Top BTL guru, Author of "Buy To Let Bible" sells up!

WTF?_2

Top property developer Ajay Ahuja sells off a large tranche of his properties...

http://www.ahuja.co.uk/property-news/ajays-blog/selling/

I am selling 57 of my investment properties
I was in Prague a week ago visiting the in-laws and like a lightening bolt the idea came to me to sell part of my portfolio.
I had been used to saying to myself "never sell" but I had overlooked 2 very important things:

1. The opportunity cost of capital
2. The new capital gains tax rate of only 18%

Yeah, right Ajay. Nothing to do with the fact that they just aren't earning any returns for you and you stand to lose a packet, domino-style as the market collapses

He's the author of "The Buy To Let Bible"

http://www.lawpack.co.uk/buy-to-let_bible.asp?source=msnlaw

Author Ajay Ahuja is a chartered accountant and a buy-to-let property millionaire who offers an inside view on the subject. In this expanded, third edition of his bestselling book, he divulges the practical techniques and financial tips that have taken him from an initial investment of £500, to a property portfolio of successful buy-to-let properties up and down the country worth more than £10 million, providing accommodation for more than 250 tenants.

I think the fat lady just sung on the future of BTL :rotfl:

(edit: Note,I'm not saying all BTL is over and done but anyone getting into it now or in the last couple years needs to be certified)

Gorgeous_George

If your BTL aim relies on asset appreciation then yes, BTL is not for you just now. It might be when pices dip.

I have a BTL which I am not selling. It delivers over £5K per year in rent. It will continue to provide an additional income for the rest of my life. Bought in 2001 I have now recovered all of my initial outlay. I pay tax if/when I make a profit.

Interesting that Mr BTL guru is keeping most of his property.

I accept that yields below 10% are hard work for little short-term gain.

GG

BiggaThanBen

according to the blog he is selling these to buy even more ...

So I am now in the process of selling 57 properties which will raise about £1.7m after tax which I will gear up to buy £11m worth of property

MissMoneypenny

BiggaThanBen wrote: »

according to the blog he is selling these to buy even more ...

Yes. He said "to buy around 20 flats for £30,000 each".

mishmmc

He is selling 15 properties that went on the market today in my town (Corby N'hants) highest is priced £119995 lowest £79,995 ranges of properties from 4 bed houses to 2 bed flats, admittedly not in the most desirable areas of town, but I must say in the last few weeks I have noticed that there are properties that are being listed sub £100,000, which has not been happening for at least the last 8 months here.

PasturesNew

I remember Corby in the crash of the late 70s (I think it was that one and not the 80s one)

Some houses were just £1000 each.
It was the estate with the worst reputation.
But I remember being in the back of my dad's car as we had just visited a family member, and I was looking out the window and looking at row upon row of For Sale signs.... I was wondering where the £1000 ones were.

Generali

I remember seeing the same thing on the South Circular in London. You'd drive past a street that had a 'For Sale' sign outside almost every house.

PasturesNew

This estate agent closed 3 weeks ago in Corby:
http://www.northantset.co.uk/news/Estate-agent-set-to-be.3871896.jp

mishmmc

I didn't know that Raven and Steel had gone under - I can't believe I didn't notice that. I viewed a couple of houses with them (summer just gone - didn't buy anything in the end, decided to wait!!) and the agents did come across very desperate even then.

Wasn't any where near being around in the 70's so can't comment, but I would have thought that would have been the Lincoln (Kingswood) estate, half of which has been or is to be knocked down and redeveloped (so I suppose I did comment then - duh!)

dopester

dolcevita wrote: »

p.s. for a so-called property expert he's left it a bit late to try and sell

Yeah and tbh... even on his webpage he sounds a bit of a divvy to me.... forget making important decisions after careful research, examination of the facts and consulting wide range of informed sources....

....just wait for a lightening bolt idea after neglecting 2 important factors any chartered accountant should already be fully clued up on..

I was in Prague a week ago visiting the in-laws and like a lightening bolt the idea came to me to sell part of my portfolio.

Anyway... lets see if he can offload 57 of them at the price he wants in to this market.

Generali

mishmmc wrote: »

He is selling 15 properties that went on the market today in my town (Corby N'hants) highest is priced £119995 lowest £79,995 ranges of properties from 4 bed houses to 2 bed flats, admittedly not in the most desirable areas of town, but I must say in the last few weeks I have noticed that there are properties that are being listed sub £100,000, which has not been happening for at least the last 8 months here.

Hmm. 53000 people live in Corby which probably means about 18000 households. 10% of places are sold each year I think which means he's upped supply by about 0.8%. I wonder if that would have any impact on prices or not. Probably not I guess depending on how keen he is to sell and buyers are to buy.

It would be interesting to see if there are any towns where one person owns enough property that if they needed to sell they'd have a measurable impact on prices there.

A hedge fund (Amaranth) was buying up gas futures last year. They kept rising in value and they kept buying. It was only when they came to sell that they realised that they were the buy side of the market, pretty much nobody else was buying. They went bust as their 'Diversified Fund' had over 60% of its money invested in these things.

I wonder what proportion of the properties in Ashford that maths teacher owns.