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  • Buy-to-Let

    Are there massive opportunities in Blackpool?

    Hi Guys,

    I currently have 3 London properties let out all recently bought and the yields are very average but make me around 1200 a month in profit in total for all 3. I have about 300K left in cash and was looking at Blackpool pleasure beach area to invest as it 'appears' the yields are very good. I live in London but the plan is to stay there for about a year and set up a good sized portfolio that will eventually be left to an agent to manage.

    Now I was wondering if anyone here has tried Blackpool as a potential area. I read about two guys called Neil Larkin and Chris Smith from a company called Zing who are doing amazing business there from zero to 10 Million of property in aboout 2 years and producing 43,500 of free cash flow a month, they started with a modest amount of cash too and they do not do rent to rent, they buy the properties using JV type finance , add value and recycle money and do a mixture of sinle lets and HMO's.

    My research on right move shows that you can easily get 5 to 6 room properties for 125 to 160K near pleasure beach station and single lets on a LHA basis pay 300 a month so as you can see the yields are high and it would not be hard to expand for me with yields like this compared to the low yields in London.

    I was wondering if anyone here knows if Blackpool council are strict with HMO licensing and article 4 like they are in London or are landlords free to do what they like as long as up to 6 tenants are within a dwelling and not on 3 floors?

    Many thanks
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    Hi DP,

    Hmmmmm! If it sounds too good to be true ....

    We have a thread about Blackpool >>> here.

    Coincidentally, Blackpool was featured in a big article in the Times today. You can read it here.

    It basically says that Blackpool is turning into a ghetto of benefits tenants.

    There may be rewards, but the hassle factor will be pretty significant imho and the only tenants you will likely get are LHA tenants who have been forced out of other more expensive areas and tenants.

    The town is also deteriorating through social problems such as drink and drug abuse.

    I would do a great deal of research and visit HMOs that are already up and running before spending any money there. You can also phone the Housing Division of the local council and get their take on it.

    Hope that helps?
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    Yes I live in Blackpool and we don't need anymore scum landlords who don't give a shit for anyone else but for their own profits made out of government funds. Running a business on public money and then moaning when they get problem tenants. Blackpool is the same as any town or city full of hard working responsible homeowners. They do not want their area run down by squalid flats and hmos bought using buy to let mortgages by  parasitic little business men/women.
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    Hi DP,

    As a curious fellow southerner I saw the property prices in Blackpool and potential yields and got very excited! I took a drive up there 5/6 months ago to investigate and view a few properties - large houses / small hotels for up to £70,000.

    On the plus side, if you want a ready-made HMO and cheap property, you have them in abundance. Not sure about Blackpool's licensing regime.

    On the downside, the town doesn't look to be in good shape at all. Maybe it was just the long drive, but walking around I saw plenty of extremely rough-looking people and houses, lots of boarded-up shops. I don't think you can bank on property price rises, and property seems to stay on the market a good while.

    I decided not to investigate further. I think that if I lived nearby (like the person named in the FT article), or if I had a salaried person up there to oversee things, buying a few of these former hotels and housing mainly LHA tenants would be highly profitable. From my limited dealings with LHA tenants in the Medway towns I don't think you could manage remotely.
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    We are Doncaster based lha specialists I don't think you can run a lha model from that far away I think many would struggle with it even if 100 yards away it isn't for the faint hearted . I would look at working professional hmos not too far away depends on your goals we offer joint venture 50/50 we do all the work the investor provides the cash but we refinance the hmos Doncaster and Lincoln and pay the investor back the investor then retains 50% we aim to sell in 10 years time or just keep going a typical 6 bed will make £800 to £1000 per month we split 50/50 at refinance if the value means a shortfall of the investor money we pay all the shortfall from the net rent until full paid back then go 50/50 an infinate roi happy to discuss office 01302 562788/07979690484
    Kim Stones
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    Don't know the guys that you refer to but as a precaution I would ask anyone claiming to have gone from zero to loads of properties in no time at all to simply provide a list of them. I would then check a sample against the land registry at £4 a pop.
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    One issue with the area is that with LHA there are really only two main lenders and one will not lend in most of it as they class themselves as the biggest landlord in the area (due to bad debts and arrears).

    I know the area well after having relatives there for years and it is struggling so there may be opportunities as hopefully one day it will get better. But it's a long game and a risky one.
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    Regards Simon Searchlight Finance

    Fulfil Your Property Ambitions

    01565 654005

    Searchlight Finance Ltd is authorised and regulated by the Financial Conduct Authority reference 743220.

    HMO Finance I Complex BTL I Bridging Finance I Development Finance

    Buy to Let I Portfolio Finance I Commercial Mortgages


    Our lenders are Lloyds,Aldermore,Cambridge & Counties and Shawbrook.People we know how to invest.We have spent years beating on our craft while you novices spend your time writing about stuff you know nothing about I.e property investing/developing.


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    Its no great secret that several of the largest property PLC's are keeping a close eye on Blackpool but wont do so until they can find someone like Kersner or Genting to pump millions into a leisure development that perhaps takes out and enlarges the funfair.

    If it happens everyone will be clamouring for Blackpool, but its a big IF
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