How do you make money on this

Log in to reply
J

Jerry D

  • #1
    Hello good morning. I am now looking at setting up my property venture very seriously after researching the market to see what’s selling etc. I would like to know how does renting property make a good return monthly if you buy it on a mortgage. The only time you make money is when you sell it,? Depending on the market state if its increased or decreased.
     
    papverpoppies

    papverpoppies

    Free Member
    Apr 8, 2009
    6,754
    2,208
    Fields, roadsides, gardens!
  • #2
    Mr Slatty said:
    Hello good morning. I am now looking at setting up my property venture very seriously after researching the market to see what’s selling etc. I would like to know how does renting property make a good return monthly if you buy it on a mortgage. The only time you make money is when you sell it,? Depending on the market state if its increased or decreased.
    Click to expand...

    Mr Slatty this has been covered numero times on this board research it.

    I posted last night, that there seems to be a trend at the moment with some posters - or one poster!! about cars, and property development (all half baked ideas).

    Move on please.

    Poppy xx
     
    Upvote 0
    J

    Jerry D

  • #3
    papverpoppies said:
    Mr Slatty this has been covered numero times on this board research it.

    I posted last night, that there seems to be a trend at the moment with some posters - or one poster!! about cars, and property development (all half baked ideas).

    Move on please.

    Poppy xx
    Click to expand...


    Hello I am here for business advice not to mess around. The cars I wanted to hear your views but the property one seems to be a goer. I am just asking for some advice is what you do on a business fourm poppy
     
    Upvote 0
    papverpoppies

    papverpoppies

    Free Member
    Apr 8, 2009
    6,754
    2,208
    Fields, roadsides, gardens!
  • #6
    Mr Slatty said:
    Hello I am here for business advice not to mess around. The cars I wanted to hear your views but the property one seems to be a goer. I am just asking for some advice is what you do on a business fourm poppy
    Click to expand...

    That is the dilema/problem you cause, because you post trivia, it is taken as such - which is a shame, because there are genuine people wanting to get into the property business.

    You, and others like you, spoil it for them.

    Poppy xx
     
    Upvote 0
    K

    KDMINX

    Free Member
    Jan 6, 2010
    652
    101
  • #7
    Assuming you are asking about a residential buy-to-let investment. You must ensure that you know what you are doing.

    If you buy a £100k property with a £20k deposit and an £80k mortgage .

    This is a “5 times leveraged investment” which is a *VERY* high risk proposition. You could expect 5% pa rental income and 7% pa capital gain in the long term but as with all leveraged investments you need to be able to weather potential storms.

    How will you pay the mortgage if you don’t have a tenant for 6 months or interest rates double or we get a double dip recession and values drop 10% or all 3 at the same time?

    On the other hand if all goes to plan then you’ll be rich that’s the nature of leveraged investments!
     
    • Like
    Reactions: vvaannmmaann
    Upvote 0
    J

    Jerry D

  • #8
    papverpoppies said:
    That is the dilema/problem you cause, because you post trivia, it is taken as such - which is a shame, because there are genuine people wanting to get into the property business.

    You, and others like you, spoil it for them.

    Poppy xx
    Click to expand...


    Poppy I am not debating with you. I am asking for a simple bit of advice. I am also genuine, who you think you are comming on here and talking rubbish on my topic.
     
    Upvote 0
    L

    Lee Jones Jnr

  • #13
    When you wanted to get into the car industry yesterday you had £120k to invest.
    This is enough to buy and renovate 3 properties which will give you a gross income of £1185 per month without needing any mortgages.

    Do this before you ask for any more advice.
     
    • Like
    Reactions: papverpoppies
    Upvote 0
    L

    luvbusiness

  • #14
    The Trading Post said:
    When you wanted to get into the car industry yesterday you had £120k to invest.
    This is enough to buy and renovate 3 properties which will give you a gross income of £1185 per month without needing any mortgages.

    Do this before you ask for any more advice.
    Click to expand...

    Trading post where do you get those figures from.A previous poster stated that the income from house rental is about 5%.I know a house round my area that costs £150000 will generate something like £500 pcm.
     
    Upvote 0
    L

    Lee Jones Jnr

  • #15
    I get them from solid fact. I renovate and rent properties.
    I can and do buy for circa £30k, depending on condition it can be renovated for £5-10k and be a lovely clean tidy house and will rent within 2 weeks of going on the Market for £395 pcm.

    Simples.
     
    Upvote 0
    papverpoppies

    papverpoppies

    Free Member
    Apr 8, 2009
    6,754
    2,208
    Fields, roadsides, gardens!
  • #17
    luvbusiness said:
    Trading post where do you get those figures from.A previous poster stated that the income from house rental is about 5%.I know a house round my area that costs £150000 will generate something like £500 pcm.
    Click to expand...

    Search your local paper and estate agents, the property you buy to let does not have to be on your doorstep.

    Goodness houses can be purchased from £30.000 (less if a repossed) in some areas.

    Then again if you have mega books, then a nice house in Greenwich could cost you a cool £700.000+ and let for £3000 a month (and yes,) folks want them.

    You pays yer money, you takes yer choice.

