Buy to let - advice please

Tassotti

It isn't easy to make money in property anymore (not that you'd know it from all the tv programmes)

I would like to diversify into shares but have no idea of what the market entails and would need to put in so much research. Sometimes best to stick to what you know.

Dunstonh makes good points.

Eggs in One Basket and all that

Mind you, looks like Bob has made his money and sitting on a big fat nest egg and surfing the web all day (like me) :rotfl:

Conrad

Fitzy29 wrote:

:beer: Don't listen fox123, buy to let is buy far over time the best investment you can chose.

Now instead of using the 150k to invest in one proerty why not use it to put 15% deposit on 10 properties and use 85% of the banks money. This would allow you to own a property portfolio worth £1 million. Now as you head towards your retirement the properties will more that likely double in price in around ten years ( property has done this every 10 years since 1930 ) so your properties are now worth £2 million... all along the way your rental income will have covered the interest only mortgage .

I speak as an ex LL, having recently sold my potfolio;

Fitzy makes it sound so easy. In that case why isnt every City investor, Merchant Bank (from the World over), Hedge Fund, Accountant, Developer, High st Bank etc doing this??????????

Hundreds of Hedge Funds (investment professionals) from the UK have sold UK property and invested abroad in places such as Berlin where you get property 5 x cheaper. Its easy.

The back of the queue / amateurs are the only people still investing in our mature market.

Ive even just bought a small farm for under £20000 in Estonia. In the UK it would have cost 20+ times this figure.

Timing is key with investing.

Some lazy LLs I know are still buying in the UK. Big mistake.

Tassotti

So Conrad, you are selling properties in Mexico, Berlin and Estonia now?

Think the Estonia thing was my suggestion.

If you cannot make money in your local area, you cannot make money anywhere (not you personally) the royal you.

Look at Cape Verde, and add it to you estate agents list.

Conrad

Tassotti wrote:

I would like to diversify into shares but have no idea of what the market entails and would need to put in so much research. Sometimes best to stick to what you know.

Im a property Man (although I do also use Unit Trusts for equities), but I have recently bought shares in UK property companies which themselves directly invest in German real estate. They are SPEYMILL DEUTSCHE AND DAWNAYDAY TREVERIA.

I have also invested in off - plan property in Morocco (off - plan is for me the quickest easiest way to make money), property in Gemrany and an old farm in Estonia (will be the high tech hub of Europe within 10 years with real etstate prices to match).

Also purchased a UK commercial property that has a lot of potential for sub - division etc.

Im not prepared to let my money languish in low return / low growth UK property unless prices take a big fall. Massive capital growth has all been squeezed out so the comming years will be not worthwhile.

Conrad

Sorry I forgot to mention Ive also invested in UK commercial property - one which made a lot of sense for me personally.

Th 'edit' facility on this forum is rubbish btw.

Conrad

Tassotti wrote:

So Conrad, you are selling properties in Mexico, Berlin and Estonia now?

Think the Estonia thing was my suggestion.

If you cannot make money in your local area, you cannot make money anywhere (not you personally) the royal you.

Look at Cape Verde, and add it to you estate agents list.

Im not 'selling' Im buying.

Morocco not Mexico.

To say 'if you cant make money here you cant make it anywhere' is the most inward looking ignorant of statements.

The point is I made good returns here buy buying low and selling high.

Now other markets represent buying opportunities.

If we follow your logic then the USA wouldnt have made massive gains in the last 3 years!

Lazy / scared people dismiss investing abroad. Not only are many London property funds investing abroad but so are big developers. Spains second biggest developer (Fadesa) are heavily into Morocco.

The worlds biggest developer (Emaar from Dubai) are developing huge sites in Morocco. BUT I GUESS YOU KNOW BETTER AND WILL STICK WITH BLIGHTY:T

Tassotti

As it happens, I own property in Bulgaria and Estonia.

The 20% gains per year I hear from agents are balderdash.

Have you actually completed on any of your paper investments. I buy built and get returns straight away.

I also buy below BMV in UK and release 25-30K on most deals (every month)

The true professionals make money in a rising and falling (static) market.

I do wish you the best of luck

:beer:

Oh by the way, keep getting offered 'deals'from Dubai from desperate sellers..Ha ha fools

fox123_2

Hi, Thank you all for replies.... On face of it I agree that this is not a good investment. My model was based on buying a £140K 2 bed flat in South end area, Essex. The rental return for 2 bed flats are £600- £500 pm. Now consider this model for a moment:-
- 1 bed flat -£110k, re morgage main house £40k/ £430 pm variable repayment morgage over 10 years, typical rental return £550- £450, this sounds more viable- all agree ?
.

Mrs_pbradley936

I have several flats that rent for £600 - £650 per month BUT they were all bought a few years ago for between £60,000 and £80,000. The flats now fetch approx £135,000 so I could not afford to buy them and let them now. As for areas University towns are good (but not London or the South East). If I wanted to invest in BTL now I would buy a three or four bedroom house in Nottingham and let the University Accom. Dept. know

Fitzy29

Guys, this is a great discussion. My only intention for the OP was to put another angle on things, not to write an entire book on the subject during my thread. The way I wrote it was an easy way to look at it, property investment is a serious business and like any business has problems to overcome, risks to take and lots to manage. I'm sorry if I made it sound like a get rich quick scheme, that wasn't my intention!

Done correctly strong returns can be made, i work with investment landlords every day some have up to 70 properties on the go and most use the guide I showed in my earlier thread. That's how I learnt about it. All avoid CGT as they never sell and use the re-finance options to raise capital to fund their lifestyles and pension funds further investments etc...