A Year In The Life

HAMISH_MCTAVISH

fc123 wrote: »

Have you ever worked in London for a time? .

Yes.

But only as a consultant, for short periods, and stayed in B&B in the Northern Suburbs for a few months.

Have been offered a lot more money to move there. Doesn't make sense to me due to cost of living.

But equally, could live in a more remote region than I do now, and buy there for 2.5 times average local income, or less than 1 times my income, but choose not to as I would not like it.

I fully accept cost of housing is extortionate in london. But that is only due to the supply and demand in the local area.

If it was credit, or BTL, or bankers, to blame, housing would be expensive everywhere.

It isn't.

I actually feel sorry for most of those that bought into the huge crash meme, suckered in by the few uber-bears. They will see their dreams of homeownership destroyed for no reason. But I don't feel sorry for the bears that encouraged it, despite warnings to the contrary. They can rot for all I care, especially as they cheered on misery for millions to game the markets.

dopester

chucky wrote: »

this thread has gone all wacko!

Chucky, I think the wacko stuff began when you posted about buying 3 BTLs in 2008.

Just kidding. I'd previously gleaned a while ago in discussion you'd bought one or two in 2008. I hadn't realised you done so much selling in the run up though. That is unusual... in a smarter way to the majority (imo) who just buy hold and keep buying.

Agree with you about the 'Tycoon' forum being a bit strange. You're only allowed to view something like 20 pages of any threads before being blocked and required to join up. There is a subscription fee of something like £49 per year for basic membership iirc, and it seems to have quite a few members who either pay that or the higher rate for higher status membership, but I've got ways to over-ride the block to keep monitoring that forum and their general views on the changing market.

rictus123

Im sure theres money still to be made in this. If i managed to get a BTL and run it to no profit or loss(maybe a little loss made up by salary) and had the mortgage over 25 years, just say i got it at 25 on a 25 year mortgage and it cost me £1k a year, il end up having something worth £100k plus at the cost of £25k and a bit of managment? What could possibly go wrong then? Even cashing in half way through?

fc123

rictus123 wrote: »

Im sure theres money still to be made in this. If i managed to get a BTL and run it to no profit or loss(maybe a little loss made up by salary) and had the mortgage over 25 years, just say i got it at 25 on a 25 year mortgage and it cost me £1k a year, il end up having something worth £100k plus at the cost of £25k and a bit of managment? What could possibly go wrong then? Even cashing in half way through?

Over 25 years you will have maintenance costs and you will get times when you have the tenant from hell who could cost you too....but, on the whole, it's not a bad business.

rictus123

Even at £50 a week, £2.6k a year, £65,000 invested could return you £165,000 after 25 years. Or alot sooner if you overpay. Im suprised more people dont try there hand. Is it the risk stopping them?

StiflersMom

fc123 wrote: »

Over 25 years you will have maintenance costs and you will get times when you have the tenant from hell who could cost you too....but, on the whole, it's not a bad business.

Well I just bought into my first one, and its really going well. Lovely tenants, and a good yield.

I don't like the area much myself (Stratford) but flat prices are really rising fast there too

rictus123

Can i ask how much you bought for and rent out for and also your mortgage payment I think if i do this il be getting somewhere in Aberdeen or maybe even as far as Dundee/Inverness.

IveSeenTheLight

Thrugelmir wrote: »

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

It's not really an issue, just similar to what many are finding in the normal market place.
That the current product on the variable rate is better than remortgage products available.

For now it's better to stay as is.

IveSeenTheLight

rictus123 wrote: »

Can i ask how much you bought for and rent out for and also your mortgage payment I think if i do this il be getting somewhere in Aberdeen or maybe even as far as Dundee/Inverness.

Aberdeen is a good rent market area.
You have to find the right properties but there are still some around.

I rent out a 2 bed flat for £800 (£750 for the flat and £50 for the garage).
I could get £800 solely for the flat but by keeping the price lower than the local market, I'm benefitting from not having void periods.
I'm also considering upping the garage rent.

I also rent out a 4 bed house.
It was my previous residence before I moved and bought abroad.
I rent out for £1300 per month, although again I could get more going by local market research.

I am in a very lucky position as I have a wealth of very good tradesmen who help to maintain the properties as and when needed.

Be aware, some tennants are a dream and manage fine for years with very little or no input required from the landlord, while others need a lot more managing

PasturesNew

rictus123 wrote: »

Even at £50 a week, £2.6k a year, £65,000 invested could return you £165,000 after 25 years. Or alot sooner if you overpay. Im suprised more people dont try there hand. Is it the risk stopping them?

Cluelessness, high transaction costs and fear.

I wouldn't know how to "invest" my money, it's full of sharks telling you what you should do, even if you think they're wrong, bullying you, or just telling you the standard corporate "sign this one then" lines ....