Forum Replies Created
Me again,
With regard to leasehold, make sure you target property with a 999 year lease. Most property I have pencilled in are both lease and freehold. The leasehold property has on average 900 years to run. The is a nominal 2 pounds payable per year on these lease hold property.
Property purchase prices.
I will be able to implement my refinance mechanism on property to acquire as many as as I like with the purchase price topping around 45k pound (approx 113k AUD).
If I was to buy a property for say 260k pounds (approx 650k AUD) my number of property available to purchase would be severely limited for my situation. Everyone is different.Now the Manchester region could be likened to the Sydney/Melbourne/Brisbane basins. Large areas with very differing population makeups and desirability areas. If you buy in a Jewish area, prices are well maintained whereas an area made up of Pakistanis is a few rungs down the ladder.
I am not saying anything untoward about differing races/religion etc, yet you must make an informed decision based on some of this previous information.Regions throughout Manchester are going through regeneration, which takes place over a 15 year period. An area which has passed through government regeneration is Salford Quays. http://www.salford.gov.uk.
A current area under 15 year regeneration is Nelson http://www.burnley.gov.uk.Must dash
Regards
Afloat – head above water
Try these for size Greg,
I’m targeting my buying within areas of government regeneration. These areas are regenerated over about a 14 year period. Salford Quays is a good area to look at what can be achieved and a current area is Burnley/Nelson.
http://www.burnley.gov.uk
http://www.salford.gov.ukAlso try http://www.clickanduse.hmso.gov.uk
For neighbourhood stats and residential property prices try the land registry, a good local search engine is askjeeves.com
Anymore info – just yell
regards
Afloat – head above water
Hi Brendon,
My home work found this to be the best for my position.
Fund the 1st property from Australia. This then shows that the first property in UK has no finance on it locally.
From there I seek a mortgage to 80% of the new valuation, after I have done some refurb, curtains, carpets and have a tenant in place so the property shows an income stream.
The financiers we will be using are looking at 3 areas we must meet, 1/ security 2/ willingness 3/ ability on our loans. And to boot the interest rates we are looking at are currently 3.8% IO fixed 5 yr & tied for 3, pretty damm inviting I must say.The 80% that I am borrowing against the first property is = to the purchase price of the second property. Which when revalued will allow me to make another aqusition similiar to the first.
All the property that I’m targeting are 2st, 2 bed terraces, so they all are very similiar in size and layout.
The properties that I am purchasing are from distressed sellers, therefore I am helping them out of a squeeze for a reduced sale price. We both win actually, they clear the debt and I get a property at a reduced price.
I have had independent surveyors check out the properties and their report satisfies the banks criteria. In other words, there have been no artificial inflation of prices.As far as exchange rates go, it is only the properties that I initially fund from Aust that are effected then as I remitt rental funds back home, bring it back to a sterling account locally and gauge the best rates locally before turning them into AUD’s $.
Best regards
Afloat – head above water
Hi Misty,
As an Australian citizen/resident you can purchase property in the UK.
You can also purchase/refinance property as an individual or through your company/trust.
If you purchase through your company/trust it takes some more time to refinance properties as against in your own name.Regards
Afloat – head above water
The properties are both freehold and leasehold. Lease hold is is 999 years, which are treated equally to freehold. This is important as the lenders have no problems with free or lease.
Comfort zones on the other side of this planet absolutely scare many people, especially in property. I believe that they are just not prepared to put in the time and effort to achieve. How many people do you know that spend more time looking at a car to buy and when it comes to investing they just say it’s too hard.
As far as assuming it is a long and complicated process to purchase in UK, using my limited time and resources I have been able to put most players in place in the 2 weeks I had there. I went very open minded and found it very straight forward to purchase property.
As far as setting up a dealers agent here or there, well yes I could do that and make a cupla bucks to save others time, it is still very straight forward for any Australian to do what I am achieving in the mother land.
Doesn’t all large cities have problem areas and tenants. Put the right property manager in place, research the area and minimize the risks.
The other side of things now is that I am working from 6pm to midnite to work in with the UK, bummer, even less sleep than before.
Regards
Afloat – head above water
Hi Craig,
You asked “where” to look.
Well I’ll give you an answer – Manchester UK
Regards
Afloat – head above water
I’ll stick me head on the block,
I returned last nite from the UK after a 2 week fact finding mission.
There are many deals in the Manchester region of UK – FACT!!When it is a business decision, think with the head and not with the heart.
I’m not sitting still on this one.
Regards
Afloat – head above water
Soooo much can happen in a day/week.
I’ve got this between the short and curlys and am off!!! I’m armed with list and I’m off to the other side of this planet.
Fly out Sat nite and will be spending 3 weeks on the land of cool. Back on another plane! Go and do more digging!Yes, Russ I’m getting off my butt again!
head above water
Afloat
Argh the good ol sceptics, the world is full of them.
I am always looking at opportunities with an open mind. Just like property, borders and boundaries seem to hold soooo many people back. I know that they are just getting beyond their comfort zone.
Imagine if more people investigated opportunities before dismissing them!?! Yes, there are scams and hawks out there but after you have been in business for a while you get to know hay from chaff.
