BTL dreams go up in smoke

stevetodd

Pssst wrote: »

Quarter of a million pounds for a crummy flat above a shop? that just illustrates all thats wrong with housing in this country.

Lol what planet are you on? 250k is nothing in Battersea!

chucky

stevetodd wrote: »

About £1,650 a month

that's £19,800 annual rent - mortgage at 70% would mean your Annual Mortgage Interest would be £10,290 if you were paying a high rate of 6%.

That's a gross annual profit of £9,510 or £792 monthly profit.
Sounds a good gross yield to me.

davilown

I think the real questions here are -

Will those who bought post 2003/4 have to sell their properties due to tightening pockets?
Can they sell or will they be able to rent?
Surely this increase in retals will decrease rental incomes?
How many of these will have to sell?
When will those who bought post 2003/4 have to sell their properties due to finacial constraints?
How soon till the redundancy mortagae cover starts to run out of the 12 months?

IMHO I think those who are the 'professional' btls who had bought sensibly will never have a major problem, except a slight decrease in rental yeilds and a larger decrease in portfolio value.

Those who bought on the near the high tide are going to suffer and suffer quite a lot. Their margins will tend to be a lot smaller and will disspaer with the potential influx of rental properties available and the subsequent dip in rental prices.

stevetodd

chucky wrote: »

that's £19,800 annual rent - mortgage at 70% would mean your Annual Mortgage Interest would be £10,290 if you were paying a high rate of 6%.

That's a gross annual profit of £9,510 or £792 monthly profit.
Sounds a good gross yield to me.

That's why I liked it, mind I would have spent about 20k on it putting in a second bathroom, new kitchen and general updating

chucky

stevetodd wrote: »

That's why I liked it, mind I would have spent about 20k on it putting in a second bathroom, new kitchen and general updating

that would have been repaid in two years

stevetodd

chucky wrote: »

that would have been repaid in two years

The other one I rang about today that has also gone under offer, was on for 250k but has gone for around 225k. The rent on that one would have been about £1,400/month giving an initial yield of 7.5%. I am farly certain of this rent as I already have 3 flats in the same block

chucky

stevetodd wrote: »

The other one I rang about today that has also gone under offer, was on for 250k but has gone for around 225k. The rent on that one would have been about £1,400/month giving an initial yield of 7.5%. I am farly certain of this rent as I already have 3 flats in the same block

sounds good - i've not found as many under offer though.

i'm waiting for the next good opportunity to come my way and will make a decision then.

stevetodd

chucky wrote: »

sounds good - i've not found as many under offer though.

i'm waiting for the next good opportunity to come my way and will make a decision then.

I noticed on the other thread you said that you have dropped your rents in London, are you at the upper end of the rental market? I honestly haven't seen any signs of rents dropping

bambammy

Anyone daft enough...not to know this, deserves all they get.

macaque wrote: »

The only problem was that the 'portfolios' actually belonged to the banks.

macaque wrote: »

To all those idiots who thought they could have a free lunch by borrowing upto the eyeballs; my advice is to now go and get a proper job.

I have two jobs and certainly never gave any of them up thinking I could have a free lunch. To often people are quick to judge.

I also bought my BTL property with the view of having a nice property in the near future for my children ( oldest almost 16yrs ) to possibly occupy and live in, as apposed to some run down horrible crap area!

I also bought my 3 bedroom home, converted it to a 4 bedroom, within a few years, pending children fleeing the nest, eventually I would down grade to a one bed flat and rent out the 4 bedroom, and again eventually, that would benefit the children.

I'm thinking me personally, I should have took my medical file, all evident and worthy of receiving all the benefits going....

and do you know what ? it doesn't matter what you do .....you're never any better thought of.

Luckily, I like the routinee work brings, aiding my disorder, and also the example it sets to my children. Hopefully rendering them decent members of society.

chucky

stevetodd wrote: »

I noticed on the other thread you said that you have dropped your rents in London, are you at the upper end of the rental market? I honestly haven't seen any signs of rents dropping

it was on at £425 and dropped it to £395 and got asking price, so a 7.5% reduction - to be better than everyone else and avoid any potential longish voids.

i could have held out but would rather the stability of it being let quickly and out of the way. if it was a stronger market i would maintain the higher rent.