How do you make money on this

[Jerry D]

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]

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.

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

 

[Jerry D]

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

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

 

[brownie]

lol

I see all your other rubbish has been deleted, you not been banned yet?

 

[Jerry D]

lol

I see all your other rubbish has been deleted, you not been banned yet?

Hello I am here for serious advice I have no idea why admin removed my other post.

 

[papverpoppies]

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

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

 

[KDMINX]

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!

 

[Jerry D]

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

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.

 

[brownie]

How come such a successfull businessman like yourself Mr Slatty is asking such a dense question?

 

[Jerry D]

How come such a successfull businessman like yourself Mr Slatty is asking such a dense question?

No idea on property thats why.

 

[vvaannmmaann]

OP try this?
http://www.landlordshow.info/Home.asp

Or this
www.singingpig.co.uk
(Be careful in here,they take no prisoners)

www.landlordzone.co.uk

www.arla (can't remember the rest sorry)

 

[brownie]

No idea on property thats why.

And considering your wealth and success you mentioned yesterday, you do not have contacts or an adviser to assist? Seems strange asking on an internet forum. :|

 

[Lee Jones Jnr]

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.

 

[luvbusiness]

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.

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.

 

[Lee Jones Jnr]

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.

 

[Lee Jones Jnr]

Of course I do give myself a discount on the kitchens and bathrooms...

 

[papverpoppies]

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.

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

 

[luvbusiness]

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.

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

 

[Moneyman]

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.

 

[Lee Jones Jnr]

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

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.

 

[Lee Jones Jnr]

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.

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?

 

[papverpoppies]

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

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

 

[papverpoppies]

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.

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

 

[MASSEY]

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.

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

 

[QuickHomeBuyers]

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.

 

[Lee Jones Jnr]

Nope, not filthy rich.
You will be running a solid business with plenty of assets.

 

[Lee Jones Jnr]

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.

Flyers for what?

 

[QuickHomeBuyers]

Flyers for what?

www.batraventures.co.uk/fileshare/hbfc.doc

 

[Lee Jones Jnr]

Wasted effort in this case. No leaflets required.

 

[QuickHomeBuyers]

Wasted effort in this case. No leaflets required.

Why is so ?

 

[MASSEY]

Nope, not filthy rich.
You will be running a solid business with plenty of assets.

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,

 

[QuickHomeBuyers]

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,

What 40% ?

 

[Lee Jones Jnr]

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.

 

[Lee Jones Jnr]

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,

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.

 

[MASSEY]

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

Its a winning formula, Not that im boasting,

 

[Lee Jones Jnr]

What 40% ?

I think he means tax on unearned income.

 

[MASSEY]

What 40% ?

I just mean capital gains tax in genral 40% is probably too high a figure,

 

[QuickHomeBuyers]

I think he means tax on unearned income.

lol

The following errors occurred with your submission:

1. The message you have entered is too short. Please lengthen your message to at least 10 characters.

 

[QuickHomeBuyers]

I just mean capital gains tax in genral 40% is probably too high a figure,

And what is the source to back up that claim ?

 

[Lee Jones Jnr]

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

Its a winning formula, Not that im boasting,

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.