    With £120.000 to invest the OP has more than enough to get his property portfolio well and truly off the ground.

    Poppy xx
     
    • Like
    Reactions: Lee Jones Jnr
    Upvote 0
    L

    luvbusiness

  • #18
    The Trading Post said:
    I get them from solid fact. I renovate and rent properties.
    I can and do buy for circa £30k, depending on condition it can be renovated for £5-10k and be a lovely clean tidy house and will rent within 2 weeks of going on the Market for £395 pcm.

    Simples.
    Click to expand...

    Ok good answer thanks for the info.Have a question for you then if you dont mind.If I wanted to sell a house and have a few thousand to spend on it what room being in the best condition is likely to get the sale.So should I spend my money on having a good bathroom or having lovely looking kitchen.And would that also apply to rented properties.

    Thank you
     
    Upvote 0
    Moneyman

    Moneyman

    Free Member
    May 3, 2008
    2,731
    776
  • #19
    There are no real bargain houses. If it is £30k it is that price for a reason.
    What you are talking about is what caused the whole financial bang.
    1) a deposit (as small as possible)
    2) a nice big bank mortage.
    3) a tennant
    4) a rapidly rising property market.
    5) fast turnover.

    1) you have
    2) well for the moment the banks have enough problems when you have 30% deposit
    3) where?
    4) hmm
    5) oh lordy no.

    When it's good it's very very good but when it's bad......bang oops bankruptcy.
     
    Upvote 0
    L

    Lee Jones Jnr

  • #20
    luvbusiness said:
    Ok good answer thanks for the info.Have a question for you then if you dont mind.If I wanted to sell a house and have a few thousand to spend on it what room being in the best condition is likely to get the sale.So should I spend my money on having a good bathroom or having lovely looking kitchen.And would that also apply to rented properties.

    Thank you
    Click to expand...

    It depends what price point the house is but generally the kitchen is a big selling point in a house. As long as the bathroom suite is white I wouldn't spend money there.
    Paint everything magnolia and white throughout and if the kitchen looks shabby replace the doors as you will be able to do that yourself so the money will be spent on something visible to a buyer rather than labour.
    Properties to let just need to be clean and tidy. I paint all the walls and ceilings magnolia and White, re carpet the house in the same carpet throughout, vision floor in the kitchen and bathroom, new kitchen and bathroom and windows/central heating if required.
    Higher value houses are different but that is not my market in terms of rentals so I am perhaps not in the best position to advise.
     
    Upvote 0
    L

    Lee Jones Jnr

  • #21
    Moneyman said:
    There are no real bargain houses. If it is £30k it is that price for a reason.
    What you are talking about is what caused the whole financial bang.
    1) a deposit (as small as possible)
    2) a nice big bank mortage.
    3) a tennant
    4) a rapidly rising property market.
    5) fast turnover.

    1) you have
    2) well for the moment the banks have enough problems when you have 30% deposit
    3) where?
    4) hmm
    5) oh lordy no.

    When it's good it's very very good but when it's bad......bang oops bankruptcy.
    Click to expand...

    Perhaps you can tell me where I am going wrong because the model I suggested seems to be working just fine - what shall I change?
     
    Upvote 0
    papverpoppies

    papverpoppies

    Free Member
    Apr 8, 2009
    6,754
    2,208
    Fields, roadsides, gardens!
  • #22
    luvbusiness said:
    Ok good answer thanks for the info.Have a question for you then if you dont mind.If I wanted to sell a house and have a few thousand to spend on it what room being in the best condition is likely to get the sale.So should I spend my money on having a good bathroom or having lovely looking kitchen.And would that also apply to rented properties.

    Thank you
    Click to expand...

    Kitchen is a major selling point - and you can create a nice bathroom for a few hundred (white suite) if possible.

    If selling I would put a better kitchen in, if renting functional, but not OTT, but that is just me.

    It all depends in both cases on who your target market is.

    I think (and I would find this very hard) not to over personalise the house if renting or selling) is a key factor clean, bright, and let the new owners etc use their own imagination on the blank canvas - sell them their dream, not yours!

    Outside looking clean and tidy is a must, as this is where the first impression is gained.

    Good Luck

    Poppy xx
     
    Upvote 0
    papverpoppies

    papverpoppies

    Free Member
    Apr 8, 2009
    6,754
    2,208
    Fields, roadsides, gardens!
  • #23
    Moneyman said:
    There are no real bargain houses. If it is £30k it is that price for a reason.
    What you are talking about is what caused the whole financial bang.
    1) a deposit (as small as possible)
    2) a nice big bank mortage.
    3) a tennant
    4) a rapidly rising property market.
    5) fast turnover.

    1) you have
    2) well for the moment the banks have enough problems when you have 30% deposit
    3) where?
    4) hmm
    5) oh lordy no.

    When it's good it's very very good but when it's bad......bang oops bankruptcy.
    Click to expand...


    How can you say (without knowing the exact area) that a house priced at £30.000 would have something badly wrong with it.

    If that is the going price give or take a few thousand for that area, what is the problem?

    As with anything property developing has it risks...but if you know your market, no your budget/limits and stick to them - it is a good business.

