Frank Coles

Registered with
Wednesday 26th February 2014

Latest Comments

Total Number of Property118 Comments: 4

Frank Coles

10:07 AM, 13th August 2014, About 7 years ago

Naive Questions from Landlords?

I worked in property in the early years of BTL and then left the country and worked in media. Now back in the country I am picking up where I left off some years on with BTL/Commerical/self financed and many of my questions are purposefully naive so that I can generate the obvious answers.

It's the obvious that we miss all too easily.

As a post I read yesterday about the six-month-rule-that-doesn't-exist-in-all-cases demonstrates, sometimes the knowledge that people have is merely received wisdom. Challenges are required.

If you don't want to read something you don't have to, it's that simple. It's a shame though. If someone has that much experience then surely they'd have something useful to pass on?

Or maybe not...... Read More

Frank Coles

8:39 AM, 12th August 2014, About 7 years ago

Reduction in Capital Gains by transferring to spouse


I'm reading this with interest as my partner and I are in a similar position with one of our mortgaged BTL properties down in that there London.

About the dual ownership transfer Mark said in the link:
"The short answer to your question is yes and it could save you a lot of money. The key to this is that you MUST be married (which you are) or in a Civil Partnership. Adding your kids for example would not work because that would trigger CGT on the transfer to them. Transfers between spouses are CGT exempt so it works. The tax man seems to like married landlords 

The transaction takes place on the day of completion of the sale. It is a relatively simple transaction but the paperwork and timing have to be spot on for it to work."

So my side-question is simple, are the mortgage lenders involved at all or are they cut out completely during the change?

I will have a chat to my solicitor about this as well and see what he says. Interesting read on the "six month rule". Out of five BTL/commercial brokers I've spoken to recently they have all invoked this rule (as I primarily want to buy cash at auction and refinance later).

Do let us know how you get on Richard.

Cheers, F... Read More

Frank Coles

16:11 PM, 26th February 2014, About 7 years ago

ROI calculation, which do you use?

Reply to the comment left by "Mark Alexander" at "26/02/2014 - 15:33":

Hi Mark,

Sorry, left out the obvious. The yields/roi in this case are for BTL properties mainly. If they all add up then it's a good project as per your (1).

Running the numbers in this way will also give you your overheads while flipping (2), these do affect your ROI, and it identifies your negative cashflow for (3).

Basically I needed to counter the reams of conflicting advice online and from people, in the last day I've had 5% offered as a good yield (but no indication of gross or net), 8% net min from a developer, and 20% min from a random.

As any BTLs are investments over time a little more research upfront to source high yield income properties in good rental areas seems time well-spent as those little % add up.

Property trades: buy low/sell high are something I'm interested in and learning more about. Speculation is something we are already doing but finding it harder to find the properties now tbh.

Where did you get that BofE natural rate info from btw? I'd love to see more on that.

Cheers. F... Read More

Frank Coles

10:45 AM, 26th February 2014, About 7 years ago

ROI calculation, which do you use?

Reply to the comment left by "MdeB " at "25/02/2014 - 01:32":


Thanks all for your responses to my original question. Clearly no one has a definitive answer on this and mostly we are all working on received and possibly faulty wisdom.

Here's how I structured my yield spreadsheet in Excel. Each potential property has a separate entry that returns values for:

1. Gross yield = (Monthly rent * 12) / Cost of property
2. Net rental yield = ((Monthly rent - running costs) * 12) / (Cost of property + purchase costs)
3. ROI 1 = (net income/investment (deposit+purchase costs) x 100)
4. ROI 2 = (gross income/investment (purchase price + purchase costs) x 100)

Each answer is then formatted to display a red danger colour for low yields and a graded green for a go (research or buy) decision.

Very useful as a psychological tool as well. Took a day to train myself that red means walk away, not see if I can make it work.

In one day I've found more go projects than I knew were there before and have cut down the research time enormously. I also won't have to stretch myself thin or overfinance.

Cheers, F... Read More