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The Property Podcast

ASK281: The rental stress test has me trapped - what should I do? PLUS: Am I competing against a phantom buyer?

The Property Podcast

Rob Bence & Rob Dix

Business News, News, Business, Education, Investing

4.82K Ratings

🗓️ 20 April 2021

⏱️ 8 minutes

🧾️ Download transcript

Summary

Rob & Rob are back again this week to answer two more listener questions.   Our first caller this week is Philippa.   She’s purchased a property in Liverpool that she needs some advice on.  The property was originally listed for £110,000 which Philippa thought was a decent price for the location and size of the build.   After submitting her offer, she was told she’d been significantly outbid.   It got to the point where Philippa’s offer of £126,000 was accepted and although she was still happy with the end ROI, she couldn’t help but think that the estate agent had invented this other buyer.   So Philippa wants to know if there’s any way of finding out if there was legitimately another interested party or if the estate agent was playing foul.  Our second caller this week is Noel from London who’s got a question about releasing equity.   He purchased two derelict properties and renovated them in 2013-2015. Now he rents them out.   The loan-to-value on the properties is around 50% each and he wants to release some equity to be able to purchase more property.   However, he’s finding it hard as he appears to be at the top of the stress test based on the rental income of the properties.   He can’t increase the rent as he’s already at the top end for that area.   Will Rob & Rob have any other suggestions for Noel?  Tune in to find out.    Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply).   Or if you prefer, click here to leave a recording via your computer instead.  The next question on Ask Rob & Rob could be yours.   Have you joined us over on the Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself.  See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0

Hi, I'm Rob.

0:03.4

And I'm Rob.

0:04.4

And this is Ask Rob and Rob.

0:07.0

Hello everybody and welcome to Ask Rob and Rob, the show where you get your questions

0:12.4

in.

0:13.4

Most of the time property related and we do our very best to give you some decent answers.

0:18.4

This week the setup is no different.

0:20.3

We've got questions in from Phillipa and Noel, but before we get started, let's remind

0:24.5

you how you can get involved.

0:26.2

Yeah, it's not hard.

0:27.2

All you've got to do is call 0138083035, that's 0138083035, or you can go to propertyhub.net,

0:34.9

slash ask, leave us a voicemail via either of those methods.

0:38.3

We make it easy because we love to hear from you.

0:40.9

We make it easy because we love for you to get in touch.

0:43.2

Just like Phillipa has.

0:44.8

I, Rob and Rob, it's Phillipa and I'm a long-term grateful listener.

0:48.3

I'd love to ask for your wisdom on a situation we have with a vitality and livable.

0:53.7

The property was marketed at 110,000, which seemed good for the location and the build.

1:00.2

And for Rob's benefit, I'll say it's around the corner from Trent Alexander, on a place.

1:04.0

We turn off her in and we were quickly told by the estate agent that another buyer had

1:08.4

been much higher.

1:09.4

Essentially, the bidding went up to a point that we offered 1,000 to 6,000, which seemed

...

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