Advice on building a property portfolio?
Discussion
Hi Folks,
I am after a bit of advice please. After a rocky couple of years and a messy break up with the Mrs i am left with a house i built and finished just over a year ago that i am struggling to sell. It currently sits in a Ltd company. Is worth c.£1.2M, i owe £200k on it that i have recently set up as an interest only buy to let mortgage (settled bridge loan from build).
Due to struggling to sell the property i have decided to rent it out and today have received an offer that after agent fees would leave me with c.£4500 per month with the only outgoings the £1300 buy to let mortgage per month.
Original plan was always to sell the house but this has proved to be almost impossible in the current market (11 months of trying!) and use the equity to buy circa 15-20 buy to let flats...
Given the house is now going to be rented out at a half decent profit but has a load of equity tied into it can anyone advise on a sensible way to create a large portfolio whilst keeping this house?
For now i would not want to put any more of my own money into the business and don't currently need to take any income from it as i have a full time job.
Any advice would be really appreciated or if someone could point me in the direction of a professional that could advise on the above?
I am after a bit of advice please. After a rocky couple of years and a messy break up with the Mrs i am left with a house i built and finished just over a year ago that i am struggling to sell. It currently sits in a Ltd company. Is worth c.£1.2M, i owe £200k on it that i have recently set up as an interest only buy to let mortgage (settled bridge loan from build).
Due to struggling to sell the property i have decided to rent it out and today have received an offer that after agent fees would leave me with c.£4500 per month with the only outgoings the £1300 buy to let mortgage per month.
Original plan was always to sell the house but this has proved to be almost impossible in the current market (11 months of trying!) and use the equity to buy circa 15-20 buy to let flats...
Given the house is now going to be rented out at a half decent profit but has a load of equity tied into it can anyone advise on a sensible way to create a large portfolio whilst keeping this house?
For now i would not want to put any more of my own money into the business and don't currently need to take any income from it as i have a full time job.
Any advice would be really appreciated or if someone could point me in the direction of a professional that could advise on the above?
Blowfish said:
Hi Folks,
I am after a bit of advice please. After a rocky couple of years and a messy break up with the Mrs i am left with a house i built and finished just over a year ago that i am struggling to sell. It currently sits in a Ltd company. Is worth c.£1.2M, i owe £200k on it that i have recently set up as an interest only buy to let mortgage (settled bridge loan from build).
Due to struggling to sell the property i have decided to rent it out and today have received an offer that after agent fees would leave me with c.£4500 per month with the only outgoings the £1300 buy to let mortgage per month.
Original plan was always to sell the house but this has proved to be almost impossible in the current market (11 months of trying!) and use the equity to buy circa 15-20 buy to let flats...
Given the house is now going to be rented out at a half decent profit but has a load of equity tied into it can anyone advise on a sensible way to create a large portfolio whilst keeping this house?
For now i would not want to put any more of my own money into the business and don't currently need to take any income from it as i have a full time job.
Any advice would be really appreciated or if someone could point me in the direction of a professional that could advise on the above?
It is slightly different as it sits in a company, all loans etc. need to be in the name of the company. I assume it is a registered property company?I am after a bit of advice please. After a rocky couple of years and a messy break up with the Mrs i am left with a house i built and finished just over a year ago that i am struggling to sell. It currently sits in a Ltd company. Is worth c.£1.2M, i owe £200k on it that i have recently set up as an interest only buy to let mortgage (settled bridge loan from build).
Due to struggling to sell the property i have decided to rent it out and today have received an offer that after agent fees would leave me with c.£4500 per month with the only outgoings the £1300 buy to let mortgage per month.
Original plan was always to sell the house but this has proved to be almost impossible in the current market (11 months of trying!) and use the equity to buy circa 15-20 buy to let flats...
Given the house is now going to be rented out at a half decent profit but has a load of equity tied into it can anyone advise on a sensible way to create a large portfolio whilst keeping this house?
For now i would not want to put any more of my own money into the business and don't currently need to take any income from it as i have a full time job.
Any advice would be really appreciated or if someone could point me in the direction of a professional that could advise on the above?
Cross collateral bridge loan using the main residence as the source of funds meaning no money would need putting down as I suspect your looking at lower value properties?, the rental income can more than service the bridging fees and then remortgage the property once renovated and value uplifted to release the bulk of the funds back and pay off the bridge. With that amount of equity/cash to utilise you can very quickly build a sizeable portfolio.
Luke. said:
Wouldn't advise getting into at all. All benefits the landlord used to enjoy have been wiped out and now you've got the Renter's Rights Bill...
^^^ This. The BTL party has been over for a long time now. Two realistic possibilities,1. Get that remaining mortgage paid off asap and live in it tax free for as long as you choose, or
2. Sell it now, pocket the cash and spend your million on having a good time on costa del whatever-or-other.
Did I remember to say the BTL party is over?
Peterpetrole said:
At £4500 a month, assuming NO other costs, NO voids etc. you're making 4.5% ROI. Not awful but not worth it.
I would simply say a house doesn't sell because it is too expensive. That's the only reason. Sell it for a million and put the money into something else.
When you take into account the IO mortgage 3.8%. Looks an expensive IO rate (7.8% or so)I would simply say a house doesn't sell because it is too expensive. That's the only reason. Sell it for a million and put the money into something else.
If you can get a lower IO mortgage rate, then increase the mortgage to buy a couple of BTL from landlords looking to offload them. At your current borrowing costs, makes little sense though
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