Another cowboy found.
- Thread starter ProDave
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I’ll get my coat
Trouble is ' right to buy ' whereby the council's would be forced to sell off the houses to tennants cheap - the public would expect councils to rent I think. And the simple fact that as their budgets have been slashed by 80% by central government, they haven't got the staff to make it happen, although I'm sure they could make it a self financing scheme of sorts.
NB apprenticeships are bad for our wages
Thing is the government make the rules so even if they keep the right to buy in place they can tweek it so they make sure they get their money back .. think it's 44% discount the sitting tennant can get as a discount. But have to be tennant for several years which isn't a problem as they have paid into the propertys. The one thing they would need to crack down on is multi purchases. I went to school with an lad who became quite influencing on the council of Rotherham. He purchase 3 x council property basically due to loopholes. Well not really loophole but family members rented them and he funded them to purchase. I'm sure there was some sort of agreement in place. It would be a lot harder to do these days with the checks that are in place..Trouble is ' right to buy ' whereby the council's would be forced to sell off the houses to tennants cheap - the public would expect councils to rent I think. And the simple fact that as their budgets have been slashed by 80% by central government, they haven't got the staff to make it happen, although I'm sure they could make it a self financing scheme of sorts.
NB apprenticeships are bad for our wages
Glad to say he is now at his majesty's service due to other things that went off in Rotherham.
Apprentice are prob bad for your wage but I'm sure the council's could subsided you for your expertise
. I guess this politic stuff is easier said than done. If I ruled the world eh.
discount was upto 70%, I believe. Trouble was Thatcher wouldn't let the councils reinvest money into building replacement council houses, and as people owned the properties, once the children had grown up and left you ended up with 3 bed houses ocupied by one elderly person. Councilsused to move theelderly to bungalows so a family could have the house.Thing is the government make the rules so even if they keep the right to buy in place they can tweek it so they make sure they get their money back .. think it's 44% discount the sitting tennant can get as a discount. But have to be tennant for several years which isn't a problem as they have paid into the propertys. The one thing they would need to crack down on is multi purchases. I went to school with an lad who became quite influencing on the council of Rotherham. He purchase 3 x council property basically due to loopholes. Well not really loophole but family members rented them and he funded them to purchase. I'm sure there was some sort of agreement in place. It would be a lot harder to do these days with the checks that are in place..
Glad to say he is now at his majesty's service due to other things that went off in Rotherham.
Apprentice are prob bad for your wage but I'm sure the council's could subsided you for your expertise
I guess this politic stuff is easier said than done. If I ruled the world eh.
Of 6 apprentices, only 2 made the distance. I actually find apprenctices bloody boring, when they aren't glued to their phones (and getting sacked for it), they have little to talk about. Anyway, I would probably end up teaching them 'non-standard' or 'not approved' methods these days
Politics is always easier said than done. My main gripe is the lack of longer term vision. What's happening now with affordable rentals was predicted when they first sold off council houses 35/40 years ago. Still, it's made a lot of private landlords happy(ish)
Your right Politicians always go for the short term fix and the long term suffers.
Talking of Bungalows. I know people think landlords are the devil's spawn but bungalows are something landlords don't touch but in the next few years bungalows will start getting snapped up by landlords. A report a few years ago reported around 3% of new builds need to be bungalows to meet the near future demand. Property developers just won't do it due to the amount of land they take up so over the last 2 years the actual figures have been 0.5% and 0.3%...
I'm not sure it's the apprentice who are boring it's young teenagers in general.
I know we all started as the young wipper snapper on site but you can't bully the young apprentice like we used to get bullied
Long stands, 2 yards of fallopian tube and tartan paint are now frowned upon...
Talking of Bungalows. I know people think landlords are the devil's spawn but bungalows are something landlords don't touch but in the next few years bungalows will start getting snapped up by landlords. A report a few years ago reported around 3% of new builds need to be bungalows to meet the near future demand. Property developers just won't do it due to the amount of land they take up so over the last 2 years the actual figures have been 0.5% and 0.3%...
I'm not sure it's the apprentice who are boring it's young teenagers in general.
I know we all started as the young wipper snapper on site but you can't bully the young apprentice like we used to get bullied
Long stands, 2 yards of fallopian tube and tartan paint are now frowned upon...
Bungalows have always fetched a premium, so don't really think they fit a landlords business model that well, but with an ageing population demand will surely rise. Out of interest, what's your take on property for disabled people?
