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Any RE investors in the UK? I need some advice...

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Sanj Modha

Platinum Contributor
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Feb 16, 2016
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Hey FLF!

@Andy Black suggested that I post here after a chat we had.

Basically, I own a 3 bedroom, 2 bathroom townhouse in the UK and it's fully paid up (no mortgage). I'm thinking about releasing some equity to fund an investment property (or 2) but I have no idea how to do it or where to invest.

I'm not sure about the tax status either since I no longer live in the UK and there's the looming threat of Brexit to factor in too.

Does anyone have any tips, suggestions or can you point me in the right direction? I am a noob at this but I'm not a afraid to get my hands dirty.

Thanks.

Sanj.
 
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Kingsta

Bronze Contributor
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Dec 6, 2014
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Hey Sanj,

I may be able to help you out since I helped setup a distressed asset property company in London.

The main thing it comes down to is how much do you want to invest? From that point I can give you an idea of where to look. If this is something you'd rather talk about in private feel free to message me.
 

Sanj Modha

Platinum Contributor
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Feb 16, 2016
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Hey Sanj,

I may be able to help you out since I helped setup a distressed asset property company in London.

The main thing it comes down to is how much do you want to invest? From that point I can give you an idea of where to look. If this is something you'd rather talk about in private feel free to message me.

Thanks buddy. I've sent you a PM.
 

Andy Black

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May 20, 2014
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Ireland
Hmmm. I’m out of the loop too as I’ve lived in Ireland for the past 15 years or so.

Here’s what I’d do:

Figure out what an average young couple’s combined salary might be.

What would two teachers earn? Two nurses? Etc

Let’s say 30k each? (I’ve no idea!!)

What mortgage can a young couple afford when the combined income is 60k ?

What deposit do they need?

Add those together and that’s the max they can pay for a two bed terraced house.

What would their monthly mortgage payment be?

Now go onto RightMove.co.uk and look for two bed terraced properties for sale for that price and under.

Where in the country are they?

If lots turn up in, say, Liverpool then work out the areas that keep appearing, and look for rental prices of the same two bed terraces.

Work out what an investor would pay for the property too. If they put down 20%, then what would their mortgage be? What would their interest payments be?

What would an amateur landlord pay? (Someone who doesn’t account for letting agent fees, void months, wear and tear, even income tax!)

Could there be bidding wars between house buyers and amateur landlords? What could the prices be driven up to?

If you can buy below that value, and the rent covers the mortgage (plus extra for all those things I listed)... then you might buy somewhere that prices can rise higher “naturally”, without you doing any additional work (like buying cheaper due to distressed sellers, or fixing them up and adding value that way).
 
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