I know someone that’s done this, he’s bought 3 bank premises with 20 odd year leases with 4 year rent reviews above inflation.
Property developer
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superspread
Well-Known Member
I’m looking into them atm
I’ve got one a 400sqft, eventually I’ll lease it out. The tax benefits are also better if I ever sold it I’d get taper relief on it, 3/4 gains at 40% tax rate meaning I’d never pay tax at more than 10%.
superspread
Well-Known Member
zolco
Private Member
If you want to do a flip, buy it cash do it up then mortgage it, you'll have then bigger chance to get all your money out what you invested and move on to the next one.
I'm not the fan of interest only btl mortgage.
You can also only release equity when your fixed rate period ended on the mortgage.
Trouble these days every man and his dog at it, the market is saturated with stock that doesn't sell, because estate agents, property course providers talk the bullshit and people buy into it.
Yes HMO is a great thing, what's even better is the licensing fee for it which is slowly getting introduced by every single council. Your responsibility is much bigger and with HMO more agro as well to find trouble free tenants as you have more units under one roof and them units have to get along with each other. That's when it kicks in that you not just a landlord but a social worker, mediator, etc.
Commercial is also great, till you end up without a tenant and after the 3 month grace period you have to pay business rates plus all the standing charges. Saying that last time we had an empty unit we let it in 24hrs after a quick paint and new carpets.
Getting mortgage on flats above shops and restaurants take aways is getting more strict too.
I had a 2bed flat offered a month ago for 140k, lease extension 22k, refurb 30k, market value according to EA 2-210k, in reality next door struggling to sell for 176k with slight room for improvement and that's in home counties.
All I can say is do the maths not twice but ten times, a small profit is no profit, you need a fair wedge to cover everything from EA to solicitor to contingency.
I'm not the fan of interest only btl mortgage.
You can also only release equity when your fixed rate period ended on the mortgage.
Trouble these days every man and his dog at it, the market is saturated with stock that doesn't sell, because estate agents, property course providers talk the bullshit and people buy into it.
Yes HMO is a great thing, what's even better is the licensing fee for it which is slowly getting introduced by every single council. Your responsibility is much bigger and with HMO more agro as well to find trouble free tenants as you have more units under one roof and them units have to get along with each other. That's when it kicks in that you not just a landlord but a social worker, mediator, etc.
Commercial is also great, till you end up without a tenant and after the 3 month grace period you have to pay business rates plus all the standing charges. Saying that last time we had an empty unit we let it in 24hrs after a quick paint and new carpets.
Getting mortgage on flats above shops and restaurants take aways is getting more strict too.
I had a 2bed flat offered a month ago for 140k, lease extension 22k, refurb 30k, market value according to EA 2-210k, in reality next door struggling to sell for 176k with slight room for improvement and that's in home counties.
All I can say is do the maths not twice but ten times, a small profit is no profit, you need a fair wedge to cover everything from EA to solicitor to contingency.
That’s the reason I got rid of my buy to let In The end not for profit but because of the hastle.
superspread
Well-Known Member
Holiday let’s can be good to, but also saturated I think
zolco
Private Member
10% yield is unachievable in London and home counties, it's maybe doable further away that's on residential, on commercial if you can't do at least 15-20% it's not worth a bother. Most leases 4-5 year long, lease can be assigned and the new tenant can pull the plug anytime with no consequences.
If you ever look a commercial property, usually it's existing rent times 5 to get the value of the property but it can be more or less depending how desirable it is, if it's empty, then it's empty for a reason, high business rates, wrong location, regeneration plans etc.
If you ever look a commercial property, usually it's existing rent times 5 to get the value of the property but it can be more or less depending how desirable it is, if it's empty, then it's empty for a reason, high business rates, wrong location, regeneration plans etc.
zolco
Private Member
They seem really good. Trouble is the change over and key holding.
zolco
Private Member
I have never met a landlord who was hassle free
superspread
Well-Known Member
Yea, but like everything, no pain no gain
superspread
Well-Known Member
Touch wood I’ve been lucky, but like to think I’m thorough on credit checks , meeting em , and gut feeling
zolco
Private Member
If any of you interested, I'm running a property seminar online, with @superspread as guest speaker. Click on link to sign up now £299.99/month only, first come first served. 
zolco
Private Member
True, you could do SA in London, but now they try to regulate that as well, it's the new goldmine apparently
Agreed nothing is easy to make a living/ Revenue from without a certain amount of hassle in some way, but for me running a rendering business aswell as that aswell as a family etc it was additional stress I didn’t need.
Yep there’s still an amount of luck involved as well as your sound judgement, it’s why commercial appealed more as your less hands on, my old man is a serial investor in commercial property which helps having a slightly older wiser brain to pick aswell.
In all seriousness I looked at buying a classic car , as there capital gains tax free as there classed as a waste product believe it or not. when I sold the house last year I looked at a series 1 e type jag (the nicest looking car ever built in my eyes) I saw one for £115,000 I thought win win, there going up 10 grand a year in value, i could enjoy it by driving it around, I could lease it to film/ tv companies for filming work, I have a garage at my house to cover it from the elements...but the Mrs threatened to leave me if I did... I should have bought that car.
Yes it is hastle I do agree but rather have that than be grafting away when I'm 60 and going out in all shiti weather
Yes it is hassle I'm thinking of renting my double garej whith electric and water I wonder if that any good to rent? Need the cash but do I need the hassle but that life
FreeD
Private Member
Have you considered rent to rent...i.e finding a landlord that doesn't want the hassle of managing their property, paying him a guaranteed rent, then splitting the house into an HMO. You can make good profits for minimal outlay.
You will need some money behind you for commercial to residential, as you will need planning, planning consultant, costs for bringing in services and extensive renovation costs. But good profits to be made.
You will need some money behind you for commercial to residential, as you will need planning, planning consultant, costs for bringing in services and extensive renovation costs. But good profits to be made.
But that's why I'm building up the rendering business, even now I've got a lad that runs it day to day, it will be my pension
Sounds interesting.
That be a good idea for me my pension it sorted I'd say not a lot just plenty to pay the bills. I am a one band rendering business I might save my money to expand in next 7 years who whant to graft when 50 some have no choice but I don't whant be like that. I whant to carry on in my own pace I love work in moderation I'd be bored shitless at home lol