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About DerekT

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Profile Information

  • Location
  • Areas I invest in
    London - 2 bed flat (2014) // Crewe - 3 bed terrace (2017)
  • About me
    Originally from Sydney, Australia, now settled in London. Looking to build an empire...
  • Property investment interests
    Setting property strategies and goals
    Listening to property, entrepreneurial and mindset podcasts
  • My skills
    Love spreadsheets
  • My goals
    Retire in 2032 with a desired net income, travelling the world

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  1. DerekT

    Aussie ex-pat in London

    Hopefully the new health science campus replacing the old MMU will be successful and bring in some new people/students. Are you mainly looking for HMOs? I have also noticed less properties coming on to the market. Might be holding off until some assurances around Brexit.
  2. DerekT

    Can a Tenant order an ECP?

    Try searching for it online via the postcode / address.
  3. DerekT

    Aussie ex-pat in London

    Sorry for the delay JayDeee, but yes! One takeaway from the books I've read is that we need to set our financial 'thermostat' higher. I used to see jobs advertised for £X per day and think I wasn't suited or qualified for it. Now, I look at them and think that I'm selling my experience and skills too cheaply! Hey Joshnl, Crewe house is still tenanted and due for an inspection this week, so hoping it's still as I remember it. How about yours? Will the 2nd place also be in the same area? Congrats on becoming a Dad! You must've had a busy second half of 2018. Cheers for the blog's kind of London focussed but maybe it'll give you some ideas!
  4. DerekT

    Surely this will make financial sense!!?

    I think the subreddit feedback is referring to the S24 changes taking place all the way up to 2020. Rather than taking the rental income and deducting the finance expenses like mortgage interest, the income is instead added to your taxable income. The current tax year restricts the finance costs to 50% deduction, 25% next year and 0% the year after and beyond. If you're on the border between the basic and higher tax bracket, then the additional rental income could push you over to the higher bracket and any income above the c.£46k threshold will be taxed at the higher rate. You're best off discussing it with your accountant to see if the figures match up. You can Google 'S24 tax calculator' and use one of the calcs to give you a rough idea. If you purchase it from yourself via a ltd company, then you'll have to purchase it at market value, thereby triggering any capital gains (therefore potential tax), and stamp duty plus legal fees. ** Note: Not an accountant
  5. DerekT

    Capital Gains/Tax Question

    Hi Wendy You should be entitled to private residence relief for the portion of the time you lived in it, and the last 18 months you own the home even if you rent it out. Any gain on the extra time after that time will be part of your capital gains, although you'll also be entitled to the capital gains allowance (£11,700 for 2018/19). So if your overall capital gains for the tax year is less than this, then capital gains tax paid should be zero. Some examples of the calculation can be found here: If you have a standard residential mortgage on the flat, then you will need to ask for consent to let from the lender if you decide to rent it out. If you do rent it out, then the rental income will be added to your taxable income, and with the S24 changes, this might push you into a higher tax bracket depending on your current tax position.
  6. Well done mate! I think it's 80% mindset. If you want something and have the right mindset, you'll make yourself achieve it one way or another. Keep the momentum going!
  7. DerekT

    Residential mortgage transfer to buy-to-let

    Perhaps engage with a mortgage broker and see if they can work their magic with the lenders they have a connection with. As they work with lenders every day, they might have a more 'favourable' one that is willing to overlook the lack of consent to let on your current mortgage. Another option, although not sure if it will work, could be to serve notice on the current tenants, wait till they vacate, then switch to a BTL mortgage and re-let it back out. However, the mortgage process normally asks for previous 3 years worth of addresses, so they might ask why there's a few years gap since you moved out.
  8. Hi Geoff Interesting situation. I would probably put in a cheeky low offer (substantially lower than the guide price) and see if they bite. Given it's been marketed for a while with a couple of withdrawals and checkered history, there's more room to negotiate. Maybe set aside funds to cover the cost of valuations and searches in case something does crop up on the property other than the previous owner's history. It may not be one to quickly flip, perhaps consider renting it out for 6 - 12 months so the stigma of the property dissipates before trying to sell it on? One thing to keep in mind is that neighbours may not be aware that there's a new owner to the home, so there may be some anti-social behaviour during the transition period.
  9. DerekT

    Sell property

    Hi Alex 505 I haven't used them but these type of homebuying companies generally tend to purchase with cash, hence their ability to move quickly. But this also means they tend to offer lower than market value. Best bet is to take up their free offer of a valuation / price and then compare it to what's on market in your area. See if the prices are what's expected in the market less c.1 - 1.5% for agent fees and selling costs to give you an idea of whether their offer to buy is reasonable. It all depends on how quickly you need to sell.
  10. Hi sohpiag95 Shared ownership is a solid start, but just be aware of the other costs involved. Under shared ownership, you'll still be paying a portion of rent. This page summaries it quite well: I think the main issue with London (I'm based in SE London, so if you're around there and want a chat let me know) is trying to build that deposit for a place. Other options might be: • the Bank of Mum and Dad • if you have friends in the same boat, pool resources / deposit together to buy (just have a contract drawn up if you do though) Either way, buying a property is always a drawn out process with lots of paperwork.
  11. DerekT

    Rent 2 Rent Process

    Hi Cameron Not my strategy, so can't provide first hand experience. However, hopefully this guide might help?
  12. DerekT

    Protected Tenancy

    Hi Chris I'm not a legal expert so you'll need to review with your solicitor, but protected tenancies aren't the most favoured by property investors due to the restrictions. You'll need to check how long the protection/contract lasts for. Given they've been there 70 years, still might be a while. If one person named on the tenancy passes away, the protection generally passes on to any other named persons on the tenancy. Based on my limited knowledge, you can try to issue a notice to amend the rent but it's unlikely to be accepted by the tenant as they're only paying £38!! Is there a particular reason you're looking to buy this property? Usually properties with protected tenancies are offered at a cheaper price to the rest of the market.
  13. DerekT

    Handy man recommendation - London

    Hi Mona Try listing the jobs you need done on your property on some sites like Mybuilder, Rated People, or Checkatrade and see if you can get some quotes. There's also ratings and feedback from previous clients so you can read/review those.
  14. DerekT


    In case you haven't read this thread yet on Property Tribes, has some interesting comments and feedback from previous attendees and insight into SL's practices. Might take a while to read (67 pages and counting) and it's one of the highest viewed threads on the site (c.170k) Hopefully it all works out for you both.
  15. DerekT

    Tax query/advice needed please!

    Hi Hugo Perhaps one for the accountants on this forum, but if the new build he's selling isn't his main residence, and his intention was to build to sell, then my understanding is that any profits would be added to his taxable income for the tax year and taxed at his marginal tax rate.