Updating post from Reddit.
Hey everyone, I was wondering what are everyone thoughts about selling btl now? I have a btl not necessarily by choice- i had to move and couldn't sell at the time. Now i can't afford to buy a property for myself. It's a brand new, good yield property. But i saw on zoopla and rightmove there are a few owners that are trying to sell now as well, without much luck. Is there any website that would more suitable for investors, who are looking for tenanted properties? I have lovely tenants atm and don't really want to get rid of them.
Realistically, if you want to get the best price the property needs to be vacant (not just have a tenant who promises to leave). Unless it is an unusual area where the ONLY interest is from landlords (not many landlords are buying now so you are really talking about commercial investors and estate agents themselves some of whom are stepping into the vacuum as direct landlords).
Trying to sell "without much luck" has everything to do with price - but with a tenant in place you might want to pitch at 10% or 20% less.
Thanks, that’s very helpful. I feel like the whole building is much better for rental market than owner occupier, but as you say- not too many landlords are buying now. Do you think pitching to the commercial investors directly ever works?
I echo the previous comments. You will not achieve maximum value with a tenant in place. With a good spruce up and no tenant it should sell reasonably well, obviously depending on location.
i have bought properties and sold properties with tenants in but yes it was all about yield and a decent 13% yield. All paperwork was required incase eviction is needed. Have you pitched at property sourcers rather than advertising it in agencies it could get sold within a month cash purchase.
Property sourcers? Are these the guys who say “we will give you an instant cash etc?” I think i spoke to one of them and they offerred 80% of the mv (which also happens to be a purchase price). Do you have much experience with them?
There are a lot on LinkedIn but not all of them can deliver. But it should be cash buyers usually and it should usually be completion in 28 days. Another option is Auction houses get sold for overprice in auction however they advertise very low to attract interest.
I think BTL was an anomaly, brought about by artificially lowering the interest rates.
If you look back at the last 200 years, the BTL mortgages are unique to the post financial crisis economy. Quite frankly it's insane that they kept interests rates as low as they did for as long as they did, since all it really accomplished was people taking their money out of perfectly productive businesses, resulting in a tonne of redundancies and a productivity crisis before piling all their cash into 'low risk' investments such as residential property.
Its not that surprising that that model was unsustainable, people need to get out of BTL and start creating wealth again.
Haha yes but the question is how. A lot of building, especially conversion flats, would not be attractive to owner occupiers. There is plenty of flats in my building, one of them being sold on auction with a massive discount- still unsold. It’s a vicious circle.
Sell sell sell. The new Act is coming in abolishing the Section 21. I have sold my buy to let as have many others. Nobody will want to buy a tenanted property now as risk not getting tenants out. Issue a section 22 immediately and make sure you serve it properly.
Sure you still have the same power to evict for a good reason, which includes wanting to sell.
That’s not a BTL. You bought it to live in.
It is now, as I had to change my mortgage to reflect that it is now rented
That’s just the mortgage.
Still no difference between a buy to let and house you let out though
Well apart from that « buy to let » which wasn’t what was going on!