Buy to let - South Yorkshire
Discussion
please don't go in to BTL thinking you will make money even in the medium term, it is totally saturated certainly here in nottingham up to sunny donny 
there are other ways of making money in property
I have so many clients naively(sp?) saying to me they want to purchase a BTL for their pension in 5 years time with only a 15% deposit...one chap yesterday found a house to buy, got a rental assessment at £595 PCM in assuming 25k spent on it and then couldn't understand me telling him that the majority of lenders will want a pay rate X 125% /12 asessment on the balance which equated to circa £770! the market is not there anymore for the good returns.
I eventually placed this guy with NR as their calc rate is so flexible..so this guy (against my advice) is getting £595 PCM on an interest only mortgage payment of £591 and he's had to invest 25k on getting the house up to just the £595 PCM!
hey ho.
the old adage still holds true: if people are saying it's a good idea, you're too late
there are other ways of making money in property
I have so many clients naively(sp?) saying to me they want to purchase a BTL for their pension in 5 years time with only a 15% deposit...one chap yesterday found a house to buy, got a rental assessment at £595 PCM in assuming 25k spent on it and then couldn't understand me telling him that the majority of lenders will want a pay rate X 125% /12 asessment on the balance which equated to circa £770! the market is not there anymore for the good returns.
I eventually placed this guy with NR as their calc rate is so flexible..so this guy (against my advice) is getting £595 PCM on an interest only mortgage payment of £591 and he's had to invest 25k on getting the house up to just the £595 PCM!
hey ho.
the old adage still holds true: if people are saying it's a good idea, you're too late
Thanks minimax (and poorcardealer).
I have an opportunity on some repo property in half decent areas at half decent prices.
There's some major development about to kick off in the area which will take about 20 years to fully bear fruit which is the sort of time span I'm looking at.
I work with NR too - partly for the reasons you state and partly becuase I've found them to be a generally good company.
I have an opportunity on some repo property in half decent areas at half decent prices.
There's some major development about to kick off in the area which will take about 20 years to fully bear fruit which is the sort of time span I'm looking at.
I work with NR too - partly for the reasons you state and partly becuase I've found them to be a generally good company.
steviebee said:
I work with NR too - partly for the reasons you state and partly becuase I've found them to be a generally good company.
NR offer high income multiples, good cashback offers (to pay their exorbitant fees
) and they are very quick when it goes well.... ...which it frequently does not due to the absolute
muppets that they employ 
the amount of time they say they're outstanding something when they are not....bla bla bla [wanders off in to the distance ranting]
steviebee said:
Thanks minimax (and poorcardealer).
I have an opportunity on some repo property in half decent areas at half decent prices.
There's some major development about to kick off in the area which will take about 20 years to fully bear fruit which is the sort of time span I'm looking at.
I work with NR too - partly for the reasons you state and partly becuase I've found them to be a generally good company.
actually, to offer some advice I will say that repos are still good business, development areas are good but look at the plans and tke lots of local advice, and make sure when you go for a repo you have your offer ready or alternatively bring your chequebook
I think what we're experiencing now is a return to the old fashioned property market where shrewdness will win the day (and line the pockets of the winner)
Keep a good eye on the repo market as lots more to arrive on the 'books' (so to speak)
Have to agree, it's back to the 'old fashion' way of making money on property but worth a look in the 'disadvantaged' areas (as stamp duty a different rate) in your region as long as they are not 'sink towns'
Have to agree, it's back to the 'old fashion' way of making money on property but worth a look in the 'disadvantaged' areas (as stamp duty a different rate) in your region as long as they are not 'sink towns'
On a similar note I've just sold my house for development and downsized, ( who needs a big house anyway !!). as part of the deal I get one of the properties being built.
Should I keep this house and rent out, or sell ??
I'm thinking of keeping it to use as part of my pension portfolio in 20 years time
What do we think guys
Phil
Should I keep this house and rent out, or sell ??
I'm thinking of keeping it to use as part of my pension portfolio in 20 years time
What do we think guys
Phil
And i call everyone 'sweetie' 
My opinion...sure you want it sweetie is.....
SELL IT and buy 2 up in that area.
WHY?
Lot of money for a btl property in West Yorkshire
Advantages?
With 2 properties there is less risk of both being empty and with the lesser rent more tenants available.
Larger property requires higher rent and you could be left with many 'dry' months with the property empty
If you need to sell to support your old age you can sell 1 but keep the other on rental
Can list more if you wish......
My opinion...sure you want it sweetie is.....
SELL IT and buy 2 up in that area.
WHY?
Lot of money for a btl property in West Yorkshire
Advantages?