I shall keep you posted as to my DD on this mob. It is only costing time at the moment.
Russ H – what sort of company do you know this mob to be . If you have something on them could you please let me know – share some info on this crowd that I have not been able to uncover as yet, thanks.
head above water
Afloat
All the properties are in Manchester, UK – pop 4.2 mil. Capital growth is good and the demand for rental property seems constant, mostly working class types.
(I’ve been talking with family overnite who live in Lancashire)
We are doing searches on the UK company now, so far they haven’t had anything to hide, all my q’s have been answered.I have been going over all the details with my number cruncher, legal eagle and mortgage broker.
You purchase the first property with either cash, LOC, equity loan or family/friends.
What you get for the purchase price is – the property, renovation, solicitors work, their commission. The property still comes in +ve c/f of about $40/ wk. You have full title/ control just as if it was your own home or any property you purchase.
They then ask you how many properties you would like to have in your portfolio using their system which is –
take 80% finance against the first property (which was bought at at least 20% below FMV, then renovated and tenanted. This equals the purchase price of the second property. So the purchase of your second property includes the property, renovation, solicitors and their commission.
First property buy price approx $80K – revalued $100K
Second property buy price approx $80K – borrow $80K against the first property . Revalue second property $100K
Third property buy price approx $80K – borrow $80K against the second property . Revalue third property $100K
and on it goes till you say stop – I’ve got enough!!!
Their total package includes port folio management, placing of property managers, and finding mortgages for second/third properties etc. They say there are no additional fees for this service/ it is all built into the purchase price of each property.
They claim to be selling 180 properties per month, over 2000 existing clients and have been in this business for 16 years.
The company ( Inter Global Connections )has no website and if anyone else would like more information give me a PM.
Tell me please if I am missing something
head above water
Afloat
Hi adriannqld,
We just put 9 into a job recently, paid 620 each and 850 ea for install. Try the local wholesalers in your area, say your in the building industry and are looking for a top deal.
Transporting them in from Brissy may be an option, there are several dealers down there. Try Natural Cool Air – they may be of some help.There is so much competition in the AC industry they are all bending over backwards to help.
Hi Mysta,
Work on approx $45/ sqm. This would include steel, crete, boxing, bobcat and labour.
Saying that, it depends where the site is and what the local supply of lab & mat is. Thsi is the est for our area. 500 times 45 = $22500.
You get to know these things after being in the trade for 25 years.Regards
Afloat
Hi Pisces,
OK, now that we know what we are talking about, “buying better”.
My opinion is to always buy better than the last property. I negotiate smarter, put in low offers to work to my numbers. Its all a numbers game, correct? then if the numbers work look further into the actual property.If the market is getting tighter, re-evaluate your strategies. Instead of looking for 12-15% yield, could a 8-11% yield still present a +ve c/f deal. Am I buying 20-30% below FMV, or should I be accepting of 10-20% below FMV. How could I reduce costs in finding these propeties or does the location not come into it.
Do I look for properties that are in need of major repair b4 tenanting, this may be a new area of property investing(niche) that is unfamiliar to me yet. Here are a few to start with. I employ many of these and more with every purchase. This is why I am buying better every deal.Who’s next?
I wonder why you are considering getting out of wholesale properties Pisces,
head above water
Afloat
Hi CJS,
Do your strategies say that you HAVE to invest in SEQ? Are you investing with head or your heart?
Have you spent enough valuable time researching your niche?
I found you can spend endless number of hours doing your homework, yet there must be time when you are comfortable with going to the next step, the actual purchase of your first IP.Anything is possible, play within your own rules CJS
head above water
Afloat
Hi Pisces,
“if real estate has topped for the moment”
Is this your opinion, given YOUR current rules that you invest under? Maybe you could do research on other areas of property investment that you r unfamiliar with. This could then diversify your niches of investment.
My opinion, the market that I am operating under is still alive and well, certainly aint topped, just “inventing ” new ways in my chosen niche.
I spent 2+ years investigating my chosen niche area. Since our first purchase last Nov we have been averaging a property buy every 2 weeks and it certainly hasn’t “topped”.Had “my market topped” perhaps I would go and broaden my horizons, investigate new areas that I could apply a similar strategy to, who nose, just go and have stacks o fun!!
head above water
Afloat
30 yr young property aye!! Did it check out with all YOUR guidelines to purchasing the property in the first place?
Who was it that told you that old places were better built? Do you trust this advisors advice?
head above water
Afloat
Hi John,
It is not hard to find the +ive c/f props once you have “taught yourself” how. It is like riding a bike or playing footy, it takes some learning. Some people are quicker than others, for me it was 2+ yrs to learn the game, then make my own guidelines!Head above water
Afloat
What a good question,
I am not buying today because it is Sunday!!
Yet I an buying on Tuesday next!!
head above water
Afloat
My niche is buy at least 20-30% below FMV. Then we renovate ( I’m a registered builder as it also happens) and then after the tennent has been in for 4-6 weeks we refinance for the next property.
It really pays to have done your homework on your niche area and have a great team of people around you as well. Much like a football team, everyone has their specific skill and applies it accordingly
head above water
Afloat
