Mortgage Free - so good they'll do it twice! Wynnvegas aiming for the big house

abouttimetoo

Hi Billy

Great updates as usual, you are doing so well, not that I ever doubted it for a second.

Is the potentially charging parents interest the thing that you alluded to earlier this week about being potentially troublesome? It must have come as a bit of a shock too at them needing to borrow some of the money back that they have already repaid. Apologies if I'm overstepping the mark but I seem to recall from many moons ago that they should have been much much better off finacially after you cleared the debts so I wonder if there were other things they did not tell you about. Is this the same parents who had also obtained a PPI refund and were awaiting another (see, I do pay attention )

Regards
ATT

wynnvegas

Hiya Gally,

I'm beginning to get over my "robbing the poor" complaint. I suppose this is the whole Doohnibor principle. Rob the poor to make me rich!!

The only reason things potentially could have gotten tight is if we went off book and plumped for the sixth property. We've decided not to so the Vegas piece won't be afffected. In that we're borrowing money and paying interest, it is only fair to stick on the same rate of interest to the loan (another £200 having been deemed necessary in the last couple of days). I'll be looking for an SOA in relatively short order to see if I can assist.

Cheers,

Billy

wynnvegas

Hi Viola,

It is a great screen name! I wish I had put some decent thought into my own now...

More than happy to give you any tips now that I'm an old pro at the BTL game if you do decide it's a goer!! First and foremost - a discount of any less than 20% off market value means it's very hard to make the numbers work.

Cheers,

Billy

wynnvegas

Hi ATT,

I don't think so but I was rambling away good stylee so I won't bet against it. The interest thing has only occurred to me in the last couple of days. We should have had £2,200 back by now. As it is, we've had £300 back following the recent borrowings.

Your recollections are 100%. I've no idea at all what their finances look like as they are very reluctant to share information. I'll need to push the issue a wee bit. There was a secret credit card that I believe was cleared by the PPI money. The "other" was a tax refund of £3,000 but that went onto the tax code as opposed to a refund cheque so we haven't seen any of that. Beginning to have some concerns about the whole thing. As much as I'm all for advocating not lending to friends and family, I'm still happy enough that there wasn't really an option in this case.

Cheers,

Billy

viola_brandywine

abouttimetoo wrote: »

Hi Viola, I always love your user name, it makes me think you should be a character out of The Lord of the rings :rotfl:apols if you have not read it and don't get the reference

Thanks ATT I do get the Lord of the Rings reference but its actually because I like growing tomatoes and brandywine are my favourite (that makes me sound a bit sad )

wynnvegas wrote: »

Hi Viola,

It is a great screen name! I wish I had put some decent thought into my own now...

More than happy to give you any tips now that I'm an old pro at the BTL game if you do decide it's a goer!! First and foremost - a discount of any less than 20% off market value means it's very hard to make the numbers work.

Cheers,

Billy

Thanks for the offer Billy, you are very kind. Hopefully I will get around to it this year!

wynnvegas

Hi Viola,

Congratulations again. Take your time with any decisions you make. You've put yourselves in a brilliant position and you should be able to completely relax and reap the benefits from hereon in.

My first idea was to buy a single property and hurry the overpayments until it too was owned outright but the tax inefficiency of that plan hit home early on in the planning, it would work reasonably well with a couple of properties but, with the big house in mind, we're now looking at cutting no corners which will mean something in the region of a £1,000,000 build and furnishings cost. May take us the better part of ten years to get there but we'll have some fun along the way.

Cheers,

Billy

wynnvegas

Morning All,

Having re-evaluated the figures somewhat, I've decided to stick with the original plan. We'll go with 5 now and pick up five at a time as was always the intention. The plans will be knocked back about 2 months waiting for all the completions and transfers to happen so we'll have our first 5 locked and hopefully let by the beginning of March.

Today's job, having been to the gym, cleared all the guttering around the house and hammered Moyra at badminton, is to relax, read a bit more of the BTL bible and to write a bit more of my own tome.

Cheers,

Billy

waughc01

Hi Billy,
Five btl already in such a short period of time, does that mean I have been payed off for sourcing cheap propertys for you !!!! Let me know when you start buying again. As I said before I am very good at spending other peoples money. A golden rule we have with our rental propertys is that we will not rent to family and friends, no matter what, it is a business we are running. I feel very sorry for you and Morya with regards to helping people out with money issues, and them not paying you back as much as they should have by now.
Cha is still in sunny Livingston as there is still a travel ban on in Nigeria. He was supposed to leave on Monday morning but the ban has been put back in place till further notice. So he is busy doing all the odd jobs that need done and catching up with all the rental paperwork.
Did you get your summer holiday book for Vegas, 25 sleeps till we are in sunny Florida and can't wait it has been so cold here the last couple of days. Will send you a pm with a website that gives us info on the btl business.
Take care Waughc01

wynnvegas

Hi L,

For the time being, you're perfectly redundant! It'll probably be 3-4 months before we hit the acquisition trail again. May even be up to six months but we'll be keeping everyone up to date with the various trials, tribulations and successes on a regular basis. This blog thingy is my public face of the entrepreneurail side of life and is much more of a pleasure to write.

The book is fast becoming a proper soul searching effort. I worry, with some of the things that are finding their way onto the page, that I might be a bit mental. I don't think I've ever second guessed myself quite as much in my life. All that is to do with being forced to trust in and hope for the best from people I don't really know. We've already been scammed by a couple of folk (and identified and addressed each before they came to pass thankfully).

I'm perfectly in agreement with the business/personal divide. We've agreed to apply an interest rate to the loan as there's no point on us lending £14k and then paying interest on the money that we're borrowing. It's equally only fair that we apply the same interest rate and, with a year interest free and an ongoing rate of 2.79%, it hasn't caused an issue...yet!

Hope the travel ban is more of a blessing that a problem. I'm already looking forward to the administration of it. Things that I can control from start to finish are very attractive at the moment. Not booked as yet as prices are dropping by the day. Hoping to get a decent price for flights and then we can start looking at hotels and shows in earnest! Hope you have a wonderful time in Florida.

Cheers,

Billy

pawlala

wow billy you've moved a bit since Nov! I always thought about having on eye on the BTL arena once I had paid 2nd mortgage off in 2013 but making a move only when I had accrued enough capital to buy another property outright. I guess that's borne out of never wanting to buy anything in my control unless I could actually afford it.

More properties would improve my investment opportunities rather than just accruing interest that maybe below inflation anyway. In a way I'm glad I have a mortgage still to pay off because I know what my immediate and only goal is.

I can imagine your planning thought-processes are decidedly more hectic!