10 yrs on will u be envious of all those 'muppets' that got into B2L now?

chucky

Pobby wrote: »

So in truth chucky I am understanding that to make any money you really need to have a decent yield. I have seen stuff going to auction that was providing yields not much above 5%.

sorry i don't know the publication.

i can only speak for myself as far as a business and yield.

i wouldn;t go for anyproperty that didn't have potential and provide a good yield.
my investments are in Central London, flats in period properties that have low service charges and low costs. buying property that will let easily is important - it's just like buying a good house in a bad area or bad house in a good area. you have to think clearly to what your future requirements are.

i have old style trackers at 0.9% above base and also others on fixed rates of about 5% and 6%. so my costs are spread . at the moment i profit due to the low base when they move i have my fixed rates to cover me and i can always fix then if i decide. for example i took out a higher rate mortage of 6.5% inb the past because it had a low few which isn't really tax deductable like mortage interest is.

here is the peice that many people don't structure their btl business around - the tax efficiency is very key. i don't have a residential mortgage because i've leveraged on my business side

chucky

mewbie wrote: »

Anyway, mate. It's well and truly over now. People in their family homes will just have to get on with it, like I will. But those who 'own' several properties are very likely to have an extremely miserable time. While in a few years perhaps those missing FTB's will make a comeback, and we return to a more normal property market.

here is where i agree with you if you add over-leveraged and lack of cash-flow.
there will be a few of these but they are being saved by low rates at the moment and for quite while going forward.

it's over between you and me Mewbs btw

bluey890

tartanterra wrote: »

I will make it simple so that even you can understand this................:rolleyes:

My mortgage (Just over 18K), reduces on a monthly, sometimes weekly basis.
The rent I recieve, £725 a month, isn't reducing and is likely to increase over the long term due to inflationary pressures.
I have a good income stream, allowing me to lead a better a lifestyle (and co-incidentally, pay more tax to help bail out the irresponsible banks) and have no plans to ever sell the BTL.
Therefore, if it's not being sold, house price fluctuations are not important.
What matters to me is the income it provides, not it's nominal value at any time during the house price cycle.

As stated before..........simples.;)

Your wealth is going down. If unemployment rises (as predicted) you are likely going to receive less rental income, and your other option of selling is gonna be stuffed through house price decreases. You need to look at all eventualities.

Pobby

Chuck, out of interest and deffo this is not in anyway a wind up, I am assuming that you bought way before peak prices. It`s just that the sums, not yours, but for many I see are just not adding up.

I give you an example of madness. Friend of mine is a Dubliner. |For years Dublin was a fairly cheap place. He bought his LA home for not a lot of money. By 2006 he was looking at the price being around euro 350k. Believing that house prices can only go up he bought another place. He gets 1,000 euro a month for it and is paying over 700 euro on top to clear the monthly mortgage. In all other respects he is a bright guy.

How many more like him?

tartanterra

mewbie wrote: »

Thanks. It's not a question of understanding, it's believing. Put simply, so you can equally understand - I don't believe you.

I finally see it now!:rolleyes: What you are basically saying is......

"I'm anti BTL, but can't justify any of my arguments against any posters who have an opposing view, so I will carry on like a three year old child and simply say.......DON'T BELIEVE YOU! NAH! NAH! NAH!"

Should have guessed before when you claimed that you couldn't "fathom" a simple graph, that blew the tripe you've been spouting, out of the water!:D

Bye, bye:wave:. I've no intention of debating with an ostrich!

P.S. Have you ever considered moving to North Korea? Your opinions would go down a storm over there!

mewbie_2

tartanterra wrote: »

I finally see it now!:rolleyes: What you are basically saying is......

No what I am saying is that I don't believe a word of your self justification. Why should I? It's a poster talking about how much they're making. Possibly the least reliable evidence you could ever come across.

I own 200 properties and have three wives. Is it true? Of course not.

StevieJ

tartanterra wrote: »

I will make it simple so that even you can understand this................:rolleyes:

My mortgage (Just over 18K), reduces on a monthly, sometimes weekly basis.
The rent I recieve, £725 a month, isn't reducing and is likely to increase over the long term due to inflationary pressures.
I have a good income stream, allowing me to lead a better a lifestyle (and co-incidentally, pay more tax to help bail out the irresponsible banks) and have no plans to ever sell the BTL.
Therefore, if it's not being sold, house price fluctuations are not important.
What matters to me is the income it provides, not it's nominal value at any time during the house price cycle.

As stated before..........simples.;)

Well done and good luck :beer:

bluey890

mewbie wrote: »

No what I am saying is that I don't believe a word of your self justification. Why should I? It's a poster talking about how much they're making. Possibly the least reliable evidence you could ever come across.

I own 200 properties and have three wives. Is it true? Of course not.

200 properties and four wives?

chucky

Pobby wrote: »

Chuck, out of interest and deffo this is not in anyway a wind up, I am assuming that you bought way before peak prices. It`s just that the sums, not yours, but for many I see are just not adding up.

I give you an example of madness. Friend of mine is a Dubliner. |For years Dublin was a fairly cheap place. He bought his LA home for not a lot of money. By 2006 he was looking at the price being around euro 350k. Believing that house prices can only go up he bought another place. He gets 1,000 euro a month for it and is paying over 700 euro on top to clear the monthly mortgage. In all other respects he is a bright guy.

How many more like him?

there are plenty like him with no business plan and just saw pound signs - they mug punters.

i've gone in twice in the last 10 months - because the price was low and the yield from that was high. i'm in no way over-leveraged and void periods are not a problem if you price sensibly. i've had max 8 days void in the last year across all of my properties thats including from completion date.

have a look at this post from April for an indication of what i say buying at a good price.
http://forums.moneysavingexpert.com/showpost.html?p=20418331&postcount=29

chucky wrote: »

i had this on my own surveyor on a cash purchase in August, it got valued at £360k instead of my offer of £385k. it was a result for me.

i've just had it re-mortgaged last month and you get a choice from a panel of surveyors - my choice of surveyor valued the same property for the bank at £425k. again a result for me.

StevieJ

mewbie wrote: »

BTL took away the bottom rung for a lot of people. Fuelled the bubble. Idiots buying multiple properties when in reality they could barely afford the one they had as a family house. That woman the other with 7.5 million empire. The Wilson's. How on earth, with any intelligence, can you dismiss BTL as being a big part of HPI? From an out of date BBC graph?


.

Can't get my head around those guys, I just don't understand why the banks lent the money. Is it not possible that a lot of properties would not have been built (those flats) if there was no BTL