Wednesday 17 June 2015

BTS, BTL, Single Let, Multi-let, HMO, BMV, LTV - what?

If you're new to the investment arena you will have more acronyms thrown at you than you can count. Difficult of course to make sense of it all. The acronyms you'll be dealing with will be largely related to your strategy - Buy to Sell or Buy to let. Single let (letting as one unit to one (set of) tenant(s)) or multi-let (letting individual rooms), which can be classed as a House in multiple Occupation (think lots of bedsits - but realistically these have drastically improved now). Buying Below Market Value is always preferred but difficult in London of course where demand is so high. And ultimately your leverage will determine your Loan to Value %. Banks reward lower LTVs with a better interest rate, although the flipside is that "leaving a lot of money in a property" means you aren't investing it elsewhere. You are paying 4% interest - can you get a better return if you borrow that money and invest in another project? I would hope so!

So... have you thought about your investment strategy? Are you looking to buy for the long term gain or hoping to flip things around quickly? Do drop me a line if you fancy a chat or give me a call in the office on 020 3367 4474. I'd love to talk to you about your next investment. I'm on If you need advice or if you would like to run a deal or scenario past me please do so. I'm all ears.

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