Otake

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  1. Many good points from Richard, as always. I don't know your exact situation but keeping it might be a bad investment for you in the long term, especially if your rental yield is low. I am saying this because I wouldn't expect much from capital gain perspective in the very long run and it might turn out really bad. Reasons behind this are, current property stock is huge, properties have been being developed non-stop for the past 10 years and most of them are low quality and still very expensive (there has been a huge credit expansion which aided this), political and economic situation is very unstable in Turkey. If your property has a good rental yield then I would keep it and invest the rental money in Turkey again as Richard suggested, with this you would't take any loss and you would still earn in the local currency (maybe spend it as a pocket money when you visit Turkey or for holidays in Turkey), and your rental income will be increasing with the inflation. I know TRL has appreciated past few months (from 1$ vs 7 TRL to 5.3 TRL) but it will surly collapse next year with the current economical indicators, and possibly with the local election in March. Therefore it is best to wait and be patient for further investment in Turkey, especially for the high quality good location properties because it is still not the time yet. I think we will see a collapse of the whole Turkey economy. Property market will be one of the main reasons behind this. All those wanna be property companies who got cheap USD and EUR credits will pay dearly. If you are not earning much in terms of rental compare to the money you put in (ROI < 4% etc..) and if you can't wait for a very long time (~10 years) for your property to appreciate, perhaps sell it now while TRL is still strong compare to what it was and what it will be and stay on USD or gold, or invest in other profitable places. I know this might sound a bit extreme but what is there to keep your money there if it is not earning much and won't be earning much for 10 years time. You can perhaps do a quick calculation to prove this. Say you have $130K, with average rental returns in the UK with that (say ~7% ROI) you would earn ~$9K and you can cover your loss in 4-5 years time easily. Obviously you can do even better investment if you can go over the average though I must say I am taking things very simple here to give you an example but there would be other parameters to take into account. On the Turkey being a European Country, I don't think it will ever happen (especially with the ongoing migration issues hurting EU so much) but EU will always use this possibility and try to keep TR close so maybe we would see some effect from that. Using local lending and leveraging is a good idea but unfortunately interest rates are very high at the moment (Inflation is around %25) so interest would be very high and won't cover your rent. There is also not much lending market if you already bought your property in Turkey so not sure if this would be possible. Personally If I were you, I would try to make this investment work for myself rather than taking a huge hit. I would see if I can achieve a decent ROI and use the money locally and keep it for a long term, especially if it is in a good location or location to be. Perhaps see if you can rent it yourself, through relatives & friends there. Maybe try room share (there is not much legislation or fee in Turkey for this) if it is close to city centres or universities, holiday let, air bnb etc... Regards, Kemal
  2. Otake

    Previous sale data - calling all IT / website geeks!

    Yeah the data would be heavy for excel. I've used c# language and sql server database though you can use many diff systems/tools for this task. If you have everything in CSVs then you wouldn't even need c#, simply import CSVs into sql database and then write your query against it. I will take a look at this when I get a chance. Kemal
  3. Otake

    Previous sale data - calling all IT / website geeks!

    Hi Andy, Excel would not have the sufficient capabilities for this so it can be theoretically done but you would struggle. You can definitely do it by writing a macro (VBA) but still it will not be the best platform. Your best bet is to write a small program or script to extract this data with one of the available programming languages. You would not only need to develop an algorithm for locating and parsing the data but also things like paging etc.. It will be different for each different property web sites too. On the other hand, it is likely that there will be safe-guards against these type of data mining in popular websites like rightmove or zoopla so even with the right tools you might have issues. It might be better to investigate where these web sites get this data. It could be available free, say in land's registry website (speculating here). This is something I've been personally researching and managed to do this myself for another country where property prices were booming (it was more about adds themselves rather than sell prices) in the last 5 years and UK is my next step but I have been very busy with other projects. I will let you know if I get a chance to do it. Regards, Kemal
  4. Hi Tim, Many thanks for your reply.
  5. Otake

