All Forum Posts by: Charles Maxwell

Hello Ben,

Short version : find an independent whole of market broker. Preferably one that's been recommended by an investor. Those LTV's do exist today if you fill certain lending criteria.

Lending criteria has changed a huge amount in the UK in the last 15 or so years. Equally so has the BTL business model. London for a first BTL is not necessarily the optimum choice as values are huge and yields are typically less than 5%. This makes the LTV almost immaterial due to mortgage stacking formulas. You could find that not only do you gain a better deal (discount / profit at the point of purchase) and better cash flow (profit you can spend or use in the future to enable refinance and draw down a tax free lump sum) but also gain from a faster rise in capital value outside of London. These are typically greatest in regeneration areas where the house price to earnings ratio is more favorable and money is being spent making them more appealing with better amenities. This effect has been seen in Leeds Manchester, Liverpool and many more that have undergone a positive transformation.

FYI 'According to research by Zoopla, the rate of house price growth in the capital has increased to 0.4 per cent annually, up from 0.2 per cent last year.'

Given inflation is about 1.9% London property is not keeping up even when you take the net rental profit into account.

All of this in mind there may be alternatives that suit your needs better to reach your investment goals. What are you aiming for? What is the investment goal and time frame? Could a HMO in a city provide more? Could adding value be more profitable or enable cash out to go again faster? How much involvement do you want to be having while based so far away? Might a fixed return, fixed period investment provide a better return in a more manageable fashion?

Many of the investors I've spoke to in the past 2 years have been supporting London property and preparing for the potential shortfalls in rent to mortgage payments, should interest rates rise, by securing the low London yields by hedging outside in areas achieving upwards of 8% yield. Others have diversified into 'armchair / hands off' alternatives e.g. 12 month term 12% return products that are tried tested and have a proven track record with asset backing for security.

Don't get me wrong, for 15-20 year long term investment the London Market will perform as it has over the past 20+ years, well. But if you are just starting out and based overseas, there may be alternatives that provide greater short term return with less input that better suit your needs.

Equally this Brexit shenanigans could affect the market adversely and it would be a pity to jump in as if it were 2006 and then have to weather the storm rather than wait and buy in at the optimum point. Its not like prices are rising and delaying the first purchase is loosing huge capital growth and profit right now.

If you want to have a natter about the options and your goals and aspirations please do reach out and i'll endeavor to provide information and assistance where possible.

Exciting times for you and don't forget; you only start making profit when you have invested, so don't take years deciding as its costing you.

All the best,

Charles

Hello BP People!

I've not registered my details to gain new information for a few years and i'm interested in seeing some fresh marketing.

I've been through my inbox investment folder  (aka spam folder) for properties and investments and noticed I'm getting a lot less sent than I was a decade ago. GDPR and the changing of brands.... 

Without wishing to trawl the net, I'd like to learn who sends a lot out, who sends great deals, who sends other peoples deals (the copy and paste crew as I like to call them) and gain an understanding of some new sources of potential profit, investment styles and techniques and maybe even feel the full force of a pitch or two!

So, what is your list of interesting investment opportunity sources in your area...... and why are they good / please add useful (not too ranty) comments?

Many thanks one and all.

I'm of to have a look in the market place......

Hello Adrià,

There are plenty of areas in the UK for Fix and Flip. (or my preferred Fix and Refinance, to buy again, renting out for long term growth and rental income)

The key part for you will be gaining the team of skilled trustworthy trades people in the UK, like you have over there in Spain.

I get offered and source property that can have value added or can be refurbished all over the UK. The price at 75k is a useful starting point as this suggests the north part of England will have suitable property around that price. My questions would be:

is the 57k to include the refurb budget?

Is that for a cash purchase or using finance?

What profit do you typically create, in what timescale in Spain?

I see the benefit of investing in two markets but if Spain, which you know and are successful in, has the propensity to be more profitable I would be inclined to repeat what works till it stops. Or maybe look for a simple discounted Buy to Let opportunity where you don't have to coordinate any works remotely. It may be that that is half the appeal and a trip to the UK to make the money and oversee the works is of interest....

Send me a message and let me know more about what would be ideal for you and i'll see what I or anyone I know can do to assist.

All the best,

Charles

Hello Tom,

My suggestion is to work out a plan do....

If you have money to invest find a deal and buy ASAP.

