CoolerUK Posted August 26, 2008 Report Share Posted August 26, 2008 This post has been removed by the moderator. Link to comment Share on other sites More sharing options...
Melboy Posted August 26, 2008 Report Share Posted August 26, 2008 ...eeerrrr! hasn't anyone told this person that the parties over and BTL is a risky business when trying to build a portfolio on borrowed money.....borrowed if you can actually get anymoney that is. Mel. Link to comment Share on other sites More sharing options...
CoolerUK Posted August 29, 2008 Author Report Share Posted August 29, 2008 ...eeerrrr! hasn't anyone told this person that the parties over and BTL is a risky business when trying to build a portfolio on borrowed money.....borrowed if you can actually get anymoney that is. Mel. Hi Mel I agree buy to let is over (for the time being) unless you have great relations with desperate builders and can get extremely good discounts and the numbers to stack effectively. However, the event is primarily about networking, and the guest speaker is there to talk about what happens after acquisitions. Buying a property is the easy bit. After you buy, you effectively become a service provider and that requires alot of effort and strain to get right on a consistent and optimized basis. So there is alot of value to be gained there. However i do believe there is one BTL strategy that seems to be working in the current climate, that not many people have considered, and that is UK Holiday Lets for positive cashflow. I would also invite you to see this vid - http://www.youtube.com/watch?v=ttE8fC_ZQdI - and let them tell you for themselves what you might expect from the meet. It wasn't an ignorant post. All best JH Link to comment Share on other sites More sharing options...
CoolerUK Posted August 29, 2008 Author Report Share Posted August 29, 2008 ds Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 29, 2008 Report Share Posted August 29, 2008 BTL dead ???????????? One of us must be o the wrong forum !!!!!!!! Just remortgaged a further 63K outof one of my props and have so many props too chose from it is untrue ... Hasn't anyone noticed that rents are up and house prices are down ..........Party over ..Mel ....>????? The nightclub doors are just opening ready for yet another party just begining................. The Rodent Link to comment Share on other sites More sharing options...
Melboy Posted August 30, 2008 Report Share Posted August 30, 2008 Why would you want to buy property that is falling dramatically in value to let out? I am watching 2 properties right now that have dropped from £122k to £114k and there is room for more price drop on that figure as well. Money invested at the moment can earn far more than any rental income around here and the whole purpose of buying property is not just rental income but capital appreciation so there is no point whatsoever buying in at an overinflated property price. In your area Simon you can still buy property for under £80k but you can't around these parts. Mel. Link to comment Share on other sites More sharing options...
Simon Dewsberry Posted August 30, 2008 Report Share Posted August 30, 2008 Mel ... 3 options for buying : 1. buy in rising market 2. buy static market 3. buy in falling market or(4) i guess you could wait for "the bottom" of the market ....... as long as figs stack up then "Not" to buy is a wasted opportunity .....personally i buy in all 3 markets ...and when we get to 4 ...will buy again .... As long as figs stack up you are increasing portfolio and over all wealth(yes even with temporary dips that last years even...buying and selling prices are transient snapshots of market ...entry and exit points can clearly be decided by investor ..........but the criteria for purchasing a BTL prop goes a lot further than asking price of prop ................as we all know ..... I guess if you are only looking to by a few ...or even just one then to fully maximise returns then yes wait for the bottom ...but let us not forget ..the smartarses who sold out of the market to rent dreaming they were going to re-enter and make a fortune ....some 8 years ago .............in that time the savvy amoungst us are cleaning up !! and will continue to do so while people wait for the bottom ......... My theory is simple ...as soon as one is nearly up and running i'm looking for the next ......* The Rodent * using buying criteria explained in detail on previous occasions ! Link to comment Share on other sites More sharing options...
CoolerUK Posted September 2, 2008 Author Report Share Posted September 2, 2008 I agree. Personally my strategy is not to buy for capital appreciation but for maximum cashflow. Property is a long term game, and if you look at the trends - the capital appreciation is going to happen anyway!!! Supply and Demand. Not much land in this island comparedto the demand for it. So given that we'll get the capital appreciation anyway - i don't even worry about it. Also, Capital Gain is not really of any value unless it is realised, by selling or remortgageing - until then it's all hypothetical. Cash flow however is real. Positive cashflow allows the porfolio to be "recession proof" and let's the riding out of the current storm become painless. Cashflow allows the trade off of time for money. Work les - earn more. = freedom. That's the real goal, right? So I agree with Rodent - in the current climate - house prices dropping - rents going up, the rich are getting RICHER, and the poor are getting poorer. Fact. If i had more money i'd be buying everything. Link to comment Share on other sites More sharing options...
plym77 Posted September 2, 2008 Report Share Posted September 2, 2008 CoolerUK - Can I just point out that a Capital Gain is not realised on a remortgage as stated in your post. Capital Gains may not be of huge consideration in the short term to some people but you cannot simply disregard them. If an investment property appreciates then a capital gain could arise and simply just dealing with the issue 'on sale' is not always wise. You can plan to mitigate for a capital gain that you know will arise in the future with ongoing review and planning. It is possible that a person does not intend to sell a property however, IHT can still be a problem, and in my experience some people in later life like to start to pass on some of their investments to their children in life to start to mitigate IHT. That gift can attract CGT. There is the view that you squeeze as much capital out of a property as possible and this could reduce IHT - this depends on what you do with the money - and also do remember that qualifying loan interest will only go so far, there is a limit to what can be claimed I am not suggesting that all decisions should be made on the back of CGT (or any tax for that matter), but that you should not simply disregard the issues entirely. Taxes seem to have a bit of a snowball effect and you cannot disregard it or look at an investment with tunnel vision - consider everything - tax and non tax consequences before making any decisions. Sherena Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.