property so would expect £3-4k in various expenses annually.
I can't work out if that's a worthwhile return (forgetting capital gains/losses for a second), or if I should stick to investing in funds where, unless there's a massive downturn, I could make about 5% annually?
I've been looking at student BTLs in Nottingham which I know well, having lived there for 4 years.
I have about £50k to put down as a deposit, which could get me something along these lines: http://www.rightmove.co.uk/property-for-sale/prope...
That would generate ~£15k rental income vs. ~£7k mortgage (on a 2 year fix). I would let an agent manage the property so would expect £3-4k in various expenses annually.
I can't work out if that's a worthwhile return (forgetting capital gains/losses for a second), or if I should stick to investing in funds where, unless there's a massive downturn, I could make about 5% annually?
matrignano said:
Can I ask some advice from experienced BTLetters?
I've been looking at student BTLs in Nottingham which I know well, having lived there for 4 years.
I have about £50k to put down as a deposit, which could get me something along these lines: http://www.rightmove.co.uk/property-for-sale/prope...
That would generate ~£15k rental income vs. ~£7k mortgage (on a 2 year fix). I would let an agent manage the property so would expect £3-4k in various expenses annually.
I can't work out if that's a worthwhile return (forgetting capital gains/losses for a second), or if I should stick to investing in funds where, unless there's a massive downturn, I could make about 5% annually?
I have some student rentals that I purchased for about the same price. I did put a bit more deposit in than you intend to, but your mortgage costs look a bit high. Are you intending to do interest only? I've been looking at student BTLs in Nottingham which I know well, having lived there for 4 years.
I have about £50k to put down as a deposit, which could get me something along these lines: http://www.rightmove.co.uk/property-for-sale/prope...
That would generate ~£15k rental income vs. ~£7k mortgage (on a 2 year fix). I would let an agent manage the property so would expect £3-4k in various expenses annually.
I can't work out if that's a worthwhile return (forgetting capital gains/losses for a second), or if I should stick to investing in funds where, unless there's a massive downturn, I could make about 5% annually?
£15k should be easily achievable for a 4 student let, I get a bit more than that but mine are new build 3 storey town houses with a fairly high spec. Mine are fully agent managed at a 10% cost, I doubt you'll spend more than £1k per year on maintenance etc.
I have found that if you give students a good quality property they tend to look after it and you get higher rent. I've also never had a non payer, parental guarantee ensures that, and the properties are generally reserved 6 months in advance, mine were all sorted, contracts signed, for new tenants for July 17 before Christmas.
So your £50k should give you a net yield of about £7k pa, is your 5% from funds fairly risk Free?
Nothing is risk free these days...
My funds portfolio made 10% in 2016 but that was with quite a high risk profile.
I reckon 5% should be doable with a more moderate risk exposure.
Which makes me wonder whether it's worth the hassle to go for a BTL, particularly because I have no idea how a student house in Nottingham will appreciate or depreciate in the next 5/10/15 years...
My funds portfolio made 10% in 2016 but that was with quite a high risk profile.
I reckon 5% should be doable with a more moderate risk exposure.
Which makes me wonder whether it's worth the hassle to go for a BTL, particularly because I have no idea how a student house in Nottingham will appreciate or depreciate in the next 5/10/15 years...
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