Comments on: My Property Investment Strategy http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/ DOCUMENTING ONE MAN'S JOURNEY TO BECOMING A PROPERTY MILLIONAIRE Wed, 08 Feb 2012 21:13:32 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: IPINLive http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-118432 IPINLive Wed, 01 Dec 2010 11:44:46 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-118432 How is your strategy fairing now with the recession? If you are still doing ok, (which judging by your post I would think you are, just perhaps not quite as profitable as 2008) it would be great to hear any revisions you have made to the strategy itself and why. Personally, I would always look for the exit on any investment, taking more of the medium term. If there is a definable and provable exit - great, if not, move on. http://www.ipinglobal.com/resources/property-investment-strategies.aspx How is your strategy fairing now with the recession? If you are still doing ok, (which judging by your post I would think you are, just perhaps not quite as profitable as 2008) it would be great to hear any revisions you have made to the strategy itself and why.

Personally, I would always look for the exit on any investment, taking more of the medium term. If there is a definable and provable exit – great, if not, move on.

http://www.ipinglobal.com/resources/property-investment-strategies.aspx

]]> By: Fiona http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-115905 Fiona Sat, 13 Nov 2010 14:01:08 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-115905 HI there, I have been searching the internet with regards to properties and buy to lets and have come across your site. I am interested in your property stratery but wanted to know just one thing, how did you raise the inital deposit for your 1st buy to let investment ? HI there, I have been searching the internet with regards to properties and buy to lets and have come across your site. I am interested in your property stratery but wanted to know just one thing, how did you raise the inital deposit for your 1st buy to let investment ?

]]> By: The Landlord http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-97185 The Landlord Tue, 20 Jul 2010 21:51:11 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-97185 Hey Jon, Why would profit be unobtainable? Granted, the profit will be taxed. But that's the same with any business or any person. The more you earn, the more you get taxed! Hey Jon,
Why would profit be unobtainable? Granted, the profit will be taxed. But that’s the same with any business or any person. The more you earn, the more you get taxed!

]]> By: Jon http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-97047 Jon Mon, 19 Jul 2010 20:08:16 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-97047 It all sounds straight forward and something I have been thinking about doing for quite some time. However, surely with capital gains tax most of your profit is unobtainable, ever. It worries me that I could end up with a large wedge of cash in properties that I can't have. What's your thought on that or ways around it? It all sounds straight forward and something I have been thinking about doing for quite some time. However, surely with capital gains tax most of your profit is unobtainable, ever. It worries me that I could end up with a large wedge of cash in properties that I can’t have. What’s your thought on that or ways around it?

]]> By: Carol Williams http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-74716 Carol Williams Mon, 30 Nov 2009 18:38:28 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-74716 Hi, l have lived in Spain for the past 13yrs, but next year, l plan to sell up here and move back to England. l will have something like 150.000pounds to do a bit of property developing. l'm 51, almost divorced, no debts, no kids. l'd like to ask you, what would you do with the money l will have.ie, do l only use the money l have. l think l would make a good landlord, and just know once l get going, l will make a success of being a property developer. l wondered about buying a two bed house at auction to let, and a house for me to do up and resell. l have looked extensively at the part of the north west l'd like to be, and there are quite a lot of small terraced houses selling for about 60.000pounds. What would you do if you were me. Thanks for your helpful advise. Greetings from beautiful Moraira, Costa Blanca Hi, l have lived in Spain for the past 13yrs, but next year, l plan to sell up here and move back to England. l will have something like 150.000pounds to do a bit of property developing. l’m 51, almost divorced, no debts, no kids. l’d like to ask you, what would you do with the money l will have.ie, do l only use the money l have. l think l would make a good landlord, and just know once l get going, l will make a success of being a property developer. l wondered about buying a two bed house at auction to let, and a house for me to do up and resell. l have looked extensively at the part of the north west l’d like to be, and there are quite a lot of small terraced houses selling for about 60.000pounds. What would you do if you were me. Thanks for your helpful advise. Greetings from beautiful Moraira, Costa Blanca

]]> By: MCR http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-68419 MCR Sun, 18 Oct 2009 11:15:12 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-68419 Hi, you have an interesting strategy and I agree its low risk, however doesn't it leave you with a rather large tax bill every year as you can only offset mortgage interest payemetns against rent. This is one of the main reasons main investors (including myself) put in a lower deposit. I don't want to make income on these properties that gets taxed at 40p in the pouond, I think that I am better off focusing on paying off my own house where I live as there are no tax advantages to having an outstanding debt on it. Interstingly in Australia there is a very advantageous tax regime for the propoerty investor and you can offset losses on rental properties against your personal income tax, this was one of the main things that drove the recent property boom in Australia. Hi,

you have an interesting strategy and I agree its low risk, however doesn’t it leave you with a rather large tax bill every year as you can only offset mortgage interest payemetns against rent.

This is one of the main reasons main investors (including myself) put in a lower deposit. I don’t want to make income on these properties that gets taxed at 40p in the pouond, I think that I am better off focusing on paying off my own house where I live as there are no tax advantages to having an outstanding debt on it.

Interstingly in Australia there is a very advantageous tax regime for the propoerty investor and you can offset losses on rental properties against your personal income tax, this was one of the main things that drove the recent property boom in Australia.