It wasn't bullying, it's a right of passage
. Trouble with youngsters is their lack of life experience means conversations are limited, so you end up talking to them not with them, and even then they don't seem to ask questions - too busy watching funny cat videos 
When you say property for disable people. Do you mean someone who is disabled but able to care for themself. Or specialist support property's that Inc live in carers.
As a landlord if the property is let to anyone who is disabled which also Inc people who claim PIP their are certain auxiliary equipment that has to be inc. or at least available to the Tennant.
If it's specialist housing a bungalow is perfect for this as the property is converted to meet the needs of the tennant and Tbh regards ROI these make a sack full of money.
As an example a 200k property would generate around 1k in rent. Change it to specialist housing and the price more than doubles..
Would I do the above. Prob not as the rules and regs are way above my pay grade and small mistakes can cost a fortune.
I've actually got a tennant not really disabled but who was recovering from cancer. He had additional needs, grab rails, any slip mats ect. he moved in about 3 month ago.
He called me Monday and was having trouble with the heating controls. When I got there he was telling me, sadly his cancer has returned and spent the last 3 week in hospital. whilst in hospital his cousin had been living in the house,. Fiddled with the controller and screwed up the timing.
Tbh for a young lad he looked 70 And I will be surprised if he gets through it this time..
As a landlord if the property is let to anyone who is disabled which also Inc people who claim PIP their are certain auxiliary equipment that has to be inc. or at least available to the Tennant.
If it's specialist housing a bungalow is perfect for this as the property is converted to meet the needs of the tennant and Tbh regards ROI these make a sack full of money.
As an example a 200k property would generate around 1k in rent. Change it to specialist housing and the price more than doubles..
Would I do the above. Prob not as the rules and regs are way above my pay grade and small mistakes can cost a fortune.
I've actually got a tennant not really disabled but who was recovering from cancer. He had additional needs, grab rails, any slip mats ect. he moved in about 3 month ago.
He called me Monday and was having trouble with the heating controls. When I got there he was telling me, sadly his cancer has returned and spent the last 3 week in hospital. whilst in hospital his cousin had been living in the house,. Fiddled with the controller and screwed up the timing.
Tbh for a young lad he looked 70 And I will be surprised if he gets through it this time..
I wasn't thinking of live in carers, that's more nursing home territory. I was just thinking about opportunities with regards to an aging population, and of course, those born with disabilities for which suitab;e rental properties are hard to find.
I looked into BTL a few years ago, and concluded there was easier ways to make a living. We were looking at ex council houses (becuase they are a solid construction) around the £120l mark. Even with ne doing any work to tidy a proprty up, we calculated that it would take about 5 years to get the costs of buying back, so decided not to bother. Such properties have now increased in price significantly, so no chance!. But I still like to keep options open on the money we have saved in the bank. As far as I can see, unless you inherit a house, or bought around 10 years ago, it's hard to make the figures stack up as a landlord.
You won't get rich from the rent returns. It's the compound that makes the money. And most people see 120k house and think I'm only getting about 3k profit per year from it so why bother.
The perfect way is to buy the 120k at Bmv.
Typically around 10 year ago the difference in a renovated property and a unrenovated was 45-50k lower.
Spent 15-20k on it then get a BTL mortgage on it at the renovated price. This would give you 90% of your money back.
Since covid this is near on Impossible to do and theirs always 20k plus left in a property so technically your 120k could buy around 4 property's.
Now if you bought 1 property for 120k without a mortgage and the rent return per month was £700 ish was. After costs you would get arounds £600 profit per month.
If you bought 4 property's with btl mortgages at £700 pcm each property after costs would return around £200 each.
There are pros and cons to both.
If you own 1 house there's less maintenance, less risk
Thought the rent is either 100% or 0.
If you own this property for 10 years. The AVG house price rises about 7.9 per year. If you go conservative and say 5% in 10 years that 120k will be worth 195k plus. So you get £7200 rent profit per year (doesn't Inc rent rise) £72000 plus the house price rises of £75000
= 147k over 10 years.
Now if you use the 120k and buy 4 property the cons are higher risk. More maintenance. More refurbs. Positives higher return and the voids can be 100%. 75% 50% 25% or 0..
So the rent return for all 4 is £9600 per year £96k after 10 years and the compound is 75k per house 300k so after 10 years you end up with 396k.
Now this is where the landlords prosper. After owning the 120k property for 5 years it is now valued at 153k. You get a 75% BTL on that property and you get a mortgage for 115k. So technically you only have 5k left in the property of your own money. And 115k back in your bank
Sorry for the babbling post I won't bore you with the ROI sums
The perfect way is to buy the 120k at Bmv.
