Ok lads be in the plastering game 25 years be running my own busness for 20 years made a living married 3 kids not made a fortune just kept my head above water and some time I think to my self I need a change Bought two houses live in one rent the other next year I'm thinking of selling the rented house and renovte a old property and try and make a profit does anybody on here or now some one that does that.
fresh start
- Thread starter carys
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Wayners
Well-Known Member
Yes. But you need to do the maths. Buy at the right money. He owns 2 flats and wanted the 3rd on the block but got outbid. He thought there was no money in it as a rental if he paid more. He also sold a £200,000 house to buy 2 smaller houses on a council estate as the 2 rent incomes would be greater then the better £200,000 house.. Also you don't want any structural work to do. Clean up. Plastic windows. Heating. Kitchen and bathroom and Dec out same colour. Get it rented
zolco
Well-Known Member
If you have the cash and you can get your hand on something decent it can be a money spinner. Depends on what you want to do, some buy it cash, do it up, revalue it then get a btl mortgage, some can pull most of the money back out you might leave 10% of the fully invested money in, depends on the lender and valuer really, then move onto the next one, same scenario all over again, it's all well and done as long as it's just interest only mortgage otherwise you rarely take any rental money out of it if it's a repayment one. Cheap areas backside is with letting, the monthly rent doesn't cover a proper refurb in years to come or after a asbo tenant, you can always remortgage it when you think it's worth it to pull some tax free money out of it but then again if it goes tits up you'll less likely to lose out on a substantial amount of money than like in more hyped up places. (I'm talking here about 40-50 k worth of place with a monthly generated income 350-500 before tax) it's all depends on where you buying.
Some buy it cash again then do it up and put it back on the market, what you have to watch out for is sdlt, capital gains tax, maybe incorporation etc. There's loads to consider, but if you have a good deal on the table, where the numbers stack up just go for it
Some buy it cash again then do it up and put it back on the market, what you have to watch out for is sdlt, capital gains tax, maybe incorporation etc. There's loads to consider, but if you have a good deal on the table, where the numbers stack up just go for it
End of the day it all about doing your homework best place that sells stay away from structure work and try and do a decent job whithout over spendind do two houses a year should be easy 40k plus your wage happy daysIf you have the cash and you can get your hand on something decent it can be a money spinner. Depends on what you want to do, some buy it cash, do it up, revalue it then get a btl mortgage, some can pull most of the money back out you might leave 10% of the fully invested money in, depends on the lender and valuer really, then move onto the next one, same scenario all over again, it's all well and done as long as it's just interest only mortgage otherwise you rarely take any rental money out of it if it's a repayment one. Cheap areas backside is with letting, the monthly rent doesn't cover a proper refurb in years to come or after a asbo tenant, you can always remortgage it when you think it's worth it to pull some tax free money out of it but then again if it goes tits up you'll less likely to lose out on a substantial amount of money than like in more hyped up places. (I'm talking here about 40-50 k worth of place with a monthly generated income 350-500 before tax) it's all depends on where you buying.
Some buy it cash again then do it up and put it back on the market, what you have to watch out for is sdlt, capital gains tax, maybe incorporation etc. There's loads to consider, but if you have a good deal on the table, where the numbers stack up just go for it
ChrispyUK
Well-Known Member
All about the numbers. Different strategies for short medium and long term returns and lots to consider.
For renters, you need to pressure test your figures for worst case scenario. If interest rates go up, will you still be getting a monthly return in your investment so you don't end up subsidizing the mortgage out of your own pocket. If say rates are now about 4% on a BTL mortgage, what happens if they go up to 5,6,7,8% etc?
Also retaining a reasonable amount of equity in the property, generally need 25% down now anyway, can also help safe guard you if the market goes tits up. Sometimes the most unlikely propeties give you a better return of investment per month, but they might not be particularly attractive on the face of it. The good thing with being in the trades is it helps when it comes to refurb costs, just make sure the money is spent in the right way...do a good job to make your life easy, but don't get carried away.
For renters, you need to pressure test your figures for worst case scenario. If interest rates go up, will you still be getting a monthly return in your investment so you don't end up subsidizing the mortgage out of your own pocket. If say rates are now about 4% on a BTL mortgage, what happens if they go up to 5,6,7,8% etc?
Also retaining a reasonable amount of equity in the property, generally need 25% down now anyway, can also help safe guard you if the market goes tits up. Sometimes the most unlikely propeties give you a better return of investment per month, but they might not be particularly attractive on the face of it. The good thing with being in the trades is it helps when it comes to refurb costs, just make sure the money is spent in the right way...do a good job to make your life easy, but don't get carried away.
I can get a 90 grand house round here that neads upgrading new kitchen rising damp problems whith chimney and roof coat of paint do the work my self 5k plus your fees proffit say 15 20 easy money but as u say it all about the numbers and the market but if it not worth selling u can always rent for a couple of months
zolco
Well-Known Member
Where you get all your mats from mate 5k for kitchen and the rest, what sort of quality is the kitchen, appliances like? An average kitchen is about 5k and that's nothing fancy, I can get appliance package for £99 occasionally, but it's all cda, which is a crock of s**t, disposable crap. Soon as I put something decent in its soon turns into 5k+
M8 shop about u can get a desent kitchen im in it to fuking sell not to have it like a show room lol
zolco
Well-Known Member
Lol I couldn't put a hodgepodge kitchen in, wouldn't worth it around here
I' agree whith that but it depends on the area but at the end of the day if u are going to treat it to your own taste and i think many people do over spend and can't do the Labour work your fuked but i agree quality of work should be of high standard to a senseble budget at the end of day people can change a kitchen
TrueDepends on how big the kitchen is!!
zolco
Well-Known Member
True that chrispyDepends on how big the kitchen is!!
zolco
Well-Known Member
I'd never do it to my taste, no point, just neutral, as you say kitchen can be changed, but a good kitchen/bathroom brings the people through the door to view, so as open plan living and bifold doors these days, people want value for their money, well most of them anyway
Nothing to worry about if Thatcher was alive and primeenster I'd be worried lol
superspread
Well-Known Member
Rent em out and let the value of the property keep rising , the money will always be there in the bricks and mortar when you really need it, what's the point of just keep looking at the noughts every month
JessThePlasterer
Queen Jess Elizabeth I
Just stay away from magnolia, no one digs that anymore
danny
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