Investing £150,000 into property

[AdvocatusD]

If you had a £150,000 deposit how would you invest that in a property?

Open question: looking to hear all kinds of different ideas.

1. Residential?
2. Commercial?
3. Split it into multiple deposits and use for multiple properties?
4. Use it as a deposit for a single property?

Appropriate mathematics and real world examples would be great!

Edited by AdvocatusD on Saturday 3rd December 14:43

[_rubinho_]

Why would you use it as a deposit? You could buy a single buy-to-let flat for that. As that's earning you rental income you can use the equity (all of it as you own 100%) to borrow to buy one or more properties. The empire begins...

[66comanche]

AdvocatusD said:

3. Split it into multiple deposits and use for multiple properties?

This. Assume 30% deposits on properties worth £100k and you can buy 5 houses/flats (in many areas) & not pay tax on the mortgage interest.

[GTIR]

You could buy Shorpe with that.

[66comanche]

OK, I'm bored and have a stinking cold and thus confined indoors. Going with my example above (5 properties at £100k with 30% deposit).

In London, South Norwood SE25 6EP (random choice)
To Rent - £675pcm
To Buy - £100k

I'm sure it can be more profitable in other areas, just the first that came up.

£30k deposit
£70k mortgage
25 years @4%
£373.40/month
profit £301.60 on 1 flat + any capital gains

[Life Saab Itch]

Minus insurance.
Minus maintainance etc.

[Flanders.]

66comanche said:

OK, I'm bored and have a stinking cold and thus confined indoors. Going with my example above (5 properties at £100k with 30% deposit).

In London, South Norwood SE25 6EP (random choice)
To Rent - £675pcm
To Buy - £100k

I'm sure it can be more profitable in other areas, just the first that came up.

£30k deposit
£70k mortgage
25 years @4%
£373.40/month
profit £301.60 on 1 flat + any capital gains

Can you actually sit on that Bog in the Flat for a 100k? .

[Muncher]

Minus purchase fees of course.

[IhateChristmas]

Blimey! things have not gone up much since I left South Norwood in '98. Used to be a nice place in the 80s but it's a stehole now.

Says that it is very convenient for Norwood Junction station, too bloody right! I know that building and you'd better be a train spotter as you'll be overlooking the platforms

Edited by IhateChristmas on Saturday 3rd December 16:13

[CaptainSlow]

66comanche said:

OK, I'm bored and have a stinking cold and thus confined indoors. Going with my example above (5 properties at £100k with 30% deposit).

In London, South Norwood SE25 6EP (random choice)
To Rent - £675pcm
To Buy - £100k

I'm sure it can be more profitable in other areas, just the first that came up.

£30k deposit
£70k mortgage
25 years @4%
£373.40/month
profit £301.60 on 1 flat + any capital gains

hmm...the one for £100k is a studio and the rental is a one bed. Nice try.

[Kudos]

Near me there are terrace houses going for £45k. Rent for £500/month. Yes, I am buying

[66comanche]

CaptainSlow said:

hmm...the one for £100k is a studio and the rental is a one bed. Nice try.

Shows how little attention I was paying, this is a 1 bed for £100k though
one for £90k

[jas xjr]

Kudos said:

Near me there are terrace houses going for £45k. Rent for £500/month. Yes, I am buying

I find it better to charge rent weekly as in seven days. That way you get a nice brucie bonus

[Tyson1980]

AdvocatusD said:

If you had a £150,000 deposit how would you invest that in a property?

Open question: looking to hear all kinds of different ideas.

1. Residential?
2. Commercial?
3. Split it into multiple deposits and use for multiple properties?
4. Use it as a deposit for a single property?

Appropriate mathematics and real world examples would be great!

Edited by AdvocatusD on Saturday 3rd December 14:43

I'd buy some commercial properties

[jas xjr]

I am sure that commercial properties look like good value but the ecanomy is not going to improve anytime soon.
There is a shortage of domestic rental properties

[Tyson1980]

jas xjr said:

I am sure that commercial properties look like good value but the ecanomy is not going to improve anytime soon.
There is a shortage of domestic rental properties

I own a three properties I rent out. One to students and the other two to families..

All three are a headache to manage. Also when you get new tenants in, they ALWAYS want something being done or re-arranged or re-repaired. Looking at the financial statements on an annual basis its probably not even worth the hassle...

People nowadays want way more for their rent money. Sometimes bordering on the ridiculous....

[Ade07]

Recently bought 2 x large 3 bed terrace houses next door to each other, 90k for the two + 10k total to refurbish. Very high rental demand, both will achieve £525 per month, so a 12.6% gross rental yield.

[AdvocatusD]

Great. This thread moved from The Lounge, to the Homes, etc and now to Finance.

I predict it grinding to a halt in about 3 posts.

Mods, I apprecaite it is not strictly Lounge material, but there's a lot of stuff in there that isn't! Please could you move it back?

[anonymous-user]

Commercial?

£150k would make a dent in buying this recently let shoe shop

http://www.cartertowler.co.uk/pdf/property/16_Mark...

[CaptainSlow]

66comanche said:

CaptainSlow said:

hmm...the one for £100k is a studio and the rental is a one bed. Nice try.

Shows how little attention I was paying, this is a 1 bed for £100k though
one for £90k

lol, with those roof angles that's more of half a one bed!!