    Commercial property

    Hi All, I have my eyes on this one and I am trying to arrange a viewing at the moment: High street 2 floors office Currently occupied by an estate agent but will be sold as vacant 240K sale price on a 250 years lease with no payment Around 70 m2 Has ladies & gents cloak room/wc’s and shower cubicle Newish gas central heating Current rate is around 3.4K B1 and D1 use (but potantial for other uses; I am hoping this could be changed if need be but need to check it for certain) Similiar shops advertised with 19K-21K per annum. No VAT on purchase Second floor can be made residential - subject to planning permission I am looking at 4.3-5 percent interest only commercial investment mortgages, so let's say I got it on 4.8 percent with 75LTV and rented it for 18K per annum. (I have not talked to any mortgage adviser on this specific deal) My total investment will be around: 65K - 70K, let's make it 70K Mortgage will be 180K with £720 monthly payment. I will be purchasing under my property investment company. I don't think I will have any other monthly expense ? Would I with a commercial property? but let's add another 100 pounds per month. Total monthly expense would be £820 per month and that makes £9,840 Net profit: 18,000 - 9,840 = £8,160 ROI: 8,160 / 70,000 = ~%12 It looks very good so I am wondering if there is a catch here. Let me know what you think? Otake
  6. Hi All, I am in the process of renting out my property through an agency and I found today that payment supposed to go to the agenyc's bank account first and then agency will pay to me. When I asked if I can get the payment into my LTD company bank account, agency told me that it can be done but it will make things very difficult in terms of following late payments, agency & maintenance cuts etc.. What do you think? and which method would you prefer? I can see agency's point but I would also feel better if there is no other layer. Same goes for the holding the deposit. Apparently you need to register for a schema for that and pay a small fee to hold the deposit. Any advantages / disadvanteges you can think on it? Regards
  7. Hi Alan, I am too thinking the same, an update would be great.
  8. Hi Daniel, As far as I know, It doesn't matter if you are buying for the first time if it is under your LTD, you still pay for additional 3%. I've actually done this and paid the extra. When you buy personally, if you don't own any other property personally you will not pay the extra 3% but will be subjected to normal rates so having a property under your LTD does not change this. Regards, Kemal
  9. Hi Michael, Many thanks for your reply. I asked for an example lease from the agency and will run that with freeholder. I have not had a mortgage yet as I've bought with cash and planing to get a mortgage in the short future. I must say this option is looking better now with my initial research, especially with additional 300-400 pounds pm. Regards, Otake
  10. Hi All, I've recently completed my first BTL purchase and I am now in the process of doing a cosmetic refurbshment and renting out. Showing the property to a few letting agencies, one quoted me 1,750 £ pm for leasing it to council through his company. Property is in SE, 2/3 bedroom and I was so far getting estimates between 1,200 £ to 1,400 £ pm. Therfore I was a bit suprised on this option and when I asked why they would offer more, he explained that council would be using the flat for emergencies and multiple people would use it, and 3 bedrooms would be utilized for different people. He told me this would not be HMO. I also wouldn't need to do things like changing the carpets but only had to make sure that have fireproof doors and smoke alarm etc.. Lease would be for 3 years. I know I have a lot investigate on this and he did tell me that this would be a more risky option as there are more things to wrong with it but I was wondering if you have any experience on this? I will definetly need to find out if this would be allowed within my own lease etc.. but I think my biggest concern is not being able to get a morgage or having very limited & expensive options.
  11. I've just found the same explanation on another page. You are right. Also sorry if I hijacked your thread.
  12. I would also be curious to know the answer for this. Also another thing to consider is Capital gain tax; you don't pay CGT when you sell your primary residence but then would owning another and not living in there anymore for 6 weeks change this?
  13. I would like to hear more of this. I especially liked how they compared 3 deals to each other and which one would they go for and why. I think one can get a good feeling on how Rob & Rob analyse properties.
  14. I've listened to all three podcasts. As the Rob & Rob said it is a pattern that has been more or less repeating itself but one should look at it as guideline rather than %100 committing to it. I agree that It feels like a wobble now. I also think that property prices have gone up a lot in SE so not sure if we would see a second stage where prices would go even higher. Though this is not the case for all areas, - as mentioned in the last podcast I think - it is hard to believe it for SE but it is something that happened in the past looking at the statistics. There was always a trigger. I guess we can't discount Brexit as trigger yet as it seems like it will be a long struggle with possible surprises before it is finalised. I was searching for similar stuff and I came across this: UK RESIDENTIAL FORECASTS on another forum, check out the pdf. Growth estimations fit to 18 years cycle.