RAISING CAPITAL

[darren9659]

HI,IM AFTER SOME ADVICE PLEASE

BASICALLY I WANT TO BUY TWO PROPERTIES EACH VALUED AT £147K TO LET OUT.IVE BEEN ADVISED OF A RENTAL INCOME OF £650 PCM.AS THE PROPERTYS ARE IN A REGENERATION AREA OF NEWCASTLE I INTEND TO KEEP THEM FOR 2-3 YEARS THEN SELL WITH A ESTIMATE PROFIT OF 40k EACH. AT 85% LTV I NEED TO RAISE A 15% DEP OF 22k ON EACH AND IM LOOKING FOR IDEAS ON THE BEST WAY TO RAISE THIS AMOUNT. I WAS CONSIDERING A SECURED LOAN IE 22K X 25 YR=155 PMONTH TOTAL OUTLAY £717 PCM WHICH WOULD MEAN A SUBSIDY ON MY PART..I CURRENTLY OWN A FEW PROPERTIS BUT THEY HAVE ALREADY BEEN REMORTGAGED.... ANY SUGGESTIONS APPRECIATED

[dealfin]

Hi The best route for you would be either to raise the money from a remortgage or a secured loan.We could arrange the secured loan for you and you could have the money in less than 2 week.You can view all the products and services we offer at sunriseloans.co.uk, sunsetloans.co.uk or dealfinance.co.uk we are a partner and advertiser of residential landlord.

If we can be of assistance please give me a call

Regards

Mike

[roppa]

i am from newcastle upon tyne and i would be VERY curious as to the propeties in question that they are stateing will rent for £650 p.c.m

the regenoration zone for the west end of the city is still pretty much in it's infancy and there are very few actual finished redevelped "new" area's that would comand such a large rent.

in the east end of the city (where i am based in byker,walker,wallsend) there are some very very large plans for redevelpment. but again...if someone is stating the figure of £650.00 p.c.m i would very much doubt that this will be from the properties that they will be rebuilding after the planed demolision.

the only area that i am thinking of that the rent would be to achive such a rent is an area called St peter's Basin just on the east end fo the city's quayside.

and if so...then the area is currently going though it's anual "buy and sell" rotation of landlords that have purchased properties in the area...not been able to find a tenant that is able to pay what they need...putting it back on the market to try and make there money back.

as for the properties going up 40k in 2-3 years.... if the properties are in the area of St peter's basin. they are ALREADY at the top end of the price braket for the area...and as such i doubt that they will raise up as much as you may think.

if it is the "new" properties that is in the east end of the city.. and they are predicting such a hugh increase of 40k in 2-3 years... then TBH i really dont know where they are getting there figures from.

there has been a nice steady increase in the area over the last 5 years. (2 bedroomed flat's in walker 5 years ago where at around 20k and now are at around 60k) but this has slowed dramaticlly over the past 6 months.

so i would be very very careful with you actual investment and maybe have a closer look at the actual properties and surounding area that they are on about. and if they are looking at the east end of the city. then i would STONGLY advise you to redo you esitmates for rental income and capital growth and not listen to the "seller" as to what they think that they will get.

feel free to send me an e-mail if you are looking at the east end of the city in the regenoration are because it is literly over the road from where i am based.

davidrobson1981@yahoo.co.uk

good hunting

[russ295]

small world roppa, wallsend lad myself

[darren9659]

hi david.thanks for your advice.

the area im investing in is not the walker area.its a small regeneration area 5 mins from newcastle centre.ive had the rental quotes off three agents and £650 is the average,bear in mind this is a large house.obviously im not gonna name the developement but only a handfull of houses have been built up to now so its quite unique.

as far as the £40k growth in 3 year i think this is attainable by the agent feedback.

i bought similar property three year ago in another part of town but with the same regeneration group for £65k and sold for £145k.could be a one off but ive been well informed and even £20-£30k min return is a good investment

[roppa]

small regeneration area outside of newcastle city centre....

hmmm.. you have perked up my interest. i am now thinking that it could be the redevelopment near chillingham road metro station...

higher than average rental income, large 4 bed house's, smallish scale redevelopment area.

to which case.. YES the figures do stack up.

heaton is a whole different kettle of fish compared to walker and byker (although still under the same post code in most cases) which can through out quite a few investors in my expereice.

there IS how ever a new development in the area though which is just in it's infancy. it will be happening at the bottom of the fossway to which similar 4 bedroomed properties are planed.

russ295 will know what am on about. i would STONGLY recemend that you invest elsewhere if that is the area.

no matter how they "label" the development. it will be classed as "daisy hill" and that is just not a good thing when you are trying to sell on.

unless you like security CCTV camera's at the end of the each street.....

[russ295]

i still lock my car doors when i drive through daisy hill

he has me wondering also???

russ