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Congrats on being on your way to starting your journey of investing in real estate. You've done some excellent initial due diligence. In reference to you mentioning, "I'm hoping I can get yields in 7-8% range in area with good rental demand". Those yields are most definitely attainable. If done properly, BTL investing can be extremely rewarding, and an excellent wealth building tool.
In reference to Vanessa mentioning, "My only addition would be to consider buying a tenanted property, as that further reduces your risk, especially when buying remote from your local area and knowledge": This is an excellent strategy for your first time entering the BTL arena. However, having the right agent/property manager is absolutely paramount. They're oil that makes the engine go, and looking over your nest egg. All the best to you in the start of this journey!
Personally I would look at ROI rather than yield. One way to get some insight is to speak to a letting agent rather than a EA, as they want a house they can let and manage so can give you more insight into best roads to buy in etc.
It really can be a micro climate where literally 1 or 2 roads away can make all the difference
Slowly working towards financial freedom
Welcome to PropertyTribes!
It's good to see that you've given some thought to your investment strategy.
If you're principally looking for yield, then looking outside of the South East is key! As Alex and Rob say however, £75,000 is unlikely to go that far in Manchester if you're looking to buy multiple properties. But because you're thinking of becoming a long-distance landlord then maybe owning just one property isn't such a bad idea (as it's less hassle)? Albeit this needs to be weighed against the benefits of diversifying your capital across multiple properties! It's not an easy decision! Check-out this thread about the pros & cons of being a long-distance landlord and some tips of what to do to in order to de-risk this strategy:
Another way that you can make your life easier, and to remove risk, is to consider buying a tenanted property. Doing so provides income from day 1, plus you know exactly what the rental level is, you know the tenant's payment track-record, how they're looking after the property (and whether they're a family, students and how long they've been there for), and you can save on lettings agent's fees too.
At Vesta Property we specialise in helping landlords to buy and sell properties with tenants in place. Please do check us out! We also have some properties with rental guarantees as well if that's of interest.
Good luck with your journey either way!
I operate in Tameside - adjacent to both Manchester and Stockport. £75k should be enough to get a couple of decent properties in the cheaper parts of each.
You can definitely get 7-8% yields, both In Stockport/Manchester and closer to yourself in SE. You could potentially even get a higher yield in those areas, without sacrificing the ability for capital growth.
I’ve given some examples in Manchester/Stockport for you, so you have an idea of what you can achieve in those areas:
If you are interested in areas closer to yourself, we can find some examples in those places as well. Hope this helps and any more questions, please ask away!
Transparency notice: OneandOnlyPro is a commercial partner of Property Tribes.
I've signed up to your free trial already. Initial impression is good.
Congrats on being on your way to investing in your first BTL. I'd have to concur that considering to buy a tenanted property when buying remote from your area is a very good route to go. However, do your due diligence on the property manager/agent whom will be overseeing your property. We have seen our share of horror stories of mismanaged investment properties. But, with the right PM, it's a wonderful way to grow your wealth. All the best to you on your first venture.