A Year In The Life

Really2

Mr.Brown wrote: »

No need mate, although come to think of it a vineyard or two might be fun. No, just sharing some anecdotal with you, sorry if it makes anyone jealous.

Cool, but from saying you don't own a house, to saying you do. Having a mortgage,not having a mortgage. Lots of saving and no savings I do find it hard to keep up.

But if it is true fair enough, but Mewbie would never believe you.

nollag2006

Poor old mewbie. What ever did you do with him Mr B??



To get back to the original topic - I'm glad I bought in again in May of last year, having been out of the market for over two years.

Both flats are up about 15% already, and the rental yield covers the interest and running costs. Nice return for very little effort !

Long may it continue...

Snooze

HAMISH_MCTAVISH wrote: »

Early 2009 was a once in a generation opportunity to buy cheap property.

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

You should be on stage instead of on here 24/7.

IveSeenTheLight

chucky wrote: »

it would not be a good business decision due to the high finance costs, so less profit. there is a way round that but that's another story...

This is what I have seen.
The difference in BTL mortgage products is phenominal.
I've been offered products with 2-3% of the loan as an arrangement fee, certainly not worth taking out when I have a better product at the moment on a lower interest rate and no arrangement fees.

I would be interested in your way round for future investing.
You can PM me if you don;t want to disclose to the board

Thrugelmir

IveSeenTheLight wrote: »

I would be interested in your way round for future investing.
You can PM me if you don;t want to disclose to the board

Nothing illegal I trust. :rolleyes:

chucky

IveSeenTheLight wrote: »

This is what I have seen.
The difference in BTL mortgage products is phenominal.
I've been offered products with 2-3% of the loan as an arrangement fee, certainly not worth taking out when I have a better product at the moment on a lower interest rate and no arrangement fees.

I would be interested in your way round for future investing.
You can PM me if you don;t want to disclose to the board

i'll drop you a PM but there's a couple of things

1. it's about what is tax deductible and what isn't. mortgage interest can be written off against the rental income but and arrangement fee can only be written off against any capital gain.

you can be clever with this if you have multiple properties - you can get a low fee high interest loan and make you a loss on one property which cancels out any other profit. or you can get a high fee low interest and make a profit on the rental income. as you now you can carry losses forward - you can use this to suit your business.

2. BTL remortgage rates and fees are cheaper than getting a BTL mortgage. if you can finance a purchase with cash you can then remortgage after 6 months. you also open your lending market up more - there are private finance companies that will lend you cash at more favourable rates than BTL lenders.

but i still haven't found any property for at least 8 months that appeals

Thrugelmir

chucky wrote: »

i'll drop you a PM but there's a couple of things

1. it's about what is tax deductible and what isn't. mortgage interest can be written off against the rental income but and arrangement fee can only be written off against any capital gain.

You are confusing trading expenses with costs of acquiring capital assets.

Puchase costs of the actual property form part of the original capital cost. Arrangement fees for finance are a trading expense.

So can be offset.

chucky

Thrugelmir wrote: »

You are confusing trading expenses with costs of acquiring capital assets.

Puchase costs of the actual property form part of the original capital cost. Arrangement fees for finance are a trading expense.

So can be offset.

yes that's it - i let accountants worry about that

high fee/low interest loan or low fee/high interest loan is where the important piece of info was.

Thrugelmir

chucky wrote: »

yes that's it - i let accountants worry about that

high fee/low interest loan or low fee/high interest loan is where the important piece of info was.

I suspect ISTL's issue is more the lack of cheap finance available.

Mr.Brown_4

nollag2006 wrote: »

Both flats are up about 15% already, and the rental yield covers the interest and running costs. Nice return for very little effort !

Not sure I can see a return there? Unless you mean a theoretical captial gain? Claiming the rental yield covers the interest and running costs is like saying "it doesn't cost me a penny to be borrowing vast sums of money". Hmmm. I'd rather have an investment that provided capital possiblities AND income, without a geared risk.