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A bit pessimistic I suppose, but how many of you out there have actually NOT made millions from landlording and property in general and are struggling? Having built up a portfolio of over 5 properties.
Just seems that EVERYBODY is doing really well on this site!
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Good post, will make interesting reading. |
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Out of the 60 or so properties I've done , I've had 2 make a loss
1) 2 failed completions after exchange - new build bank pulled gifted deposit rules and couldn't obtain necessary finance in time.
2) bought 2 flats last year in may for 170k - 10k full refurb 13k in costs(mortgage, sols, estate agent, admin, stamp etc) they sold for 190k each - market values dropped 10% over 6mths could have sold for 210k ish june/july last year if in good cond. 3k loss on each.
on a positive note most transactions make a profit 58 out of 60 and generally much more than a small 3k.
regards Andrew Peers |
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I suspect most people will have positive stories i.e. Andrew. This because all investors have been able to 'ride the wave' so to speak.
The skill is making the money in a flat or downward market. Few have experienced this. I haven't.
I would guess that a 58/60 success rate would be near impossible.
Owen |
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At least you had the sense to get rid of them Andrew.
Many investors would have held on (as I have done, back in the day!)
You live and learn |
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The way to make money from property is to know when to sell and get out and to know when to buy. i have been in property 20 years ,in that time i have been in good times and bad markets, you can still make a profit in bad times but you must buy the Right property at the time, i also have found the markets go in a 8 to ten year round circle , i know some of you out there will understand that.
Dave |
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dave,
in your view, where are we in the 8-10 year cycle now?
tom |
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Hi Tom,
I feel we are at year 7 to 8. property is at the top of the circle and is not making big gains, due to lack of 1st time buyers etc and landlords not buying, this is the time just to sit back and watch, not buy but not sell,this way you can see which way the market will go. i feel a lot of vendors will panic soon and start selling at lower prices, thats when we start buying ,when others start selling and selling fast, the circle always comes round to the top again .and you make profit.
Dave |
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doesn't sound far off the mark there dave. that said i am reasonably confident in the housing market at the mo because the economy is holding up.
tom |
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If I'm buying to hold, and the yield is healthily above max forseeable interest rates (7% imo), market movements don't come in to play so much for me. It's income I'm buying into, not capital speculation. Is it just me? |
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No John,
I'm also looking at buying property with decent yields that will cover my mortgage easily if interest rates rise. Which looking at all these forums seems hardly likely....which is good!
I'm looing for an income too, as I want to live in Thailand! Dont need much to live there like!
Capital appreciation for me is an added bonus. If it goes up say, 4% and I have about 5 or 6 properties valued at around £45000+, this will be enough to put down deposits on a couple more places, plus my savings and wages added to that I could build up a portfolio quite well....I hope!
I'm living in our company flat rent free...or there abouts...so I have a bit of a helping hand!!
Thats my plan....anyone else doing this?
Cheers
Simon |
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there must be more horror stories than this!
or perhaps this is because us lot are staying away from the more risky end of investing, that is off-plan/ new build. can make a fortune as well as loose it. for me the major worry with off-plan/ new build is not being able to let it as you are not typically buying in proven rental areas.
tom
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You're all idiots.
The housing market is going to fall off the biggest cliff in history.
The Economist 9/12/04: 'IS the housing market'...across the world...'the biggest bubble in history?'
WAKE UP! |
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with referece to jonathans post. Dont belive what you read in the newspapers. (the stories are usually reported by idiots !!!! ) Supply and demand is the key to property values worldwide plain and simple. |
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good point john.
it is to do with a lot more than pundits. economics plays a role (i.e. interest rates, employment etc) as well as the pure demand and supply for housing amongst many other things.
tom |
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Have you notice this Jonathan Davis has only put in one post....havent heard from him since.
You get it in all the forums, someone comes in with the odd comment which is backed up with a story he read in a newspaper....who's the idiot??
I agree with you John and Tom. Supply amd demand. |
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When I'm buying at a healthy yield, having borrowed at a comfortable level, I'm not anxious for such a quick exit strategy. Hence not that worried about short/ medium term price movements. The numbers stack up in terms of rent, yield and interest rates. Unless rents fell (so unlikely) I can't see myself exposed to this so called slowdown, should it ever actually materialise at all.
John |
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Hi John
I don't understand what you mean - can you explain more please? I am quite new to this! If prices go down surely this is a bad thing for us investors, no?
Thank you
Bryan |
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Hi Bryan
Yes, on the face of it, falling prices are bad as the value of the bricks and mortar that I own have decreased. The point is that the value only matters when I want to (or have to) sell. If I'm happy with the income on the property (it safely covers my mortgage payments), and I'm sensible with the amount / rate at which I borrow, I don't have to worry about prices falling in between. The house will always have good value in the end as there is a healthy income on it. This is why I buy good yield.
Best regards
John |
