Completely agree. Put them in over 10 properties in the last year for client and my own houses. I hate their stupid delivery setup, but love the kitchens!
Social housing providers could go bankrupt and not take good care of your property, however BTL tenants can stop paying and it can take months to remove them sometimes as councils tell them to stay put until bailiffs come, so vanilla buy to let's are not totally fool proof either!! Great vid though!!
Would love to know how you will achieve £1400 p/m with social housing? We are also in south wales with a newly refurbished 4bed hmo and would RCT would only pay £798 p/m for any 4 bed house. Would love to see contracts
Who is the social housing provider and who will the end tenant be? How many years contract? How did you manage the return to make sure social housing provider requirements were met?
Hi, a large agency in south Wales - typically asylum seekers are the end tenant. 3 year agreement, with typical extension to 6 years available. we have meetings with organisation reps who visit house and point out any further requirements they need.
He hasn't sorted the mould out if it's growing on the new plaster and a leaning wall that isn't a priority. You guys give landlords a bad name especially in south Wales. Place is full of them ruining the communities and houses
Thanks Scott, I do enjoy reading comments like these. The mould occurred due to no heating over the winter, it'll be cleaned and fixed once radiators are installed and operating like a normal house. As for the leaning wall in garden, it's a huge project that adds very little function, so no need to fix right now - the priority is providing housing for vulnerable individuals, and it still has a courtyard space which is plenty. In terms of running communities, this house was abandoned and in poor condition, I took it and am making it into the best house on the street, so I respectfully disagree on ruining communities and houses.
Mould forms on areas that have poor air circulation, cold walls or wet areas. The plaster is not wet and therefore its likely to be the other poor airflow and cold weather over the winter months. The wall was discussed in the video, so you might need to rewatch - the courtyard is plenty for the tenants in the property, and the rest of the garden will be fixed up / utilised in the future. Interested to hear you are helping the community Scott?
What were the stipulations from the Social Housing provider? For example did it have to be so far from a school, could it not be in cul de sac etc these are some of the stipulations we faced from social housing providers in Wales… just wondering if it’s the same?
So we didnt delve too far into that, as it's case by case. typically, it needs to have checks with local police, fire department etc. It also can't be a in a saturated are with other social housing providers. hope that helps.
Were you not able to move some of the walls? E.g. give some of the space from room 1 to room 2 and from room 2 to room 3 together with a bit of the landing area 😊
We certainly looked at that, but the layout just didnt allow unfortunately what with every bedroom needing a window, and not wanting to move the stairs. Good thinking though
Personally I think it’s the wrong approach for that property. He’s emotionally attached as it’s a lovely property that maybe would suit a refurbishment and resale or rental if it’s in a good area and you may achieve capital growth. As a social HMO, its condition will deteriorate over time (it already has), and valuations for such investments are not as for empty owner occupier properties. A resale would be as an investment property as is, or some further additional refurbishment as an empty property to get the best price for a non investor. I would also ensure the arrangement with the social housing is not too onerous. I see the reoccurring mould as one area where the two parties disagree on repair.
Hi, thanks for your opinion but I completely disagree. Yes I'm fond of the property, but I haven't overspent, and the main goal is constant passive income. if I rent it on the private market, it'll maybe hit £850 per month, and will need a lettings agent taking 10% and I'll have to contribute to maintenance costs. social housing its £1400 per month, no management fee, no maintenance, no voids - it's a no brainer. The organisation are responsible for the upkeep of the property, and whilst I expect a little bit of TLC afterwards, the agreement is they'll leave it as they found it. as mentioned in the video, the mould occurred due to no heating in over winter - for which it has now been installed. Whilst agree, upkeep is important for capital appreciation - the main priority is initial GDV so I can pull most of my money out and go again. whilst they may not be the most ideal tenants, they wont deter too much in general appreciation. I hope this points you in the right direction.
@@matthewcox6490hey Matt, and what happens if it comes to end of term and the property is trashed? Dyou think it’ll be easy to get money out of the provider? Have you ever seen a serco/mears etc property at end of term before ? Yes the lease may state they have to return in same condition, but what’s the likelihood of that happening?
i think owning more than 3 houses should be illegal. i get that ethically you can probably clear yourself because of the social housing tenants. what about BTL generally? Can you say that BTL hasn't absolutely shot up house prices? people want to escape rental and can't buy because of multi-house owners. i refuse to do this
Shame to hear, I can understand why a lot of people think like yourself. I think it Australia the cap is 6 properties. Personally I look at it in 2 ways; firstly there are literally hundreds of thousands of properties sitting empty, and each year a large number of properties are acquired by landlords, refurbished and brought back to market for people to rent. This is a massive plus point about landlords / property investors that most people overlook. Secondly, I think there is a large portion of people of that don't want to own property. Which creates the optimal situation for a landlord who does want to own a property and rent it out to those that don't. But I equally understand that many people feel they are being priced out of the market. Reality is, that will most likely continue to happen with or without landlords as the UK is a small Island and properties are limited. My view - I get one life, I enjoy transforming houses, and therefore why not do what I enjoy and make some money at the same time :D
A friend got a 100% mortgage back in 2007 and then split it into 2 flats and rented them both out. Her words to me after the crash was "I wish I'd bought more!". As long as you're not in a position where you're forced to sell the property and you can get a long term mortgage deal then the risk becomes manageable. For her she had instant cash flow and will have had massive capital appreciation since that time. Now having said all that, there was a reason that the 2008 crash happened and these types of strategies were exactly why as people over extended themselves and we had a massive bubble. However, if I were buying a house to live in, get some lodgers to cover my costs, over pay on the mortgage then you build your equity up whilst living there rent free. So to some up, be aware of the risks, think about ways to mitigate those risks and see if it's something you're comfortable with. Ideally for residential you want a 10% deposit and then you're comfortable, but sometimes if you're stuck renting and not able to save then this method can potentially help you break the cycle.
Hi Paul, hopefully Matt will respond to this question too. Process is relatively simple on the social housing side of things - approach a provider, provide them with plans, and get a site assessment carried out by them. If approved, they provide you with an idea of spec / criteria for the finish of the project, aswell as the health and safety requirements.
@@paulcon4139 Hi Paul, yes agree with everything Justin's just said there. yeah they do take BTL's too, although just be prepared for below market value rate.