]]> By: The Landlord http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-19832 The Landlord Wed, 08 Oct 2008 20:12:31 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-19832 A lot of "if's" in your theory there. If someone blows up your house... If you lose your job tomorrow... 'pie in the sky' stuff, son. I've been paying off mortgages with rent for a few years now. It's been fine. I'm paying off capital each month, so I'm reducing debt, right? So over time my monthly payments on interest will reduce, but my rent will increase (inflation). Interest rates will never increase to the levels that will seriously affect homeowners, otherwise the country will be in the same position again. I tell you what, come back to me in 5 years time, and i'll tell you how much equity i've built up via rent. On a brighter note, you'll be pleased to know that I increased rent last month, and my tracker mortgage lowered its rate today because of the 0.5% base rate drop. So, i'm all good. A lot of “if’s” in your theory there.

If someone blows up your house…

If you lose your job tomorrow…

‘pie in the sky’ stuff, son.

I’ve been paying off mortgages with rent for a few years now. It’s been fine.

I’m paying off capital each month, so I’m reducing debt, right? So over time my monthly payments on interest will reduce, but my rent will increase (inflation). Interest rates will never increase to the levels that will seriously affect homeowners, otherwise the country will be in the same position again.

I tell you what, come back to me in 5 years time, and i’ll tell you how much equity i’ve built up via rent.

On a brighter note, you’ll be pleased to know that I increased rent last month, and my tracker mortgage lowered its rate today because of the 0.5% base rate drop. So, i’m all good.

]]> By: John http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-19828 John Wed, 08 Oct 2008 19:40:09 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-19828 There has only been one property bubble to speak of, ever in the UK. The late 1980s. Do people take into account, that in some parts of the country property prices actually did lose well over half their value over a number of years. I keep hearing that, "well, over time they go back to the original level and beyond." This, historically is the case, however we are now in a situation where food prices are rising 20% PLUS p.a. oil is without doubt going to rise above $100 a barrel or more permanently. So to combat this continious rise, the Bank of England may have to allow interest rates rise significantly to soften these inflation levels. They cannot do it now because of the unbelieveable banking crises. Then one gets to a point where, it is impossible to pay off the mortgage with rent alone. Causing negative equiety, for people who could pay thier mortgage and bankruptcy for people who could not. Comments please..... There has only been one property bubble to speak of, ever in the UK. The late 1980s. Do people take into account, that in some parts of the country property prices actually did lose well over half their value over a number of years.

I keep hearing that, “well, over time they go back to the original level and beyond.” This, historically is the case, however we are now in a situation where food prices are rising 20% PLUS p.a. oil is without doubt going to rise above $100 a barrel or more permanently. So to combat this continious rise, the Bank of England may have to allow interest rates rise significantly to soften these inflation levels. They cannot do it now because of the unbelieveable banking crises.

Then one gets to a point where, it is impossible to pay off the mortgage with rent alone. Causing negative equiety, for people who could pay thier mortgage and bankruptcy for people who could not.

Comments please…..

]]> By: Duncan Turner http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-16228 Duncan Turner Wed, 16 Jul 2008 15:24:50 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-16228 Thanks for your feedack, much appreciated. Thanks for your feedack, much appreciated.

]]> By: PropertyInvestor http://www.propertyinvestmentproject.co.uk/blog/my-property-investment-strategy/comment-page-1/#comment-12433 PropertyInvestor Sun, 02 Mar 2008 20:57:05 +0000 http://www.propertyinvestmentproject.co.uk/blog/2008/01/22/my-property-investment-strategy/#comment-12433 Interesting Strategy - It seems to be working well for you. I think that method would produce slightly less return on investment but it helps you keep on top of your monthly budgeting. I would love to be able to adopt a similar strategy but I would need to save for a while to be able to come up with a 30% deposit for each property i buy. I prefer to put in less money from the outset lets say 15% to buy a property, i would then most likely have a situation where there will be a shortfall in the money in -rent and money out -mortgage. Like you said i would have to put in money every month for a few years- but i prefer that because it means i only put 15% of my own money at risk and still have that additional 15% sitting in my bank account. It means less exposure for me. I feel fairly safe with 15% equity because i know that historic data on the property prices have only shown a drop in prices of about 17%. I agree that having a long term strategy for property investment is key. Even if there was a fall in prices by 15% or even 20% - I will not sell. Every property i buy i always make sure i can afford to keep that property going, so i always cashflow (put money aside for all potential costs) my property for at least 2 years. Interesting Strategy – It seems to be working well for you. I think that method would produce slightly less return on investment but it helps you keep on top of your monthly budgeting.

I would love to be able to adopt a similar strategy but I would need to save for a while to be able to come up with a 30% deposit for each property i buy. I prefer to put in less money from the outset lets say 15% to buy a property, i would then most likely have a situation where there will be a shortfall in the money in -rent and money out -mortgage. Like you said i would have to put in money every month for a few years- but i prefer that because it means i only put 15% of my own money at risk and still have that additional 15% sitting in my bank account. It means less exposure for me.

I feel fairly safe with 15% equity because i know that historic data on the property prices have only shown a drop in prices of about 17%.

I agree that having a long term strategy for property investment is key. Even if there was a fall in prices by 15% or even 20% – I will not sell. Every property i buy i always make sure i can afford to keep that property going, so i always cashflow (put money aside for all potential costs) my property for at least 2 years.

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