John Paul
John started property investing 5 years ago and quickly built a large portfolio of over 50 properties in North East of England. His strategy of buy cheap and high rents, meant that within 3 years of starting he was financially free and could have retired at the ripe old age of 29, but that wasn’t for John.
In 2009 he set up the Castledene Group and has gone from strength to strength despite the recession. His latest development is redeveloping a business centre for the Castledene Group and other local business’s in Easington and plans to open in April this year.
Castledene Property Management now has over 520 houses in full time management and with targets of 1000 by the end of 2010 he certainly has ambitious goals.
Castledene Property Investments sold over 100 houses in 2009.
Winners of East Durham business of the year and finalist in NE Business of the year, the Castledene Group has certainly been the success story of last year.
A contributor in many industry magazines and LHA expert his advice is regularly sought after and with an E-book on Housing benefit and LHA planned for April this year as well as other developments, it certainly looks as if 2010 will be a busy one for John.
To contact John email john.paul@justdoproperty.com
Major thankies for the article.Much thanks again. Keep writing.
Hello john
My PA has put this event in my diary
Can you tell me a little more about your business, its reputation in the area and the new centre
Also do you manage any of the properties in the Estate I stayed on, Nobel Street etc?
Thank you very much
Thank you very much
Carl Hopkins
Hi John
Can you help with the following question ?
I am a retired investor with an established portfolio providing 5% gross return at 65% LTV.
Currently cash flow positive but only due to low interest rates,which we know will not last.
What is the best exit strategy ? in order to make the portfolio permanenlty self financing?
If phased selling is the only solution ? a proposed increase in CGtax could make things difficult.
Thank you and regards
Ken Ward
Hi Ken
Many thanks for your question.
You have a number of avenues you can pursue.
1)as you said phased selling, make the most of CGT relief
2)Look to remortgage on a long term fixed rate. Your LTV is excellent and there will be quite a few favourable rates out there you can choose from
3)Replace your portfolio with more higher yielding properties, such as LHA or HMO’s – This should at least double your gross return. You can either remortgage existing portfolio or sell some properties to do this
4)Sell off part of your portfolio and with the profits, pay off your remaining mortgages.
The one thing we have to bank on is that interest rates WILL rise, sooner rather than later so you have to act now.
All my portfolio is high yielding, lower end properties so my portfolio will continue to perform well even if the interest rate rise is quite high. This was something I had in mind when I first started. Its all about cash flow for me, so I would choose option 3 or 4 but without knowing the exact financial position and true figures its hard to advise
I hope this helps Ken, but if you want to discuss this further please give me a ring