Typically around 10 year ago the difference in a renovated property and a unrenovated was 45-50k lower.
Spent 15-20k on it then get a BTL mortgage on it at the renovated price. This would give you 90% of your money back.
Since covid this is near on Impossible to do and theirs always 20k plus left in a property so technically your 120k could buy around 4 property's.
Now if you bought 1 property for 120k without a mortgage and the rent return per month was £700 ish was. After costs you would get arounds £600 profit per month.
If you bought 4 property's with btl mortgages at £700 pcm each property after costs would return around £200 each.
There are pros and cons to both.
If you own 1 house there's less maintenance, less risk
Thought the rent is either 100% or 0.
If you own this property for 10 years. The AVG house price rises about 7.9 per year. If you go conservative and say 5% in 10 years that 120k will be worth 195k plus. So you get £7200 rent profit per year (doesn't Inc rent rise) £72000 plus the house price rises of £75000
= 147k over 10 years.
Now if you use the 120k and buy 4 property the cons are higher risk. More maintenance. More refurbs. Positives higher return and the voids can be 100%. 75% 50% 25% or 0..
So the rent return for all 4 is £9600 per year £96k after 10 years and the compound is 75k per house 300k so after 10 years you end up with 396k.
Now this is where the landlords prosper. After owning the 120k property for 5 years it is now valued at 153k. You get a 75% BTL on that property and you get a mortgage for 115k. So technically you only have 5k left in the property of your own money. And 115k back in your bank
Sorry for the babbling post I won't bore you with the ROI sums
While looking at the initial costs you have to take into account that the property will generally appreciate in value which would offset some if not all of the costs involved
A few years ago my brother bought a couple of houses with deposits of around 30 - 50% the mortgage interest rate he got on the balance was around 2½% the ROI has been in the order of 5 - 7% so using the banks money has given him a decent interest rate from the bank by using their money to buy the property than they would have given him in savings
There was still property to be had at the right price as a BTL upto 2 - 3 years ago the big thing is when refurbing or refreshing a property to let is setting the level and expenditure to get it to a minimal habitable level, it is totally pointless going for high end refurbs if the return is not there
So you are both still looking at capital gains. I keep thinking property prices will fall, and being proven wrong
.We refurbished my in laws house a few years ago, it was a doddle, apart from clearing out the hoarding mess they left us. Their house was perfect, solid construction, no issues like leaking roof, just needed a make over to add value. I've looked a few times for similar properties near where we live, but they seem to go for silly money these days, and my wife isn't keen on risking our hard earned capital.
Personally, I would love to do this as my day job rather than sparkying, with a view to selling rather than keeping and renting.
I've gone away from flips from 2000 to 2019 it's all I did. 2 maybe 3 a year and a steady income. I would take 20% out and invest the rest Though I wish I knew what I know now.
Flips are hard to make more than 20% on these days and considering you need cash to make it work, they take about 9 month to buy, sell and renovate. So It's 1 a year unless you have a good starting stack. Ow and let's not forget the good old government reducing capital gains tax from £12.200 down to £6000 next April then £3000 in April 2024 Don't get me wrong. If you can make say 20k for 3 months work it's a easy living and I love it. I'm a plaster by trade and trained as a bricky before thinking to myself no thanks so it's all I know.
When I get 5, I will ship you some images over of the last flip I did. Took me 12 month to do Inc a 5x5mt extension but it was worth the. Fek me did I do that feeling
Flips are hard to make more than 20% on these days and considering you need cash to make it work, they take about 9 month to buy, sell and renovate. So It's 1 a year unless you have a good starting stack. Ow and let's not forget the good old government reducing capital gains tax from £12.200 down to £6000 next April then £3000 in April 2024 Don't get me wrong. If you can make say 20k for 3 months work it's a easy living and I love it. I'm a plaster by trade and trained as a bricky before thinking to myself no thanks so it's all I know.
When I get 5, I will ship you some images over of the last flip I did. Took me 12 month to do Inc a 5x5mt extension but it was worth the. Fek me did I do that feeling
We have sufficient funds to buy ' first time buyer ' properties for cash. My problem is persuading the wife, who is extremely risk adverse
.If it's taking more than 3 months to renovate, I would say that's too much work, but then if you double the return...
A friend of mine went down this route a decade or so ago. Last time I saw him he had tried moving up a level and regretted it as it was far harder to sell even if he did make more money from it.
