BTL - expanding the portfolio & diversification
Discussion
Hi All,
Hope you and your businesses are doing well?!
So I have a small (count on one hand) BTL portfolio of houses which are fairly valuable and the capital appreciation has been good over the last 10 years.
I have always purchased in good locations close to where I live and my experience of the market has paid off, having dabbled in property for the last 20 years.
The problem I have is that the yields are very poor as the houses are very expensive, so in the new year, I want to change my plan of attack somewhat.
I want to purchase a multi-let type of property, possibly HMO or a building with 2-4 flats, where the yield will be good and provide a passive income.
Furthermore, I'm happy to start to look further afield maybe from Reading along the M4 towards London.....but other parts of the country intriguing me!!
So what advice would you give me?
What areas are good from a yield perspective and easy to manage and not too risky?
I would love to hear your story and how you have diversified your portfolio in a similar fashion??
IceBoy
Hope you and your businesses are doing well?!
So I have a small (count on one hand) BTL portfolio of houses which are fairly valuable and the capital appreciation has been good over the last 10 years.
I have always purchased in good locations close to where I live and my experience of the market has paid off, having dabbled in property for the last 20 years.
The problem I have is that the yields are very poor as the houses are very expensive, so in the new year, I want to change my plan of attack somewhat.
I want to purchase a multi-let type of property, possibly HMO or a building with 2-4 flats, where the yield will be good and provide a passive income.
Furthermore, I'm happy to start to look further afield maybe from Reading along the M4 towards London.....but other parts of the country intriguing me!!
So what advice would you give me?
What areas are good from a yield perspective and easy to manage and not too risky?
I would love to hear your story and how you have diversified your portfolio in a similar fashion??
IceBoy
Every time I hear the term "passive income" I shudder at the thought of those annoying self-proclaimed property gurus!
The properties you own already, low yield due to value by your own omission, could they not be squeezed harder? Perhaps they're already "passive" by nature if you're putting in little time/effort/money.
Do any of them have potential do be converted to a HMO?
Is this your main source of income?
The properties you own already, low yield due to value by your own omission, could they not be squeezed harder? Perhaps they're already "passive" by nature if you're putting in little time/effort/money.
Do any of them have potential do be converted to a HMO?
Is this your main source of income?
I've just moved into property development from investment Iceboy, we bought an old school last year and turned it into student accommodation.
Fully tenanted it returns me about a 10% net yield. We are based in Chichester and the development isnt far from us.
Between my brother and myself (we work together) we've got buy to lets in liverpool, falmouth and chichester. Most are hmo's or student accommodation.
Happy to have a chat if you want?
Fully tenanted it returns me about a 10% net yield. We are based in Chichester and the development isnt far from us.
Between my brother and myself (we work together) we've got buy to lets in liverpool, falmouth and chichester. Most are hmo's or student accommodation.
Happy to have a chat if you want?
Friends of mine have purchased a few in Co Durham. There's a lot of demand for Housing Benefit rentals up there. They are buying 3-bed properties and refurbing to a good standard for c.£55k all in and then renting at a reliable £475pcm. That's >10%. I'm very tempted to jump in on a few myself.
Yes there's the distance (depending where you live) but they have got people up there who will attend to small works, and my view is that if a visit is required, a day trip flight to Newcastle is probably less than the cost of driving up there, and is easily do-able.
All that said, my BTL experience is very limited.
Yes there's the distance (depending where you live) but they have got people up there who will attend to small works, and my view is that if a visit is required, a day trip flight to Newcastle is probably less than the cost of driving up there, and is easily do-able.
All that said, my BTL experience is very limited.
Dan-Fresh said:
Negated to a large degree by regular room inspections, hefty deposits, guarantors etc...
We also keep back a % of the income and repaint every other year.
The money it costs them to rent these days the last thing they want to do is lose their deposit
We also keep back a % of the income and repaint every other year.
The money it costs them to rent these days the last thing they want to do is lose their deposit
Is it easier than managing standard family homes then?
Dan-Fresh said:
well i have a management company that manage the family house i rent out and the student accommodation so i have about as much input in both.
the first few months of managing 26 students was a but hectic but its no more time consuming than managing normal buy to lets now.
Fair enough. Start of term must be busy.the first few months of managing 26 students was a but hectic but its no more time consuming than managing normal buy to lets now.
