The Buy-to-let boom is back

Damaged

the_flying_pig wrote: »

what is the approximate market value of the house?

We tried to sell it for £250k last summer but with no luck. So probably about £220-230k will get it sold imo

Yes the loan is IO

geneer

HAMISH_MCTAVISH wrote: »

Yes, it's the inevitable result of the crash.

Fewer FTB-s able to buy, and a generation doomed to enrich their landlords instead of themselves.

Soaring rents, record low house building, and the return of the buy-to-let boom as yields increase and FTB-s are locked out by ridiculous deposit requirements.

Absolutely inevitable result.... As frequently mentioned by many of us.

yes. a drastic fall in ftb numbers was always going to be the absolutely inevitable result of the crash. and im always pleased to read how competition is falling in this market. however the notion that btl is simply supplanting all ftb sales (as the bulls like to characterise it) is dubious at best. of course as volumes are avaliable for both ftb and btl sales the bulls should easily be able to support their case. well..............?

HAMISH_MCTAVISH

the_flying_pig wrote: »

Is that really true, though? 10% gross sounds great, net it'd be enough to cover a 20 year repayment mortgage fixed for 5 years... But 10% is emphatically not available in almost all cases...

Yes, it can certainly be done but you have to look in the right areas..

10% gross is available in a fair few places. Not all, not even most, but a fair few. Usually in pockets of deprived areas where properties are cheap.... But they do come with hassles. Also sometimes in Uni towns or with HMO's.

More relevantly, the national average, depending on which source you believe, fluctuates between 5% and 6.4%. Enough if you manage it yourself to do nicely and have a margin of safety.

In my own market, and I've posted plenty of examples in the past, 7% to 8% is achievable all day long, which is enough to pay an agent to manage it and still cover the mortgage and occasional void.

Some markets, notably London and Edinburgh, have a lower average yield, with 3% or 4% being common. Some property types, especially large houses in the country, also have lower yields.

But it's not that difficult to find a place that will yield 6% or better in most areas, and 10% in some areas.

More generally though, H, same as everyone else I like free money and no-brainer moneymaking opportunities. If you can find me a 10% gross yield flat or house for sale within 10 miles of where I live now in SW12 I will (a) buy it; and (b) pay you a bounty of a grand or so.

If I could find a place in SW12 (or anywhere else in London) yielding 10%, and with the capital growth London will surely offer over the next decade, the first thing you'd know about it would be after I completed on it....

DervProf

RenovationMan wrote: »

I'm not sure if that's them. They wear plaid suits and had some racehorses that never seemed to win anything. The bloke had a scottish name, Angus or Fergus or something.

That would be "The Wilsons".

Delightful couple.

I believe that Fergus once said that house prices double every 7 years. What a clever and shrewd businessman he is, or is he just a bit lucky ?

Last I heard is that the were offloading some of their property.

geneer

........well?

heh heh heh

Turnbull2000

Just had a chat with a fella at work (mid 40's) who's getting finished this week. He plans to buy up "three or four" properties to rent out, all cash buys. Told me "there's loads of money to be made there!".

Aberdeenangarse

Turnbull2000 wrote: »

Just had a chat with a fella at work (mid 40's) who's getting finished this week. He plans to buy up "three or four" properties to rent out, all cash buys. Told me "there's loads of money to be made there!".

.....and I expect if he told you it's a great idea to stick your head in a Gas oven, you'd do that? :rotfl:

chucknorris

Turnbull2000 wrote: »

Just had a chat with a fella at work (mid 40's) who's getting finished this week. He plans to buy up "three or four" properties to rent out using money he has in the bank. All cash buys. Told me "there's loads of money to be made there".

I don't know where he gets 'loads of money' from? I have owned several investment properties for quite a few years. Although there has been very good capital appreciation in that time, looking forward although I certainly think there is money to be made (we are considering putting an offer in right now) it is IMO no more than reasonably profitable. Unless of course he intends to max out the yield by going down the HMO route, but the flip side of that is that the effort you put in is more.

Graham_Devon

HAMISH_MCTAVISH wrote: »

In my own market, and I've posted plenty of examples in the past, 7% to 8% is achievable all day long, which is enough to pay an agent to manage it and still cover the mortgage and occasional void.

Yet you STILL won't buy in.

Why?

Thrugelmir

DervProf wrote: »

What a clever and shrewd businessman he is, or is he just a bit lucky ?

Initially bought into the market at the right time. Give them their due they had a business model that worked. Though even they couldn't have foreseen the credit boom. Like all one trick ponies. In time they run out of steam as the idea becomes mainstream.