portfolio expansion

[opm]

hello,
I've only recently visited this website for the first time. In a nutshell I got into property 5 years ago, having £5000 to invest at that time. I have a portfolio of 67 houses / flats worth circa £8 million stg with an ltv of 53%. I'm based in N. Ireland where property has grown @ 30% over the last 12 months. When I started out I was getting 10-12% yields on 2 / 3 bed houses with no work to do and basically 20 people lined up to move in. I'll juxtapose this scenario with my most recent endeavour, the purchase of 16 city centre flats @ £775000 stg producing a yield of 9.1% and a substantial schedule of renovations, hassle etc.(the cost of which is priced into the figure of £775000). My point is this: yields are decreasing, interest rate futures are pricing in another quarter point hike in the not too distant future (with some commentators talking of a further 2 rises as anti-inflationary measures) and those very inflationary pressures, (oil for starters), are piling up. I will ask only one question...Is it time to sell sell sell?

[P.Pilcher]

I suppose it depends on your age! If your properties are worth 8M then if you sold the lot you would roughly realise 4M. Knock off the dreaded CGT and you have something like 2.5 million to put in your pocket assuming you don't go abroad to remove your CGT liability. If this is enough to keep you into old age then you know what to do!

P.P.

[Ruth Less]

Yes. Although you've 4M profit, there's still 4M debt. Up 30% over the last 12 months could easily be reversed, now we are coming to the end of the boom, for the reasons you've identified. It's unlikely you are the only one thinking of selling.

There's nothing wrong with taking a profit!

PS Warning of vested interest, I sold out, but on a titchy scale compared to yours :o