CAPP0 said:
Friends of mine have purchased a few in Co Durham. There's a lot of demand for Housing Benefit rentals up there. They are buying 3-bed properties and refurbing to a good standard for c.£55k all in and then renting at a reliable £475pcm. That's >10%. I'm very tempted to jump in on a few myself.
Yes there's the distance (depending where you live) but they have got people up there who will attend to small works, and my view is that if a visit is required, a day trip flight to Newcastle is probably less than the cost of driving up there, and is easily do-able.
All that said, my BTL experience is very limited.
I used to let to housing benefit tenants but had enough of the lies, their disgusting approach to life demanding everything is done for them. Breaching tenancy agreement left right and centre, the deplorable living conditions where you question wether you should ring child services or not. The sudden runners owing all manner of companies huge amounts of money. Then there was the task of putting the hose back into shape for the next tenant, almost always a skipfullof sYes there's the distance (depending where you live) but they have got people up there who will attend to small works, and my view is that if a visit is required, a day trip flight to Newcastle is probably less than the cost of driving up there, and is easily do-able.
All that said, my BTL experience is very limited.
t, broken toys, nappies, clothes, dog st littering the back garden. It takes a landlord with a lot of patience to deal with the ststorm that is a benefits tenantYeah the yields are good (650 for a 3 bed here in Leeds, with direct payment too) but there's only so much crap you can put up with.
I must point out not all are like that, some were brilliant and still my tenants to this day but probably 50% were s
theads. If you don't really know what you're doing, DSS letting can be a bit of a nightmare and a gamble at best. Fortunately most people don't, which leaves a very fruitful (and hassle free) market for those who do 
Personally I hate HMO's, purpose built properties and lo-yielders. But then, I'm pretty certain I don't really know what I'm doing, and I've been doing it wrong for far too long (coming up 42 years) so it's way too late to learn to do it right now.
Just been offered a strange one. 6 flats in the building. I owned 5. The other owner kept his flat empty and would never sell it to me. Recently I sold 3. And now that other owner wants to sell me the one I always wanted! Weird or what?
Fifteen grand, by the way. And one of the muppets who owns one of the 3 I sold is about to evict one of the long term tenants I had in them. So he can have my new one for the rest of his life! (£4.8kpa safeguarded). There's yer dinner!!!!
Kinda fancy this one next.....
http://www.futurepropertyauctions.co.uk/property_d...
Personally I hate HMO's, purpose built properties and lo-yielders. But then, I'm pretty certain I don't really know what I'm doing, and I've been doing it wrong for far too long (coming up 42 years) so it's way too late to learn to do it right now.
Just been offered a strange one. 6 flats in the building. I owned 5. The other owner kept his flat empty and would never sell it to me. Recently I sold 3. And now that other owner wants to sell me the one I always wanted! Weird or what?
Fifteen grand, by the way. And one of the muppets who owns one of the 3 I sold is about to evict one of the long term tenants I had in them. So he can have my new one for the rest of his life! (£4.8kpa safeguarded). There's yer dinner!!!!
Kinda fancy this one next.....
http://www.futurepropertyauctions.co.uk/property_d...
Edited by drainbrain on Thursday 7th December 22:10
Similar route here....LA housing benefit rates are more than a neighborouring authority depsite there been a 60% difference in the value of a 2 bed house....cashing in the more expensive stock and moving it into cheaper stuff....I cannot se much hope for capital appreciation for the a good while, particualry in the north.
Hoofy said:
Is it easier than managing standard family homes then?
Normal tenants always seam to hand their notice in when your least prepared for it and least expect it!
Mortgage_tom said:
I have done both and prefer students. Students are more work, changing tenants almost every academic year and busy summers painting, etc. But the cash flow is much better and I find the whole process predictable. Id like to have enough for it to be my full time job.
Normal tenants always seam to hand their notice in when your least prepared for it and least expect it!
Yeah I had a one months notice handed to me on November 14th, so it comes free in 6 days time, lovely timing. The only people moving house so close to Christmas are the ones being hoofed out for rent arrears. Normal tenants always seam to hand their notice in when your least prepared for it and least expect it!
Phooey said:
Thoughts on this?
http://media.rightmove.co.uk/142k/141809/70546175/...
http://www.rightmove.co.uk/property-for-sale/prope...
One bathroom and an additional crapper for 8+ people. NICE!http://media.rightmove.co.uk/142k/141809/70546175/...
http://www.rightmove.co.uk/property-for-sale/prope...
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