    After all, everoyone needs a place to call home!

    Poppy xx
     
    Upvote 0
    M

    MASSEY

  • #24
    luvbusiness said:
    Trading post where do you get those figures from.A previous poster stated that the income from house rental is about 5%.I know a house round my area that costs £150000 will generate something like £500 pcm.
    Click to expand...

    It varies from area to area,


    The simple fact is if you get 10 houses renovate and rent out one after the other keep them for 15 - 20 years

    You will be filthy rich ;)

    Simple as
     
    Last edited by a moderator:
    Upvote 0
    QuickHomeBuyers

    QuickHomeBuyers

    Free Member
    Jan 9, 2010
    2,218
    192
  • #25
    Every XYZ who wants to be a BTL king needs a bit of hardwork.

    Go to singingpig.co.uk and spend a few days going through the threads. Carefull of sharks.

    BMV is only a genuine BMV if sourced by yourself or a genuine company.

    If you wanna start in this property market and have £120k then I would suggest buy your first with 100% cash. Get it rent it and BTL mortgage it and then the next one.

    Seems easy but easier said than done.

    When you have done two we will still be here to assist you further.

    In the meantime get your flyers out on the streets. Spend some money advertising. If you target the right area you should have your phone ringing.

    Good luck.

    Further advise is available for £50+VAT / hr.
     
    Upvote 0
    L

    Lee Jones Jnr

  • #27
    Batra Ventures UK Limited said:
    Every XYZ who wants to be a BTL king needs a bit of hardwork.

    Go to singingpig.co.uk and spend a few days going through the threads. Carefull of sharks.

    BMV is only a genuine BMV if sourced by yourself or a genuine company.

    If you wanna start in this property market and have £120k then I would suggest buy your first with 100% cash. Get it rent it and BTL mortgage it and then the next one.

    Seems easy but easier said than done.

    When you have done two we will still be here to assist you further.

    In the meantime get your flyers out on the streets. Spend some money advertising. If you target the right area you should have your phone ringing.

    Good luck.

    Further advise is available for £50+VAT / hr.
    Click to expand...

    Flyers for what?
     
    Upvote 0
    M

    MASSEY

  • #31
    The Trading Post said:
    Nope, not filthy rich.
    You will be running a solid business with plenty of assets.
    Click to expand...

    Well i will be doing it on a private level ;) no business and i will be buying 2 this year wich will be tarted up and rented out, 2 the following year etc
    and they will be done in between any jobs i get as business.

    The only problem is the 40% tax on a second property, But if you live in that property for 3 years you dont have to pay 40% but there are also other ways around it,

    Its all about shuffling things around, and yes i will be filthy rich,
     
    Upvote 0
    QuickHomeBuyers

    QuickHomeBuyers

    Free Member
    Jan 9, 2010
    2,218
    192
  • #32
    MASSEY said:
    Well i will be doing it on a private level ;) no business and i will be buying 2 this year wich will be tarted up and rented out, 2 the following year etc
    and they will be done in between any jobs i get as business.

    The only problem is the 40% tax on a second property, But if you live in that property for 3 years you dont have to pay 40% but there are also other ways around it,

    Its all about shuffling things around, and yes i will be filthy rich,
    Click to expand...

    What 40% ?
     
    Upvote 0
    L

    Lee Jones Jnr

  • #33
    I don't ever spend my time trudging door to door to buy houses, there are plenty to buy without trying to take advantage of the desperate.
    As the OP can only afford 1-3 houses spending days leafletting seems like time wasted to me.
     
    Upvote 0
    L

    Lee Jones Jnr

  • #34
    MASSEY said:
    Well i will be doing it on a private level ;) no business and i will be buying 2 this year wich will be tarted up and rented out, 2 the following year etc
    and they will be done in between any jobs i get as business.

    The only problem is the 40% tax on a second property, But if you live in that property for 3 years you dont have to pay 40% but there are also other ways around it,

    Its all about shuffling things around, and yes i will be filthy rich,
    Click to expand...

    If you say so sweetie, you obviously know much more about letting houses than I do.
    We could also have different ideas about what constitutes filthy rich of course.
     
    Upvote 0
    M

    MASSEY

  • #35
    No i dont know a great deal, all i know is i can spend 10k materials on a 100k house put 30k on it in profit and rent it, and did it once but it had to be sold,

    And the labour costs will be only on the gas man :cool:

    Its a winning formula, Not that im boasting,
     
    Last edited by a moderator:
    Upvote 0
    L

    Lee Jones Jnr

  • #40
    MASSEY said:
    No i dont know a great deal, all i know is i can spend 10k materials on a 100k house put 30k on it in profit and rent it, and did it once but it had to be sold,

    And the labour costs will be only on the gas man :cool:

    Its a winning formula, Not that im boasting,
    Click to expand...

    Uh huh.
    Why did it have to be sold?
    Anyone who doesn't value their own time isn't thinking clearly.
    You've done it once. Well done. You do right not to boast.
     
    Upvote 0
    Log in to reply

    Latest Articles

    Join UK Business Forums for free business advice
    Top Bottom
    Community
    Articles
    Menu