Hi,
Hoping someone could give me some advice about buy-to-let in the UK. I want to build a property portfolio but haven't got the time to do research on what areas to buy, want to buy properties for less then £150k and then rent out. Have been looking at companies like Azzets, Imagine Homes, TIC Invest and all charge different fees. Has anyone bought properties through these companies or one that you would recommend? I know most people would say best to do your own research but the main benefit of going through one of the investment companies is they get bulk discounts.

If anyone help with some advice, much appreciated.

OzInvestor

I've not bought properties thru' any of the companies you name. I have heard of assetz? is that whom you meant? Not bought any from those you mention.
However, I've bought of a couple of properties through these so called property sourcing companies and IMHO yes, you will be able to buy with less deposit than originally required if you went all alone but theres a price to pay for this, many will be over-priced new builds (often 2 Bed Flats) when you complete the sale you will be completing with several other investors; the net result will be a lowering in the re-sale value as so many new builds come onto the market and you will be in competition with the others to get it rented out, the end result being you will often have to rent it out at less rent meaning lower income for yourself. However, if you buy in established property there is more chance of a better re-sale value and it's chances of it being Let out quicker and at better rent will be far greater.

There's a couple of property sourcing companies that I may consider but have not used them yet as they seem to either source individual properties or have no finders fees and offer almost the same deal (and property) as those with Finders fees. Overall though it's better to source your own properties and do your own due diligence as no one will have your best interests at heart than yourself. Good Luck!

Hi, I work directly for a developer in Manchester City Centre called Dylan Harvey, check out our website to view our previous developments at www .dylanharvey. com, we currently have many off-plan buy to let investment opportunities in the North West of England. As you would be purchasing directly from the developer then you would not have to pay a finders/arrangement fee that would instantly save you up to 2% alone. Property clubs will normally just pass your name on to developers like ourselves for a fee of around 2%, which based on your £150k, you would be looking at paying out £3000 just to be reffered to a company like ourselves. If you would like any further information on any of our current developments then please do not hesitate to E-mail me.

Daniel
Portfolio Manager
daniel @ dylanharvey . com

If this is a little late, forgive me as I've only just joined the Forum! I guess I won't be first to tell you this but "discounts" offered by investment companies are very often discounts of over-inflated prices. It really isn't so hard to go it alone!! Square Foot Property Investor magazine has been advising readers how to invest without recourse to property clubs etc for years.

I am a property journalist and have built up my own portfolio and would be happy to advise (no fee involved!!) on UK property opportunities.

Kind regards
Michele Andrew

Hi oZinvestor,

Is there such a thing as a "good investment company"?

I bought some stock properties last year from "finders", and my experience is pretty much the same as the majority of investors in new build property.

1 You can borrow over 100% of the money required to control the property
2 Rents are always inflated, and you end up cash flow negative (I'm not saying this is a surprise, but mine are more cash flow negative than I had predicted)
3 Initial voids adds to the cash outflow
4 There are many new builds in the same area, so rents are kept down by investors keen to get SOME return instead of no return
5 There will be a period of adjustment in the prices, and the first few years the resale price will be less than you had paid, even getting your 15% to 23% discount to list price

Bottom line:
Newbuilds are not for everybody. In time, they may turn out to be decent long term holds, but they eat your cash after buying them, so make sure you have deep pockets to continue holding them.

If it's cash flow that's important (and it should be), you can't beat a good, old fashioned 2 bed terraced house in the UK.

Gerry, I started out on small terraced houses in Liverpool, fantastic fun.

Now operating in the £3-10 million bracket pooling funds with other like minded investors.

Every investment I make needs to be self financing from the start

Hi first post !

I know Gerry from another forum though, great site just found it !

A lot of the companies offering these services are just pure scam artists, in today's market you need to be careful and we don't supply ANY new build off plan properties at all !

Our model works on 2 types of properties:
Terrace houses
Semi Detached houses

That's it !

First time buyer homes that rent easily and sub 100k houses.

Make sure you do very good research into any companies you are considering, there are bargains to be had at the moment for investors willing to put a bit of money into deals so be careful but now is a great time to pick up some bargains !

Well I think that the Inside Track demise is a good warning don't you?
It really is better to take your own decisions.
After all, you wouldn't defer life's other important decisions to somebody you don't know would you? (Unless it's a medical consultant!)

__________________
Michele Andrew
Editor of Square Foot Magazine

All these schemes like Inside Track etc are just examples of brain washing people into believing untruths.

New builds, apartments, off plan etc are just warning signs to be careful of.

We only offer our clients established terrace and semi detached houses which are valued all under 100k so good first time buyer houses for when / if you want to exit.

I can't post a link to our landing site but feel free to PM me if you are interested in what we do.

There are so many companies offering new builds and apartments at the moment with discounts of 15% which are simply due to over supply and IF you actually went there you would see many empty apartments which means your actual rental you could achieve would be very low because everyone would be competing to get tenants, even at a loss.

We have been approached by 3 large companies this week offering us apartments (all tenanted apparently) because they have so many on the books at the moment. Just ask yourself why ! All 15% below market value which is not enough in today's climate and what is the actual MV anyway of these places ?

Just be careful and do your research.

I agree with Coggy, new builds are a no no. We are launching a UK property fund targeting repossessions in the North of the UK massive investor appetite seems to strike a chord with people in the current climate.

Tony