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New Build BTL Incentives
plane_boy2000
Posts: 1,482 Forumite
Hello all,
I already have an investment property, but am looking at aquiring another new build property. I have a development in mind which is large, and is also where I live so I know the market quite well, but am looking for a little help / advice.
I am aware that the asking price is just a starting point, but I am not sure currently what incentives are offered to investment buyers. Has anyone done this lately, or can anyone give some ideas as to what I should expect to be offered?
Distiled - is this something you may have some knowledge of?
I already have an investment property, but am looking at aquiring another new build property. I have a development in mind which is large, and is also where I live so I know the market quite well, but am looking for a little help / advice.
I am aware that the asking price is just a starting point, but I am not sure currently what incentives are offered to investment buyers. Has anyone done this lately, or can anyone give some ideas as to what I should expect to be offered?
Distiled - is this something you may have some knowledge of?
0
Comments
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I'd ask them for a 40% discount, because that's what it will probably be worth in 5 years time!0 -
Many building societies will no longer do a BTL mortgage on properties under 1 year old.When it comes to thought, some people stop at nothing.........0
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libitina wrote:Many building societies will no longer do a BTL mortgage on properties under 1 year old.
Really? Didnt know that and perhaps I am being a bit niave but why?0 -
Because they know that new builds lose too much money.When it comes to thought, some people stop at nothing.........0
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eurows wrote:and they also know that btl muppets and builders are trying to scam them.
Are you really that thick that you can only think of putting your money into btl in a falling marketplace with falling yields.
Have you not got an education you can use to try and increase your wealth through other means.
Wow, thats exactly what I wanted to hear when asking for advice. Not a balanced argument but all gun blazing and damn right one sided!!!!
Money can be made in a falling market as well......just a bit more risk involved then in a rising market. Thats when the education and experienced you have gained come into play!!!!
No one is scamming anyone, if anything everyone is scamming everyone! Depends on your point of view!
OK I'll get my coat!!!! :wave:Debt at highest (November 2005) = £35,856
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!
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Are we talking new builds in general or just on new build with a BTL option?0
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BTL on new builds really isnt a good investment these days, the pyramid is going to fall down on these types of properties first and its going to happen soon.
Just my little prediction
Save save save!!0 -
I see, we are hoping to purchase a new build within the next year, maybe i'll hold off a while!
Although to get anywhere near the same spec house in a an old house, they are at least 60k cheaper in my local are! -I would prefer an old house, but it's just not feasable! Unless i can get a 60k 20 year interest free loan 0 -
Some lenders have pulled out of buy to let mortgages on new build apartments due to developers offering cash back incentives that leave the lender with effectively a 100% mortgage on the property. If a developer is offering all sorts of incentives on a site such as 2 years fixed rental income, you need to make sure that the rental figure being offered is actually real and can be achieved after this period.
I have just sold two apartments for clients who bought of plan 18 months ago. One has managed to get back what they paid for it, its only cost them the 12 months mortgage payments as they were unable to rent it & the other has lost £10k plus the 12 months mortgage payments as he was also unable to rent it out. Nearly forgot the £1000 p.a. management fees.
Are the asking prices on the new build right for the area. The landlords I dealt with recently could have bought a two bedroom & three bedroom house respectivley, in the area for what they bought, a one bed & a two bed apartment. Two bed houses locally rent for £425 & three beds rent for £475-500 (they needed to achieve £475 on the 1 bed apartment & £525 just to cover costs).
Try to find out, if possible, how many other investment buyers have bought in the development. I know of one development where the builder is boasting that he has sold 90% of the apartments to investors. Where are the tenants coming from for all these apartments? Tenants may be able to play landlord of against each other to get the monthly rental figure down.0 -
DISTILLED OR TERRIERLADY where are you, we need your input on this one!
Debt at highest (November 2005) = £35,856
Debt currently (August 2006) = £20,790
&More £1,530, Egg £6,800, HSBC £3,760, Egg Loan £8,700
Interim goal = £23,400 (Target: February 2006, Missed but acheived May 2006)
2nd Interim Goal = £15,000, Target October 2006
Debt Free Date = February 2008 BUT I'M GOING TO BE TRYING FOR SOONER!!!0
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