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Stratford still a good buy for long term
Comments
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But it's a BTL - Saint Kirsty and Saint Phil say it's a good idea... :eek:lynzpower wrote:
So, roughly looking at subsidising the property to the tune of 240k over its 10 year span, and the property is 235k :wall:
Seriously - DON'T DO IT
Let's say your mortgage is about 80% LTV at 6% IO. So you are paying out £940 per month. Over 10 years you will pay out £112800 in interest plus £140 a month subsidy = £16800 at current prices. So starting at 235k it needs to be worth about £390000 for you to break even. 66% price rise in 10 years, starting from what a number of people consider to be at or near the top of the market. Interest rates go up .5% and you have to find another £78 per month.A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
As well as the Olympics, the land next door to it - the Stratford Rail Lands - will be completely redeveloped between 2007 and 2020. The project, known as Stratford City, and to be built around the new Eurostar station will feature among other things, new shops of high street names, three large department stores, multiplex cinema, cafes, restaraunts, homes, offices, etc., etc.. At least that's the plan... For more info have a look at the Future Stratford website.toothwiz wrote:Incidentally Do you know anything about plans for their awful town centre?
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In my opinion i would go for a property in east london but not stratford, i live in east london and i'm planning to buy another property in east london and hold on to it when the games get here, i personally believe i will make a great profit!
i do think the property in statford will rise when the games arrive but can you afford to hold out that long???Abbey Loan £6,000
Tesco loan £3,000
Tesco points --- £100 worth £400 in deals for holiday! :j :T
"It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change." (Charles Darwin)0 -
My opinion is that long term, Stratford is still a good investment.
Regarding rental, there are many Eastern Europeans that like to house share in Stratford. You could rent the property out as 3 rooms (lounge as bedroom),at £70-80 per week each (4 if you have separate dining room)
At £80 per week, monthly rental would be £1040.
The property will then be classed as an HMO though not licensable and you will have to spend some money fitting fire doors and complying to regulations.
May be worth looking into this route. It comes with advantages and disadvantages obviously, but definitely food for thought
Main Advantage - Mortgage Payments covered (and even some profit)
One Disadvantage - Your Bulgarian Builders B ugger off Back to The Balkans0 -
Hi seems everybody thinks its a crazy idea buying that property in stratford and 390k to break even seems a long way off. The only problem is where else can I buy where I will cover my rent,even make a profit and have a capital gain too? Am really surprised its not stratford!0
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Not everybody thinks its a crazy idea. I remember trying to buy a few places a few months ago and got gazumpped on every one of them!!!
There are a lot of people investing there0 -
So on some iffy HMO arrangement you would make £100 per month before repairs, voids, insurance and the costs of the HMO work.Tassotti wrote:....At £80 per week, monthly rental would be £1040.....
Then if you don't want it to look a HMO when you come to sell it, you have to reverse it all.Tassotti wrote:....The property will then be classed as an HMO though not licensable and you will have to spend some money fitting fire doors and complying to regulations....A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
toothwiz wrote:Hi seems everybody thinks its a crazy idea buying that property in stratford and 390k to break even seems a long way off. The only problem is where else can I buy where I will cover my rent,even make a profit and have a capital gain too? Am really surprised its not stratford!
Wait for Fil and Cirsty this week - they are spilling the beans, and the herd will follow!Survivor of debt, redundancy, endowment scams, share crashes, sky-high inflation, lousy financial advice, and multiple house price booms. Comfortably retired after learning to back my own judgement.
This is not advice - hopefully it's common sense..0 -
al_yrpal wrote:Wait for Fil and Cirsty this week - they are spilling the beans, and the herd will follow!
Hi al_yrpal, nice to see you on here again...where hae you been!!!
Toothwiz...were not all saying its crazy but were just asking you "are you sure this is the right kind on investment for you, bearing in mind the way you are suggesting to do it....susbsiding your tenant in the hope of a massive gain"!!!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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BobProperty wrote:So on some iffy HMO arrangement you would make £100 per month before repairs, voids, insurance and the costs of the HMO work.
By my calculations, the profit is £260 per month before maintenance. With 4 rooms let, it is £433 per month profit (Thats a 7.5% yield)0
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