With 2 properties there is less risk of both being empty and with the lesser rent more tenants available.
Larger property requires higher rent and you could be left with many 'dry' months with the property empty
If you need to sell to support your old age you can sell 1 but keep the other on rental
Can list more if you wish......
I can only speak for Essex - a house next door was bought as BTL in Oct 2003. The owner told me he intended to keep it in very good order, have only good tenants, and retire to it himself in 5-7 years time.
The tenants were suddenly given notice and the house is now standing empty for sale at a high price in a soft narket.
The tenants were suddenly given notice and the house is now standing empty for sale at a high price in a soft narket.
simpo two said:
I can only speak for Essex - a house next door was bought as BTL in Oct 2003. The owner told me he intended to keep it in very good order, have only good tenants, and retire to it himself in 5-7 years time.
The tenants were suddenly given notice and the house is now standing empty for sale at a high price in a soft narket.
Cos it's a house and rents on a house in Essex are high. Better to buy flats/small houses in Essex by stations into London and keep well maintained (as all property should be!). Why doesn't your neighbour try multi-occupancy for house? Can make better margins in those circumstances. So many negative vibes from people on btl. Got to study the 'form' as in any venture
>> Edited by hustlebabe on Sunday 10th July 12:45
There are always other types of investment - all the talk about property investment smacks heavily of bolting horses!
I deal with it every day and echo the sentiments of minimax - unfortunately the general public do not have sufficient nouse to get into a softening market and find the right deals.
In addition to this the focus has very much shifted to very short-term quick returns. A client the other day said he was only interested on short-term opportunities, which most financial professionals will agree is 3-5 yrs. This guy was talking about 3-6 months!
The rapid increase in UK prices has also lead to a lot of greed, false expectations and clients looking a lot of gift-horses in the mouths as everyone is looking for the greatest deal in the world!
Bigger returns are most likely going to be seen in overseas properties over the next few years - off-plan deals in carefully researched places allow clients to have a long period of investment growth without having to fund anything further than the upfront deposits. This gives time to consider renting/immediate resale options.
I deal with it every day and echo the sentiments of minimax - unfortunately the general public do not have sufficient nouse to get into a softening market and find the right deals.
In addition to this the focus has very much shifted to very short-term quick returns. A client the other day said he was only interested on short-term opportunities, which most financial professionals will agree is 3-5 yrs. This guy was talking about 3-6 months!
The rapid increase in UK prices has also lead to a lot of greed, false expectations and clients looking a lot of gift-horses in the mouths as everyone is looking for the greatest deal in the world!
Bigger returns are most likely going to be seen in overseas properties over the next few years - off-plan deals in carefully researched places allow clients to have a long period of investment growth without having to fund anything further than the upfront deposits. This gives time to consider renting/immediate resale options.
Interesting to hear thoughts on buy to let now, especially the comment regarding nottingham - as this is where i have been looking for a while.
A couple of the properties i have looked at in Nottingham are for the student market, and yes, there are loads of these btl's around but then again there seems to be plenty of students. As for returns, in the cases i have looked at the monthly payment on a repayment mortgage is easily covered by rent with rental income remaining for other costs.
If it is a long term investment and not for capital gain on the price of the property it still seems to me like a reasonable investment, thing is everything i read would suggest otherwise!!
Any further thoughts?
As for property abroad, what about Romania?
A couple of the properties i have looked at in Nottingham are for the student market, and yes, there are loads of these btl's around but then again there seems to be plenty of students. As for returns, in the cases i have looked at the monthly payment on a repayment mortgage is easily covered by rent with rental income remaining for other costs.
If it is a long term investment and not for capital gain on the price of the property it still seems to me like a reasonable investment, thing is everything i read would suggest otherwise!!
Any further thoughts?
As for property abroad, what about Romania?
I am adopting a very careful attitude to Romania and Croatia at the moment. We anticipate there may be problems akin to those in Northern Cyprus down the road, with land ownership issues after civil wars. Having said that, Romanian yields are c. 20% at the moment! Financing is also an issue in these areas, and the real motivation behind property investment is the gearing that can be achieved, so quite strange to cash purchase.
Bulgaria is very popular at the moment (not for me though, has anyone actually been there recently?!), it is a giant building site and as soon as people have bought, a better development opens 200 yds down the road!
Dubai should be avoided unless you have very good contacts there. I posted in an earlier thread on this but cant find it now.
Bulgaria is very popular at the moment (not for me though, has anyone actually been there recently?!), it is a giant building site and as soon as people have bought, a better development opens 200 yds down the road!
Dubai should be avoided unless you have very good contacts there. I posted in an earlier thread on this but cant find it now.
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