First time buyers property are perfect for flips. I've had several property from newish builds to a 1790 property high end to first time stuff. Your mate is right there is no need to go away from the first time buyers stuffWe have sufficient funds to buy ' first time buyer ' properties for cash. My problem is persuading the wife, who is extremely risk adverse
If it's taking more than 3 months to renovate, I would say that's too much work, but then if you double the return...
A friend of mine went down this route a decade or so ago. Last time I saw him he had tried moving up a level and regretted it as it was far harder to sell even if he did make more money from it.
With today's youngsters very few want to get their hands dirty or have the knowledge to renovate a property so see the bling and drool over what you have done.
My advise regarding the wife is. Listen to her. There is no point you committing to doing this if the wife doesn't want to.
Regardless of who has contributed the most to the saving. half of it is hers and if she is not comfortable doing it then imo you don't.
Sadly inflation erodes you savings. If you have eg £100,000 in the bank Even though the banks are advertising 5% plus by the time you pay tax you are looking to get under 4k on 100k in the bank.
Sadly inflation is so high you have infact reduced you savings by 6k. Well not actually reduced it. You would still have £103,900 but the thing you can buy this year for 100k is now valued at 110k. Sorry I'm babbling again and trying to tell you how to suck eggs
I nearly became an accidental landlord last year
So the sums £1200 per month after fees = £14400 less taxes equals about £11500
Or
£300k @1.5 = £4500 less tax equals about £3800
Choices, choices
So the sums £1200 per month after fees = £14400 less taxes equals about £11500
Or
£300k @1.5 = £4500 less tax equals about £3800
Choices, choices
We have noticed people can't see beyond the decor, apart from lacking DIY skills. I think it's also fair to say first time buyers can't afford to buy a property then do it up, so if it's ready done they effectively finance the renovations through the mortgage.
I get little choice
Well aware of that, we have money invested in various things, the gold is doing well currently. But we are fortunate in that we have good pension provision, although mine isn't worth taking until I'm 60. If we decided to try flipping a property, that's probably when we will do it, as it will keep me busy with a project to work on. Currently I'm really too busy looking after my clients, who are good customers, and providing me a reasonable income. So the nest egg is for holidays and other capitol expenditure until we reach 67, when between our own and state pensions we will be better off than we are now.
Imo you have good customers so keep servicing them and get your holiday money from that. No point trying to reinvent the wheel occupation wise when the job your doing is something you could do in your sleep.
For me at 60 I'm thinking of slowing down not trying to renovate a house to make holiday money
For me at 60 I'm thinking of slowing down not trying to renovate a house to make holiday money
It's more the enjoyment of completing a whole project, that appeals to me, and electrical work has become a little boring - no challenge anymore. Holiday money is about all I'm working for, plus tax advantage of having a business.
I slowed down a while ago due to arthritis in my shoulder, fortunately we have always paid off the bills and lived a comfortable but frugal life, and the wife banked a lot of the money from when solar was busy. Retiring early has always been our agenda, and it's paying off, but I see far too many tradespeople who have blown money when younger and are forced to keep working with injuries like mine, and suffering as a consequence. I don't envy them one bit.
I consider my position fortunate, but one we have worked for. Might just go plant trees to keep busy rather than flip houses. Doing something good for the planet is as interesting to me as making money, plus the exercise is always good despite the injuries
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If we are into accidental landlord teritory now, I am one. 8 years ago, we tried to sell our old house as we were starting the build of the new one. I tried to sell the old house but it sat on the market for 3 years with no buyers in a dead market with many other similar houses also just sitting unsold. Everyone said if it is not selling it was over priced, but if we reduced the price much more we would be selling a 5 bedroom house for more than the cost of building the new 3 bedroom house, i.e. it would be costing us money to downsize, which would be just plain stupid.
So we reluctantly let the old house to a T who said he wanted to buy it in a few years. 8 years of rental income now has largely paid for completing the new build, but we still own both. And the T seems no closer to being able to buy the house so early next year we serve notice so we can try again to sell it on the open market.
I am totally fed up with having our largest asset stuck like this and with retirement now just around the corner I want it gone and the pot of money to play with.
So we reluctantly let the old house to a T who said he wanted to buy it in a few years. 8 years of rental income now has largely paid for completing the new build, but we still own both. And the T seems no closer to being able to buy the house so early next year we serve notice so we can try again to sell it on the open market.
I am totally fed up with having our largest asset stuck like this and with retirement now just around the corner I want it gone and the pot of money to play with.
