What do you think of this BTL'er?

Lakey

Two houses have been bought in my street at £600k +, one is rented out to a family at @ £1300 per month. Apparently he is looking to let the other house out to students at @ £300 per month with 5 poss bedrooms = £1500 per month.

Can anyone tell me how this guy is making any money? Am I missing something here, he could have bought a house not too far away for £220k and got the same return.

All views appreciated....

blued

Maybe he paid cash for the houses?

Cannon_Fodder

Just getting a few quid in, while waiting for planners to accept his idea to knock them down and put up a monstrosity or two...?!

mlz1413

1) tax loss for his main business
2) student house is a front for a drugs factory
3) owner likes the street so much he is going to buy the whole thing
4) the street has building potential like large gardens

clutton_2

an amateur idiot who cannot do sums ??

A_Nice_Englishman

A rich, generous person who likes to share his wealth by subsidising other peoples housing?

worried_jim

money laundering for the mob !

worried_jim

mlz1413 wrote: »

1) tax loss for his main business
2) student house is a front for a drugs factory
3) owner likes the street so much he is going to buy the whole thing
4) the street has building potential like large gardens

Ha ha ! the students will be a cannabis factory front !

QTPie

Lakey wrote: »

Two houses have been bought in my street at £600k +, one is rented out to a family at @ £1300 per month. Apparently he is looking to let the other house out to students at @ £300 per month with 5 poss bedrooms = £1500 per month.

Can anyone tell me how this guy is making any money? Am I missing something here, he could have bought a house not too far away for £220k and got the same return.

All views appreciated....

I would say that he has "longer term plans" for the houses... If he JUST bought them, then maybe he got both at a VERY good deal and intends to ride the recession out and sell them afterwards? (ok, bigger outlay now, but longer term bigger profit). He must have had very good cash deposits, liked what he saw and went for them...

We are currently starting to look seriously at renting our house out: having problems selling it, but don't want to go to a rock bottom price, but want to "move on". We are realistically looking at £1350 to rent out our £420k house: not a hugely good deal, but if we keep it medium/longer term should work out for us. We wouldn't have bought it for the purpose of buy-to-let, though: much better deals around that would make a better rental yield and would be less risky...

QT

Lakey

Got to say cannon fodder, that's exactly what I was thinking. He's buying up a big chunk of the street and gonna put up a block of flats.
I suppose his money is giving him some return, better off than no interest at the mo.
Find it hard to think of someone who has a cool 1.2 mil squid burning holes in his pockets...:money: :money:

Hey could this guy be Martin in disguise?