If you have limited funds and want to learn more, keep reading, go to local property meets and especially speak to the crowd as well as the providers pitching services. I'd offer to meet for a coffee and a natter but i'm in West London and don't have anything in the diary coming up in the midlands currently.

Property is gold. Like gold, it is a bit of a roller coaster, but gold non the less (if you follow some simple principles)

The more determined you are and the more time you stick at it the better off you will become.

Happy for you to message any questions, i'll do my best to draw upon 15 years of property and investment to answer to the best of my ability.....

Happy hunting and good luck!

Exciting times Alun!

Read plenty but remember that online you don't always see up to date information. 

Property meets (yes you do have to endure a sales pitch) are a great place to chat with others with varying degrees of experience and success and find out what others are / have done. I have been to a monthly one at the holiday inn in Berkshire before which was well populated and informative.

to answer your questions from my point of view:

1) It would be quicker to reach my goals with an interest only mortgage however I want this cash flow to be very long term and not take a sharp drop once IO period ends, so what type of loan would you recommend?

Find an interest only product that allows over payment and yes you can clear the total faster than on a repayment basis (often approx 3 years quicker on a 25 year term) Ask a broker to explain how that works.

Or structure the portfolio to sell a proportion to clear balances before the terms end (slightly higher risk).

2) Is my 'forced appreciation' strategy correct? If not, is there one that works to help me reach my goals?

Adding value can release equity close to your suggested figures. It is especially possible if you source property below the market value as I do.  This is how I recycle deposits to buy more. However the changes in lending would suggest that personally gaining more than 4 mortgages will be increasingly hard. It is likely you will end up looking at creating a SPV LTD company to hold the property and gain commercial lending. Equally the 54 properties will over time have increased rental and capital value and when mortgage balances are cleared the income will rise so you may need significantly less than you have calculated. 

3) Would you recommend I start a business and pay myself out of that to protect my original flat that I own outright? How would I go about getting business credit for it?

I would go to a property meet after reading plenty then sit with a tax adviser and a broker and hatch the idea of the most efficient structure possible and then start building the portfolio. times will change and the market will alter your strategy from time to time but starting is the key thing to do as you only make profit when you stop learning and start investing.

I hope this has been a little help. As I'm based in west London if you wanted to meet for a chat in person drop me a note.

All the best,

Chalres

Hello Frank,

Is this pure investment or do you have specifics that they are looking for for their own use? i.e. area's, number of bedrooms etc.

Estate agents wont be too forthcoming with introduction fees but an off market source of property should be able to reward you. I have access to some off market property, nothing at that price point today but I can make enquiries if there is any more information to help narrow down the search.

Send me a message if I can help.

Kind regards,

Charles

Hello Teresa,

Firstly if you have the opportunity to start now do it immediately. You only start making returns when you start investing so the sooner you start the better off you will be. Equally having experience over there and the extra capital will always be beneficial.

Secondly I'm in the UK and have been involved in property investing for almost 15 years. There is cashflow to be made in the UK but like all countries there are better and worse placed to do this. e.g. London is awful for cashflow (probably the basis for Diogo's comment) but better for stability and growth than some of the high yielding areas away from the capital.

When you are over in the UK I'm in West London and always happy to have a chat if you have questions....

Hello Kristian,

HMO investing can produce a great cashflow yield and if you are converting you can also make profit doing the conversions.

Are you looking for existing HMO's to buy or properties suitable for conversion?

All the best,

Charles

Hello all,

Mark, 5k a month is obviously quite achievable from property assets. The way in which you make it, how you handle the risk factors, how hands on you want to be and how you balance your international portfolio to run best alongside any other savings and investments you hold will be the trick to maximizing your success. The 5k goal is great to work to, how much are you looking to invest to generate this income?

The UK is the market i've been involved in for almost 15 years now, so if you have any specific questions or if you would like another set of analytical eyes to look over an opportunity in the UK that you are considering please feel free to send me a message.

Simon I'm happy to help you in the same regard.

All the best,

Charles

Hello Craig,

Due diligence on the company as well as the investment is key. Ideally the income is guaranteed and by an insurance policy not just a LTD management company that could be closed down leaving you in a tricky position. If the product is SIPPable this can be an indication that is going to do what it says it should as pensions have to do a lot of due diligence to approve products. If you want to chat further drop me a note. I've been in the UK market for over a dozen years so have a good insight for assessing deals and am happy to have a closer look for you. The UK does have some great hands off opportunities if you know what return you want and the time frame for investment.