Friend needs advice

[guyh]

My friend has around 500k worth of property, 3 houses in total I think, and there all paid for. He wants to expand the portfolio but is stuck. I suggested he should gear up, any thoughts?

Cheers

Guy

[Vesuvius 996]

A joke, right?

[guyh]

Nope, he just wants some advice.

[Vesuvius 996]

Sell quick!

[guyh]

He earns good rental income of them so I think he is happy to ride the crunch through and move onto commercial property.

[Steve H]

This must be a joke...... however he managed to get 3 properties all paid for at a value of £500k................................................... just do it again!!!!!

[Chrisgr31]

Still still and do nothing!

[Davel]

Don't panic and keep renting them out.

[Adam T]

He is in this predicment and is un sure of what to do?

Scary.

[POORCARDEALER]

Commercial..............hmm, problem is if you have no tennants you are paying FULL business rates while its empty..............aqquaintance of mine is currrently stumping up £1350 A WEEK in rates for an empty property he owns

[Andrew[MG]]

POORCARDEALER said:

Commercial..............hmm, problem is if you have no tennants you are paying FULL business rates while its empty..............aqquaintance of mine is currrently stumping up £1350 A WEEK in rates for an empty property he owns

paying rates on empty commercial property? Really? Don't you just register them as empty and not have to pay? I was sure that was the case....

[POORCARDEALER]

As from April 2008..........full rates, another goverment spanking

[Adam T]

Is he unsure of how to release some capitol fro them, to move forward? Why commercial, why not residential, as he has already done, and seems to have paid off?

[guyh]

Adam T said:

Is he unsure of how to release some capitol fro them, to move forward? Why commercial, why not residential, as he has already done, and seems to have paid off?

Yes I think he's unsure about releasing the capital.

[scotal]

guyh said:

Adam T said:

Is he unsure of how to release some capitol fro them, to move forward? Why commercial, why not residential, as he has already done, and seems to have paid off?

Yes I think he's unsure about releasing the capital.

If they are residential then its very simple. I'll happily have a chat with him.

[jacobyte]

Don't even think about investing in commercial property in this climate. We thought about it 6 months ago, and now I'm considerably glad we didn't.

Sit tight is the best advice, unless he really really needs some equity from the other properties.

If he's brave, he could buy when he thinks prices have hit the bottom. But that's unlikely to be anytime soon.

(Your "friend" doesn't need to cover some of this year's racing costs, does he? )

[guyh]

And no its not me before you start! lol I scrape the pennies by!

[Ade355]

Sell as quickly as he possibly can - even if he has to lose 10% for a quick sale. What would you rather have - £500K in your pocket or £500K stuck in low-yield, illiquid, historically overpriced assets?

It SHOULD be a complete no-brainer... however seems very much that its not.

[stimmers]

guyh said:

My friend has around 500k worth of property, 3 houses in total I think, and there all paid for. He wants to expand the portfolio but is stuck. I suggested he should gear up, any thoughts?

Cheers

Guy

Tell him he can release equity from the property. I'd be leaving 25% equity in the property at the moment and can take the money out and start buying up property 20-30% below its current market value. Lots of motivated sellers out there at the moment and plenty of property steals.

If he believe's the utter tripe that the property market will crash or go down 30-40% tell him not to bother.

[Chrisgr31]

POORCARDEALER said:

Commercial..............hmm, problem is if you have no tennants you are paying FULL business rates while its empty..............aqquaintance of mine is currrently stumping up £1350 A WEEK in rates for an empty property he owns

He needs to occupy it for 6 weeks. Notify the local authority on day 1 so they can check its occupied, and occupation doesn't take much! After 6 weeks move back out again. Dependng on the type of property he'll then be entitled to 3 or 6 months at zero again.