VIRGIN property investor needs advice

by Readers Question

12:39 PM, 24th November 2013
About 7 years ago

VIRGIN property investor needs advice

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VIRGIN property investor needs advice

VIRGIN investor needs help (male sorry lol) – 6 questions incl – Always get new fixed BTL mortgages? And if so for 1,2,or 5 years? Always interest only? And other VERY important questions – HELP!

I am new to doing this BTL thingie – I am now adding to my one BTL property in the UK with two more in the UK (and one off plan in UK – and 4 in South Africa which are best forgotten. This is a 10-20 yr plan I guess

I have 6 very important questions for you experienced seasoned investors out there:

1 – I have been given options for 75% LTV mortgages 1,2, and 5 yr fixed periods.
Should I fix the mortgages? and if so for 5 yrs? My concern is as interest rates are likely to go up in the next year or two at least I’ll know what my monthly outgoings will be. BUT I couldn’t remortgage them to get some of the equity in them to use towards other property during the fixed period without paying early redemption

2 – What is the secret to releasing equity from existing BTL’s then using that money to buy more BTLs? How long do you expert investors typically get mortgages for – 1yr? Do you not get worried about mortgaging the properties to their maximum and if interest rates then go up?

3 – Do you always try get the shortest mortgage possible in order to then raise equity as soon as possible to reinvest in new BTL’s?

4 – Do you always get interest only mortgages?

5 – Do your then somehow pay lump sums off annually which is more tax efficient? Or let them run on interest only until selling them?

6 – Do you buy off-plan? Is it okay to do so if it is a good development? Any major no no’s for doing so?

And any other investment advice principles of building a successful portfolio would be very very very much appreciated before I make a possible BIG mistake by choosing the wrong mortgage etc VIRGIN property investor needs advice

THANK you in advance for helping a newbie.

Brian


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Comments

Mark Alexander

12:44 PM, 24th November 2013
About 7 years ago

Hi Brian

These are all good questions to be asking before you jump in with both feet.

I have documented the strategy which I have developed over nearly 25 years in this business and I think you will find the various chapters of my story answer all of you questions and many more. Please see >>> http://www.property118.com/how-to-become-a-landlord/60765/

Good luck and please feel free to keep asking more questions.
.

12:53 PM, 24th November 2013
About 7 years ago

Hi Brian,

All those questions have been answered on Property Tribes, but I don't want to just present a set of links to the answers.

I would like to invite to post the same set of questions on PT, and I will answer them there and provide the links.

I think it is very important to get a variety of inputs to help you build your own personal answer.

I regularly provide links back to Property118 where there is useful information to benefit the PT community.

Fortunately, you have come into an environment where there are authentic levels of support. Not people trying to flog you a "get rich quick" seminar.

Take your time, read as much as you can, have as many inputs as you can, and build your own personal answer. Property is not a case of one size fits all, so make sure you take responsibility for your choices. The wise way to do that is through education and networking, so you have made a positive start by asking such important questions.

Best of luck.

Colin Childs

19:10 PM, 24th November 2013
About 7 years ago

A rhetorical question for you to consider. On what basis do you expect property prices to rise sufficiently to generate equity to fund future property purchases?

There was a period of time when this was the main driver of the BTL fad. In my locality the property market in general has been at best flat for an extended period of time. Certainly still off the 2007/08 peak levels.

Brian Barn

19:29 PM, 24th November 2013
About 7 years ago

Reply to the comment left by "Colin Childs" at "24/11/2013 - 19:10":

Hi Colin
Well in Manchester there is £800-million going on developing their existing airport.
Also in London all the areas near the new cross-rail stations will increase in value by virtue of better infra-structure and billions being spent...........
So London or Manchester?
Anyway its a hunch.....
Thanks
Brian

Brian Barn

19:31 PM, 24th November 2013
About 7 years ago

Reply to the comment left by "Mark Alexander" at "24/11/2013 - 12:44":

Thank you very much Mark!
Now just to decide where to buy - Manchester with its expansion of its airport or London along cross-rail areas? Any suggestions?
Regards
Brian

Brian Barn

19:33 PM, 24th November 2013
About 7 years ago

Reply to the comment left by "Vanessa Warwick" at "24/11/2013 - 12:53":

Thank you Vanessa - I'm off to post in PT now..................
😉


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