The house looks good, well done. Down South the works done would have cost at least double for the labour. I would be interested if you posted a follow up about letting. I advertise my 3 bed HMO on Open Rent and ask for a message with a little about themselves. I like three friends ideally already in the city and looking for a nice house in a good central area, as mine is. If someone moves out they always seem to have a friend who would like to move in. I have never used agents, Letting a lovely refurbished 560K I want to meet the prospective tenants. Good luck.
Which building insurance are you with? Just shopping around for a better deal because we have history of subsidence and the BTL we have, the building insurance is a little pricey.
Hi, could you clarify the mortgage? You said 180,000 - but is that what it’s GDV is? Or is that 75% and the GDV is actually £240,000? Current rates are about 5.6%, so in that scenario I’m assuming it is actually worth 180,000 and you have a mortgage of £135,000? That’s the only way I managed to get around £600pcm in mortgage costs under the current rates. At £180k, mortgage cost is £840. Plus £400 you’re looking at a grand per month which isn’t bad. If it is indeed worth £240k, and £208k all in. Then £32k left in grossing £12k a year (excluding tax and maintenance) gives a return of 37.5% PA which isn’t bad. Just need to clear up on the GDV! Great video
I would say it's a £240k GDV with a 180k mortgage but I don't get how you will have a £600 pcm mortgage cost. That's a 4% interest rate on a HMO product, presumably Ltd Company & generally you would be looking at 5 to 5.5% for those types of products. With £1200 per month net profit that would be £14,400 per year and a 45% ROI based on £32k left in. I guess it sounds good, but the big factors are hitting that high GDV and also getting an interest rate below the Bank of England base rate. This is where you have to wonder if it's too good to be true. Just for fun I plumbed those numbers in to a mortgage calculator & the best rate to come out was 4.45% 2 year fixed with an £8k lender fee and charging £711 per month interest only. If anything those rates have come down of late, so if you were securing it a month or so ago then you would have been nowhere near. I also tried the numbers buying in personal ownership and there's a 4.03% rate with a £4k fee & £617 per month interest only payment. That's obviously closer to the numbers in this video, but if they've done it in personal ownership they'll be hammered with tax under section 24. Not too sure about this one.
Clearly numbers isn’t his best subject… probably because he isn’t using his own money, he’s not even project managing the builds either. I wouldn’t give him a penny of investment.
Well done and thanks fpr being transparent.
Everyone goes over budget and it takes longer, end values are usually inflated also.
The house looks good, well done. Down South the works done would have cost at least double for the labour.
I would be interested if you posted a follow up about letting.
I advertise my 3 bed HMO on Open Rent and ask for a message with a little about themselves.
I like three friends ideally already in the city and looking for a nice house in a good central area, as mine is.
If someone moves out they always seem to have a friend who would like to move in.
I have never used agents, Letting a lovely refurbished 560K I want to meet the prospective tenants. Good luck.
looks nice...seems like a loss though :(
Were is this property, ie area
Which building insurance are you with? Just shopping around for a better deal because we have history of subsidence and the BTL we have, the building insurance is a little pricey.
The numbers show that this was a loss even though the property looks nice. You spent above £70k to make £1200 a month not sure its an good investment.
Hi, could you clarify the mortgage? You said 180,000 - but is that what it’s GDV is? Or is that 75% and the GDV is actually £240,000?
Current rates are about 5.6%, so in that scenario I’m assuming it is actually worth 180,000 and you have a mortgage of £135,000? That’s the only way I managed to get around £600pcm in mortgage costs under the current rates.
At £180k, mortgage cost is £840. Plus £400 you’re looking at a grand per month which isn’t bad.
If it is indeed worth £240k, and £208k all in. Then £32k left in grossing £12k a year (excluding tax and maintenance) gives a return of 37.5% PA which isn’t bad. Just need to clear up on the GDV!
Great video
The interest rate on the mortgage I have worked out a 4% on 180,000 is 600 pm and has 28,000 left in if I have done my sums right
I would say it's a £240k GDV with a 180k mortgage but I don't get how you will have a £600 pcm mortgage cost. That's a 4% interest rate on a HMO product, presumably Ltd Company & generally you would be looking at 5 to 5.5% for those types of products.
With £1200 per month net profit that would be £14,400 per year and a 45% ROI based on £32k left in.
I guess it sounds good, but the big factors are hitting that high GDV and also getting an interest rate below the Bank of England base rate. This is where you have to wonder if it's too good to be true. Just for fun I plumbed those numbers in to a mortgage calculator & the best rate to come out was 4.45% 2 year fixed with an £8k lender fee and charging £711 per month interest only. If anything those rates have come down of late, so if you were securing it a month or so ago then you would have been nowhere near.
I also tried the numbers buying in personal ownership and there's a 4.03% rate with a £4k fee & £617 per month interest only payment. That's obviously closer to the numbers in this video, but if they've done it in personal ownership they'll be hammered with tax under section 24.
Not too sure about this one.
Clearly numbers isn’t his best subject… probably because he isn’t using his own money, he’s not even project managing the builds either. I wouldn’t give him a penny of investment.
Is that a consumer unit in the downstairs bedroom?
Hi, no the consumer unit is in the hallway.
Very confusing tour
Hi loving the videos would you be interested in working together ?
I will