Recommendations for next BTL investment?

by Readers Question

10:14 AM, 9th November 2014
About 6 years ago

Recommendations for next BTL investment?

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Recommendations for next BTL investment?

I have up to £300K to invest in BTL, and would welcome all suggestions for where the best location and what type of property would be for me to invest. Recommendations for next BTL investment?

Given problems I’ve had (continue to have) with purpose built new blocks, rip-off freeholders and agents, service charges, etc… I would prefer to avoid leasehold and high service charge commitments.

Also, should I use all cash or look to mortgage and buy more.

Regards

Lou Valdini


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Comments

Mark Alexander

17:35 PM, 18th November 2014
About 6 years ago

Reply to the comment left by "Smiles On Sea" at "18/11/2014 - 16:19":

Yes, and in return we will give you our viability tool and an introduction to the brokers who are experts in this type of finance.
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Smiles On Sea

17:54 PM, 18th November 2014
About 6 years ago

You can't be serious young man. It's like buying a cat in a bag. To access just knowledge of a product I first have to give a fee to you, then a fee to the broker, then as it happens I'll find out that the offering is actually uncompetitive, unviable, crap (you name it) and I've spent thousands for your enjoyment and not mine! If this was something they wanted to seriously promote and sell it would be out there in the open.

NewYorkie

17:57 PM, 18th November 2014
About 6 years ago

@smiles on sea ...go on, you know you want to do it.

Mark Alexander

18:12 PM, 18th November 2014
About 6 years ago

Reply to the comment left by "Smiles On Sea" at "18/11/2014 - 17:54":

Oh dear, oh dear!

Well I suppose you are entitled to your opinion, which is of course very brave and bold whilst you hide behind your pseudonym and picturesque Avatar.

In a few years time you may well be able to get everything you want for free, but that will not include the tools we've spent time and money developing to analyse these deals properly. Never mind though, you have plenty of time to build your own, good luck! 🙂
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Mark Alexander

18:50 PM, 18th November 2014
About 6 years ago

Reply to the comment left by "Smiles On Sea" at "18/11/2014 - 17:54":

Your latest comment was not approved due to the use of abusive language and personal insults. Your IP address has been blocked to prevent you from being able to post on this website ever again. Shame really as you are only the third person ever to suffer this fate. I don't mind people disagreeing with me but to hurl vile abuse at me on my own website is totally unacceptable.
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Ramus Wood

8:11 AM, 19th November 2014
About 6 years ago

Reply to the comment left by "Mark Alexander" at "13/11/2014 - 18:12":

You'd save £11k on interest, but you'd be giving up around £30k of the £75k of capital growth, right?

Mark Alexander

9:22 AM, 19th November 2014
About 6 years ago

Reply to the comment left by "Ramus Wood" at "19/11/2014 - 08:11":

Hi Ramus

How did you arrive at that figure please?
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Ramus Wood

9:52 AM, 19th November 2014
About 6 years ago

My understanding is that Castle Trust does not charge interest (I believe depending on property growth rates, etc) but take 40% of the increase in value of the property.

So, using Jonathan's calculations with paper income (i.e. capital growth) of £75k per year, then £75k*40%=£30k to Castle Trust . So the investor's annual income+profit from property would be £48k+£45k=£93k instead of £45k+£75k=£123k.

If this is wrong I would be happy to be corrected (would be delighted, actually, as I think this product fills an important gap and could be a very useful alternative source of funding). I would certainly consider using it myself, if the figures stacked up.

Mark Alexander

10:07 AM, 19th November 2014
About 6 years ago

Reply to the comment left by "Ramus Wood" at "19/11/2014 - 09:52":

Hi Ramus

What about the fact that you could buy nearly twice as many properties and the rising cashflow due to rental inflation? If you can buy twice as many properties but only give up 40% of the capital appreciation that alone leaves you 20% up on the deal, plus the increased cashflow.

Also, capital appreciation isn't guaranteed, payments of interest on the traditional mortgage financing is.

Without our spreadsheet model it is virtually impossible to be able to do comparisons to establish the optimal investment profile.
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Ramus Wood

12:35 PM, 19th November 2014
About 6 years ago

I have not run the numbers; could you perhaps provide a "worked example" using Jonathan's figures as an example?

Looking at CT's website - what is the difference between their "partnership mortgage" and "buy to let equity loan"? Is just that one is from your own residence/house and the other relates to purchase of new BTL properties?

Also, is there a minimum purchase price for BTLs and minimum (day job) salary to qualify?

Thanks

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