Would you buy a buy to let at the moment

Thrugelmir

Graham_Devon wrote: »

That business plan has some serious merit. Wonder why no ones ever thought of doing that?!

Having Capital is the key. Once you've got it then making more money becomes easier and easier. Borrowing is what adds the risk factor. As if the asset doesn't sell in the required time frame then the profit margin gets eaten away.

chucky

Rinoa wrote: »

To my mind BTL only works if you buy at least 15% below market value and add value to the property. You may have to be patient and put many low offers in, but they are out there.

it works something like this - not every property is value for BTL purposes

Graham_Devon wrote: »

Can I get this right?

YOU are going to get the property for 15% below market value. Which tells me that no other person has put in an offer above yours. Which tells me lack of interest.

that is exactly how it works - you either buy at a good time when no-one else is buying or your connections help you out. the key is knowing estate agents well and making sure they offer the property to you first. also a quick cash purchase is always favourable to sellers.

i've heard of people offering estate agents season tickets to clubs as a gesture of goodwill if they got them a property at a price that works for them. it maybe wrong but it happens.

Graham_Devon wrote: »

Wonder why no ones ever thought of doing that?!

they already do - you just don't know about it.

Graham_Devon

I must not understand?

Rinoa

Graham_Devon wrote: »

Can I get this right?

YOU are going to get the property for 15% below market value. Which tells me that no other person has put in an offer above yours. Which tells me lack of interest.

But YOU are going to sell it on straight away, and, unlike the seller when you bought, are going to have no issues whatsoever getting a buyer paying close to the asking price....and everyone lives happily ever after?

That business plan has some serious merit. Wonder why no ones ever thought of doing that?!

Don't you watch 'Homes under the Hammer'? Same principle.

Basically some people haven't a clue how to market their property but they want a quick and certain sale ~ enter the BMV purchaser.

But you have to view and bid on a fair few before you make a purchase, they don't just fall into your lap.

Graham_Devon

Rinoa wrote: »

Don't you watch 'Homes under the Hammer'? Same principle.

No, I go to work.

Have seen it though.

They do of course spend money doing the places up. You were merely suggesting buying and then selling straight away.

So you are talking about bidding now. I take it therefore you are talking auctions?

IveSeenTheLight

fertyskids wrote: »

would you do it? thoughts please...

sorry i also manage a buy to let (no mortgage but in trust for my son so financially seperate) so im ok with tenants and property maintenance etc its the mortgage side that will be new to me.

You need to verify the figures and rental expectation.
I would do it though, indeed I am.

Consider your business model as well.
Is the plan to make a profit now or would you be looking to pay off rapidly in the 15 - 20 years and have the profit then?

Rinoa

rockitup wrote: »

Then your profits will be taxed at Income Tax levels and not CGT

Depends on the whims of your local tax office.

If you did 6 a year you wouldn't get away with it. One a year they probably won't bother, at least not for the first few years.

I sold a commercial property a few years back, put it on my tax form and fully expected to pay a fair whack on the profit I had made ~ tax office never asked me for a penny.

neverdespairgirl

Blacklight wrote: »

Show me any point in the past where prices were higher fifteen years earlier.

I reckon - 1940, for sure.

How about 1360?

Rinoa

Graham_Devon wrote: »

No, I go to work.

Have seen it though.

They do of course spend money doing the places up. You were merely suggesting buying and then selling straight away.

So you are talking about bidding now. I take it therefore you are talking auctions?

No, I'm not talking auctions. It's possible to buy cheap at auctions but generally the margins aren't sufficient.

I'm talking about buying 15% less than the market price for the condition it's in and then adding value on top of that.

Graham_Devon

Rinoa wrote: »

No, I'm not talking auctions. It's possible to buy cheap at auctions but generally the margins aren't sufficient.

I'm talking about buying 15% less than the market price for the condition it's in and then adding value on top of that.

I'm genuinely interested in this.

When you say, adding value, what do you mean? I think you mean spending money on it, but then you stated sell immediately....which leaves you no time for improvements to add value.

So, either you are not selling immediately. Or you are not adding value by improvements. Obviously it can't be both.

Maybe immediately didnt mean immediately or something?

I just stuggle to figure out how you are going to get a house 15% below asking price, then sell it immediately close to asking price. You would be targetting the exact same buyers who didn't purchase or offer (leaving you to get the 15% off) last time round. Sure, you could get lucky, but this was said as some kind of investment, not getting lucky.